Bonjour à tous,
 
Ci-dessous une petite étude de cas sur laquelle je bosse en ce moment et j'avoue que je sèche un peu...vos conseils sont les bienvenus ! Merci bcp !
 
You manage a power plant that is out of operation for the next 3 months on routine maintenance.  
 
However, by investing £25,000 you could accelerate the maintenance programme to make the plant available for a return to service 1 week early – although there would be no obligation on you to run it during this week. The plant has a maximum output of 500 MW and if you do decide to start it a week early you must operate it at this level for the whole week to support commissioning tests. The cost of running the plant is £20 per MWh generated, and the plant’s output is sold to the power market. Forward contracts for the delivery of baseload power over the week concerned are currently trading at 19 £/MWh with an annualised volatility of 30% - estimated from the standard deviation of historic price returns, and shown to be independent of time to maturity.
 
Q: You need to establish whether it is economic to bring the plant back early, the risks involved in following such a strategy and how to minimise these risks. You should consider two scenarios. The first is that market liquidity continues to be good and transaction costs are negligible. The second is that liquidity rapidly deteriorates to the level where trades typically carry a transaction cost of 0.15 £/MWh.