Efficiency Assessment of Wind Farms: a Two-stage Approach

Abstract

This study proposes an integrated methodology to provide insights regarding the efficiency of wind farms of two major promoters in the Portuguese energy sector. The focus of the wind farms performance assessment is on the operating stage which corresponds to the electrical energy production process. In a first stage, Data Envelopment Analysis is used to measure the efficiency of wind farms in producing electrical energy from the resources available and exogenous variables. This method is complemented by bootstrapping to refine the efficiency estimates. In a second stage, the factors which may influence the performance of wind farms are investigated by using truncated regression with bootstrapping. The methodology proposed may be used by promoters in management of wind farms and may also be useful to regulator agents on the supervision of the energy market.