Energy Policy Change Research Articles

Smart integration of renewable energy resources, electrical, and thermal energy storage in microgrid applications

With changes in energy policies to increase renewable energy resources integration, reduce fossil fuel consumption, and mitigate the environmental impact, optimal management of distributed energy resources becomes one of the key factors in the design of microgrid systems. This paper presents an optimum design and operation of a microgrid consisting of wind turbine, photovoltaic array, battery energy storage system, thermal energy storage, fuel cells, and boilers with consideration of electrical, heating and cooling loads. To optimize energy management, the uncertainty of renewable energy resources is considered. Furthermore, the system waste is utilized to produce biogas for boilers to meet heating demands within the system. The optimum energy management problem of distributed energy resources in the microgrid is solved using a Particle Swarm Optimization algorithm. The optimization results are obtained via minimizing the objective function which includes total cost of the system, greenhouse gas emissions, and fuel consumption. The results are shown that there is about a 24.56% reduction in CO2 emission when the produced heat of FC units are employed. It is observed that the utilization of produced energy from system waste brought down fuel consumption by 7%. The simulation results verify the efficiency and effectiveness of the proposed approach.

Putting the process into the policy mix: Simulating policy design for energy and electricity transitions in Japan

This study develops a framework to facilitate the participation of scientists to policy design towards energy transition, building upon existing literatures on science policy nexus, policy process, and energy system modelling. The framework assumes that policy design is embedded within systems and influenced by other actors, which is represented by incorporating a model of policy process derived from the Multiple Streams Framework that Kingdon (1984) originally developed. In order to support policy design for the transition of the energy system considering stakeholders’ primary interests and the possibility for a reshaping of the political dynamics, a cognitive mapping approach based on interviews to stakeholders is adopted. The newly developed framework is applied to a case study of a power system transition in Japan in order to confirm its effectiveness. The framework is identified to be able to support the creation of new policy alternatives by seeking options which satisfy the “policy process test”. Although the proposed framework remains a hypothetical tool which requires further validation and verification through additional practical applications toward policymaking, the policy process aspects captured by the framework are invaluable, especially given the current challenges in energy policy change and major determinants of policy direction.

Analysis on the Relation between Strengthening Internal Management and Economic Benefit of China’s Petrochemical Enterprises under the Restriction of Market Environment

This paper studies the external impact of China’s energy policy and market environment changes on the economic benefits of petrochemical enterprises, and the internal impact of internal control and management of petrochemical enterprises on their economic benefits. In 2010-2017, China’s energy economic policy has been adjusted, the market environment has undergone major changes. This paper quantifies these two factors into indexes and combines them with the internal control index of enterprises to apply them to the economic benefit model of petrochemical enterprises, Regression analysis has been used for positive analysis. The study finds the changes of China’s energy policy have played a guiding, regulating and promoting role in the development of petrochemical enterprises; the more restrictions the market environment imposes on petrochemical enterprises, the worse the economic benefits of petrochemical enterprises are. Strengthening internal control in petrochemical enterprises can offset some unfavorable factors and the economic benefits of downstream petrochemical enterprises are better than those of upstream ones. The paper reveals the effects of energy policy action index, market environment restriction index and internal control index on economic benefits of petrochemical enterprises. The policy recommendations are as follows:The governments should improve the market environment and formulate policiesthat will benefit upstream petrochemical enterprises, especially oil and gas extraction enterprises, in raising product prices and increasing profit margins.

Energy Demand Management and Social Norms

The main objective of our study was investigating the impact of norms and financial motivation on the disutility of energy management for Polish households. We analyzed consumer preferences and willingness to accept demand-side management (DSM) programs. Choice experiment was applied for electricity contracts including external control of electricity consumption. Ajzen’s theory of planned behavior provided the theoretical framework of the study, which tested hypotheses about the impact of social norms on consumer choices of electricity contracts. We show that people with higher descriptive social norms about electricity consumption are less sensitive to the level of compensation and more responsive to the number of blackouts. People willing to sign a contract for financial reasons were less sensitive to the external control of electricity consumption and less inclined toward the status quo option. Injunctive social norms and personal norms had a non-significant impact on consumer decisions. We conclude that financial incentives can reduce the effect of the norms. Social and personal norms seem to be more important when we analyze the revealed preferences. European countries face significant challenges related to changes in energy policy. This study contributes to understanding the decisions of households and provides insights into the implementation of DSM.

