Time-dependent opportunities in energy business : a comparative study of locally available renewable and conventional fuels

This work investigates and compares energy-related, private business strategies, potentially interesting for investors willing to exploit either local biomass sources or strategic conventional fuels. Two distinct fuels and related power-production technologies are compared as a case study, in terms of economic efficiency: the biomass of cotton stalks and the natural gas. The carbon capture and storage option are also investigated for power plants based on both fuel types. The model used in this study investigates important economic aspects using a "real options" method instead of traditional Discounted Cash Flow techniques, as it might handle in a more effective way the problems arising from the stochastic nature of significant cash flow contributors' evolution like electricity, fuel and CO(2) allowance prices. The capital costs have also a functional relationship with time, thus providing an additional reason for implementing, "real options" as well as the learning-curves technique. The methodology as well as the results presented in this work, may lead to interesting conclusions and affect potential private investment strategies and future decision making. This study indicates that both technologies lead to positive investment yields, with the natural gas being more profitable for the case study examined, while the carbon capture and storage does not seem to be cost efficient with the current CO(2) allowance prices. Furthermore, low interest rates might encourage potential investors to wait before actualising their business plans while higher interest rates favor immediate investment decisions. (C) 2009 Elsevier Ltd. All rights reserved

Risk minimization and portfolio diversification

We consider the problem of minimizing capital at risk in the Black-Scholes setting. The portfolio problem is studied given the possibility that a correlation constraint between the portfolio and a financial index is imposed. The optimal portfolio is obtained in closed form. The effects of the correlation constraint are explored; it turns out that this portfolio constraint leads to a more diversified portfolio

Different regimes of the uniaxial elongation of electrically charged viscoelastic jets due to dissipative air drag

We investigate the effects of dissipative air drag on the dynamics of electrified jets in the initial stage of the electrospinning process. The main idea is to use a Brownian noise to model air drag effects on the uniaxial elongation of the jets. The developed numerical model is used to probe the dynamics of electrified polymer jets at different conditions of air drag force, showing that the dynamics of the charged jet is strongly biased by the presence of air drag forces. This study provides prospective beneficial implications for improving forthcoming electrospinning experiments.Comment: 12 pages, 6 figure

Distributed Optimal Load Frequency Control with Stochastic Wind Power Generation

Motivated by the inadequacy of conventional control methods for power networks with a large share of renewable generation, in this paper we study the (stochastic) passivity property of wind turbines based on the Doubly Fed Induction Generator (DFIG). Differently from the majority of the results in the literature, where renewable generation is ignored or assumed to be constant, we model wind power generation as a stochastic process, where wind speed is described by a class of stochastic differential equations. Then, we design a distributed control scheme that achieves load frequency control and economic dispatch, ensuring the stochastic stability of the controlled network.Comment: arXiv admin note: text overlap with arXiv:2010.1284