Abstract
In this study, a methodology was suggested for wind and solar energy investment plans through linear optimization model for the countries with an energy-based current deficit problem. The originality of the study is that it is a renewable energy investment model based on the functioning of the balance of payments for current deficit reduction, which has not previously been encountered in the literature. While creating the model, without causing external economic imbalance, certain parameters were taken into consideration such as profit transfers for the foreign direct investments, interest payments for the domestic investments, import rates for the wind and solar energy systems, energy electric power production values, electric power load balance, electricity transmission infrastructure, CO2 emission, future electric power demand projection, and import source rates in the electric power production. It was proven that the model, for the 2019–2030 period in Turkey, not only is an opportunity for decreasing the current deficit but also ensures reaching the CO2 emission reduction target. Additionally, through the investments in wind and solar energy, it was calculated that fossil-based electric power production will decrease by 80%, and a CO2 reduction will be provided, which is equivalent of 100 million tonnes GWh natural gas. As a more general result, an optimization model was created which provides a solution for countries coping with energy-based current deficit in economic terms, energy-based air pollution in environmental terms, and renewable energy technology insufficiency.
Highlights
Dornbusch and Fischer [1] reported that it was a threshold value if the current deficit is 4% of the GDP (Gross Domestic Product), Freund [2] reported it to be a threshold value if it is 5% of the GDP, and numerous economists stated that if this percentage is exceeded it is an early warning signal for a crisis
It was determined that 60% of the total electricity generation was provided from fossil resources between 2006 and 2017 in the model, and as the conclusion of our study, 80%
Of this import-based electricity will be met from wind and photovoltaic devices (PV) solar energy investments by the year
Summary
Dornbusch and Fischer [1] reported that it was a threshold value if the current deficit is 4% of the GDP (Gross Domestic Product), Freund [2] reported it to be a threshold value if it is 5% of the GDP, and numerous economists stated that if this percentage is exceeded it is an early warning signal for a crisis. In studies conducted on determinants of exchange rate crises, it was reported that if the current deficit /GDP rate is 2.67%, it increases the possibility of crisis by 6.34% [3]. In accordance with this warning, the recent Trade War based on the current deficit of the USA is stated by many economists as the canary in the mine for the world economy. Energies 2020, 13, 1509 as the USA, China, Mexico, and Canada to the rest of the world [5]. It is stated by the USA government as well, that this current deficit weakens the growth of the USA economy and decreases employment
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