Exploring Signals for a Nuclear Future Using Social Big Data

Since the start of the new Korean government in 2017, the Korean nuclear energy system has undergone a major change. This change in national energy policy can be forecasted by analyzing social big data. This study verifies whether future forecasting methodologies using weak signals can be applied to Korean nuclear energy through text mining the data of web news between 2005 and 2018, comparing and applying the methodology to notable events (i.e., the UAE nuclear power plant (NPP) contract and nuclear phase-out). In addition, we predict what changes will be made in the Korean nuclear energy system post-2019. Keywords extracted through text mining were quantitatively classified into a weak signal or a strong signal using a Keyword Emergence Map (KEM) and a Keyword Issue Map (KIM). The extracted keywords predicted the contract of the UAE NPPs in 2009 and nuclear phase-out in 2017. Furthermore, keywords revealing future signals beyond 2019 were found to be ‘nuclear phase-out’ and ‘wind energy’. The weak-signal methodology can be applied as a tool to predict future energy trends during the current circumstance of the rapidly changing world energy market.

The Fourth Energy Transition and Development of Energy Sector in Kazakhstan

The relevance of the subject matter is conditioned upon the fact that currently the main direction of global energy development is already clearly visible: under the influence of changes in energy policy and the development of new technologies, the world is entering the stage of the fourth energy transition to the widespread use of renewable energy sources and displacement of fossil fuels. The development of Kazakhstan's economy requires the transition of energy towards clean and safe renewable sources, which will let the country build a new strong economy and break out of the long-running socio-economic decline, help the international community solve the problem of climate change and improve the safety and welfare of its citizens. The purpose of the study: The purpose of the paper is to develop recommendations for the development of Kazakhstan's energy industry at a new stage in the fundamental transformation of the global energy system. Leading approach to researching the problem. The leading methods of researching the problems of the paper include the analysis of theoretical sources, analysis of statistics, and comparison. Analysis of statistical indicators plays a crucial role in the study, since data on the development of Kazakhstan's energy industry can be directly obtained from statistical databases. The results of the study. The paper discusses the essence of the fourth energy transition, its main aspects, explores renewable energy sources, identifies the features and problems of Kazakhstan's energy industry, and develops ways to solve them. Prospects for further research. To implement the modern provisions of the fourth energy transition in Kazakhstan, it is necessary to use a systematic approach. The basic elements of such a transition are the introduction of renewable energy and energy efficiency (the intensification of reducing the energy intensity of goods and services). The materials of the paper are of practical value for the development of Kazakhstan’s energy during the period of fundamental structural transformations of the world energy sector.

Solar energy plant project selection with AHP decision-making method based on hesitant fuzzy linguistic evaluation

Increased energy demand is expected to be met by reliable and continuous energy sources. Renewable energy which is obtained from nature and can continuously reload itself from natural sources is a new generation energy type. The sun, which is the main source of renewable energies and produces heat and electricity by direct and indirect methods, is an important renewable energy source. The installation of solar energy systems takes place under the basic technical, economic and political factors. Alternative solar energy plant projects are evaluated linguistically under the main criteria based on the knowledge and experience of the experts. Hesitant fuzzy linguistic terms are used to incorporate the uncertain and hesitant expressions into the decision-making process. The decision-making process that takes place with hesitant linguistic expressions in multiple sub-criteria is based on the AHP model. The inclusion of hesitant statements in the decision-making process with the AHP model enables more realistic choices among the alternatives. System technology (0.18), energy policy (0.15) and energy price change (0.13) appear as the most important factors in the pairwise comparison of the factors based on hesitant fuzzy linguistic evaluations. The results coincide with the need for high efficiency in solar energy systems, the importance of governmental supportive policies and the effects of price competition in the energy sector. Also, the closeness of the overall priority values of all projects (0.189, 0.23, 0.287, 0.135, 0.158) indicates that the decision makers take into account the effective factors.

Evaluating the performance of Chinese fossil fuel power plants by data environment analysis: An application of three intermediate approaches in a time horizon

To our knowledge, the previous studies did not answer the following questions: how much does window analysis differ from the original Data Envelopment Analysis (DEA) approaches and how to develop DEA window analysis? To address these questions, we propose three intermediate approaches (cross-sectional approach, window efficiency analysis and window index approach) and statistically compare their performances. The underlying concern is that we need to examine whether a metrological bias exists in our study. The concern is important in guiding policy issues such as energy policy and climate change. Empirically, the proposed approaches are applied to measure the unified efficiency of fossil fuel power plants at a provincial level in China from 2007 to 2017, since these plants are important energy consumers and CO2 emitters. We obtain two important implications. First, considerable differences were confirmed among the three approaches, thus implying an existence of the methodological bias. Second, Beijing (the capital of China) outperformed the other provinces in terms of their measures, since the government has paid serious attention to air pollution emitted from fossil fuel power plants. The governmental regulation in Beijing is a good example of pollution prevention in China. It is expected that the success on Beijing will be disseminated to the other provinces.

Constraining Atmospheric Selenium Emissions Using Observations, Global Modeling, and Bayesian Inference.

