Therefore, increasing the technology innovation level, as indicated by unit benefit coefficient, can promote energy storage technology investment. On the other hand, reducing the unit investment cost can mainly increase the investment opportunity value.
A firm choosing to invest in energy storage technology is equivalent to executing the value of the investment option . In this study, the investment opportunity value of an energy storage technology is denoted by F (P), that is, the maximum expected net present value when a firm invests in an energy storage technology.
Therefore, in order to provide a more realistic investment decisions framework for energy storage technology, this study develops a sequential investment decision model based on real options theory, which can consider policy, technological innovation, and market uncertainties.
Additionally, the investment threshold is significantly lower under the single strategy than it is under the continuous strategy. Therefore, direct investment in future energy storage technologies is the best choice when new technologies are already available.
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Explore how to invest in energy storage systems efficiently. Learn about cost components, battery technologies, ROI factors, and global market trends shaping
The main conclusions drawn are as follows: (1) Compared with RPSM, SM is more conducive to investment in renewable energy storage equipment and results in greater profit for the supply …
Based on the characteristics of China''s energy storage technology development and considering the uncertainties in policy, technological innovation, and market, this study …
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