Time-dependent opportunities in energy business: A comparative study of locally available renewable and conventional fuels

Tolis, AI; Rentizelas, AA; Tatsiopoulos, IP

dc.contributor.author	Tolis, AI	en
dc.contributor.author	Rentizelas, AA	en
dc.contributor.author	Tatsiopoulos, IP	en
dc.date.accessioned	2014-03-01T11:45:10Z
dc.date.available	2014-03-01T11:45:10Z
dc.date.issued	2010	en
dc.identifier.issn	1364-0321	en
dc.identifier.uri	https://dspace.lib.ntua.gr/xmlui/handle/123456789/37261
dc.subject	Real options	en
dc.subject	Investment optimisation	en
dc.subject	Forecasting	en
dc.subject	Biomass	en
dc.subject	Natural gas	en
dc.subject	Carbon capture	en
dc.subject.classification	Energy & Fuels	en
dc.subject.other	SUPPLY CHAIN	en
dc.subject.other	TECHNOLOGY	en
dc.subject.other	BIOMASS	en
dc.subject.other	INVESTMENT	en
dc.subject.other	LOGISTICS	en
dc.subject.other	STORAGE	en
dc.title	Time-dependent opportunities in energy business: A comparative study of locally available renewable and conventional fuels	en
heal.type	other	en
heal.identifier.primary	10.1016/j.rser.2009.07.027	en
heal.identifier.secondary	http://dx.doi.org/10.1016/j.rser.2009.07.027	en
heal.language	English	en
heal.publicationDate	2010	en
heal.abstract	This work investigates and compares energy-related, private business strategies, potentially interesting for investors willing to exploit either local biomass sources or strategic conventional fuels. Two distinct fuels and related power-production technologies are compared as a case study, in terms of economic efficiency: the biomass of cotton stalks and the natural gas. The carbon capture and storage option are also investigated for power plants based on both fuel types. The model used in this study investigates important economic aspects using a "real options" method instead of traditional Discounted Cash Flow techniques, as it might handle in a more effective way the problems arising from the stochastic nature of significant cash flow contributors' evolution like electricity, fuel and CO2 allowance prices. The capital costs have also a functional relationship with time, thus providing an additional reason for implementing, "real options" as well as the learning-curves technique. The methodology as well as the results presented in this work, may lead to interesting conclusions and affect potential private investment strategies and future decision making. This study indicates that both technologies lead to positive investment yields, with the natural gas being more profitable for the case study examined, while the carbon capture and storage does not seem to be cost efficient with the current CO2 allowance prices. Furthermore, low interest rates might encourage potential investors to wait before actualising their business plans while higher interest rates favor immediate investment decisions. (C) 2009 Elsevier Ltd. All rights reserved.	en
heal.publisher	PERGAMON-ELSEVIER SCIENCE LTD	en
heal.journalName	RENEWABLE & SUSTAINABLE ENERGY REVIEWS	en
dc.identifier.doi	10.1016/j.rser.2009.07.027	en
dc.identifier.isi	ISI:000271279100026	en
dc.identifier.volume	14	en
dc.identifier.issue	1	en
dc.identifier.spage	384	en
dc.identifier.epage	393	en