Real Options Analysis of Renewable Energy Investment Scenarios in the Philippines

<span>With the continuously rising energy demand and much dependence on imported fossil fuels, the Philippines is developing more sustainable sources of energy. Renewable energy seems to be a better alternative solution to meet the country’s energy supply and security concerns. Despite its hug...

Full description

Saved in:
Bibliographic Details
Main Author: Casper Boongaling Agaton
Format: Article
Language:English
Published: Academy Publishing Center 2017-12-01
Series:Renewable Energy and Sustainable Development
Subjects:
Online Access:http://apc.aast.edu/ojs/index.php/RESD/article/view/251
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849428144689250304
author Casper Boongaling Agaton
author_facet Casper Boongaling Agaton
author_sort Casper Boongaling Agaton
collection DOAJ
description <span>With the continuously rising energy demand and much dependence on imported fossil fuels, the Philippines is developing more sustainable sources of energy. Renewable energy seems to be a better alternative solution to meet the country’s energy supply and security concerns. Despite its huge potential, investment in renewable energy sources is challenged with competitive prices of fossil fuels, high start-up cost for renewables, and lower feed-in-tariff rates for renewables. To address these problems, this study aims to analyze energy investment scenarios in the Philippines using real options approach. This compares the attractiveness of investing in renewable energy over continue using coal for electricity generation under uncertainties in coal prices, investments cost, electricity prices, growth of investment in renewables, and imposing carbon tax for using fossil fuels.<span>   </span><span> </span></span>
format Article
id doaj-art-e859c2c088ab4c42ba0c661723dba3dd
institution Kabale University
issn 2356-8518
2356-8569
language English
publishDate 2017-12-01
publisher Academy Publishing Center
record_format Article
series Renewable Energy and Sustainable Development
spelling doaj-art-e859c2c088ab4c42ba0c661723dba3dd2025-08-20T03:28:47ZengAcademy Publishing CenterRenewable Energy and Sustainable Development2356-85182356-85692017-12-013328429210.21622/resd.2017.03.3.284124Real Options Analysis of Renewable Energy Investment Scenarios in the PhilippinesCasper Boongaling Agaton0Institute of Development Research and Development Policy, Ruhr University of Bochum<span>With the continuously rising energy demand and much dependence on imported fossil fuels, the Philippines is developing more sustainable sources of energy. Renewable energy seems to be a better alternative solution to meet the country’s energy supply and security concerns. Despite its huge potential, investment in renewable energy sources is challenged with competitive prices of fossil fuels, high start-up cost for renewables, and lower feed-in-tariff rates for renewables. To address these problems, this study aims to analyze energy investment scenarios in the Philippines using real options approach. This compares the attractiveness of investing in renewable energy over continue using coal for electricity generation under uncertainties in coal prices, investments cost, electricity prices, growth of investment in renewables, and imposing carbon tax for using fossil fuels.<span>   </span><span> </span></span>http://apc.aast.edu/ojs/index.php/RESD/article/view/251real options approachinvestment under uncertaintydynamic optimizationrenewable energy
spellingShingle Casper Boongaling Agaton
Real Options Analysis of Renewable Energy Investment Scenarios in the Philippines
Renewable Energy and Sustainable Development
real options approach
investment under uncertainty
dynamic optimization
renewable energy
title Real Options Analysis of Renewable Energy Investment Scenarios in the Philippines
title_full Real Options Analysis of Renewable Energy Investment Scenarios in the Philippines
title_fullStr Real Options Analysis of Renewable Energy Investment Scenarios in the Philippines
title_full_unstemmed Real Options Analysis of Renewable Energy Investment Scenarios in the Philippines
title_short Real Options Analysis of Renewable Energy Investment Scenarios in the Philippines
title_sort real options analysis of renewable energy investment scenarios in the philippines
topic real options approach
investment under uncertainty
dynamic optimization
renewable energy
url http://apc.aast.edu/ojs/index.php/RESD/article/view/251
work_keys_str_mv AT casperboongalingagaton realoptionsanalysisofrenewableenergyinvestmentscenariosinthephilippines