Browsing by Subject "tuulienergia"

This paper identifies an issue of under-investment in wind energy in Poland and analyses it from the perspective of market efficiency. It argues that higher required returns from wind energy assets in Poland are a result of both greater investment risks as well as a certain market inefficiency which leads to wind asset under-pricing and reduced investment.We hypothesize that the same risks which affect investment directly through the cost of capital for wind projects create conditions which are potential sources of market inefficiency. The conditions discussed are: information and transaction costs and market entry barriers. We explore the general wind energy investment environment as well as the electricity market structure and renewable energy policy design to identify the presence of the three conditions above. In the course of this discussion, we find that the wind asset market in Poland contains specific information and transaction costs and entry barriers, substantiating a case for market inefficiency and requiring further research.