Capacity Investment in Renewable Energy Technology with Supply Intermittency: Data Granularity Matters!

Shanshan Hu
Shanshan Hu
[email protected]
Department of Operations and Decision Technologies, Kelley School of Business, Indiana University, Bloomington, Indiana 47405
Search for more papers by this author
,
Gilvan C. Souza
Gilvan C. Souza
[email protected]
Department of Operations and Decision Technologies, Kelley School of Business, Indiana University, Bloomington, Indiana 47405
Search for more papers by this author
,
Mark E. Ferguson
Mark E. Ferguson
[email protected]
Management Science Department, Moore School of Business, University of South Carolina, Columbia, South Carolina 29208
Search for more papers by this author
,
Wenbin Wang
Wenbin Wang
[email protected]
Department of Operations Management, School of International Business Administration, Shanghai University of Finance and Economics, 200433 Shanghai, China
Search for more papers by this author

Department of Operations and Decision Technologies, Kelley School of Business, Indiana University, Bloomington, Indiana 47405

Search for more papers by this author

Gilvan C. Souza

[email protected]

Department of Operations and Decision Technologies, Kelley School of Business, Indiana University, Bloomington, Indiana 47405

Search for more papers by this author

Mark E. Ferguson

[email protected]

Management Science Department, Moore School of Business, University of South Carolina, Columbia, South Carolina 29208

Search for more papers by this author

Wenbin Wang

[email protected]

Department of Operations Management, School of International Business Administration, Shanghai University of Finance and Economics, 200433 Shanghai, China

Search for more papers by this author

Published Online:5 Jun 2015https://doi.org/10.1287/msom.2015.0536

Supplemental Material

msom.2015.0536-sm_online_appendix_distilled.pdf (359 KB)

msom.2015.0536-sm-example1_online.xlsx (31 MB)

msom.2015.0536-sm-example2_online.xlsx (12 MB)

