| Tidal power development in the Bay of Fundy presents a viable solution to alleviate the problem of increasing demand for secure, renewable energy in Nova Scotia. However, due to the infant state of the tidal energy industry, there exists a lack of understanding of the risks involved. This research addresses this deficit and provides a framework to quantify the risk associated with capital cost, operational failure, and sales revenue. The framework is demonstrated through three case studies. Analytically-verified simulation is employed to estimate the distribution of net present value and the probability of a net monetary loss (project failure). Sensitivity analysis of model inputs assists in the development of a risk management plan. |
