CliSAP successfully finished in 2018. Climate research continues in the Cluster of Excellence "CLICCS".

Investments in the Agro- and Energy Sector Anticipating Climate Change

The project has been specified to deal with “Offshore Wind Farm Investment under Different Support Schemes and Uncertain Induced Innovation: A Real Options Approach”. The German Renewable Energy Sources Act ("Erneuerbare Energiengesetz") has triggered a substantial investment into renewable energy technologies. Thereby wind energy constitutes the fastest growing segment of renewable energies in Germany. One of the current problems in the development of wind power in Germany is related to the development of offshore wind farms in the North Sea. Against this background the project models the investment problem of offshore wind farms is a stochastic real option framework with a particular focus on alternative support schemes (feed-in tariffs) and remaining electricity price uncertainty. We also account for uncertain learning curve information on renewable power generation technologies in the stochastic dynamic programming formulation. The aims of the project are to

  1. improve the understanding of how various uncertainties may affect offshore wind farm investment, and
  2. illustrate the effectiveness of various renewable energy policies implemented.