Wind power in general and the associated technology have great potential to supplement global energy demands and reduce the utilization of coal, natural gas, and other non-renewable sources of energy. Unlike natural gas and coal, wind power is clean, produces little or no greenhouse gases, and does not cause or exacerbate global warming and climate change (Vagiona and Kamilakis, 2018). In addition to tackling energy and climate change concerns, wind energy can also spark regional, national, and global economic growth. It ensures that individuals, homes, and businesses access clean and reliable energy (Tercanet al., 2020). Wind farms and wind energy distribution provide direct and indirect employment opportunities to numerous people globally. Offshore wind power – often obtained deep inside a water body such as a sea or ocean – is often plentiful in some countries. In Greece, the Aegean Sea is an attractive location for wind farm development to produce wind energy to meet the country’s energy targets (Satir et al., 2018). Several companies have already established wind farms there to take advantage of the powerful offshore winds in the region. This research proposal considers the feasibility of investing in one of these offshore wind power plants in the Aegean Sea in Greece.
Research Questions
The main research question is, “what is the feasibility of investing in an offshore wind power plant in Greece’s Aegean Sea?” The most important consideration is short, medium, and long-term profitability here. An investment opportunity that promises short, medium, and long-term profitability is the most ideal and the most feasible (Nezhad et al., 2021). However, since this is not always feasible, the other best alternative is an investment opportunity that provides positive returns in the medium and short terms. Investment opportunities with unclear returns potential are not ideal for investment. Therefore, based on this assessment, the investor will look at various wind plants in the Aegean Sea and consider the availability of investment opportunities and their attractiveness based on their past, current, and future financial performance (based on projections and estimates).
Research Aim
The research aims to understand the feasibility of investing in a new or existing wind farm in Greece’s Aegean Sea. Wind energy has great potential to transform the global economy and reduce environmental pollution. Producing offshore wind energy can be challenging, given the technological requirements for a successful undertaking (Karystianos et al., 2021). However, its benefits are numerous and include the possibility of profitability for individual and institutional investors.
Research Objectives
The research aims to identify an attractive investment opportunity in offshore wind energy generation in the Aegean Sea. This research will identify existing wind farms in the region and consider the feasibility of investing in them. Alternatively, the study will consider the feasibility of investing in a new wind farm in the region. This second alternative will look at the entire process of starting a wind farm, including the regulatory requirements and the associated costs. The consideration will also include the cost of doing business and the minimum amount required for a successful investment in the production of clean wind energy.
Reasoned Justification of the Study
The study is necessary because investment decisions are critical and require supporting data and informed decisions. Conducting the study allows the investor to collect sufficient data to support the investment decision (Bertsiou et al., 2018). This information will also help the investor take calculated risks because while investment opportunities can lead to significant gains, they are risky undertakings that require careful selection and scrutiny. The purpose of the research is to minimize the risk by collecting information and examining the attractiveness of this investment opportunity.
Limitations of the Study
One of the limitations of the study revolves around the scope. Although this is an investigation of the attractiveness of a business opportunity, it does not consider the associated technical issues and problems. Investment in offshore wind power production is a significant technical undertaking with significant technological demands (Tsilimigkas et al., 2018). However, this study will not focus on the technological aspects of the investment. The study is also geographically limited since it focuses on the Greek Aegean Islands and offshore wind resources. It is necessary to focus on one geographical area to limit the expenditure associated with the investment (Sakka et al., 2020). Notably, it is impractical, unnecessary, and impossible to invest in every wind farm globally. Choosing to invest in one location is a critical investment decision and risk. Lastly, the project is financially limited. Although this investment opportunity can potentially produce profitability, it is limited financially. The exact amount investable in this project will vary depending on the identified opportunity and the outcome of this investigation.
