Session: 3.2 - Plant Construction, Supply Chain Mgmt. & Economics & 4.4 - Integrated Energy Systems & Micro-grids

Paper Number: 108956

108956 - A New Method for Valuing Nontraditional Stakeholder Parameters in Novel Power Systems Analysis 

The ability to accurately value electricity power generation assets is critical for deciding upon new investment into energy infrastructure.  Decision makers are faced with an increasing number of technology options for new generation technologies under development, but traditional system analysis models like Levelized Cost of Electricity (LCOE), Internal Rate of Return (IRR), and even Net Present Value (NPV) cannot consider factors that can significantly impact the feasibility of a project.  Factors like flexibility, robustness, carbon footprint, social justice, and viewshed represent elements that can significantly affect the success of a power generation project in today’s energy sector.

A model was developed to modify traditional multi-objective optimization methods to include nontraditional stakeholder parameters in valuing a project, both from a parametric sensitivity and constraint point of view.  Factors are integrated into multi-objective framework to include weighted inputs from stakeholders such that the application of the model can be geographically accommodating and technology agnostic.  By aggregating factors into costs and revenues, a generic valuation framework is posed to compare different technologies in situations where nontraditional inputs can be considered by decisionmakers for financing novel power generation.

The ability to accurately value electricity power generation assets is critical for deciding upon new investment into energy infrastructure.  Decision makers are faced with an increasing number of technology options for new generation technologies under development, but traditional system analysis models like Levelized Cost of Electricity (LCOE), Internal Rate of Return (IRR), and even Net Present Value (NPV) cannot consider factors that can significantly impact the feasibility of a project.  Factors like flexibility, robustness, carbon footprint, social justice, and viewshed represent elements that can significantly affect the success of a power generation project in today’s energy sector.

A model was developed to modify traditional multi-objective optimization methods to include nontraditional stakeholder parameters in valuing a project, both from a parametric sensitivity and constraint point of view.  Factors are integrated into multi-objective framework to include weighted inputs from stakeholders such that the application of the model can be geographically accommodating and technology agnostic.  By aggregating factors into costs and revenues, a generic valuation framework is posed to compare different technologies in situations where nontraditional inputs can be considered by decisionmakers for financing novel power generation.

The ability to accurately value electricity power generation assets is critical for deciding upon new investment into energy infrastructure.  Decision makers are faced with an increasing number of technology options for new generation technologies under development, but traditional system analysis models like Levelized Cost of Electricity (LCOE), Internal Rate of Return (IRR), and even Net Present Value (NPV) cannot consider factors that can significantly impact the feasibility of a project.  Factors like flexibility, robustness, carbon footprint, social justice, and viewshed represent elements that can significantly affect the success of a power generation project in today’s energy sector.

A model was developed to modify traditional multi-objective optimization methods to include nontraditional stakeholder parameters in valuing a project, both from a parametric sensitivity and constraint point of view.  Factors are integrated into multi-objective framework to include weighted inputs from stakeholders such that the application of the model can be geographically accommodating and technology agnostic.  By aggregating factors into costs and revenues, a generic valuation framework is posed to compare different technologies in situations where nontraditional inputs can be considered by decisionmakers for financing novel power generation.

Presenting Author: D. A. Nagy Analytic Advancements

Presenting Author Biography: Dr. Nagy is a researcher and the president of Analytic Advancements.