planner to make a trade-off between the value of incorporating flexibility and the cost of doing so, commonly termed real … demonstrates that in the face of uncertainty, a flexible option enhances the value of a project. …

procedures both in terms of uncertainty and managing flexibility. …Real options theory is the newest expansion of standard investment evaluation methods and one that is at the same time … obligations – means that operational or production hedge mechanisms complementing the management tool-kit with flexibility and the …

for power generation mixes through taking advantage of the benefits of diversification and flexibility. …

measure and value uncertainty which are critical steps in decision making, real options are scarcely used in practice. The …

uncertainty. Hence, investors need valuing the flexibility to change decisions as uncertainty unfolds progressively. Real option …

management flexibility and possibility of adjustment (correction of previous decisions) in accordance to the market conditions …. In light of dramatic changes and increasing risks and uncertainty in investment decision-making, it is necessary to …

by the high uncertainty and the adverse impact of the electricity price and the CO2 permit price. This renders the …