Least Squares Monte Carlo Simulation-Based Decision-Making Method for Photovoltaic Investment in Korea

Solar power for clean energy is an important asset that will drive the future of sustainable generation. As interest in increases with Korea’s renewable expansion plan, a strategy photovoltaic investment (PV) from investor’s point view. Previous research primarily focused on assessing and analyzing impact volatility but paid little attention to modeling decision-making project obtain optimal timing. This paper utilizes Least Squares Monte Carlo-based method determining timing PV plant investment. The proposed designed simulate total generation revenue period all uncertain price factors handled before time. numerical studies nine different scenarios considering system marginal (SMP) certificate (REC) spot market Korea demonstrated how determine time capacities. Therefore, can be used as tool provide investors information best invest market.