Real options theory applied to electricity generation projects: A review

E.A. Martínez Ceseña, J. Mutale and F. Rivas-Dávalos

Renewable and Sustainable Energy Reviews, 2013, vol. 19, issue C, 573-581

Abstract: Real options (RO) theory is well known for enhancing the value of projects under uncertainty. This is achieved by modelling the flexibility that managers possess to adjust the projects in response to changes in their environments. Based on this, RO theory could be used to tackle current energy and environmental issues by enhancing the value of electricity generation projects (EGP), especially renewable energy projects (REP).

Keywords: Real options; Generation planning; Renewable energy; Power systems economics (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (45)

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DOI: 10.1016/j.rser.2012.11.059

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