Strategic timing and investment decision in renewable energy

This thesis explores the strategic timing and investment decision-making processes in the renewable energy sector, using the Real Options Approach (ROA) to evaluate investment opportunities under uncertainty. While traditional valuation methods, such as Net Present Value (NPV), focus solely on static cash flow projections, ROA incorporates the flexibility to adapt investment strategies over time, which is crucial in environments characterized by policy changes, technological advancements, and fluctuating energy prices. The thesis presents a comprehensive analysis of how ROA can complement NPV by integrating option values, which represent the strategic value of waiting, exiting, or expanding under uncertain conditions.