A Compound Real Option Approach for Determining the Optimal Investment Path for RPV-Storage Systems

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dc.catalogadorjca
dc.contributor.authorHassi, Benjamín A.
dc.contributor.authorReyes Torres, Tomas Hernan
dc.contributor.authorSauma Santis, Enzo Enrique
dc.date.accessioned2023-07-11T13:46:33Z
dc.date.available2023-07-11T13:46:33Z
dc.date.issued2022
dc.description.abstractThe use of residential Photovoltaic-Storage systems may produce large benefits to owners and has expanded rapidly in recent years. Nonetheless, large uncertainties regarding the profitability of these systems make it necessary to incorporate flexibilities in their economic evaluations. This paper offers a new method to evaluate the compound flexibility of both the option of delaying investments and the option of further expanding the capacity of solar photovoltaic modules and batteries during the investment horizon. Flexibility is modeled as a compound real option, whose value is computed using a novel method that we call Compound Least Squares Monte Carlo (CLSM). The model is applied to the investment decisions associated to a residential Photovoltaic-Storage system. Results suggest that investors should use the proposed CLSM method in the economic valuation of multi-stage projects, since considering only a single flexibility could promote sub-optimal decisions. Moreover, in our case study, we show that it is optimal to break the investment down into two steps or more in 36% of future scenarios, on average.
dc.fechaingreso.objetodigital2023-07-11
dc.fuente.origenORCID
dc.identifier.doi10.5547/01956574.43.3.bhas
dc.identifier.issn1944-9089
dc.identifier.urihttps://doi.org/10.5547/01956574.43.3.bhas
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/74157
dc.identifier.wosidWOS:000817173300004
dc.information.autorucEscuela de Ingeniería; Hassi, Benjamín A.; S/I; 231778
dc.information.autorucEscuela de Ingeniería; Reyes Torres, Tomas Hernan; ; 131463
dc.information.autorucEscuela de Ingeniería; Sauma Santis, Enzo Enrique; ; 74184
dc.issue.numero3
dc.language.isoen
dc.nota.accesoContenido parcial
dc.pagina.final103
dc.pagina.inicio83
dc.publisherThe Energy Journal
dc.rightsacceso restringido
dc.subjectBatteries
dc.subjectLeast Squares Monte Carlo
dc.subjectOptimal Investment Path
dc.subjectReal Options
dc.subjectRPV-Storage Systems
dc.subjectSolar Power
dc.subject.ddc600
dc.subject.deweyTecnologíaes_ES
dc.subject.ods07 Affordable and Clean Energy
dc.subject.odspa07 Energía asequible y no contaminante
dc.titleA Compound Real Option Approach for Determining the Optimal Investment Path for RPV-Storage Systems
dc.typeartículo
dc.volumen43
sipa.codpersvinculados231778
sipa.codpersvinculados131463
sipa.codpersvinculados74184
sipa.indexWOS
sipa.trazabilidadORCID;2023-07-10
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