An Options Approach To Unlocking Investment In Clean Energy


Authors
Dr Chi?Kong Chyong (JBS)  and  Andrew Voysey (CPSL)

Research Organisation
Banking Environment Initiative

Report Date
Nov. 1, 2012

Document summary

In this BEI report, a group of six banks and six energy companies argue that using traditional investment valuation models is not always the best approach for valuing clean energy investments. The group concludes that when uncertain future market or policy conditions would have unequal impacts on investment performance, valuation models that explicitly value the fact that clean energy investments give energy companies the option to adapt to changing market or policy conditions may be more appropriate.
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