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http://dx.doi.org/10.5762/KAIS.2020.21.7.168

Evaluation of Investment Value of Renewable Energy and Decision Making for Market Entry Using the Idle Space of Public Enterprises  

Na, Seoung Beom (Department of Civil Engineering, Chosun University)
Jang, Woosik (Department of Civil Engineering, Chosun University)
Kim, Kyeongseok (Department of Civil & Environmental Engineering, Wonkwang University)
Kim, Byungil (Department of Civil Engineering, Andong National University)
Lee, Harry (Department of Civil Engineering, Chosun University)
Lee, Changgeun (Department of Civil Engineering, Chosun University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.21, no.7, 2020 , pp. 168-175 More about this Journal
Abstract
Recently, there has been an increasing need to expand the supply of renewable energy as a solution to greenhouse gas emissions. Therefore, as a measure to promote domestic renewable energy investment and gradual expansion, this study analyzed the investment value of renewable energy projects utilizing the unoccupied spaces of public enterprise's facilities and presented a strategic decision-making framework to support efficient national land development and government measures. The NPV was estimated to be 286 million won if the expansion of the facility was not considered, but it is reasonable to postpone the expansion decision because the value of -130 million won was calculated if the expansion was considered. On the other hand, the real-option value was estimated to be 444 million won, taking SMP uncertainty, expansion, and abandonment options into account, and an additional value of 288 million won was calculated from an analysis of the expansion project using the existing NPV analysis.
Keywords
Renewable Energy; Public Corporation; Idle Spaces; Real Options Analysis; Volatility;
Citations & Related Records
Times Cited By KSCI : 4  (Citation Analysis)
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