Renewable energy investments under different support schemes: A real options approach

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Standard

Renewable energy investments under different support schemes: A real options approach. / Boomsma, Trine Krogh; Meade, Nigel; Fleten, Stein-Erik.

I: European Journal of Operational Research, Bind 220, Nr. 1, 2012, s. 225-237.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Boomsma, TK, Meade, N & Fleten, S-E 2012, 'Renewable energy investments under different support schemes: A real options approach', European Journal of Operational Research, bind 220, nr. 1, s. 225-237. https://doi.org/10.1016/j.ejor.2012.01.017

APA

Boomsma, T. K., Meade, N., & Fleten, S-E. (2012). Renewable energy investments under different support schemes: A real options approach. European Journal of Operational Research, 220(1), 225-237. https://doi.org/10.1016/j.ejor.2012.01.017

Vancouver

Boomsma TK, Meade N, Fleten S-E. Renewable energy investments under different support schemes: A real options approach. European Journal of Operational Research. 2012;220(1):225-237. https://doi.org/10.1016/j.ejor.2012.01.017

Author

Boomsma, Trine Krogh ; Meade, Nigel ; Fleten, Stein-Erik. / Renewable energy investments under different support schemes: A real options approach. I: European Journal of Operational Research. 2012 ; Bind 220, Nr. 1. s. 225-237.

Bibtex

@article{83fad6f919eb4fd7a2a03e5ba073edb9,
title = "Renewable energy investments under different support schemes: A real options approach",
abstract = "This paper adopts a real options approach to analyze investment timing and capacity choice for renewable energy projects under different support schemes. The main purpose is to examine investment behavior under the most extensively employed support schemes, namely, feed-in tariffs and renewable energy certificate trading. We consider both multiple sources of uncertainty under each support scheme and uncertainty with respect to any change of support scheme, and we obtain both analytical (when possible) and numerical solutions. In a Nordic case study based on wind power, we find that the feed-in tariff encourages earlier investment. Nevertheless, as investment has been undertaken, renewable energy certificate trading creates incentives for larger projects. In our baseline scenario and taking the fixed feed-in tariff as a base, the revenue required to trigger investments is 61% higher with renewable certificates. At the same time, investment capacity is 61% higher.",
author = "Boomsma, {Trine Krogh} and Nigel Meade and Stein-Erik Fleten",
year = "2012",
doi = "10.1016/j.ejor.2012.01.017",
language = "English",
volume = "220",
pages = "225--237",
journal = "European Journal of Operational Research",
issn = "0377-2217",
publisher = "Elsevier",
number = "1",

}

RIS

TY - JOUR

T1 - Renewable energy investments under different support schemes: A real options approach

AU - Boomsma, Trine Krogh

AU - Meade, Nigel

AU - Fleten, Stein-Erik

PY - 2012

Y1 - 2012

N2 - This paper adopts a real options approach to analyze investment timing and capacity choice for renewable energy projects under different support schemes. The main purpose is to examine investment behavior under the most extensively employed support schemes, namely, feed-in tariffs and renewable energy certificate trading. We consider both multiple sources of uncertainty under each support scheme and uncertainty with respect to any change of support scheme, and we obtain both analytical (when possible) and numerical solutions. In a Nordic case study based on wind power, we find that the feed-in tariff encourages earlier investment. Nevertheless, as investment has been undertaken, renewable energy certificate trading creates incentives for larger projects. In our baseline scenario and taking the fixed feed-in tariff as a base, the revenue required to trigger investments is 61% higher with renewable certificates. At the same time, investment capacity is 61% higher.

AB - This paper adopts a real options approach to analyze investment timing and capacity choice for renewable energy projects under different support schemes. The main purpose is to examine investment behavior under the most extensively employed support schemes, namely, feed-in tariffs and renewable energy certificate trading. We consider both multiple sources of uncertainty under each support scheme and uncertainty with respect to any change of support scheme, and we obtain both analytical (when possible) and numerical solutions. In a Nordic case study based on wind power, we find that the feed-in tariff encourages earlier investment. Nevertheless, as investment has been undertaken, renewable energy certificate trading creates incentives for larger projects. In our baseline scenario and taking the fixed feed-in tariff as a base, the revenue required to trigger investments is 61% higher with renewable certificates. At the same time, investment capacity is 61% higher.

U2 - 10.1016/j.ejor.2012.01.017

DO - 10.1016/j.ejor.2012.01.017

M3 - Journal article

VL - 220

SP - 225

EP - 237

JO - European Journal of Operational Research

JF - European Journal of Operational Research

SN - 0377-2217

IS - 1

ER -

ID: 40764413