Abstract

The purpose of this study was to determine the degree of influence of alternative options for generating electricity by households on the level of energy independence of countries. The research methodology was based on the use of correlation–regression analysis, as well as adapted non-linear optimization by choosing one of three scenarios for electricity generation by households for 20 countries. Regression analysis showed the dependence of a country’s energy security on households’ energy independence. It is determined that an increase in households’ energy production helps to reduce the level of energy dependence in developed countries. However, for developing countries, there is no such interrelation. The solution of the formulated problem of nonlinear optimization for the studied countries has demonstrated that the criterion of energy dependence is superior to the criterion of a country’s energy security. In the long term, this study can be deepened in the direction of assessing the effectiveness of household investment in electricity generation projects. The proposed results can be used by responsible persons in the field of economy and energy in order to determine the position of various policies, and use strategic levers and indicators that ensure an effective response to energy security challenges in the regional and global markets.

Highlights

  • The problem of resource and energy deficit is becoming increasingly urgent in the world

  • This study aims to fill this gap by diagnosing the impact of household energy production on the energy efficiency of countries

  • The increase in energy consumption by households entails an increase in the consumption of renewable energy, which, presumably, the households themselves generate. For both developed and developing countries, the trend is the development of household electricity production from renewable sources

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Summary

Introduction

The problem of resource and energy deficit is becoming increasingly urgent in the world. Low population concentrations, regulatory and organizational and administrative barriers, or high investment and operating costs, which may be unaffordable for utilities, grid promotion is not as profitable as alternatives, including increased autonomous energy production by households. The. IEA estimates that for universal access to electricity by 2030, decentralized solutions are the least-cost option for the 60 percent of people who do not have access to electricity. Decentralized electricity access solutions are scarce, but the pace of their development is accelerating every year. The IEA estimates that 33 million people have access to electricity through off-grid renewables (excluding pico-solar, with 114 million users (according to IRENA)), with the accelerating rate of connection [2]

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