Power Plant Valuation and Investment Decision
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F68407700%3A21230%2F11%3A00186340" target="_blank" >RIV/68407700:21230/11:00186340 - isvavai.cz</a>
Result on the web
<a href="http://www.power-engineering.sk" target="_blank" >http://www.power-engineering.sk</a>
DOI - Digital Object Identifier
—
Alternative languages
Result language
angličtina
Original language name
Power Plant Valuation and Investment Decision
Original language description
With the introduction of competitive and liberalized electricity markets, power plant investment analysis has become an important issue for electricity companies. The real options theory fits very well into the valuation of power plant investment opportunities due to the operational flexibility and the opportunities to invest in power plants can also be modeled in this way. An base-load power plant can be regarded as a string of forward contracts and peak-load power plant can be regarded as a string ofcall options on spark spreads. When valuing a power plant value or power plant investment opportunities, we model normally the electricity prices and gas or coal prices separately and calculate the forecasted cash flows with certain heat rates. This reduces to a real options problem with the underlying variable following an Arithmetic Brownian motion process
Czech name
—
Czech description
—
Classification
Type
D - Article in proceedings
CEP classification
JE - Non-nuclear power engineering, energy consumption and utilization
OECD FORD branch
—
Result continuities
Project
—
Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2011
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Power Engineering 2011
ISBN
978-80-89402-40-3
ISSN
—
e-ISSN
—
Number of pages
4
Pages from-to
1-4
Publisher name
Slovak University of Technology in Bratislava
Place of publication
Bratislava
Event location
Tatranské Matliare
Event date
Jun 7, 2011
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
—