{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,5,21]],"date-time":"2026-05-21T00:09:19Z","timestamp":1779322159241,"version":"3.51.4"},"reference-count":38,"publisher":"Emerald","issue":"6","license":[{"start":{"date-parts":[[2017,7,10]],"date-time":"2017-07-10T00:00:00Z","timestamp":1499644800000},"content-version":"tdm","delay-in-days":0,"URL":"https:\/\/www.emerald.com\/insight\/site-policies"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["IMDS"],"published-print":{"date-parts":[[2017,7,10]]},"abstract":"<jats:sec>\n<jats:title content-type=\"abstract-subheading\">Purpose<\/jats:title>\n<jats:p>When the power generator faces uncertain and independent electricity spot price and renewable energy source supply, two different conditions need to be considered: the distributions of renewable energy source electricity and electricity spot price are independent or dependent. The purpose of this paper is to explore the capacity investment strategy under volatile electricity spot price when renewable energy penetration rate is low, taking into account these two conditions.<\/jats:p>\n<\/jats:sec>\n<jats:sec>\n<jats:title content-type=\"abstract-subheading\">Design\/methodology\/approach<\/jats:title>\n<jats:p>The authors design a capacity investment model under dual uncertainties and consider how to optimize the investment capacity in order to maximize profit under two different conditions.<\/jats:p>\n<\/jats:sec>\n<jats:sec>\n<jats:title content-type=\"abstract-subheading\">Findings<\/jats:title>\n<jats:p>The authors find that when renewable energy supply fluctuation is unrelated to spot electricity price fluctuation, the renewable energy power profitability is determined by the average cost of spot electricity price and equivalent cost. When renewable energy supply fluctuation is related to spot electricity price fluctuation, the renewable energy power profitability is determined by the market value and the construction and maintenance cost.<\/jats:p>\n<\/jats:sec>\n<jats:sec>\n<jats:title content-type=\"abstract-subheading\">Practical implications<\/jats:title>\n<jats:p>Faced with the conflict of the renewable energy supply, the authors need to understand how to plan the generation capacity with intermittent renewable sources. The result helps renewable energy become competitive in the electricity market under loose regulations.<\/jats:p>\n<\/jats:sec>\n<jats:sec>\n<jats:title content-type=\"abstract-subheading\">Originality\/value<\/jats:title>\n<jats:p>The authors compare two capacity investment strategies that the renewable energy supply fluctuation is related and unrelated to spot electricity price.<\/jats:p>\n<\/jats:sec>","DOI":"10.1108\/imds-06-2016-0213","type":"journal-article","created":{"date-parts":[[2017,5,24]],"date-time":"2017-05-24T19:18:16Z","timestamp":1495653496000},"page":"1145-1165","source":"Crossref","is-referenced-by-count":16,"title":["RES-E capacity investment under uncertain renewable energy supply and volatile electricity spot price"],"prefix":"10.1108","volume":"117","author":[{"given":"Lingcheng","family":"Kong","sequence":"first","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Zhong","family":"Li","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Ling","family":"Liang","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Jiaping","family":"Xie","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"140","reference":[{"issue":"3","key":"key2020120620405822200_ref008","doi-asserted-by":"crossref","first-page":"319","DOI":"10.1016\/j.reseneeco.2012.01.001","article-title":"Electricity provision with intermittent sources of energy","volume":"34","year":"2012","journal-title":"Resource and Energy Economics"},{"key":"key2020120620405822200_ref301","article-title":"The most frequently asked questions about wind energy","author":"AWEA","year":"2002"},{"key":"key2020120620405822200_ref001","doi-asserted-by":"crossref","unstructured":"Cory, K.S. and Schwabe, P. (2009), \u201cWind levelized cost of energy: a comparison of technical and financing input variables (Technical Report: NREL\/TP-6A2-46671)\u201d, National Renewable Energy Laboratory, Golden, CO, October, available at: www.osti.gov\/bridge","DOI":"10.2172\/966296"},{"issue":"2","key":"key2020120620405822200_ref002","doi-asserted-by":"crossref","first-page":"142","DOI":"10.1016\/j.jeem.2007.11.001","article-title":"Environmental and technology policies for climate mitigation","volume":"55","year":"2008","journal-title":"Journal of Environmental Economics and Management"},{"issue":"2","key":"key2020120620405822200_ref003","first-page":"95","article-title":"Electricity wholesale markets: designs now and in a low-carbon future","volume":"29","year":"2008","journal-title":"The Energy Journal"},{"key":"key2020120620405822200_ref004","volume-title":"The Costs and Impacts of Intermittency: An Assessment of the Evidence on the Costs and Impacts of Intermittent Generation on the British Electricity Network","year":"2006"},{"key":"key2020120620405822200_ref005","unstructured":"Harper, J., Karcher, M. and Bolinger, M. (2007), \u201cWind project financing structures: a review & comparative analysis\u201d, LBNL-63434, Lawrence Berkeley National Laboratory, Berkeley, CA."