Dear Antti,
Thank you for your answer.
You say that "the model will see all future prices irrespective of them being exogenous or endogenous."
I still do not agree with you in the case of endogenous electricity prices.
When making an investment decition in 2006, let's say in an heat pump, the consumer considers future electricity price (in 2010, 2015, 2020) and finds the NPV of this technology and compares it with a pellets burner considering future pellets price, finding NPV.
When electricity prices are endogenous they are dependent on capital investments on both the production and consumption side. So how can the consumer in 2006 consider the electricity price in 2010, when this price depends on the investement choice (investing in a heat pump will give higher el-price, than investing in a pellets burner) of the same consumer today (2006)? My question is, what comes first? Or is the consumption and production iterated several times? In that case, how many times?