Contents: Results of the simulation show that electricity prices might fall from their current level of above seven Pf/kWh to around five Pf/kWh before they will finally recover at the full cost level of CCGT - A counter intuitive finding is that the profitability of CCGT power plants does not decrease when gas prices increase, because the price setting plants are usually gas fired, forcing the electricity prices up by an even higher percentage - Without much additional work, the model permits to determine a company's optimal generation strategy.
The Author: Christoph Grobbel was born 1966 in Meschede, Germany. From 1988 to 1993 studies in mechanical engineering at University of Karlsruhe; Diplom-Ingenieur. Joint program in Energy Management & Policy at University of Pennsylvania (UPENN) in Philadelphia and Ecole Nationale Superieure du Petrole et des Moteurs (ENSPM) in Paris 1993 and 1994; Master of Science in Energy Management & Policy (UPENN) and Diplome d'Ingenieur (ENSPM). Management consultant with McKinsey&Company in Cologne since 1995. Dissertation as external student at University of Oldenburg from 1997 to 1999.