Investment decisions and strategies of China''s energy storage
Energy storage technology is one of the critical supporting technologies to achieve carbon neutrality target. However, the investment in energy storage technology in China faces
Energy storage technology is one of the critical supporting technologies to achieve carbon neutrality target. However, the investment in energy storage technology in China faces
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Additionally, the investment threshold is significantly lower under the single strategy than it is under the continuous strategy. Therefore, direct investment in future energy storage technologies is the best choice when new technologies are already available.
Therefore, increasing the technology innovation level, as indicated by unit benefit coefficient, can promote energy storage technology investment. On the other hand, reducing the unit investment cost can mainly increase the investment opportunity value.
Specifically, with an expected growth rate of 0, when the volatility rises from 0.1 to 0.2, the critical value of the investment in energy storage technology rises from 0.0757 USD/kWh to 0.1019 USD/kWh, which is more pronounced. In addition, the value of the investment option also rises from 72.8 USD to 147.7 USD, which is also more apparent.
This study assumes that, in the face of multiple uncertainties in policy, technological innovation, and the market, firms can choose to invest in existing energy storage technologies or future improved versions of the technology to generate revenue.