q-fin updates on arXiv.org
Fri, 24 May 2019 01:00:05 GMT language
Rinne et al. conduct an interesting analysis of the impact of wind turbine
technology and land-use on wind power potentials, which allows profound
insights into each factors contribution to overall potentials. The paper
presents a detailed model of site-specific wind turbine investment cost (i.e.
road- and grid access costs) complemented by a model used to estimate
site-independent costs. We believe that propose a cutting edge model of
site-specific investment costs. However, the site-independent cost model is
flawed in our opinion. This flaw most likely does not impact the results
presented in the paper, although we expect a considerable generalization error.
Thus the application of the wind turbine cost model in other contexts may lead
to unreasonable results. More generally, the derivation of the wind turbine
cost model serves as an example of how applications of automated regression
analysis can go wrong.