Strategic planning in electric utilities: Using renewable energy technologies as risk management tools

This research investigates the potential of owning renewable energy technologies to mitigate risk faced by the electric utility industry. Explicit consideration is given to the renewable energy technology`s attributes of fuel costs, environmental costs, modularity, lead time, location flexibility, availability, initial capital costs, and investment reversibility. The research concludes that renewable energy technologies, particularly the modular technologies such as photovoltaics and wind, have the potential to provide decision makers with physical risk-management investments.