Applying the Real Option Approach on Nuclear Power Project Decision Making

Shi, Hua Yu; Song, Hai Tao

doi:10.1016/j.egypro.2013.07.206

Cited by 9 publications

(2 citation statements)

References 4 publications

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“…An important measure is to adjust the energy structure and promote the consumption of clean energy sources such as nuclear energy. Thus, the use of nuclear energy increased from 44.19 billion kWh in 2000 to 290.75 billion kWh in 2013 [1], and 26 nuclear power units (28,528 MWe) are currently under construction in China [2,3].…”

Section: Introductionmentioning

confidence: 99%

Response Surface Methodology Control Rod Position Optimization of a Pressurized Water Reactor Core Considering Both High Safety and Low Energy Dissipation

Zhang

et al. 2017

Entropy

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Abstract:Response Surface Methodology (RSM) is introduced to optimize the control rod positions in a pressurized water reactor (PWR) core. The widely used 3D-IAEA benchmark problem is selected as the typical PWR core and the neutron flux field is solved. Besides, some additional thermal parameters are assumed to obtain the temperature distribution. Then the total and local entropy production is calculated to evaluate the energy dissipation. Using RSM, three directions of optimization are taken, which aim to determine the minimum of power peak factor Pmax, peak temperature Tmax and total entropy production Stot. These parameters reflect the safety and energy dissipation in the core. Finally, an optimization scheme was obtained, which reduced Pmax, Tmax and Stot by 23%, 8.7% and 16%, respectively. The optimization results are satisfactory.

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Section: Introductionmentioning

confidence: 99%

Response Surface Methodology Control Rod Position Optimization of a Pressurized Water Reactor Core Considering Both High Safety and Low Energy Dissipation

Zhang

et al. 2017

Entropy

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“…These include (Zhang et al, 2016) on the application of real options to solar photovoltaic power generation in China; Kitzing et al (2017) on the analysis of wind energy investments under different support schemes; and Kim et al (2017) on analyzing uncertainty variables affecting investment in developing countries with a case in Indonesia. Several studies also use this approach to analyze nuclear energy investments including the works of Rothwell (2006) on evaluating new nuclear power plants in the United States of America; Shi and Song (2013) on evaluating how risks and uncertainties affect the development of new power plants in China; Tian et al (2016) on analyzing the influence of carbon market on nuclear investment in China; and Cardin et al (2017) on the flexibility analysis for nuclear power plants with uncertainty in electricity demand and public acceptance. This research tries to contribute to these literatures by analyzing energy switching problem from coal to renewable energy or nuclear energy, involving uncertainty in coal prices, negative externality, and the risk of nuclear accident.…”

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confidence: 99%

Coal, Renewable, or Nuclear? A Real Options Approach to Energy Investments in the Philippines

Agaton

2017

International Journal of Sustainable Energy and Environmental R

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Article HistoryThe Philippines is making a significant step to become energy independent by developing more sustainable sources of energy. The country sees investments in renewable energy and nuclear energy as promising alternatives to address the country's problem in energy security. This paper evaluates the comparative attractiveness of either investing in alternative energy sources or continuing the use of coal for electricity generation in the Philippines. Applying the real options approach under coal price uncertainty, this study analyzes investment values and optimal timing of switching technologies from coal to renewable or nuclear energy. It also examines how negative externality and the risk of nuclear accident affect investment decisions. Results identify possible welfare losses from waiting or delaying investing in alternative energy. Negative externality favors investment in nuclear energy over coal, whereas the risk of nuclear accident favors investment in renewable energy.Contribution/Originality: This study contributes in the existing literature by applying real options approach to analyze investment strategies of shifting energy source from coal to renewable or nuclear energy considering the uncertainty in coal prices, risk of nuclear accident, and negative externality.

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Using Real Options to Value Two Key Merits of Small Modular Reactors

Locatelli

Pecoraro

Meroni

et al. 2020

Megaproject Management

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Small Modular Reactors (SMRs) can be better choice respect to large reactors, according to their inherent construction flexibility and their short construction time. In the energy sector, the Discounted Cash Flow (DCF) is usually used to evaluate an investment. However, "Real Options" method is a better choice respect to DCF approach underestimates the importance of flexibility during the investment decision. In this chapter, starting from real options approach, two fundamental characteristics for the choice of the construction of SMRs are defined: the time to market and the adding of a new plant on a typical portfolio. The computational model described in this chapter assesses the superior performance of SMRs in the UK.

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Applying the Real Option Approach on Nuclear Power Project Decision Making

Cited by 9 publications

References 4 publications

Response Surface Methodology Control Rod Position Optimization of a Pressurized Water Reactor Core Considering Both High Safety and Low Energy Dissipation

Response Surface Methodology Control Rod Position Optimization of a Pressurized Water Reactor Core Considering Both High Safety and Low Energy Dissipation

Coal, Renewable, or Nuclear? A Real Options Approach to Energy Investments in the Philippines

Using Real Options to Value Two Key Merits of Small Modular Reactors

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