A simple-to-implement real options method for the energy sector

  title={A simple-to-implement real options method for the energy sector},
  author={Giorgio Locatelli and Mauro Mancini and Giovanni Lotti},

Valuation of a Company Producing and Trading Seaweed for Human Consumption: Classical Methods vs. Real Options

The objective of this paper is to analyze different models for the valuation of investment projects in a company in the aquaculture sector in order to conclude whether there is a model that represents a better valuation.

Options as Silver Bullets: Valuation of Term Loans, Inventory Management, Emissions Trading and Insurance Risk Mitigation using Option Theory

Models to price long term loans in the securities lending business are developed and a heuristic is developed to mitigate any loss of information, which might set in when parameters are estimated and then the valuations are performed, by directly calculating valuations using the historical time series.

The different characteristics of real options in contracts of wind power in Brazil

Abstract: This paper investigates the existence of uncertainties in different wind power commercialization contracts in Brazil and their correlation with the Real Options associated with unmitigated

Real Option Technique for an Assessment of the Itakpe Iron Ore Project

This study examines the viability of an iron mining mineral with the approach of real options, which allows the mining project flexibility and scalability. A positive value for the Option to delay

Talking About Futureproofing: Real Options Reasoning in Complex Infrastructure Projects

Complex infrastructure projects often attract criticism regarding their short- and long-term performance. An effective development process requires thinking about both present and future



Using Real Options to Evaluate the Flexibility in the Deployment of SMR

According to recent estimations the financial gap between Large Reactors (LR) and Small Medium Reactors (SMRs) seems not as huge as the economy of scale would suggest, so the SMRs are going to be

Real options in the energy markets

Electricity prices are notoriously hard to model due to their exotic behaviors. The extraordinarily high volatilities, strong mean reversion, pronounced cyclical price patterns, and occasional

Power Plant Investments in the Turkish Electricity Sector: A Real Options Approach Taking into Account Market Liberalization

In this paper we study the economic feasibility of constructing a 560 MW coal-fired power plant in Turkey, using real options theory [1]. We start from a short review of the Turkish electricity