Natural gas storages may be valuated by applying real options theory. However it is crucial, not to ignore that most evolving gas spot markets, like the German spot market, lack of liquidity. In this context, considering storage operators as price takers does not account for interdependencies of...

Optimal capacity allocation for investments in electricity generation assets can be deterministically derived by comparing technology specific long-term and short-term marginal costs. In an uncertain market environment, Mean-Variance Portfolio (MVP) theory provides a consistent framework to...

The electricity generation mix of many European countries is strongly dominated by fossil fuelled power plants. Given that CO2-emissions are responsible for a major part of the anthropogenic greenhouse effect, emission trading has been introduced in the EU in 2005. Under the European emissions...

Power systems with high shares of wind and solar power have to balance their intermittent nature. Pumpedâ€hydro storage plants can provide the required flexibility, while thermal backup plants offer an alternative. This paper proposes a model based on peakâ€loadâ€pricing theory to...

It is common practice to base investment decisions on price projections which are gained from simulations using price processes. The choice of the underlying process is crucial for the simulation outcome. For power plants the core question is the existence of stable long-term cointegration...

This paper links Hotelling's theory, in recent literature applied to an emission constrained environment, with the classical capacity planning framework to describe portfolio timeâ€paths in electricity production. Emission targets are considered by a ceiling on the stock of pollution. We...

The ongoing transformation of the European energy system comes along with new challenges, notably increasing amounts of power generation from intermittent sources like wind and solar. How current objectives for emission reduction can be reached in the future and what the future power system will...

A fast growth of installed wind power capacity has been experienced in several European countries. In Germany, notably high wind power capacities are planned in the North. If the existing transmission capacities between individual regions become insufficient, the electricity prices will differ...

With increasing amounts of power generation from intermittent sources like wind, transmission planning has not only to account for the expected load curve but also for the stochasticity of volatile power infeeds. Moreover investments in power generation are no longer centrally planned in...