Container power generation valuation standards

4 FAQs about Container power generation valuation standards

What is a model for power plant valuation?

In this paper, we describe a model for power plant valuation that accounts for such important operating characteristics as minimum on- and off-times, ramp time, nonconstant heat rates, response rate and minimum electricity dispatch level. The power plant values and optimal operating policies are obtained by employing stochastic dynamic programming.

Do operating constraints affect power plant values?

Sample numerical results, using electricity price data from the New England power pool, show that operating constraints can have a significant impact on power plant values and optimal operating policies. Deregulation of energy markets has dramatically changed the environment in which many power generation asset owners operate.

How does deregulation affect power generation assets?

Deregulation of energy markets has dramatically changed the environment in which many power generation asset owners operate. In particular, utilities have become increasingly exposed to extremely volatile energy prices. Mismanagement of this risk exposure, even for an efficient power producer, may have a severe impact on its financial position.

Can real options theory be applied to value power generation assets?

In this paper, we describe how real options theory may be applied to value power generation assets. In particular, the model we develop is capable of handling constraints related to minimum on- and off-times, ramp times, minimum dispatch levels and response rates.

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arq3-3_power

In this paper, we describe a model for power plant valuation that accounts for such important operating characteristics as minimum on- and off-times, ramp time, nonconstant heat rates,

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