A Valuation of Onshore Wind Energy Investments Using a Real Options Approach: The Case of Onshore Wind Energy in Türkiye

This paper aims to evaluate the investment value of an onshore wind farm in Türkiye using traditional methods and the simple abandonment-option approach, and to demonstrate how real options analysis captures the value of managerial flexibility under uncertainty. The results indicate that the onshore wind farm project is more sensitive to changes in electricity prices, discount rates, installed costs, and capacity factors, respectively. The abandonment option increases the strategic net present value by $65,583, reaching $2,811,575, while the project value with flexibility is $17,120,419. This paper contributes to the literature on the country-specific valuation of onshore wind energy investments.