Literature

If you are interested in further information on the topic evaluation methods of investment projects, the following publication provide more insights:

• Brigham E., Ehrhardt M. (2011). Financial Management: Theory and Practice, South-Western CENGAGE Learning, Mason, USA, ISBN-13: 978-1439041473

If you are interested in further literature on the financial options and real options, the following publications provide more insights:

• Dixit A.K., Pindyck R.S. (1994). Investment under Uncertainty. Princeton University Press, Princeton, ISBN-13: 978-0691042244
• Haahtela T. (2012). Differences between financial options and real options, Lecture Notes in Management Science, Vol. 4: 169-178, https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://citeseerx.ist.psu.edu/document%3Frepid%3Drep1%26type%3Dpdf%26doi%3D6276c9476c4bb54f62e6240c8c1729e7e33b20ea&ved=2ahUKEwisnoCSvbaJAxV_2AIHHflwNOgQFnoECBIQAQ&usg=AOvVaw1ILG0_tTQ4yPzowp4RKD-J
• Hull J. (2012). Options, Futures, and Other Derivatives. Prentice Hall, USA, ISBN: 978-0132147482
• Trigeorgis L. (2000). Real Options: Managerial Flexibility and Strategy in Resource Allocation. The MIT Press: Cambridge, Massachusetts/London, England, ISBN: 978-0262232024

In the list, you will find selected scientific papers on the topic portfolio optimization of power generation assets:

• Black F., Scholes M. (1973). The pricing of Options and Corporate Liabilities, The Journal of Political Economy, 81(3): 637-654, https://www.jstor.org/stable/1831029?seq=1
• Cox J.C., Ross S.A. (1976). The valuation of options for alternative stochastic processes, Journal of Financial Economics, 3: 145-166, https://doi.org/10.1016/0304-405X(76)90023-4
• Cox J.C., Ross S.A., Rubinstein M. (1979). Option Pricing: A Simplified Approach, Journal of Financial Economics, 7(3): 229-263, https://doi.org/10.1016/0304-405X(79)90015-1
• Glensk B., Madlener R. (2018). Evaluating the Enhanced Flexibility of Lignite-Fired Power Plants: A Real Options Analysis, Energy Conversion and Management, 177: 737-749, https://doi.org/10.1016/j.enconman.2018.09.062
• Glensk B., Madlener R. (2019). Energiewende at Risk: On the Continuation of Renewable Power Generation at the End of Public Policy Support, Energies, 12: 3616, https://doi.org/10.3390/en12193616
• Glensk B., Madlener R. (2019). The Value of Enhanced Flexibility of Gas-Fired Power Plants: A Real Options Analysis. Applied Energy, 251: 113-125, DOI: 10.1016/j.apenergy.2019.04.121
• Kroniger D., Madlener R. (2014). Hydrogen storage for wind parks: A real options evaluation for an optimal investment in more flexibility, Applied Energy, 136: 931-946, https://doi.org/10.1016/j.apenergy.2014.04.041
• Weibel S., Madlener R. (2015). Cost-effective design of ringwall storage hybrid power plants: A real options analysis, Energy Conversion and Management, 103: 871-885, DOI: 10.1016/j.enconman.2015.06.043