Valuing flexibility in utility planning

✍ Scribed by Thomas W. Kaslow; Robert S. Pindyck

• Book ID: 103995206
• Publisher: Elsevier Science
• Year: 1994
• Tongue: English
• Weight: 696 KB
• Volume: 7
• Category: Article
• ISSN: 1040-6190
• DOI: 10.1016/1040-6190(94)90012-4

✦ Synopsis

His research has covered the behavior of energy resource and commodity markets, the design of economic policy and econometric modelling and forecasting. He received a Ph.D. in economics from MIT, has authored a number of academic journal articles and is the author or co-author of seven books in these areas. 60

Valuing Flexibility In Utility Planning

Utilities should view flexible investment alternatives as resource "options," which provide a potentially valuable right without the encumbrances of an obligation. The ability to qua&f) the value offlexibility using these methods permits a new approach to utility planning not possible with traditional Net Present Value approaches.