Selenium (Se) is an essential dietary element for humans and animals, and the atmosphere is an important source of Se to soils. However, estimates of global atmospheric Se fluxes are highly uncertain. To constrain these uncertainties, we use a global model of atmospheric Se cycling and a database of more than 600 sites where Se in aerosol has been measured. Applying Bayesian inference techniques, we determine the probability distributions of global Se emissions from the four major sources: anthropogenic activities, volcanoes, marine biosphere, and terrestrial biosphere. Between 29 and 36 Gg of Se are emitted to the atmosphere every year, doubling previous estimates of emissions. Using emission parameters optimized by aerosol network measurements, our model shows good agreement with the aerosol Se observations (R2 = 0.66), as well as with independent aerosol (0.59) and wet deposition measurements (0.57). Both model and measurements show a decline in Se over North America in the last two decades because of changes in technology and energy policy. Our results highlight the role of the ocean as a net atmospheric Se sink, with around 7 Gg yr–1 of Se transferred from land through the atmosphere. The constrained Se emissions represent a substantial step forward in understanding the global Se cycle.

Land Cover Changes in Northern Zagros Forests (Nw Iran) Before and During Implementation of Energy Policies

ABSTRACT Our ability to forecast future Land use/cover changes (LUCC) is extremely limited due to lack of understanding of how rapid and drastic changes like socio-economic shocks and disturbances (e.g., policy changes and economic crises) affect land use/cover. Energy policies changing in Iran have been implemented since 2010. In this study, we explored whether changes in energy policies affect the sustainability of forest cover and LUCC. Results showed that in the time periods of before and after implementation of the policies, 2,841 and 3,155 ha of forests converted to other land covers, respectively. It was also revealed that forest and rangelands degradation and their conversion to croplands and built-up areas have had the most contribution to increasing area of these land covers. Calculation annual rate of deforestation showed an increase in deforestation activities after the plan (−0.40% versus −0.53%). On the other hand, the population growth in the first period was 10,074 people, which was higher than the population increase in the second period (9,803 people). Therefore, it can be argued that the effect of the energy policies is likely to be greater than the increase in population and it appears to be able to cause a transition of land systems.

Dynamics performance of the wind-power supply chain with transmission capacity constraints

Previous studies have shown that poor performance of energy supply chains arises from incorrectly interpret feedback information and time delays between decisions and actions in energy policy. This paper assesses alternatives to improve performance of wind-power supply chain with transmission constraints that contribute to enhance response capacity of the wind industry to changes of energy policy. In order to test these alternatives, this paper used a simulation model with system dynamics (SD), taking as case study Brazil. The simulation model represents the main time lags and fluctuations that exist in the wind-power supply chain. Four simulation scenarios were proposed to evaluate changes in auction-based policy in wind industry of Brazil. The results are related to operational capacity, inventory levels and response capacity. This paper provides an analysis of different scenarios that contribute with synchronization of auctions policy, including transmission capacity constraints.

Implied volatility relationships between crude oil and the U.S. stock markets: Dynamic correlation and spillover effects

This paper investigates the dynamic correlation and risk transmission between the oil market and the U.S. stock market, using the respective implied volatility indices published by the Chicago Board Options Exchange. The results indicate that, first, there is a significant positive time-varying correlation between oil and stock implied volatility returns. Second, during the global financial crisis, the correlation between oil and stock markets increases significantly. Third, there is a significant bidirectional implied volatility spillover between the oil and stock markets. Insights gleaned from the findings in this study could project energy and monetary policy implications. Monetary and/or energy policy changes could impact the predicted linkage mechanism between these two markets, which can be further leveraged to forecast the market's future volatility.

Current Needs of Making Changes in Transportation and Energy Policies to Mitigate the Bad and Harmful Impacts of Environmental Pollution; An Indian Perspective

Current Needs of Making Changes in Transportation and Energy Policies to Mitigate the Bad and Harmful Impacts of Environmental Pollution; An Indian Perspective

Examining Mexico's energy policy under the 4T

Since December 2018 there has been a new government and a new energy policy in Mexico. This government, under President Andrés Manuel López Obrador, has called for the fourth transformation of the country, or 4T, which includes implementing profound changes in energy policy focused on a strong oil sector headed by Mexico's state oil company PEMEX. Some of the key elements of the new policy are the construction of the Dos Bocas refinery with public investment, a rescue plan for the highly indebted PEMEX, non-private development of unconventional resources (i.e. shale gas and oil), and combatting the illegal extraction of hydrocarbons. These changes are being driven by government policies to support the uptake of hydrocarbons production to achieve ‘energy sovereignty’, making Mexico self-sufficient in energy in the medium term.

