Efficient electricity production portfolios taking into account physical boundaries
نویسندگان
چکیده
In this paper the efficiency of the electricity generation portfolio of BKW, a major Swiss utility, is analyzed. By applying mean-variance portfolio theory to the current and to possible future generation mixes, efficient frontiers are derived. The analysis based on relative changes in generation costs is complemented by an actual costs analysis. Moreover, a method that takes into account physical boundaries using the so-called capacity factor is presented in order to translate the obtained portfolio allocations into physical quantities, i.e. into required installed capacities. It is shown that the method gives useful insight regarding future investment plans and provides valuable support for investment decision makers.
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