Title :
Analysis of the South African generation fuel mix using portfolio theory
Author :
Bashe, Mantombi ; Shuma-Iwisi, Mercy ; van Wyk, Michael A.
Author_Institution :
Sch. of Electr. & Inf. Eng., Univ. of Witwatersrand, Johannesburg, South Africa
Abstract :
Markowitz´ portfolio theory is applied to South Africa´s electricity generation fuel mix problem. The results obtained suggest that SA´s generation fuel mix is inefficient with high cost and high risk. It is proven that the reduction in the cost and risk of the SA´s generation fuel mix is linked to the reduction of the use of OCGTs.
Keywords :
cost reduction; gas turbine power stations; investment; power generation economics; risk management; Markowitz portfolio theory; OCGT usage reduction; South Africa electricity generation fuel mix problem; South African generation fuel mix analysis; cost reduction; open cycle gas turbine; risk reduction; Coal; Correlation; Electricity; Portfolios; Security; Standards; Portfolio theory; efficient frontier; efficient portfolios;
Conference_Titel :
Energy Conference (ENERGYCON), 2014 IEEE International
Conference_Location :
Cavtat
DOI :
10.1109/ENERGYCON.2014.6850473
