Monte-Carlo simulation of investment integrity and value for power-plants with carbon-capture

Giuseppina Di Lorenzo, Pericles Pilidis, John Witton and Douglas Probert

Applied Energy, 2012, vol. 98, issue C, 467-478

Abstract: Reducing CO2-emissions from electricity-generating power-plants is a high priority. Several advanced low-carbon power-plants have gained wide acceptance. Uncertainties concerning future costs and performances of new pertinent technologies and unit fuel-prices as well as the types and the comprehensiveness of CO2-emissions regulations exacerbate the difficulty of selecting promising candidates to be considered for future investments. A computer-based Monte-Carlo simulation technique has been devised to help choose the best technology for financial investments: it allows for the stated uncertainties and assesses the trade-offs between expected returns and the key risks imposed on decision makers. The economic-modelling methodology is described. The computer-based model assesses the investment in a new low-carbon integrated reforming combined-cycle (IRCC) power-plant. The worthwhileness of this financial investment is evaluated in terms of net present-value (NPV), internal rate-of-return (IRR) and pay-back period (PBP).

Keywords: Investment-appraisal; Risk; Monte-Carlo simulation; CO2 capture; Integrated reforming combined-cycle (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0306261912002966
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:98:y:2012:i:c:p:467-478

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2012.04.010

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().