"Photovoltaic Smart Grids in the prosumers investment decisions: a real option model"

The digitization of power system represents one of the main instruments to achieve affordable energy transition. During the last years, such innovation process has been associated with the Smart Grid (SG). Marta Castellini (Università degli Studi di Brescia), Francesco Menoncin (Università degli Studi di Brescia), Michele Moretto (Department of Economics and Management of the University of Padova) and Sergio Vergalli (Università degli Studi di Brescia) model agents’ decision to invest in photovoltaic power plants and study the optimal plant size and the optimal investment threshold, in a context where exchange of energy among agents is possible. The model was calibrated and tested with data from the Northern Italy energy market. Among others, their findings show that the possibility of selling energy between agents, via the SG, increases investment values.

Read the full abstract and article published in the Journal of Economic Dynamics and Control here: 
https://www.sciencedirect.com/science/article/abs/pii/S0165188920301561