Investment Trigger Price

2011 ◽  
Keyword(s):  
Trigger Price

Price and subsidy under uncertainty: Real-option approach to optimal investment decisions on energy storage with solar PV

2021 ◽  
pp. 0958305X2199229
Author(s):  
Jingyu Qu ◽  
Wooyoung Jeon
Keyword(s):  
Renewable Energy ◽  
Energy Storage ◽  
Real Option ◽  
Financial Burden ◽  
Investment Decisions ◽  
Optimal Investment ◽  
Investment Incentives ◽  
Solar Pv ◽  
Increased Risk ◽  
Trigger Price

Renewable generation sources still have not achieved economic validity in many countries including Korea, and require subsidies to support the transition to a low-carbon economy. An initial Feed-In Tariff (FIT) was adopted to support the deployment of renewable energy in Korea until 2011 and then was switched to the Renewable Portfolio Standard (RPS) to implement more market-oriented mechanisms. However, high volatilities in electricity prices and subsidies under the RPS scheme have weakened investment incentives. In this study we estimate how the multiple price volatilities under the RPS scheme affect the optimal investment decisions of energy storage projects, whose importance is increasing rapidly because they can mitigate the variability and uncertainty of solar and wind generation in the power system. We applied mathematical analysis based on real-option methods to estimate the optimal trigger price for investment in energy-storage projects with and without multiple price volatilities. We found that the optimal trigger price of subsidy called the Renewable Energy Certificate (REC) under multiple price volatilities is 10.5% higher than that under no price volatilities. If the volatility of the REC price gets doubled, the project requires a 26.6% higher optimal investment price to justify the investment against the increased risk. In the end, we propose an auction scheme that has the advantage of both RPS and FIT in order to minimize the financial burden of the subsidy program by eliminating subsidy volatility and find the minimum willingness-to-accept price for investors.

United States: Trigger Price Mechanism for Imported Steel Products

1978 ◽  
Vol 17 (4) ◽  
pp. 952-955
Keyword(s):  
United States ◽  
House Of Representatives ◽  
United States Of America ◽  
Private Investment ◽  
The United States ◽  
Foreign Assistance ◽  
Price Mechanism ◽  
Trigger Price

To amend the Foreign Assistance Act of 1961 with respect to the activities of the Overseas Private Investment Corporation.Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembledSection 1. This Act may be cited as the "Overseas Private Investment Corporation Amendments Act of 1978".

scholarly journals Optimal cartel trigger price strategies

1983 ◽  
Vol 29 (2) ◽  
pp. 313-338 ◽  
Author(s):  
Robert H Porter
Keyword(s):  
Trigger Price ◽  
Price Strategies

Price forecasting and trigger price probability estimation

1987 ◽  
Vol 3 (2) ◽  
pp. 281-287
Author(s):  
J.E. Epperson ◽  
S.M. Fletcher ◽  
M.F. Collins
Keyword(s):  
Probability Estimation ◽  
Price Forecasting ◽  
Trigger Price
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