Strategic power plant investment planning under fuel and carbon price uncertainty
Abstract
The profitability of power plant investments depends strongly on uncertain fuel and carbon prices. In this doctoral thesis, we combine fundamental electricity market models with stochastic dynamic programming to evaluate power plant investments under uncertainty. The application of interpolation-based stochastic dynamic programming and approximate dynamic programming allows us to consider a greater variety of stochastic fuel and carbon price scenarios compared to other approaches.
Keywords
Real Options; Dynamic Programming; Fundamental Electricity Market Models; Power Plant Investment Planning; Approximate Dynamic ProgrammingISBN
9783866446335Publisher
KIT Scientific PublishingPublisher website
http://www.ksp.kit.edu/Publication date and place
2011Classification
Business strategy