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A managerial decision support tool for the use of cryptocurrency mining to hedge renewable energy investments
Thesis (MEM)--Stellenbosch University, 2023.
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| Format: | Thesis |
| Language: | en_ZA |
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Stellenbosch : Stellenbosch University
2023
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| _version_ | 1867613927044546560 |
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| access_status_str | Open Access |
| author | Vicente, Riccardo Piero |
| author2 | Van Rooyen, Gert-Jan |
| author_browse | Van Rooyen, Gert-Jan Vicente, Riccardo Piero |
| author_facet | Van Rooyen, Gert-Jan Vicente, Riccardo Piero |
| author_sort | Vicente, Riccardo Piero |
| collection | Thesis |
| dc_rights_str_mv | Stellenbosch University |
| description | Thesis (MEM)--Stellenbosch University, 2023. |
| format | Thesis |
| id | oai:scholar.sun.ac.za:10019.1/128714 |
| institution | Stellenbosch University (South Africa) |
| language | en_ZA |
| last_indexed | 2026-06-10T12:43:54.909Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | Stellenbosch : Stellenbosch University |
| publisherStr | Stellenbosch : Stellenbosch University |
| record_format | dspace |
| source_str | SUNScholar — Stellenbosch University Repository |
| spelling | oai:scholar.sun.ac.za:10019.1/128714 A managerial decision support tool for the use of cryptocurrency mining to hedge renewable energy investments Vicente, Riccardo Piero Van Rooyen, Gert-Jan Bam, Louzanne Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering. Engineering Management (MEM). Cryptocurrencies Blockchains (Databases) Hedge funds Renewable natural resources -- Economic aspects Photovoltaic power systems Independent power producers Bitcoin Decision support systems Thesis (MEM)--Stellenbosch University, 2023. ENGLISH ABSTRACT: Investments in renewable energy are below the necessary targets to achieve global sustainability goals. This can be solved by increasing incentives for renewable energy investors by providing alternative revenue generation options to hedge the risk of renewable energy investments. It is proposed that cryptocurrency mining can be an alternative to conventional electricity exporting for Independent Power Producers (IPPs) to generate revenue. To analyse this proposal, a decision support tool is provided to support managerial decisions on renewable energy investments. A review of literature provides the context of the current developments in the _eld of cryptocurrency mining in the renewable energy industry, while providing an understanding of the functionality of blockchain technology, what cryptocurrencies are, and the process of cryptocurrency mining. A conceptual and detailed design of a model to be used as a decision support tool are described to indicate the variety of variables and parameters to consider for determining the feasibility of implementing cryptocurrency mining into renewable energy investments. The tool is verified through the development of a spreadsheet-based implementation and a simulation-based implementation of the model. This process allows for reliable assumptions to be made for the input parameters. The model's validity is then determined by applying the tool to various case studies where the primary input parameters are adjusted to be applied to real-world scenarios. This includes comparing different cases of renewable energy system capacity, cryptocurrency choice, mining equipment selection and their repurchase periods. The study to concludes that the tool has the ability to successfully generate useful information relating to potential renewable energy investment options. Based on the case studies it is deducted that cryptocurrency mining can be used as an alternative revenue stream for renewable energy investments. This proposal is deemed feasible under certain scenarios, as discussed in the case studies. It is noted that if crypto mining equipment is not repurchased at least every four years, crypto mining is not pro_table for renewable energy investments. However, under the correct circumstances, cryptocurrency mining yields similar revenue results to electricity