Portfolio Analysis of Power Plant Technologies: A Simulation Approach to Rebalance Fuel Mix Strategies

Description

The liberalization process, tightening environmental standards and the need for replacing aged power plants force European utilities to optimize their future generation mix. Power plants are real assets and as a consequence the power plant park of a utility firm equals a portfolio of different generation assets. This thesis adds to the understanding how to identify an efficient generation portfolio through time by assuming a non-constant feasible set. According to our results a combination of conventional thermal and renewable energies turn out to be efficient in terms of expected value and risks. Therefore, implementing a strategy based on renewable energies which cause less CO2 per MWh generated electricity clearly pays off. Potential readership includes scholars from energy economics and energy finance as well as interested practitioners involved in these areas. Front Matter ....Pages I-XXIV Introduction (Sebastian Rothe)....Pages 1-8 Economics of energy markets (Sebastian Rothe)....Pages 9-56 Mean-variance valuation approach for power plants (Sebastian Rothe)....Pages 57-102 Simulation based model for analyzing generation portfolios (Sebastian Rothe)....Pages 103-159 Empirical analyses of European generation portfolios (Sebastian Rothe)....Pages 161-235 Conclusions (Sebastian Rothe)....Pages 237-243 Back Matter ....Pages 244-292