Commercial Viability of Strategic Choice on Green Energy Business: Hydro Power versus Wind Power (Latvian case)

Development of green energy, especially such types as hydropower and wind power, presents great opportunities for companies’ growth. The aim of the paper is to investigate commercial viability of green energy business to make an investment choice for Latvian privately owned small sized hydropower producer and seller LLC “Green Energy Solutions” (“GES”). Firstly the paper investigated theoretical and practical application of such concept of commercial viability of a strategy as a SFA: suitability, feasibility and acceptability. Then the latest trends of Green Energy Business in EU and in Latvia have been explored and strategic suitability has been defined. Secondly, to confirm or disprove investments in a hydropower station or wind turbine, Equivalent annual annuities of each alternative investment project have been calculated and financial feasibility has been discussed. Finally, recommendations for stakeholders regarding further growth of company “GES” and acceptability of given strategic choice have been reviewed in detail.