Yerkin Kitapbayev, MIT Sloan, Optimal investment strategies for power generation: the value of green energy
SAS 4201This paper examines the investment in and the valuation of power generation projects under uncertainty. The analysis incorporates the possibility of producing from alternative types of fuels, such as renewables (wind) or fossil fuels (gas), hence alternative types of plants/technologies. The model considered in this paper cannot be reduced to a single state variable. It…