The value of delay in tidal energy development

MacDougall, Shelley L.

doi:10.1016/j.enpol.2015.09.034

Cited by 24 publications

(11 citation statements)

References 18 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The value of an option to invest differs from the net present value of the investment because of asymmetrical risk. In an effort to ascertain whether some of the delays observed in the industry were strategic in nature, MacDougall [2] analyzed an investment in a 10 MW instream tidal energy array and the value of the option to delay. Following a scenario and sensitivity analysis using the Black-Scholes model [7], MacDougall noted a somewhat persistent and economicallyrational incentive to delay investment.…”

Section: Table I Input Variables and Relationship To Option Valuementioning

confidence: 99%

“…From a series of interviews with decision-makers in the tidal energy industry, it was observed that technology and site developers are acquiring seabed leases in multiple locations and jurisdictions, holding them as options for later development. 2 It was also found that companies with multiple sites are staging their investments across their various sites, according to their own readiness (technological and organizational) and the particular conditions at the various sites. Staging allows companies to make smaller investments and learn and improve their technology and procedures before committing more capital.…”

Section: Table I Input Variables and Relationship To Option Valuementioning

confidence: 99%

“…With these findings in hand, this paper returns to the invest-versus-delay analysis done in [2] to further explore key drivers in the timing decision.…”

Section: B Uncertainty and The Value Of Delaymentioning

confidence: 99%

“…In a financing impasse of sorts, the ability to reduce the uncertainty by deploying devices and logging operating hours is thwarted by the absence of financing to undertake such projects [1]. Companies have been persevering, however, by staging their investments [2]. These investment timing decisions are a way to reduce the capital put at risk.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Strategic timing of commercial-scale tidal energy investment

MacDougall¹

2018

Int. J. Mar. Ene.

View full text Add to dashboard Cite

The many uncertainties in tidal energy conversion combine to form a significant barrier to raising private-sector capital. Mitigation and management of risk are essential if the industry is to attract equity investors. One way to manage the risk is through investment timing. The option to time an investment has value, which can be estimated. An analysis of an invest-vs-delay decision revealed a persistent, economicallyrational incentive to delay. Further inquiry identified a strategic rationale for delaying investment in tidal energy projects, given the uncertainty still present in the undertaking. As the largest sensitivity in the value of delay is the volatility of the investment’s expected cash flows, an investigation into the prevalent uncertainties was undertaken. This paper summarizes the real option valuation model. It then reports on results of a qualitative study of the predominant uncertainties facing developers and conditions that would help move the industry along. Predominant uncertainties reported revolve around technology reliability; site and resource knowledge; prospects for buildout; predictability of government policy and supports; prospects of off-take agreements; and supply chain capacity and costs. These are related back to the variables in the real option pricing model. The model is relevant for companies wishing to systematically evaluate timing options and communicate project value to the investment community. It can also be used by governments to evaluate the design of policies and financial supports in a way that is consistent with the priorities of financial markets.

show abstract

Section: Table I Input Variables and Relationship To Option Valuementioning

confidence: 99%

Section: Table I Input Variables and Relationship To Option Valuementioning

confidence: 99%

“…With these findings in hand, this paper returns to the invest-versus-delay analysis done in [2] to further explore key drivers in the timing decision.…”

Section: B Uncertainty and The Value Of Delaymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Strategic timing of commercial-scale tidal energy investment

MacDougall¹

2018

Int. J. Mar. Ene.

View full text Add to dashboard Cite

show abstract

“…As the era of conventional sources is said to be almost over due to its emissions and its state of high alert in depletion, the research in interdisciplinary fields are made on new discoveries and inventions in non-conventional sources [2]. Various researches are conducted mainly on the fields of wind [3], solar [4], tidal [5], ocean [6], fuel cells [7], rain [8], geothermal [9], bio fuels [10] and also hybrid systems [11]. Apart from the disadvantages of conventional sources, these non-conventional sources hold pride for many advantages like pollution free, easily available, non-depleting in spite they are also exploited badly [12,13].…”

Section: Introductionmentioning

confidence: 99%

Performance improvement of piezoelectric materials in energy harvesting in recent days – a review

Varadha¹,

Rajakumar²

2018

J. vibroeng.

View full text Add to dashboard Cite

Piezoelectric elements are inevitable in modern day physics playing a vital role in many applications. Any piezoelectric element requires compression to produce energy in the form of a weak electrical ac signal. Mechanical vibrations are known to cause deflections which are enough to produce energy from the piezoelectric materials. In this paper, a review of the piezoelectric materials is made on their basic modes of excitation for producing energy. Also, various mechanisms and techniques used to harvest energy recently are presented and discussed extensively. Piezoelectric energy harvesting using MEMS is emphasized much as this is the era of micromechanical systems. Most of the piezoelectric energy harvesting systems relies on cantilever-oriented deflection to produce maximum vibration. In general cantilever beams fitted with piezoelectric materials produce electrical energy from mechanical vibration when deflected; hence detailed review on the different shapes of cantilever is also submitted. Significant parameters contributing to improved performance are dealt with special importance.

show abstract

Analysis of turbulence and extreme current velocity values in a tidal channel

Novo¹,

Kyozuka

2018

J Mar Sci Technol

View full text Add to dashboard Cite

Tidal stream energy has emerged as one of the most promising alternative energy sources to the use of fossil fuels. Nevertheless, there are some crucial issues that must be overcome. One of these key aspects is the response of tidal stream energy converters to the extreme velocities related to high-frequency velocity perturbations from the mean current speed. In this study, the dependence of this velocity fluctuation on the turbulence conditions of the flow is analysed based on the data measured during 1 week by two Acoustic Doppler velocimeters in two tidal channels in the Goto Islands, Japan. At one of the channels, where maximum 3-min averaged measured velocity is 1.7 m/s, extreme values over 3 m/s were observed. Turbulence intensity ranges between 10 and 35%, with a clear contrast between flood and ebb conditions at one of the measuring points. Peak velocity, in terms of a peak-to-averaged ratio, and turbulence intensity calculated for 3-min periods were compared, obtaining linear trends with similar slopes for both measuring points and under different flow conditions. Since turbulence conditions can be simulated by numerical modelling, the presented correlation opens the door to prediction of extreme velocities, reducing the need for in situ measurements.

show abstract

The value of delay in tidal energy development

Cited by 24 publications

References 18 publications

Strategic timing of commercial-scale tidal energy investment

Strategic timing of commercial-scale tidal energy investment

Performance improvement of piezoelectric materials in energy harvesting in recent days – a review

Analysis of turbulence and extreme current velocity values in a tidal channel

Contact Info

Product

Resources

About