Investment in the energy sector: An optimization model that contemplates several uncertain parameters

Maria Laura Cunico, Julio Rolando Flores and Aldo Vecchietti

Energy, 2017, vol. 138, issue C, 831-845

Abstract: Investments in the energy sector on the medium/long term are risky due to the uncertainties having in this sector: price volatility, unclear demands and indeterminate fossil reserve volumes, among others. Decision making tools plays an important role in order to attenuate the effect of uncertainties in the investment by including this aspect in the models. In this sense, mathematical programming models provide analytical tools to improve the decision making process. This paper presents a multi-period mathematical model for planning investments in the energy sector in a medium time horizon. The model considers several imprecise information of the energy market: uncertainty in the price of fossil resources, the trend in the growing demand and the variation in the availability of fossil reserves.

Keywords: Investment; Energy; Optimization model; Uncertainties; Fuzzy sets (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544217312811
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:energy:v:138:y:2017:i:c:p:831-845

DOI: 10.1016/j.energy.2017.07.103

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

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