Expansion planning for transmission network under demand uncertainty: A real options framework

Portfolios of Real Options and Capacity Expansion in Transmission Network Expansion Planning

In network investments, much of the real options value may reside “in” identifying the proper configuration to develop, in terms of the timing and sizing of its deployment. A longer-term perspective, with a treatment of uncertainty that moves beyond simply increasing deterministic specifications, has the potential to improve the design of networked infrastructures, such as power transmission ne...

A multi-period distribution network design model under demand uncertainty

Supply chain management is taken into account as an inseparable component in satisfying customers' requirements. This paper deals with the distribution network design (DND) problem which is a critical issue in achieving supply chain accomplishments. A capable DND can guarantee the success of the entire network performance. However, there are many factors that can cause fluctuations in input dat...

A Transmission Expansion Planning Model for Maximizing Merchant Investment

Transmission Network Expansion Planning Under a Tabu Search Approach

This paper describes an implementation of Tabu Search to cope with long-term transmission network expansion planning problems. Tabu Search is a metaheuristic proposed in 1989 to be applied to combinatorial problems. To assess the potential of our approach we will test it with two cases of transmission network expansion planning. The results obtained by our approach let us to conclude that TS is...

Real options valuation under uncertainty

In this paper we develop a novel valuation model and methodology to value a pharmaceutical R&D project based on real options approach. The real options approach enables the possibility of optimally abandon the project before completion whenever the investment cost turns out to be larger than the expected net cash flow stream. On the other hand, the proposed model accounts for two different sour...