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Valuation of Solar-Wind Power Plant Project and Impact on Stock Price

Author

Listed:
  • Kamphol Panyagometh

    (NIDA School of Business, 118 Seri Thai Road Bangkapi Bangkok Thailand 10240.)

Abstract

In Thailand, the Energy Policy and Planning Office, Ministry of Energy, has gradually developed a number of plans to promote renewable energy, such as the Alternative Energy Development Plan 2015 2036 (AEDP2015) and Power Development Plan 2010 2030 (PDP2010). This study examines valuation of power plant projects with two categories of renewable energy: solar power plants and wind power plants in Thailand. The valuation model shows the amount of electricity generated by solar energy and that generated by wind energy in each day and factors affecting electricity generation, such as cloud cover, temperature and wind speed. The amount of electricity generated is then used to calculate the Net Present Value (NPV), Interest Rate of Return (IRR), Payback Period (PB), and %Change of Stock Price when the project is announced, which can be used to support investors decision making process.

Suggested Citation

  • Kamphol Panyagometh, 2018. "Valuation of Solar-Wind Power Plant Project and Impact on Stock Price," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 354-360.
    • Handle: RePEc:eco:journ2:2018-06-42
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    References listed on IDEAS

    as
    1. Monjas-Barroso, Manuel & Balibrea-Iniesta, José, 2013. "Valuation of projects for power generation with renewable energy: A comparative study based on real regulatory options," Energy Policy, Elsevier, vol. 55(C), pages 335-352.
    2. Jeon, Chanwoong & Shin, Juneseuk, 2014. "Long-term renewable energy technology valuation using system dynamics and Monte Carlo simulation: Photovoltaic technology case," Energy, Elsevier, vol. 66(C), pages 447-457.
    3. Lee, Shun-Chung & Shih, Li-Hsing, 2010. "Renewable energy policy evaluation using real option model -- The case of Taiwan," Energy Economics, Elsevier, vol. 32(Supplemen), pages 67-78, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Renewable Energy; Valuation; Solar Power; Wind Power;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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