Power generation portfolios: A parametric formulation of the efficient frontier
MPRA Paper from University Library of Munich, Germany
The Portfolio Theory has been extensively used as a planning tool for power generation diversification. However, no one of the existing papers provide a detailed explanation on how the efficient frontier of the Power Generation Portfolio (PGP) is costructed. We provide a parametric formulation of the efficient frontier of PGP of up to 5 technologies. The analysys takes advantages of the fact that the risk of the PGP is a convex function of the shares of the different technologies. The parametric formulation of the efficient frontier of the PGP constitutes a powerfull policy tool for power generation policy-makers.
Keywords: Portfolio; Power Generation; Efficient Frontier; Risk; NPV. (search for similar items in EconPapers)
JEL-codes: D81 G11 Q40 Q49 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fmk and nep-rmg
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:94814
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