scholarly journals Optimal investment strategies for distributed generation in distribution networks with real option analysis

2017 ◽  
Vol 11 (3) ◽  
pp. 804-813 ◽  
Author(s):  
Bo Zou ◽  
Jianhui Wang ◽  
Fushuan Wen
Keyword(s):  
Distributed Generation ◽  
Real Option ◽  
Optimal Investment ◽  
Distribution Networks ◽  
Investment Strategies ◽  
Real Option Analysis

scholarly journals Missed Opportunities: Optimal Investment Timing When Information is Costly

2007 ◽  
Vol 42 (2) ◽  
pp. 467-488 ◽  
Author(s):  
Graeme Guthrie
Keyword(s):  
Real World ◽  
Real Option ◽  
Optimal Investment ◽  
Investment Opportunity ◽  
Missed Opportunities ◽  
Investment Timing ◽  
Real Option Analysis ◽  
Amount Of Information ◽  
Optimal Delay

AbstractReal option analysis typically assumes that projects are continuously evaluated and launched at precisely the time determined to be optimal, but real world projects cannot be managed in this way because of the costs of formally evaluating an investment opportunity. This paper shows that immediate investment is more attractive if evaluation costs are high or the amount of information to be revealed by an evaluation is large. The optimal delay until a reevaluation is long if evaluation costs are high or the amount of information to be revealed by an evaluation is small. The reduction in the value of project rights is especially severe when the value of the completed project is strongly mean reverting because then precision in investment timing is particularly important.

Determining the Norton’s Equivalent Model of Distribution System with Distributed Generation (DG) for Stability Analysis

2019 ◽  
Vol 12 (2) ◽  
pp. 190-198
Author(s):  
Sunny Katyara ◽  
Lukasz Staszewski ◽  
Faheem Akhtar Chachar
Keyword(s):  
Distributed Generation ◽  
Normal Condition ◽  
Distribution System ◽  
Distribution Networks ◽  
Equivalent Model ◽  
Stability Factor ◽  
Matlab Simulation ◽  
The Stability ◽  
Stability Issues

Background: Since the distribution networks are passive until Distributed Generation (DG) is not being installed into them, the stability issues occur in the distribution system after the integration of DG. Methods: In order to assure the simplicity during the calculations, many approximations have been proposed for finding the system’s parameters i.e. Voltage, active and reactive powers and load angle, more efficiently and accurately. This research presents an algorithm for finding the Norton’s equivalent model of distribution system with DG, considering from receiving end. Norton’s model of distribution system can be determined either from its complete configuration or through an algorithm using system’s voltage and current profiles. The algorithm involves the determination of derivative of apparent power against the current (dS/dIL) of the system. Results: This work also verifies the accuracy of proposed algorithm according to the relative variations in the phase angle of system’s impedance. This research also considers the varying states of distribution system due to switching in and out of DG and therefore Norton’s model needs to be updated accordingly. Conclusion: The efficacy of the proposed algorithm is verified through MATLAB simulation results under two scenarios, (i) normal condition and (ii) faulty condition. During normal condition, the stability factor near to 1 and change in dS/dIL was near to 0 while during fault condition, the stability factor was higher than 1 and the value of dS/dIL was away from 0.

Price and subsidy under uncertainty: Real-option approach to optimal investment decisions on energy storage with solar PV

2021 ◽  
pp. 0958305X2199229
Author(s):  
Jingyu Qu ◽  
Wooyoung Jeon
Keyword(s):  
Renewable Energy ◽  
Energy Storage ◽  
Real Option ◽  
Financial Burden ◽  
Investment Decisions ◽  
Optimal Investment ◽  
Investment Incentives ◽  
Solar Pv ◽  
Increased Risk ◽  
Trigger Price

Renewable generation sources still have not achieved economic validity in many countries including Korea, and require subsidies to support the transition to a low-carbon economy. An initial Feed-In Tariff (FIT) was adopted to support the deployment of renewable energy in Korea until 2011 and then was switched to the Renewable Portfolio Standard (RPS) to implement more market-oriented mechanisms. However, high volatilities in electricity prices and subsidies under the RPS scheme have weakened investment incentives. In this study we estimate how the multiple price volatilities under the RPS scheme affect the optimal investment decisions of energy storage projects, whose importance is increasing rapidly because they can mitigate the variability and uncertainty of solar and wind generation in the power system. We applied mathematical analysis based on real-option methods to estimate the optimal trigger price for investment in energy-storage projects with and without multiple price volatilities. We found that the optimal trigger price of subsidy called the Renewable Energy Certificate (REC) under multiple price volatilities is 10.5% higher than that under no price volatilities. If the volatility of the REC price gets doubled, the project requires a 26.6% higher optimal investment price to justify the investment against the increased risk. In the end, we propose an auction scheme that has the advantage of both RPS and FIT in order to minimize the financial burden of the subsidy program by eliminating subsidy volatility and find the minimum willingness-to-accept price for investors.

scholarly journals Can Blockchain Strengthen the Energy Internet?

Network ◽  
2021 ◽  
Vol 1 (2) ◽  
pp. 95-115
Author(s):  
Charithri Yapa ◽  
Chamitha de Alwis ◽  
Madhusanka Liyanage
Keyword(s):  
Distributed Generation ◽  
Paradigm Shift ◽  
Distribution Networks ◽  
Future Research ◽  
Disruptive Technology ◽  
Electricity Distribution ◽  
Energy Internet ◽  
Energy Delivery ◽  
Electricity Grids

Emergence of the Energy Internet (EI) demands restructuring of traditional electricity grids to integrate heterogeneous energy sources, distribution network management with grid intelligence and big data management. This paradigm shift is considered to be a breakthrough in the energy industry towards facilitating autonomous and decentralized grid operations while maximizing the utilization of Distributed Generation (DG). Blockchain has been identified as a disruptive technology enabler for the realization of EI to facilitate reliable, self-operated energy delivery. In this paper, we highlight six key directions towards utilizing blockchain capabilities to realize the envisaged EI. We elaborate the challenges in each direction and highlight the role of blockchain in addressing them. Furthermore, we summarize the future research directive in achieving fully autonomous and decentralized electricity distribution networks, which will be known as Energy Internet.

Sign in / Sign up

Export Citation Format

Share Document