Details
| Original language | English |
|---|---|
| Title of host publication | Operations Research Proceedings 2019 |
| Subtitle of host publication | Selected Papers of the Annual International Conference of the German Operations Research Society (GOR), Dresden, Germany, September 4-6, 2019 |
| Editors | Janis S. Neufeld, Udo Buscher, Rainer Lasch, Dominik Möst, Jörn Schönberger |
| Place of Publication | Cham |
| Publisher | Springer Nature Switzerland AG |
| Pages | 291-297 |
| Number of pages | 7 |
| Edition | 1. |
| ISBN (electronic) | 978-3-030-48439-2 |
| ISBN (print) | 978-3-030-48438-5 |
| Publication status | Published - 2019 |
| Event | Annual International Conference of the German Operations Research Society (GOR) 2019 - Dresden, Germany Duration: 4 Sept 2019 → 6 Sept 2019 |
Publication series
| Name | Operations Research Proceedings (ORP) |
|---|---|
| ISSN (Print) | 0721-5924 |
| ISSN (electronic) | 2197-9294 |
Abstract
Sustainable Development Goals
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Operations Research Proceedings 2019: Selected Papers of the Annual International Conference of the German Operations Research Society (GOR), Dresden, Germany, September 4-6, 2019. ed. / Janis S. Neufeld; Udo Buscher; Rainer Lasch; Dominik Möst; Jörn Schönberger. 1. ed. Cham: Springer Nature Switzerland AG, 2019. p. 291-297 (Operations Research Proceedings (ORP)).
Research output: Chapter in book/report/conference proceeding › Other contribution in a book, report, anthology or conference proceeding › Research › peer review
}
TY - CHAP
T1 - A Real Options Approach to Determine the Optimal Choice Between Lifetime Extension and Repowering of Wind Turbines
AU - Stetter, Chris
AU - Heumann, Maximilian
AU - Westbomke, Martin
AU - Stonis, Malte
AU - Breitner, Michael H.
N1 - Copyright: © 2020 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
PY - 2019
Y1 - 2019
N2 - The imminent end-of-funding for an enormous number of wind energy turbines in Germany until 2025 is confronting affected operators with the challenge of deciding whether to further extend the lifetime of old turbines or to repower and replace it with new and more efficient ones. By means of a real options approach, we combine two methods to address the question if extending the operational life of a turbine is economically viable, and if so, for how long until it is replaced by a new turbine. It may even be the case that repowering before leaving the renewable energy funding regime is more viable. The first method, which is the net present repowering value, determines whether replacing a turbine before the end of its useful life is financially worthwhile. The second method, which follows a real options approach, determines the optimal time to invest in the irreversible investment (i.e., replacing the turbine) under uncertainty. The combination allows for continuously evaluating the two options of lifetime extension and repowering in order to choose the most profitable end-of-funding strategy and timing. We finally demonstrate the relevance of our approach by applying it to an onshore wind farm in a case study.
AB - The imminent end-of-funding for an enormous number of wind energy turbines in Germany until 2025 is confronting affected operators with the challenge of deciding whether to further extend the lifetime of old turbines or to repower and replace it with new and more efficient ones. By means of a real options approach, we combine two methods to address the question if extending the operational life of a turbine is economically viable, and if so, for how long until it is replaced by a new turbine. It may even be the case that repowering before leaving the renewable energy funding regime is more viable. The first method, which is the net present repowering value, determines whether replacing a turbine before the end of its useful life is financially worthwhile. The second method, which follows a real options approach, determines the optimal time to invest in the irreversible investment (i.e., replacing the turbine) under uncertainty. The combination allows for continuously evaluating the two options of lifetime extension and repowering in order to choose the most profitable end-of-funding strategy and timing. We finally demonstrate the relevance of our approach by applying it to an onshore wind farm in a case study.
U2 - 10.1007/978-3-030-48439-2_35
DO - 10.1007/978-3-030-48439-2_35
M3 - Other contribution in a book, report, anthology or conference proceeding
SN - 978-3-030-48438-5
T3 - Operations Research Proceedings (ORP)
SP - 291
EP - 297
BT - Operations Research Proceedings 2019
A2 - Neufeld, Janis S.
A2 - Buscher, Udo
A2 - Lasch, Rainer
A2 - Möst, Dominik
A2 - Schönberger, Jörn
PB - Springer Nature Switzerland AG
CY - Cham
T2 - Annual International Conference of the German Operations Research Society (GOR) 2019
Y2 - 4 September 2019 through 6 September 2019
ER -