Investing in Power Generation

Reinhard Madlener and Rik W. Doncker
Additional contact information
Rik W. Doncker: Faculty of Electrical Engineering and Information Technology at the RWTH Aachen University

Chapter 17 in Handbook Utility Management, 2008, pp 281-310 from Springer

Abstract: Abstract In light of considerable political and market risk emanating from energy market liberalization, global warming, and rapid technological change, adequate investment in power generation capacity is of paramount importance for ensuring the security of electricity supply and a smooth transition to a more decentralized, energy-efficient and renewable energy system. Consequently, investors have to use more sophisticated approaches to determine optimal investment levels and technology choices than in regulated markets. In this chapter, we provide a discussion of relevant topics and issues in this context and some of the key literature. We also discuss the expected paradigm shift from centralized to more decentralized electricity generation, and the possible (re-)emergence of direct current grids, in light of the history of electrical engineering. Both phenomena, once manifested, would radically reshape the electricity system, with potentially severe economic consequences for existing real assets and new challenges for investment decision-makers, technical system operators, policy-makers, and regulatory bodies alike.

Keywords: risk management; paradigm shift; distributed generation (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-3-540-79349-6_17

Ordering information: This item can be ordered from
http://www.springer.com/9783540793496

DOI: 10.1007/978-3-540-79349-6_17

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().