A comprehensive analysis of real options in solar photovoltaic projects: A cluster-based approach

Solar photovoltaic (PV) projects are pivotal in addressing climate change and fostering a sustainable energy future. However, the complex landscape of renewable energy investments, characterized by high upfront costs, market uncertainties, and evolving technologies, demands innovative evaluation methods. The Real Options Approach has emerged as a powerful tool, offering strategic flexibility in decision-making under uncertainty. This paper comprehensively analyzes the application of real options for evaluating solar photovoltaic projects in 2008-2023. Analysis of document descriptors (author keywords, index keywords, and noun phrases extracted from titles and abstracts) reveals that the dominant research topics in the last ten years (2014-2023) include investment optimization, strategic analysis, energy policy, optimization of energy generation and investments in wind energy. These descriptors are used to analyze the evolution of research interests on a two-year basis and reveal the yearly evolution of the research topics. Finally, the concept of emergence is used to unveil emerging research trends, providing valuable insights for researchers and practitioners in the renewable energy sector. Ultimately, this work contributes to a deeper understanding of how real options analysis empowers decision-makers to make informed choices in advancing clean and sustainable energy solutions.