Extrinsic Values of Power Units in Deregulated Power Market

Abstract

From an investment or long-term point of view, it is important to grasp the values of power units. The biggest difference between regulated and deregulated industry is price volatilities which leads to the volatilities of value. As is already known, power unit can be considered to be an option which actually means we can get high benefit from high volatility. Firstly, we introduce a basic idea to evaluate the values of power units in chapter2, 3. In chapter 4, we show some figures to explain the affection of the base price curve to the unit value. Then, we mention the sensibilities of power unit’s parameters.