The liberalization process tightening environmental standards and the need for replacing aged
power plants force European utilities to optimize their future generation mix. Power plants are
real assets and as a consequence the power plant park of a utility firm equals a portfolio of
different generation assets. This thesis adds to the understanding how to identify an efficient
generation portfolio through time by assuming a non-constant feasible set. According to our
results a combination of conventional thermal and renewable energies turn out to be efficient
in terms of expected value and risks. Therefore implementing a strategy based on renewable
energies which cause less CO2 per MWh generated electricity clearly pays off. Potential
readership includes scholars from energy economics and energy finance as well as interested
practitioners involved in these areas.