Cited by
- Corporate renewable energy sourcing: A game-theoretic analysis of PPAs and VPPAs
  29 October 2025 | IISE Transactions, Vol. 58, No. 8
- Leveraging resource allocation for facilitating renewable energy technology innovation: A configurational perspective
  Journal of Engineering and Technology Management, Vol. 81
- EXPRESS: Does Energy Efficiency Imply Cost Efficiency? Revisiting Design and Operations of Combined Heat and Power Systems
  15 May 2026 | Production and Operations Management
- The Impact of Climate Change: An Empirical Analysis of Smart Thermostat Data
  Michael R. Blair,
  Saed Alizamir,
  Shouqiang Wang
  8 May 2026 | Management Science, Vol. 0, No. 0
- Optimal Renewable Power Purchase Agreements for Data Centers
  IEEE Transactions on Smart Grid, Vol. 17, No. 3
- The Hidden Impact of Prosumers and Its Fair Mitigation
  24 November 2025 | Production and Operations Management, Vol. 35, No. 5
- Fleet electrification: Classification and research agenda from an operations management perspective
  16 April 2026 | Mathematical Methods of Operations Research, Vol. 30
- Empowering supply chain energy efficiency: Merits and pitfalls of buyer collaboration
  31 March 2026 | Production and Operations Management, Vol. 3
- Improving Cash-Constrained Smallholder Farmers’ Revenue: The Role of Government Loans
  Jimin Park,
  Somya Singhvi,
  Yanchong Zheng
  23 March 2026 | Management Science, Vol. 0, No. 0
- Toward Sustainable Electricity Markets: Capacity-Based Pricing for Electric Vehicle Smart Charging
  Konstantina Valogianni,
  Wolfgang Ketter,
  John Collins,
  Gediminas Adomavicius
  24 June 2025 | Information Systems Research, Vol. 37, No. 1
- On the role of net metering and time-of-use pricing in distributed renewable energy adoption: A review and policy insights
  6 February 2026 | Energy Science, Vol. 02, No. 01
- Striving for a net-Zero emission future: Impact of feed-in tariffs on BOT highway investment and subsidy decisions
  Transportation Research Part E: Logistics and Transportation Review, Vol. 206
- Participation of Variable Renewable Generators in Forward Markets: A Game-Theoretic Analysis
  5 October 2025 | The Energy Journal, Vol. 47, No. 1
- Mid-Term Forecasting of Electricity Demand with Multiple Seasonal Cycles
  American Journal of Operations Research, Vol. 16, No. 02
- Joint decisions of renewable energy investment and daily energy procurement in smart microgrids
  Energy Economics, Vol. 150
- The environmental value of an owned agile power source
  Energy, Vol. 334
- Towards green manufacturing: Co-optimizing capacity expansion planning of production and renewable energy generation with endogenous uncertainty
  Computers & Operations Research, Vol. 176
- How Does Flexibility Affect Environmental Performance? Evidence from the Power Generation Industry
  David F. Drake; ,
  Suresh Muthulingam
  20 December 2024 | Manufacturing & Service Operations Management, Vol. 27, No. 2
- Renewable, Flexible, and Storage Capacities: Friends or Foes?
  Xiaoshan Peng,
  Owen Q. Wu,
  Gilvan C. Souza
  3 July 2024 | Manufacturing & Service Operations Management, Vol. 26, No. 5
- Empowering Economic Growth: Government Loans for Supply Chains in Emerging Markets
  21 August 2024 | Foundations and Trends® in Technology, Information and Operations Management, Vol. 18, No. 1
- Drivers and implications of combined investment in renewables and energy storage in the residential sector
  31 January 2023 | Decision Sciences, Vol. 55, No. 4
- Harvesting Solar Power Foments Prices in a Vicious Cycle: Breaking the Cycle with Price Mechanisms
  Fariba F. Mamaghani,
  Metin Çakanyildirim
  20 December 2023 | Operations Research, Vol. 72, No. 4
- Aggregating Distributed Energy Resources: Efficiency and Market Power
  Zuguang Gao,
  Khaled Alshehri,
  John R. Birge
  1 March 2024 | Manufacturing & Service Operations Management, Vol. 26, No. 3
- Green Technology Choice for Deep Decarbonization
  11 April 2024
- Renewable Energy Procurement Through the Lens of Operations Management
  18 July 2024
- Feed-in tariff or sheep farming subsidy? Implications of promoting photovoltaic energy by solar sheep raising
  Energy Policy, Vol. 184
- Optimal consumer capacity investment in solar panel system under supply and demand uncertainty
  Journal of Cleaner Production, Vol. 437
- Carbon emissions abatement with duopoly generators and eco-conscious consumers: Carbon tax vs carbon allowance
  Economic Analysis and Policy, Vol. 80
- Capacity investment decisions of energy storage power stations supporting wind power projects
  12 September 2023 | Industrial Management & Data Systems, Vol. 123, No. 11
- Assessing carbon cap-and-trade policies on hybrid renewable energy investments: Implications for pricing and capacity decisions
  Resources Policy, Vol. 86
- Evolutionary game analysis for government regulations in a straw-based bioenergy supply chain
