Because of the technological change and the volatility of customers' tastes, the probabilistic demand model commonly used in practice cannot be estimated accurately.
The portfolio theory, learning curve theory and the capacity credit are applied in the proposed model to reflect characteristics of renewable energy, such as a hedge against fossil fuel price volatility, significant technological progress, and intermittent generation.
Technological change may also have increased volatility.
On one account, the change in volatility was due to technological innovation in the form of improved inventory control and supply chain management.
The current research and development work in the area of fluoride volatility method is focused on the experimental program carried out at the semi-technological line called FERDA, which is a follow-up of the previous FREGAT-2 technology.
If increased energy supply allows for "more parts" (human and technological actors) and variation in organisation and behaviour, it should then also increase complexity, and with it, volatility, uncertainty and ambiguity.
"We don't believe the renewable energy industry is exposed to the volatility of regulation or policies in the U.S. because of the competitiveness that has been reached through technological improvement, efficiency and performance," says Antonio Cammisecra, head of business development at Enel Green Power.
However, a number of factors still pose a threat, including volatility within the market for renewable credits, as well as government support structures, or risks around commercial and technological viability that scare financiers away from backing these new projects.
With the technological infrastructure in place, it was relatively inexpensive for Cantab to introduce the new program, which takes a more conservative approach with lower volatility.
