Computing optimal subsidies for Iranian renewable energy investments using real options

نویسندگان

  • Akbar Esfahanipour Department of Industrial Engineering, Amirkabir University of Technology, Tehran, Iran
  • Alireza Rokhsari Department of Electrical Engineering, Amirkabir University of Technology, Tehran, Iran
  • Morteza Ardehali Department of Electrical Engineering, Amirkabir University of Technology, Tehran, Iran
چکیده مقاله:

For the valuation of the renewable energy investments, providing private investors with a financial incentive to accelerate their investment is a very significant issue. Financial subsidies are known by the majority of the people to be one of the most important drivers in renewable energy expansion and one of the main reasons which result in the development of any industry. In this paper, we present a new approach to compute the optimal subsidies over a specific time period by using the Binomial model for the Valuation of Real Options for Iranian renewable energy investments adjusted with Tax rate. We also apply linear regression method for predicting energy prices in order to allow an investor to exercise the relevant option over the timeline of the project at the optimal price. To evaluate our proposed approach, we apply it using predicted electricity prices for the next 16 years and electricity generation cost for Seid Abad, Damghan solar power plant. Our results in comparison of the base paper show that our proposed approach improves the error of subsidy’s computation by 1.57 percent since we used the predicted energy prices rather than the spot price as used before in real options’ valuation.

برای دانلود باید عضویت طلایی داشته باشید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Flexible ICT investments analysis using real options

Information-communication technology (ICT) investments analysis using real options (ROs) has been a subject of active research during the last decade. It is a flexible method to value investment opportunities and to derive optimal timing of investments deployment taking into account uncertainties in future benefits and costs. We develop a framework for classifying the research on real ICT proje...

متن کامل

Power Systems Investments : A Real Options Analysis

Energy projects with extended life cycles and initial investments can be non-profitable under discount cash flow methods. Therefore, real options analysis has become relevant as a pricing technique for these types of projects, with private risks and high investment levels. Following this question, this study analyses different real options approaches to select the most acceptable for investing ...

متن کامل

Using Dynamic Thermal Rating and Energy Storage Systems Technologies Simultaneously for Optimal Integration and Utilization of Renewable Energy Sources

Nowadays, optimal integration and utilization of renewable energy sources (RES) are of the most challenging issues in power systems. The wind and solar generation units' maximum production may or may not occur at peak consumption times resulting in non-optimal utilization of these resources. As a solution to this problem, energy storage systems (ESS) are embedded in networks. However, the power...

متن کامل

Free Lunch: Exploiting Renewable Energy for Computing

This paper argues for “Free Lunch”, a computation architecture that exploits otherwise wasted renewable energy by (i) colocating datacentres with these remote energy sources, (ii) connecting them over a dedicated network, and (iii) providing a software framework that supports the seamless execution and migration of virtual machines in the platform according to power availability. This work moti...

متن کامل

Renewable energy portfolio standards (RPS) and achieving the optimal mix of renewable energy

Global development in terms of increased attention to environmental protection and the finite nature of fossil resources have accelerated the use of renewable energies. Renewable energy portfolio standard (RPS), is a government policy to promote the use of renewable energy in the energy consumption basket.  The RPS stipulates the minimum amount of renewable energy that each electricity supplier...

متن کامل

Renewable Energy Supply Options in Kuwait

This paper compares planning results of the electricity and water generation inventory up to year 2030 in the State of Kuwait. Currently, the generation inventory consists of oil and gas fired technologies only. The planning study considers two main cases. The first case, Reference case, examines a generation inventory based on oil and gas fired generation technologies only. The second case exa...

متن کامل

منابع من

با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

ذخیره در منابع من قبلا به منابع من ذحیره شده

{@ msg_add @}


عنوان ژورنال

دوره 13  شماره Special issue: 16th International Industrial Engineering Conference

صفحات  16- 29

تاریخ انتشار 2020-02-01

با دنبال کردن یک ژورنال هنگامی که شماره جدید این ژورنال منتشر می شود به شما از طریق ایمیل اطلاع داده می شود.

میزبانی شده توسط پلتفرم ابری doprax.com

copyright © 2015-2023