Search

Summary: This paper is concerned with innovative approaches to renewable energy sources computation methodologies, which provide more refined results than the classical alternatives. Such refinements provide additional improvements especially for replacement of fossil energy usages that emit greenhouse gas (GHG) into the atmosphere leading to climate change impact. Current knowledge gap among each renewable energy source calculation is rather missing fundamentals of plausible, rational, and logical explanations for the interpretation of results. In the literature, there are rather complicated and mechanically applicable methodologies, which require input and output measurement data match with missing physical explanations. The view taken in this review paper is to concentrate on quite plausible, logical, rational, and effectively applicable innovative energy calculation methodologies with simplistic fundamentals. For this purpose, a set of renewable energy methodological approaches is revisited with their innovative structures concerning solar, wind, hydro, current, and geothermal energy resources. With the increase in the renewable energy utilizations to combat the undesirable impacts of global warming and climate change, there is a need for better models that will include physical environmental conditions and data properties in the probabilistic, statistical, stochastic, logical, and rational senses leading to refined and more reliable estimations with application examples in the text. Finally, new research directions are also recommended for more refined innovative energy system calculations. [ABSTRACT FROM AUTHOR]

SUMMARY For several years recently, the price of oil has fluctuated due to the weak US dollar and financial risks. In particular, the WTI crude oil price reached $147 per barrel in July of 2008, which is the highest price thus far. An awareness of an impending crisis and concern over climate change are driving an increase in R&D for alternative energy sources instead of fossil-based energy. However, the researches based on traditional method show negative options about the economic value of new and renewable energy. This paper evaluates the value of new and renewable energy through a real option method which considers the uncertainty associated with fossil energy and the uncertainty of the success of R&D. The evaluating model assumes that the fossil energy price follows a geometric mean reverting process and that the probability of success with R&D on renewal forms of energy follows a binomial probability model. The model considers four options: the option to continue R&D, the option to delay R&D, the option to deploy R&D, and the option to abandon R&D. Finally, the value of Korean R&D on renewal forms of energy is analyzed by the model. Copyright © 2012 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]