},{"issue":"10","key":"key2020120620405822200_ref006","doi-asserted-by":"crossref","first-page":"3646","DOI":"10.1016\/j.enpol.2008.06.022","article-title":"Pros and cons of exposing renewables to electricity market risks \u2013 a comparison of the market integration approaches in Germany, Spain, and the UK","volume":"36","year":"2008","journal-title":"Energy Policy"},{"issue":"1","key":"key2020120620405822200_ref302","doi-asserted-by":"crossref","first-page":"5","DOI":"10.1111\/j.0021-9886.2004.00474.x","article-title":"Europe and the future of economic governance","volume":"42","year":"2004","journal-title":"Journal of Common Market Studies"},{"issue":"3","key":"key2020120620405822200_ref028","first-page":"558","article-title":"Optimum policy for integration of renewable energy sources into the power generation system","volume":"34","year":"2012","journal-title":"Energy Economics"},{"issue":"4","key":"key2020120620405822200_ref032","first-page":"1625","article-title":"Capacity commitment and price volatility in a competitive electricity market","volume":"30","year":"2012","journal-title":"Energy Economics"},{"issue":"4","key":"key2020120620405822200_ref007","doi-asserted-by":"crossref","first-page":"269","DOI":"10.1287\/msom.5.4.269.24882","article-title":"Capacity management, investment, and hedging: review and recent developments","volume":"5","year":"2003","journal-title":"Manufacturing & Service Operations Management"},{"issue":"2","key":"key2020120620405822200_ref009","first-page":"212","article-title":"Regulatory design for RES-E support mechanisms: learning curves, market structure, and burden-sharing","volume":"41","year":"2012","journal-title":"Energy Policy"},{"issue":"7","key":"key2020120620405822200_ref010","doi-asserted-by":"crossref","first-page":"3945","DOI":"10.1016\/j.enpol.2011.01.010","article-title":"Efficient pricing and investment in electricity markets with intermittent resources","volume":"39","year":"2011","journal-title":"Energy Policy"},{"issue":"7","key":"key2020120620405822200_ref011","first-page":"89","article-title":"Green\u2019 productivity growth in China\u2019s industrial economy","volume":"44","year":"2014","journal-title":"Energy Economics"},{"issue":"5","key":"key2020120620405822200_ref012","first-page":"523","article-title":"The dark side of the sun: how solar power production affects the market value of solar and gas sources","volume":"49","year":"2015","journal-title":"Energy Economics"},{"issue":"7","key":"key2020120620405822200_ref013","first-page":"302","article-title":"The merit order effect of wind and photovoltaic electricity generation in Germany 2008-2016: estimation and distributional implications","volume":"44","year":"2014","journal-title":"Energy Economics"},{"issue":"1","key":"key2020120620405822200_ref014","doi-asserted-by":"crossref","first-page":"30","DOI":"10.1287\/mnsc.1040.0215","article-title":"Supply chain coordination with revenue-sharing contracts: strengths and limitations","volume":"51","year":"2005","journal-title":"Management Science"},{"issue":"4","key":"key2020120620405822200_ref015","doi-asserted-by":"crossref","first-page":"2127","DOI":"10.1109\/TPWRS.2012.2190430","article-title":"Dynamic modeling of thermal generation capacity investment: application to markets with high wind penetration","volume":"27","year":"2012","journal-title":"IEEE Transactions on Power Systems"},{"issue":"6","key":"key2020120620405822200_ref016","doi-asserted-by":"crossref","first-page":"1332","DOI":"10.1287\/opre.1110.0992","article-title":"Generation capacity expansion in a risky environment: a stochastic equilibrium analysis","volume":"59","year":"2011","journal-title":"Operations Research"},{"issue":"1","key":"key2020120620405822200_ref017","doi-asserted-by":"crossref","first-page":"54","DOI":"10.1016\/j.eneco.2011.10.010","article-title":"Electricity capacity investment under risk aversion: a case study of coal, gas, and concentrated solar power","volume":"34","year":"2012","journal-title":"Energy Economics"},{"issue":"1","key":"key2020120620405822200_ref018","first-page":"22","article-title":"The case of negative day-ahead electricity prices","volume":"35","year":"2013","journal-title":"Energy Economics"},{"issue":"7","key":"key2020120620405822200_ref019","first-page":"36","article-title":"Responsive feed-in tariff adjustment to dynamic technology development","volume":"44","year":"2014","journal-title":"Energy Economics"},{"issue":"5","key":"key2020120620405822200_ref020","first-page":"370","article-title":"Economic curtailment of intermittent