DocumentCode
3308989
Title
Analysis of Transmission Investments using Real Options
Author
Ramanathan, Badri ; Varadan, Siri
Author_Institution
KEMA, Raleigh, NC
fYear
2006
fDate
Oct. 29 2006-Nov. 1 2006
Firstpage
266
Lastpage
273
Abstract
This paper explores the application of real options for transmission investment analysis under deregulation. In recent years, real options analysis has gained wide recognition for its superiority in dealing with uncertainty and managerial flexibility in non-financial or "real" investments. In the electric power arena, generation companies have been quick to realize their importance in the valuation of assets and in risk management. In comparison however, the application of real options for transmission investments has been limited. This paper presents the problem formulation and analysis approach for real options analysis in transmission investments with illustrative examples
Keywords
investment; power system management; power transmission economics; risk management; asset management; deregulation; real options analysis; risk management; transmission investments; Cost accounting; Decision making; Investments; Power generation; Power generation economics; Power system planning; Power system security; Pricing; Risk management; Uncertainty;
fLanguage
English
Publisher
ieee
Conference_Titel
Power Systems Conference and Exposition, 2006. PSCE '06. 2006 IEEE PES
Conference_Location
Atlanta, GA
Print_ISBN
1-4244-0177-1
Electronic_ISBN
1-4244-0178-X
Type
conf
DOI
10.1109/PSCE.2006.296318
Filename
4075757
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