| Power is the basal industry of national economy and society development. At present, Chinese power industry has come into being a great size, but there are great deals of matters. Along with the publicizing and implement of the scheme for power system innovation, the existing monopoly in Chinese power industry will be broken, and the competition will be import. The traditional power corporation will be reorganized. Being the self-governed corporations to manage power grid and generate electricity, they will deal in themselves and assume sole responsibility for its profits or losses, and respectively participate in market competition. For power corporations, it will be very important how to improve the veracity of the power building's economy analysis, and to optimize investment to add their choiceness assets and improve the corporate value.Traditional investment valuation mostly adopts the financial approach to estimate the financial profit of the project. Thereinto net present value has been a classic standard. In practice, because there are more and more uncertainties in corporate improvement, the limitation is in evidence when the traditional approach's applying. As Real-options approach came forth, it has attracted a large number scholars and corporations' attention.This paper aims at the limitation of the traditional approach, and then studies the appliance that real-options approach estimate power building's investment. In this paper, Firstly, the issue is put forward by analyzing the limitation. Secondly, by analyzing the options thought and real-options' theory and method that financial field puts it forward at presents, we consider to estimate electric building arrestment by real-options approach. At last, we will materially demonstrate the positive effect that think over expansion-options in the investment estimating one transmission & transformation electricity line project of China Southern Power Grid Corporation Ltd., and compare it with the result of traditional approach. |
PDF Full Text Request