In this paper we study the economic feasibility of constructing a 560 MW coal-fired power plant in Turkey, using real options theory. We start from a short review of the Turkish electricity market as well as the literature on real options theory and power plant investment. We then investigate...

Today's European utilities not only focus on electricity supply, but also offer exchange-traded “structured products” or portfolio management for unbundling financial and physical risk positions. Many utilities are only able to provide these services inside of their home markets, but in the...

Institutions such as the European Commission (EC) are currently seeking to increase the transparency of the derivatives markets. This course of action includes in particular the installation of a centralized clearing entity and with this the obligation to clear all relevant financial...

This paper aims to analyze what happens with renewable energy power plants, such as onshore wind, photovoltaics and biomass, when the public policy support based on the Renewable Energy Law expires. With its expiration the first renewable energy (and especially onshore wind) power plants will...

This study is based on the recent development of the European energy environment, which experiences a transition from being dominated by conventional energy generation into an increased penetration of renewable energy sources. Today's system operators offer a set of ancillary services, such as...