A financial approach to renewable energy production in Greece using goal programming

Eleni Zografidou, Konstantinos Petridis*, Nikolaos Petridis, Garyfallos Arabatzis

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


Investing in renewable energy production is a high interest venture considering global energy needs and the environmental impact of fossil fuel consumption. Motivated by the goals set by the European Union towards 2020, this study aims at designing a renewable energy map (installing solar power plants) in Greece. Three aspects are considered, namely, social, financial, and power production aspects. A goal programming model is developed under target and structural constraints, and all possible weight combinations are examined. The solutions derived from each iteration are subjected to a financial meta-analysis, considering different tax and return scenarios aligned to the Greek taxation and banking system. The analysis considers Greece and each region separately, taking net present value (NPV) as an objective measure to assess the solutions. From the results, it is concluded that the internal rate of return is approximately 22.5%−25%22.5%−25% for the overall network. In addition, higher NPV values are obtained when the financial and power production aspects are given greater emphasis. The proposed model provides multi-dimensional information for decision makers; investors can determine the optimal budgeting mix, and policy makers can determine the weight on each aspect that guarantees the success of the venture.
Original languageEnglish
Pages (from-to)37-51
Number of pages15
JournalRenewable energy
Early online date4 Feb 2017
Publication statusPublished - Aug 2017

Bibliographical note

© 2017, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/


  • renewable energy
  • goal programming
  • financial appraisal
  • taxation
  • net present value
  • internal rate of return


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