Relevant Theme and Discipline/Theory Area
The proposed research is related to the investment and resource limitation theories, change management, and leadership. Change management is necessary to manage the transition from one business to another, and good leadership is the key to managing resources properly and achieving success (Katopodiset al., 2021). The study recognizes the importance and complexity of the investment process and attempts to minimize risks and increase profitability. Risk minimization is the deliberate process of finding reliable information and using it to make informed decisions. Investing involves considering various factors and determining the right investment given the prevailing goal and purpose. The resource limitation theory recognizes that financial, technical, and natural resources are limited and that the best way of creating value is investing carefully. According to the investment theory by Sternberg and Lubart (1991), creative people can buy low and invest high on available ideas. This tendency to take risks is often rewarding, although it can sometimes produce losses.
Types of Data Employed
The proposed study will employ both primary and secondary data. The researcher will collect primary data by interviewing or surveying appropriately experienced individuals. Secondary data will come from published books, journals, and websites. Both primary and secondary data will allow for a thorough comprehension of the investigation issue and facilitate better decision-making (Kakouris, 2021). The only problem with employing primary and secondary data is that the process can be expensive and more time-consuming.
Method of Data Collection
The researcher will collect primary data through observations, interviews, and surveys. Primary data is more reliable, accurate, and up-to-date because it comes directly from the source. The author will then collect secondary data from reading books, journals, and online publications. Some books and peer-reviewed journals will come from online databases, while others will be accessed through the school library and the public libraries countrywide. Site visits are optional as they depend on the availability of travel resources.
Preliminary Hypotheses (Null H0 and Alternative H1)
- H0: It is not feasible to invest in an offshore wind power plant in Greece’s Aegean Sea.
- H1: IT is feasible to invest in an offshore wind power plant in Greece’s Aegean Sea.
Direction for Further Research
Future research should focus on identifying potentially profitable businesses from inception. It is hard to differentiate between potentially profitable and non-profitable firms unless one accesses the company’s financial reports. One can base performance likelihood for upcoming firms on the business environment, but this is a difficult undertaking. No matter how well-organized business projections are, there is no guarantee that outcomes will resemble them. Further research should also focus on the likely impact of competition in wind energy generation.
References List
Bertsiou, M., Feloni, E., Karpouzos, D. and Baltas, E., 2018. Water management and electricity output of a hybrid renewable energy system (HRES) in Fournoi island in Aegean Sea. Renewable energy, 118, pp.790-798.
Kakouris, A., 2021. Teaching creativity in entrepreneurship: Embolden or discourage?. Industry and Higher Education, 35(4), pp.465-470.
Karystianos, M.E., Pitas, C.N., Efstathiou, S.P., Tsili, M.A., Mantzaris, J.C., Leonidaki, E.A., Voumvoulakis, E.M. and Sakellaridis, N.G., 2021. Planning of Aegean Archipelago Interconnections to the Continental Power System of Greece. Energies, 14(13), p.3818.
Katopodis, T., Markantonis, I., Vlachogiannis, D., Politi, N. and Sfetsos, A., 2021. Assessing climate change impacts on wind characteristics in Greece through high resolution regional climate modelling. Renewable Energy, 179, pp.427-444.
Nezhad, M.M., Neshat, M., Groppi, D., Marzialetti, P., Heydari, A., Sylaios, G. and Garcia, D.A., 2021. A primary offshore wind farm site assessment using reanalysis data: A case study for Samothraki island. Renewable Energy, 172, pp.667-679.
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Sternberg, R.J. and Lubart, T.I., 1991. An investment theory of creativity and its development. Human development, 34(1), pp.1-31.
Tercan, E., Tapkın, S., Latinopoulos, D., Dereli, M.A., Tsiropoulos, A. and Ak, M.F., 2020. A GIS-based multi-criteria model for offshore wind energy power plants site selection in both sides of the Aegean Sea. Environmental Monitoring and Assessment, 192(10), pp.1-20.
Tsilimigkas, G., Pafi, M. and Gourgiotis, A., 2018. Coastal landscape and the Greek spatial planning: evidence from windpower in the South Aegean islands. Journal of Coastal Conservation, 22(6), pp.1129-1142.
Vagiona, D.G. and Kamilakis, M., 2018. Sustainable site selection for offshore wind farms in the South Aegean—Greece. Sustainability, 10(3), p.749.