The value of power generation technologies can be derived from the investment cost, the plant's expected lifetime, and the discounted cash-flows, the latter of which typically are a combination of several underlyings, such as the price of fuel, electricity, and CO2. To determine this value, most...

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...