Sustainability Assessment of Gas-Fired Power Generation Pathways

Greenhouse Gas Emissions from Fossil Fuel Fired Power Generation Systems

The natural hedge of a gas-fired power plant

Electricity industries worldwide have been restructured in order to introduce competition.As a result, decisionmakers are exposed to volatile electricity prices, which are positively correlated with those of natural gas in markets with price-setting gas-fired power plants. Consequently, gas-fired plants are said to enjoy a “natural hedge.” We explore the properties of such a built-in hedge for ...

Gas Fired Power Plants: Investment Timing, Operating Flexibility and Abandonment

We analyze investments in gas fired power plants under stochastic electricity and gas prices. A simple but realistic two-factor model is used for price processes, enabling analysis of the value of operating flexibility, the opportunity to abandon the capital equipment, as well as finding thresholds for energy prices for which it is optimal to enter into the investment. Our case study, using rea...

Flexibility and Technology Choice in Gas Fired Power Plant Investments

The value of a gas fired power plant depends on the spark spread, defined as the difference between the unit price of electricity and the cost of gas. We model the spark spread using two-factor model, allowing mean-reversion in short-term variations and uncertainty in the equilibrium price to which prices revert. We analyze two types of gas plants. The first type is a base load plant, generatin...

Economical Evaluation of Biomass-fired Power Generation in Japan

Biomass, that is carbon neutral and a renewable resource, becomes attractive after the decision of Biomass-Nippon strategy in Japan. We are trying to construct a database concerning utilization of woody biomass. There are many kind of biomass and the conversion technologies are also manifold. Therefore, in this study, biomass-fired power generation was aimed because it has been already substant...