A multivariate model for hybrid wind–photovoltaic power production with energy portfolio optimization

Generation of renewable energy is destined to grow further, motivated, for example, the Paris Agreement, aimed at reducing the production of greenhouse gases. particular, hybrid production plants allow the exploitation of different climatic to generate electricity. We analyze the electricity generation of a mixed –photovoltaic (PV) system, considering a multivariate model that involves the climatic variables. We include the price of electricity in our model in order evaluate the profitability of the system through its expected income. In addition, investigate the optimal choice between these two production technologies via ’s classic portfolio selection theory. To this end, we then consider a portfolio the income deriving from both wind and PV production. We determine the efficient components that maximize the overall income of our portfolio. This is enriched by taking into consideration the loss of load hours of efficient portfolios. Finally, we make an optimal choice between the two technologies. The are validated via Monte Carlo simulations using empirical data.