Valuation of the flexibility of power-to-gas facilities

Item Type Conference or Workshop Item (Lecture)
Abstract 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.
Authors Schürle, Michael
Projects Schürle, Dr. Michael Renewable Methane for Transport and Mobility [applied research project]
Language English
Subjects business studies
economics
finance
HSG Classification contribution to scientific community
Date 1 June 2017
Event Title Conference on Computational Management Science
Event Location Bergamo
Event Dates 30.05.2017-01.06.2017
Contact Email Address michael.schuerle@unisg.ch
Depositing User Dr. Michael Hermann Schürle
Date Deposited 28 Jun 2017 10:09
Last Modified 20 Jul 2022 17:31
URI: https://www.alexandria.unisg.ch/publications/251139

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Schürle, Michael: Valuation of the flexibility of power-to-gas facilities. [Conference or Workshop Item]

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https://www.alexandria.unisg.ch/id/eprint/251139
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