renewable energy sources","volume":"49","year":"2015","journal-title":"Energy Economics"},{"issue":"7","key":"key2020120620405822200_ref021","first-page":"218","article-title":"The market value of variable renewables: the effect of solar wind power variability on their relative price","volume":"38","year":"2013","journal-title":"Energy Economics"},{"issue":"3","key":"key2020120620405822200_ref022","doi-asserted-by":"crossref","first-page":"238","DOI":"10.1257\/aer.101.3.238","article-title":"Comparing the costs of intermittent and dispatchable electricity generating technologies","volume":"101","year":"2011","journal-title":"American Economic Review"},{"issue":"3","key":"key2020120620405822200_ref023","doi-asserted-by":"crossref","first-page":"381","DOI":"10.1257\/aer.102.3.381","article-title":"Dynamic pricing of electricity","volume":"102","year":"2012","journal-title":"American Economic Review"},{"issue":"7","key":"key2020120620405822200_ref024","first-page":"270","article-title":"The impact of wind power generation on the electricity price in Germany","volume":"44","year":"2014","journal-title":"Energy Economics"},{"issue":"10","key":"key2020120620405822200_ref025","doi-asserted-by":"crossref","first-page":"3976","DOI":"10.1016\/j.energy.2010.03.034","article-title":"Sustainable energy development: the present (2009) situation and possible paths to the future","volume":"35","year":"2010","journal-title":"Energy"},{"issue":"1","key":"key2020120620405822200_ref026","first-page":"227","article-title":"China\u2019s electricity market restructuring and technology mandates: plant-level evidence for changing operational efficiency","volume":"47","year":"2015","journal-title":"Energy Economics"},{"issue":"6","key":"key2020120620405822200_ref027","doi-asserted-by":"crossref","first-page":"1078","DOI":"10.1287\/mnsc.1110.1337","article-title":"Dynamic price competition with fixed capacities","volume":"57","year":"2011","journal-title":"Management Science"},{"issue":"1","key":"key2020120620405822200_ref029","doi-asserted-by":"crossref","first-page":"62","DOI":"10.1016\/j.eneco.2011.07.004","article-title":"The inevitability of capacity underinvestment in competitive electricity markets","volume":"34","year":"2012","journal-title":"Energy Economics"},{"issue":"3","key":"key2020120620405822200_ref030","first-page":"97","article-title":"Time of day pricing and the levelized cost of intermittent power generation","volume":"48","year":"2015","journal-title":"Energy Economics"},{"issue":"3","key":"key2020120620405822200_ref031","doi-asserted-by":"crossref","first-page":"767","DOI":"10.1016\/j.ijepes.2010.12.034","article-title":"Modelling and simulation of a high penetration wind diesel system with battery energy storage","volume":"33","year":"2011","journal-title":"International Journal of Electrical Power & Energy Systems"},{"issue":"8","key":"key2020120620405822200_ref033","doi-asserted-by":"crossref","first-page":"4107","DOI":"10.1016\/j.enpol.2010.03.037","article-title":"Can renewables etc. solve the greenhouse problem? The negative case","volume":"38","year":"2010","journal-title":"Energy Policy"},{"issue":"5","key":"key2020120620405822200_ref034","first-page":"770","article-title":"A review of wind power forecasting models","volume":"12","year":"2011","journal-title":"Energy Procedia"},{"issue":"7","key":"key2020120620405822200_ref035","doi-asserted-by":"crossref","first-page":"3939","DOI":"10.1016\/j.enpol.2011.03.084","article-title":"The impact of wind generation on the electricity spot-market price level and variance: the Texas experience","volume":"39","year":"2011","journal-title":"Energy Policy"},{"issue":"1","key":"key2020120620405822200_ref036","first-page":"98","article-title":"Efficient modeling and forecasting of electricity spot prices","volume":"47","year":"2015","journal-title":"Energy Economics"}],"container-title":["Industrial Management &amp; Data Systems"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/www.emerald.com\/insight\/content\/doi\/10.1108\/IMDS-06-2016-0213\/full\/xml","content-type":"application\/xml","content-version":"vor","intended-application":"text-mining"},{"URL":"https:\/\/www.emerald.com\/insight\/content\/doi\/10.1108\/IMDS-06-2016-0213\/full\/html","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2025,7,24]],"date-time":"2025-07-24T21:52:24Z","timestamp":1753393944000},"score":1,"resource":{"primary":{"URL":"http:\/\/www.emerald.com\/imds\/article\/117\/6\/1145-1165\/187416"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2017,7,10]]},"references-count":38,"journal-issue":{"issue":"6","published-print":{"date-parts":[[2017,7,10]]}},"alternative-id":["10.1108\/IMDS-06-2016-0213"],"URL":"https:\/\/doi.org\/10.1108\/imds-06-2016-0213","relation":{},"ISSN":["0263-5577"],"issn-type":[{"value":"0263-5577","type":"print"}],"subject":[],"published":{"date-parts":[[2017,7,10]]}}}