Financial impact on capital return of wind energy production strategy

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This paper evaluates the financial feasibility of the wind energy production project at the Kitka Substation (SS Kitka), focusing on its technical and economic aspects, return on capital investment, and broader environmental and social implications. The study’s findings indicate that for the period of January to June 2022, the project generated total revenues of €3,749,466.11, while operating expenses amounted to €1,780,000. With a total investment of €48,000,000, the capital return for this period was calculated at €1,969,466.11. The analysis of wind energy production data from January to August 2022 recorded a total output of 56,562.25 MWh. Moreover, the project contributed €10,160,047 in revenue to the Kosovo government through wind-generated energy from the SS Kitka facility. Based on financial projections, the annual return on investment (ROI) for the capital invested is estimated at €3,938,932.22. Consequently, the full recovery of the initial €48 million investment is projected to be achieved within 12 years. These findings underscore the long-term financial viability of the SS Kitka wind energy project, reinforcing its role in promoting sustainable energy development and economic growth.

Keywords: Financial Impact, Energy Costs, Distribution, Wind Energy, Capital Investments, Kitka, Voltage, Berivojca

Authors’ individual contribution: Conceptualization — S.R.; Methodology — S.R.; Validation — R.V. and V.R.; Investigation — S.R. and R.S.; Writing — Original Draft — S.R., R.S., and V.R.; Writing — Review & Editing— S.R., R.S., and G.V.; Supervision — S.R. and R.S.; Visualization — V.R.; Project Administration — S.R., R.V., and G.V.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: F65, G14, G30, P51, Q47, Q49

Received: 09.09.2024
Revised: 04.11.2024; 13.03.2025; 21.04.2025
Accepted: 24.04.2025
Published online: 28.04.2025

How to cite this paper: Rexhepi, S., Shaqiri, R., Vangjel, R., Rexhepi, V., & Vataj, G. (2025). Financial impact on capital return of wind energy production strategy. Corporate & Business Strategy Review, 6(2), 120–129. https://doi.org/10.22495/cbsrv6i2art12