Profitability measures and cost minimization in electricity generation investments

dc.contributor.author Campos,FA en
dc.contributor.author José Villar en
dc.contributor.author Cervilla,C en
dc.date.accessioned 2018-01-16T12:21:13Z
dc.date.available 2018-01-16T12:21:13Z
dc.date.issued 2015 en
dc.description.abstract Net Present Value (NPV), Weighted Average Cost of Capital (WACC), Internal Rate of Return (IRR), and Total-Life Cost of Capital (TLCC) are economic concepts widely used in capital budgeting to measure and compare the profitability of investments. More specifically, in the electricity sector these measures, with the Levelized Cost of Energy (LCOE), are very often used to assess investments in generation assets. At the same time, electricity generation models based on mathematical programming and game theory have also been developed to determine optimal expansion plans of the generation capacity for long-term horizons. Though these two techniques have both been applied in the literature to assess generation investments in the electricity sector, taking into account, among others, investment, maintenance and operation costs, their mathematical relationships have been rarely reported or even understood. Here we provide some insight on the mathematical links existing between both approaches. © 2015 IEEE. en
dc.identifier.uri http://repositorio.inesctec.pt/handle/123456789/6350
dc.identifier.uri http://dx.doi.org/10.1109/eem.2015.7216602 en
dc.language eng en
dc.relation 6853 en
dc.rights info:eu-repo/semantics/embargoedAccess en
dc.title Profitability measures and cost minimization in electricity generation investments en
dc.type conferenceObject en
dc.type Publication en
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