Supply Chain in Electro-Energetics and Real Options

Abstract

This paper deals with determining the value of the connection in the supply chain in electro-energetics. First, useful connection options are described. The principle of deviations in the energetic system is then briefly described, and examples of their histories are shown in a chart. Next methods for evaluating the acquisition of a connection with the producer of electricity are explained. The simple classical approach to the problem and the real options approach are described. The real options approach is considered to be the most correct, providing the most realistic results. Then there is an example of a calculation for a company, and certain values for the prices of deviations are calculated and shown. Finally, a comparison of the results is made, and their consequences for the decision process are explained.