The value of gas-fired power plants in markets with high shares of renewable energy

Lena Hörnlein

Energy Economics, 2019, vol. 81, issue C, 1078-1098

Abstract: Using a real options model, this paper quantifies a gas-fired power plant's operating value and the value of a new investment against the background of a market transition to renewable electricity. The model is run with recent data for Germany's power sector and for different types of gas-fired power plants.

Keywords: Real options; Electricity; Investment; Gas-fired generation; Energy transition (search for similar items in EconPapers)
JEL-codes: C6 L9 Q4 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:81:y:2019:i:c:p:1078-1098

DOI: 10.1016/j.eneco.2019.04.013

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