  9 February 2022 | International Journal of Production Research, Vol. 61, No. 18
- Solar farm investment game model: A data‐driven case in Florida
  6 June 2023 | Managerial and Decision Economics, Vol. 44, No. 6
- Distributed Renewable Energy Investment: The Effect of Time-of-Use Pricing
  1 September 2023 | The Energy Journal, Vol. 44, No. 5
- A supply chain sourcing model at the interface of operations and sustainability
  9 September 2022 | IISE Transactions, Vol. 55, No. 8
- Facility and microgrid location-allocation for integrated supply chain and transactive energy operations
  Applied Mathematical Modelling, Vol. 119
- Long‐term service agreement in electricity supply chain with renewable energy penetration
  1 June 2023 | Production and Operations Management, Vol. 32, No. 6
- Effects of the Green Policy Environment on Renewable Energy Investment and Effect Evaluation of Green Policies
  Discrete Dynamics in Nature and Society, Vol. 2023
- Meeting Corporate Renewable Power Targets
  Alessio Trivella,
  Danial Mohseni-Taheri,
  Selvaprabu Nadarajah
  25 March 2022 | Management Science, Vol. 69, No. 1
- Socially relevant and inclusive operations management
  1 December 2022 | Production and Operations Management, Vol. 31, No. 12
- Carbon Offsetting with Eco-Conscious Consumers
  Fei Gao,
  Gilvan C. Souza
  25 January 2022 | Management Science, Vol. 68, No. 11
- Strategic decision for capacity portfolio in supply chain network considering emission permit price and demand uncertainty
  Journal of Cleaner Production, Vol. 374
- Smart Charging of Electric Vehicles: An Innovative Business Model for Utility Firms
  Owen Q. Wu,
  Şafak Yücel ,
  Yangfang (Helen) Zhou
  16 November 2021 | Manufacturing & Service Operations Management, Vol. 24, No. 5
- Multi-facility aggregate production planning with prosumer microgrid: A two-stage stochastic program
  Journal of Cleaner Production, Vol. 367
- Shared community energy storage allocation and optimization
  Applied Energy, Vol. 318
- Coordinating thermal energy storage capacity planning and multi-channels energy dispatch in wind-concentrating solar power energy system
  Journal of Cleaner Production, Vol. 350
- Artificial Shortage in Agricultural Supply Chains
  Retsef Levi,
  Somya Singhvi,
  Yanchong Zheng
  9 November 2021 | Manufacturing & Service Operations Management, Vol. 24, No. 2
- That’s Not Fair: Tariff Structures for Electric Utilities with Rooftop Solar
  Siddharth Prakash Singh,
  Alan Scheller-Wolf
  5 January 2021 | Manufacturing & Service Operations Management, Vol. 24, No. 1
- Investment decisions in distributed renewable energy considering economic performance and life-cycle environmental impact
  Computers & Industrial Engineering, Vol. 162
- Distributed Renewable Power Generation and Implications for Capacity Investment and Electricity Prices
  1 December 2021 | Production and Operations Management, Vol. 30, No. 12
- Net-Metered Distributed Renewable Energy: A Peril for Utilities?
  Nur Sunar,
  Jayashankar M. Swaminathan
  4 March 2021 | Management Science, Vol. 67, No. 11
- Dual-channel remanufacturing closed-loop supply chains under carbon footprint and collection competition
  Sustainable Production and Consumption, Vol. 28
- Renewable Power and Electricity Prices: The Impact of Forward Markets
  Heikki Peura,
  Derek W. Bunn
  9 February 2021 | Management Science, Vol. 67, No. 8
- Capacity Investment under Bayesian Information Updates at Reporting Periods: Model and Application
  1 August 2021 | Production and Operations Management, Vol. 30, No. 8
- Optimal Daily Trading of Battery Operations Using Arbitrage Spreads
  12 August 2021 | Energies, Vol. 14, No. 16
- Poverty mitigation via solar panel adoption: Smart contracts and targeted subsidy design
  Omega, Vol. 102
- A storage expansion planning framework using reinforcement learning and simulation-based optimization
  Applied Energy, Vol. 290
- Renewable Energy Deployment and COVID-19 Measures for Sustainable Development
  15 April 2021 | Sustainability, Vol. 13, No. 8
- The effect of emission permit allocation in an early-stage cap-and-trade for a duopoly market
  14 January 2020 | International Journal of Production Research, Vol. 59, No. 3
- Renewable Energy Sourcing
  10 February 2021
- A Discussion of Non‐Gaussian Price Processes for Energy and Commodity Operations
  1 January 2021 | Production and Operations Management, Vol. 30, No. 1
- Harvesting Solar Power Foments Prices in a Vicious Cycle: Breaking the Cycle with Price Mechanisms
  SSRN Electronic Journal, Vol. 22
- Determinants of economic growth and environmental sustainability in South Asian Association for Regional Cooperation: evidence from panel ARDL
  15 August 2020 | Environmental Science and Pollution Research, Vol. 27, No. 36
- Bidding for outsourcing contracts with capacity investments and cost asymmetry
  22 November 2019 | Journal of the Operational Research Society, Vol. 71, No. 12
