| Title: | What is it worth? : Determining the capital stock of european hydropower plants |
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| Authors: | ID Gsodam, Petra (Author)
ID Stigler, Heinrich (Author) |
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| Files: |  Gsodam_Stigler.pdf (1,51 MB)
MD5: 537709E5A69231419D0CE9145E275BA5
PID: 20.500.12556/dkum/3530d0d1-4c20-4621-a411-2fe7d270118b
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| Language: | English |
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| Work type: | Not categorized |
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| Typology: | 1.08 - Published Scientific Conference Contribution |
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| Organization: | FERI - Faculty of Electrical Engineering and Computer Science
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| Abstract: | High lifetimes and high capital intensities characterize fixed assets of electric utilities. The historical cost concept implicate that long-lasting fixed assets are shown too low in balance sheets of electric utilities: the real value of long-lasting assets is not shown because of nominal price increases. An alternative to show the real value of longterm assets represents the capital stock concept based on replacement values less depreciations (net capital stock). To calculate the capital stock, information regarding the level of investment in each power plant at the time of construction (historical acquisition values) and with regard to a common base year (replacement values) is necessary. This paper shows how the not-standardized investments in hydropower plants can be estimated and how the capital stock of run-of-river and threshold hydropower plants can be calculated. Long-term assets in the form of run-of-river and threshold hydropower plants are compared based on historic costs and replacement values. The paper concludes that given nominal price increases for replacement investments, as is the case with long-lasting hydropower plants, only depreciations based on replacement values can ensure preservation of the company’s assets. |
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| Keywords: | fixed assets, electric utilities, balance sheet, capital stock, depreciation |
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| Publication status: | Published |
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| Number of pages: | 41-52 |
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| PID: | 20.500.12556/DKUM-68728  |
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| DOI: | https://doi.org/10.18690/978-961-286-071-4.6 |
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| NUK URN: | URN:SI:UM:DK:GRAGYKDW |
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| Publication date in DKUM: | 11.10.2017 |
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| Views: | 1447 |
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| Downloads: | 254 |
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| Metadata: |    |
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| Categories: | Misc.
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