exporting and in some cases, exceeds it, in terms of improving the present worth of the investment reducing the payback period. AFRIKAANSE OPSOMMING Beleggings in hernieubare energie val onder die nodige teikens om doelwitte vir globale volhoubaarheid te bereik. Dit kan opgelos word deur insentiewe te verhoog om in hernieubare energie te bel^e, deur alternatiewe inkomste-genererende opsies te bied om die risiko van hernieubare energie-investering te dek. Dit word voorgestel dat kryptogeld-mynwese 'n alternatief kan wees vir konvensionele elektrisiteituitvoer vir onafhanklike kragverska_ers om inkomste te genereer. Om hierdie voorstel te ontleed, word 'n besluitnemingsondersteunende hulpmiddel voorgestel om bestuursbesluite oor hernieubare energieinvesteringe te ondersteun. 'n Oorsig van literatuur verskaf die konteks van die huidige ontwikkelings in die veld van kryptogeldmynwese in die hernieubare energie-industrie, terwyl 'n begrip van die funksionaliteit van blokkettingtegnologie, 'n oorsig oor kriptogeld, en die proses van kryptogeld-mynwese verskaf word. 'n Konseptuele en gedetailleerde ontwerp van 'n model wat as 'n besluitnemingsondersteunende hulpmiddel gebruik kan word, word beskryf om die verskeidenheid van veranderlikes en parameters aan te dui wat in ag geneem moet word om die haalbaarheid van die implementering van kryptogeldmynwese in hernieubare energie-investeringe te bepaal. Die hulpmiddel word deur die ontwikkeling van 'n sigbladgebaseerde implementering en 'n simulasiegebaseerde implementering van die model bevestig. Hierdie proses laat betroubare aannames toe vir die invoerparameters. Die geldigheid van die model word dan bepaal deur die hulpmiddel op verskeie gevallestudies toe te pas waar die prim^ere invoerparameters aangepas word om toegepas te word in die werklike w^ereld. Hierdie sluit in die vergelyking van verskillende gevalle van hernieubare energie-sisteemkapasiteit, kryptogeldkeuse, myntoerusting en hul herkoopperiodes. Die gevolgtrekking is dat die hulpmiddel in staat is om nuttige inligting te genereer wat verband hou met moontlike hernieubare energie-beleggingsopsies. Op grond van die gevallestudies word die gevolgtrekking gemaak dat kryptogeld-mynwese 'n alternatiewe inkomstestroom vir hernieubare energie-beleggings kan wees. Die voorstel word onder sekere omstandighede as haalbaar beskou, soos bespreek in die gevallestudies. Dit word opgemerk dat as kryptogeld-myntoerusting nie ten minste elke vier jaar herkoop word nie, kryptogeld-mynwese nie winsgewend is vir hernieubare energie-beleggings nie. Masters 2023-02-12T10:58:34Z 2023-11-16T09:22:58Z 2023-02-12T10:58:34Z 2023-11-16T09:22:58Z 2023-02 Thesis https://scholar.sun.ac.za/handle/10019.1/128714 en_ZA Stellenbosch University xvii, 185 pages : illustrations application/pdf Stellenbosch : Stellenbosch University |
| spellingShingle | Cryptocurrencies Blockchains (Databases) Hedge funds Renewable natural resources -- Economic aspects Photovoltaic power systems Independent power producers Bitcoin Decision support systems Vicente, Riccardo Piero A managerial decision support tool for the use of cryptocurrency mining to hedge renewable energy investments |
| title | A managerial decision support tool for the use of cryptocurrency mining to hedge renewable energy investments |
| title_full | A managerial decision support tool for the use of cryptocurrency mining to hedge renewable energy investments |
| title_fullStr | A managerial decision support tool for the use of cryptocurrency mining to hedge renewable energy investments |
| title_full_unstemmed | A managerial decision support tool for the use of cryptocurrency mining to hedge renewable energy investments |
| title_short | A managerial decision support tool for the use of cryptocurrency mining to hedge renewable energy investments |
| title_sort | managerial decision support tool for the use of cryptocurrency mining to hedge renewable energy investments |
| topic | Cryptocurrencies Blockchains (Databases) Hedge funds Renewable natural resources -- Economic aspects Photovoltaic power systems Independent power producers Bitcoin Decision support systems |
| url | https://scholar.sun.ac.za/handle/10019.1/128714 |
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