Applying Mean-Variance Portfolio Analysis to E.ON's Power Generation Portfolio in the UK and Sweden

摘要: Summary: Over the coming years, European electricity industry will face enormous challenges concerning both new and existing power generation assets, also with respect to optimal (re-)investment decision-making. For selection of suitable technologies their integration into mix, apart from taking account socio-technical aspects expected profitability plants, it is crucial importance explicitly consider financial risks achievable risk diversification. In recent energy company E.ON has been strongly engaged in markets United Kingdom Sweden, respectively, successively built up capacities various kinds. Hence interesting study these investment decisions resulting portfolios by means mean-variance portfolio analysis, a method that was originally developed for Markowitz (1952), recently become increasingly popular economics literature.