Valuation of the flexibility of power-to-gas facilities
Type
conference lecture
Date Issued
2017-06-01
Author(s)
Abstract (De)
Power-to-gas (P2G) is a technology that converts electrical power to gas fuels like methane for storage in the natural gas grid. Due to the low efficiency, the production of synthetic methane is only profitable if electricity is sufficiently cheap. However, P2G facilities are flexible consumers and can benefit from short-term price fluctuations on the electricity spot market. We use a real option approach to assess the profitability of an investment in a P2G facility, taking into account the uncertainty of power prices, gas prices and future investment costs.
Funding(s)
Language
English
HSG Classification
contribution to scientific community
Event Title
Conference on Computational Management Science
Event Location
Bergamo
Event Date
30.05.2017-01.06.2017
Subject(s)
Division(s)
Contact Email Address
michael.schuerle@unisg.ch
Eprints ID
251139
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Name
MSchuerle-Bergamo_2017-06-01.pdf
Size
700.4 KB
Format
Adobe PDF
Checksum (MD5)
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