Publication - Proceedings Article Addressing Risk in the Valuation of Energy Systems

https://doi.org/10.1115/power-icope2017-3526
Conference Proceedings
Volume 2: I&C, Digital Controls, and Influence of Human Factors; Plant Construction Issues and Supply Chain Management; Plant Operations, Maintenance, Aging Management, Reliability and Performance; Renewable Energy Systems: Solar, Wind, Hydro and Geothermal; Risk Management, Safety and Cyber Security; Steam Turbine-Generators, Electric Generators, Transformers, Switchgear, and Electric BOP and Auxiliaries; Student Competition; Thermal Hydraulics and Computational Fluid Dynamics, 2017
Authors
Arun Veeramany, Donald J. Hammerstrom, James T. Woodward, James G. O’Brien
Abstract
Valuation is the process by which potential worth of transactions between two or more parties can be evaluated. The work products of a valuation are sets of calculated metrics. Application areas include valuations of electric power and building energy systems. Uncertainty can manifest while exercising a valuation in the form of natural variability, lack of knowledge, and random events. In the context of the valuation process, risk is the combination of these sources of uncertainty and their consequences. This paper lists sources of uncertainty and discusses how the valuation process might better support decision making in the presence of such uncertainty and risk.
English