Wind Optimal Investment Timing Decisions Based on Stochastic Dynamic Programming

Compared with the conventional energy power generation investments, the uncertainty of wind power investment will bring greater risk. For wind power investors, wind power investment strategy-makers, even for wind power equipment manufacturers, all urgently need decision-support tools to minimize the risk and obtain optimal investment opportunities. In this paper, firstly we analyze the current problems and risks of wind power industry in China. Secondly, based on stochastic theory and dynamic programming methods, the paper establishes model about wind power investment decision-making. It considers the wind power project investment uncertainties risk factors. Example analysis shows that the model can be used for wind power developers to choose the right investment opportunities and to provide decision-making reference.