Research On Generate Electricity Investment Decision-making Based On Real Options Theory

This paper analyses the status of power generation investments Based on the electricity market environment.At first,the author list the basic theory of investment decisions systematically as well as traditional investment decision-making,and consider that the traditional analysis method ignores the option value of investment in power generation,and power generation investment actually have significant differences; Secondly,against the feature of investment for power generation,comparative analyses the power generation investment in electricity generation investment environment and the difference about decision-making methods,propose that using real options method in the decision-making in power generation investment will be suitabe;Lastly, build the model of investment in power generation decision-making based on real option theory,and make empirical analysis.The paper avoid the defect that the traditional methods of power generation investment decisions rely on NPV, and help investors getting the best time of investment and making surefire investment decisions.