FEEM working papers "Note di lavoro" series
2016 .060

Investing in Photovoltaics: Timing, Plant Sizing and Smart Grids Flexibility


Autori: Marina Bertolini, Chiara D'Alpaos, Michele Moretto
Serie: Mitigation, Innovation and Transformation Pathways
Editor: Massimo Tavoni
Parole chiave: Smart Grids, Renewable Energy Sources, Real Options, Prosumer
Numero JEL: Q42, C61, D81

Abstract

In Italy and in many EU countries, the last decade was characterized by a large development of distributed generation power plants. Their presence determined new critical issues for the design and management of the overall energy system and the electric grid due to the presence of discontinuous production sources. It is commonly agreed that contingent problems that affect local grids (e.g. inefficiency, congestion rents, power outages, etc.) may be solved by the implementation of a “smarter” electric grid. The main feature of smarts grid is the great increase in production and consumption flexibility. Smart grids give producers and consumers, the opportunity to be active in the market and strategically decide their optimal production/consumption scheme. The paper provides a theoretical framework to model the prosumer’s decision to invest in a photovoltaic power plant, assuming it is integrated in a smart grid. To capture the value of managerial flexibility, a real option approach is implemented. We calibrate and test the model by using data from the Italian energy market.

***

Suggested citation: Bertolini, M., C. D’Alpaos, M. Moretto, (2016), 'Investing in Photovoltaics: Timing, Plant Sizing and Smart Grids Flexibility', Nota di Lavoro 60.2016, Milan, Italy: Fondazione Eni Enrico Mattei

Download file
Scarica il file PDF

FEEM Newsletter

Iscriviti per rimanere aggiornato.

I Suoi dati saranno trattati dalla Fondazione Eni Enrico Mattei. – Titolare del trattamento – per ricevere via posta elettronica la newsletter della Fondazione. Il conferimento dell’indirizzo e-mail è necessario alla fornitura del servizio. La invitiamo a consultare la Privacy Policy per ottenere maggiori informazioni a tutela dei Suoi diritti.

Questo Sito utilizza cookie tecnici e analytics, nonché consente l’invio di cookie di profilazione di terze parti.
Chiudendo questo banner o comunque proseguendo la navigazione sul Sito manifesti il tuo consenso all’uso dei cookie. Per ulteriori informazioni e per esprimere scelte selettive in ordine all’uso dei cookie vedi la   Cookie PolicyOk