- Promoting Solar Panel Investments: Feed-in-Tariff vs. Tax-Rebate Policies
  Volodymyr Babich,
  Ruben Lobel,
  Şafak Yücel
  3 April 2020 | Manufacturing & Service Operations Management, Vol. 22, No. 6
- The economic consequences of electricity tariff design in a renewable energy era
  Applied Energy, Vol. 275
- Optimal policy supports for renewable energy technology development: A dynamic programming model
  Energy Economics, Vol. 92
- Cross-subsidies among residential electricity prosumers from tariff design and metering infrastructure
  Energy Policy, Vol. 145
- Investments in Renewable and Conventional Energy: The Role of Operational Flexibility
  A. Gürhan Kök,
  Kevin Shang,
  Şafak Yücel
  23 January 2020 | Manufacturing & Service Operations Management, Vol. 22, No. 5
- Renewable Energy Investment under Carbon Emission Regulations
  24 August 2020 | Sustainability, Vol. 12, No. 17
- Capacity and Inventory Management: Review, Trends, and Projections
  Jing-Sheng Song,
  Geert-Jan van Houtum,
  Jan A. Van Mieghem
  18 July 2019 | Manufacturing & Service Operations Management, Vol. 22, No. 1
- Sustainable Operations Management Through the Perspective of Manufacturing & Service Operations Management
  Atalay Atasu,
  Charles J. Corbett,
  Ximin (Natalie) Huang,
  L. Beril Toktay
  17 December 2019 | Manufacturing & Service Operations Management, Vol. 22, No. 1
- A multi-site production and microgrid planning model for net-zero energy operations
  International Journal of Production Economics, Vol. 218
- Multi-Period energy procurement policies for smart-grid communities with deferrable demand and supplementary uncertain power supplies
  Omega, Vol. 89
- The impact of renewable energy forecast errors on imbalance volumes and electricity spot prices
  Energy Policy, Vol. 134
- Electric Power Industry: Operational and Public Policy Challenges and Opportunities
  1 November 2019 | Production and Operations Management, Vol. 28, No. 11
- Optimal Feed‐In Tariff Policies: The Impact of Market Structure and Technology Characteristics
  1 May 2019 | Production and Operations Management, Vol. 28, No. 5
- Managing Wind‐Based Electricity Generation in the Presence of Storage and Transmission Capacity
  1 April 2019 | Production and Operations Management, Vol. 28, No. 4
- Price optimization of hybrid power supply chain dominated by power grid
  Industrial Management & Data Systems, Vol. 119, No. 2
- Strategic Commitment to a Production Schedule with Uncertain Supply and Demand: Renewable Energy in Day-Ahead Electricity Markets
  Nur Sunar,
  John R. Birge
  7 May 2018 | Management Science, Vol. 65, No. 2
- Closing a Supplier’s Energy Efficiency Gap Through Assessment Assistance and Procurement Commitment
  Jason Nguyen,
  Karen Donohue,
  Mili Mehrotra
  18 April 2018 | Management Science, Vol. 65, No. 1
- Artificial Shortage in Agricultural Supply Chains
  SSRN Electronic Journal, Vol. 2
- Impact of Electricity Pricing Policies on Renewable Energy Investments and Carbon Emissions
  A. Gürhan Kök,
  Kevin Shang,
  Şafak Yücel
  2 December 2016 | Management Science, Vol. 64, No. 1
- Net-Metered Distributed Renewable Energy: A Peril for Utilities?
  SSRN Electronic Journal, Vol. 44
- A Discussion of Non-Gaussian Price Processes for Energy and Commodity Operations
  SSRN Electronic Journal, Vol. 19
- Optimizing capacity investment on renewable energy source supply chain
  Computers & Industrial Engineering, Vol. 107
- Green Technology Choice
  2 September 2016
- The structural impact of renewable portfolio standards and feed-in tariffs on electricity markets
  European Journal of Operational Research, Vol. 255, No. 1
- Capacity Investment Decisions in Renewable Energy Technologies
  16 June 2016
- Optimal Feed-In Tariff Policies: The Role of Technology Manufacturers
  SSRN Electronic Journal, Vol. 61
- Impact of Electricity Pricing Policy on Renewable Energy Investments and Carbon Emissions
  SSRN Electronic Journal, Vol. 11
- Managing Wind-based Electricity Generation with Storage and Transmission Capacity
  SSRN Electronic Journal, Vol. 19

cover image Manufacturing & Service Operations Management

Volume 17, Issue 4

Fall 2015

Pages 427-619

Article Information

Supplemental Material

Metrics

Information

Received:June 15, 2014
Accepted:February 13, 2015
Published Online:June 05, 2015

Cite as

Shanshan Hu, Gilvan C. Souza, Mark E. Ferguson, Wenbin Wang (2015) Capacity Investment in Renewable Energy Technology with Supply Intermittency: Data Granularity Matters!. Manufacturing & Service Operations Management 17(4):480-494.

https://doi.org/10.1287/msom.2015.0536

Keywords

PDF download

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Capacity Investment in Renewable Energy Technology with Supply Intermittency: Data Granularity Matters!

Supplemental Material

Volume 17, Issue 4

Article Information

Supplemental Material

Metrics

Information

Cite as

Keywords

Sign Up for INFORMS Publications Updates and News