Çanakoğlu, EthemAğralı, SemraAdıyeke, Esra2019-05-022019-05-022019Adıyeke, E., Çanakoğlu, E., & Ağralı, S. (April 12, 2019). Risk averse investment strategies for a private electricity generating company in a carbon constrained environment. Journal of the Operational Research Society, 1-13. DOI: 10.1080/01605682.2018.15352650160-56821476-9360https://hdl.handle.net/20.500.11779/1062https://doi.org/10.1080/01605682.2018.1535265We study a private electricity generating company that plans to enter a partially regulated market that operates under an active cap and trade system. There are different types of thermal and renewable power plants that the company considers to invest in over a predetermined planning horizon. Thermal power plants may include a carbon capture and storage technology in order to comply with the carbon limitations. We develop a time-consistent multi-stage stochastic optimization model for this investment problem, where the objective is to minimize the conditional value at risk (CV@R) of the net present value of the profit obtained through the planning horizon. We implement the model for a hypothetical generating company located in Turkey. The results show that the developed model is appropriate for determining risk averse investment strategies for a company that operates under carbon restricted market conditions.eninfo:eu-repo/semantics/closedAccessConditional value at riskRisk averse investmentsMixed-integer programEnergy investment problemsArticle10.1080/01605682.2018.15352652-s2.0-85064476883