Development of a Quantitative Validation of Valuation Methods for Power Plants and Energy Systems Using a Simulation-Based Benchmark

Changing framework conditions requires adapting financial valuation methods for power plants and energy systems. Up to now newly developed or adapted valuation methods have been validated qualitatively, based on expert statements. This paper presents a structured development process for quantitative validation of valuation methods. The Xerox method for developing a benchmark is used to develop key figures that verify the plausibility of the simplified Valuation Methods. The method for developing a simulation study is used to analyze the requirements of a simulation model whose results can serve as reference values for benchmarking. To support the plausibility of the approach, structured methods were used to create both the benchmark and the simulation model. The process results in the development of a framework that serves as a baseline to perform a benchmark of the different methods. These provide indicators that analyze quantitatively the validity of the valuation methods. Existing simulation models for complex energy systems need to be adapted to provide the required reference values. This needs modification of these models, based on the requirements of the valuation methods. The results provide then a novel approach to the evaluation of these valuation methods.