Possibilities of Applying the DEA Method in the Assessment of Efficiency of Companies in the Electric Power Industry: Review of Wind Energy Companies

Abstract

One of the fundamental tasks of modern power system is finding ways to produce stable and continuous electricity from scarce energy resources. One of the possible solutions is introduction, implementation and improvement of alternative forms of energy such as renewable energy sources, particularly wind energy as an increasingly important energy source which is expected to further increase its share in total electricity production. Numerous methods can be used in assessing the efficiency of wind energy companies, and in the focus of this research is the Data Envelopment Analysis method (DEA), a widely accepted methodology given its interdisciplinary approach and flexibility. This method represents a step forward in the field of renewable energy management, because it provides the possibility to compare the selected companies with the best in the industry (the most efficient) and the possibility of determining sources of inefficiency and, consequently, the possibilities of their elimination. Keywords: efficiency; power sector; wind energy companies; DEA JEL Classifications: C61; D24; Q42