Analyzing the condition of Japanese electricity cost linkages by fossil fuel sources after the Fukushima disaster

This study analyzes the dynamics of the linkages among costs of electricity generation via crude oil, natural gas, and coal for the periods before and after the Fukushima accident. We find that Markov regime switching in the cost spreads between the fossil fuels has become more frequent after the Fukushima accident. Johansen and Bierens–Martins cointegration tests also indicate that since the accident, the oil and gas relationship has become more evident, while the cost relationships between coal and other fossil fuels have weakened. These results might reflect changes in Japanese energy policy since the accident to promote LNG and compensate for the reduced energy supply from closing the nuclear power plants, while concurrently coping to meet the requirements of the Paris Agreement to reduce CO2 emissions.

Electricity market integration, decarbonisation and security of supply: Dynamic volatility connectedness in the Irish and Great Britain markets

Abstract This study investigates the volatility connectedness between the Irish and Great Britain electricity markets and how it is driven by changes in energy policy, institutional structures and political ideologies. We assess various aspects of this volatility connectedness including static (unconditional) vs dynamic (conditional), symmetric vs asymmetric characteristics between 2009 and 2018. We find that the volatility connectedness is time-varying and it is significantly affected by important events, policy reforms or market re-designs such as Brexit, oil price slump, an increasing share of renewables, and fluctuations in the exchange rates. Our asymmetric analysis shows that magnitude of the good volatility connectedness is marginally larger than that of the bad volatility connectedness. Our result suggests that good volatility levels would be even higher once the Irish market adopts the carbon price floor. Therefore, supporting renewable generation by setting an appropriate price of carbon in interconnected wholesale electricity markets will improve market integration.

Electricity Market Integration, Decarbonisation and Security of Supply: Dynamic Volatility Connectedness in the Irish and Great Britain Markets

This study investigates the volatility connectedness between the Irish and Great Britain electricity markets and how it is driven by changes in energy policy, institutional structures and political ideologies. We assess various aspects of this volatility connectedness including static (unconditional) vs dynamic (conditional), symmetric vs asymmetric characteristics between 2009 and 2018. We find that volatility connectedness is time varying and is significantly affected by important events, policy reforms or market re-designs such as Brexit, oil price slump, increasing share of renewables, and fluctuations in the exchange rates. Our asymmetric analysis shows that the magnitude of the good volatility connectedness is marginally larger than that of the bad volatility connectedness. Our result suggests that good volatility levels would be even higher once the Irish market adopts the carbon price floor. Therefore, supporting renewable generation by setting an appropriate carbon price in interconnected wholesale electricity markets will improve market integration.

China’s Energy Consumption and Economic Growth under the Constraints of Carbon Emissions

This paper was based on the provincial unbalanced panel data of 31 administrative regions in China from 2005 to 2016, investigated the effects of carbon emission constraints and economic growth on China’s energy consumption, energy consumption structure and energy policy changes. The empirical results showed that a higher level of economic development would increase regional carbon emissions. Active energy policy and consumption structure adjustment will have a significant inhibitory effect on carbon emissions. This study provided micro-theoretical support for the optimization of regional energy consumption structural adjustment strategy, spatial prediction of emission reduction, and resolving the balance between energy supply and demand. It was helpful for local governments to analyze the energy consumption situation and the overall structural change trend according to the energy consumption structure. It could further tap the energy-saving potential of the region and formulate reasonable long-term development strategies.

PRIORITIES OF RUSSIAN ENERGY POLICY IN RUSSIAN-CHINESE RELATIONS

The priorities of Russian energy policy on the basis of Russian energy strategy until 2035 are proposed. Having narrowed the changes in Russia's energy policy, the article notes that the main priorities are strengthening the participation of China Development Bank in energy deals, building LNG and Pipelines in the context of energy cooperation, increasing the trust in Russia-China energy relations. The main limiting factor is not so much the limited resources as the costs of fuel production and the possibility of increasing the volume of energy exports to China, as well as low levels of energy efficiency and energy saving. In this situation, the possibility of progressive development of relations between China and Russia can be achieved only through fundamental changes in the industry. Expanding the field of cooperation energy investments is worth mentioning.

Energy Consumption and Economic Growth in Ethiopia: Evidence from ARDL Bound Test Approach

The present study aims to investigate the dynamic relationship between economic growth and energy consumption. Specifically, the study tries to answer the questions whether energy consumption has any significance effect on economic growth of the country and it also determined the magnitude of the effect. In doing this, the study used an ARDL bound test approach to analyze Ethiopian data from 1970 to 2017 with real GDP as a function of energy consumption, human capital., physical capital., trade openness and policy change dummy. To do so, secondary data were obtained from WDI, UNCTAD stat and NBE. Co-integration test approves the existence of long-run relationship among the variables. Moreover, the estimation result reveals that, energy consumption found statistically insignificant in affecting economic growth in the long-run. However, it was positive and statistically significant in short-run. Likewise, the dummy variable incorporated to capture the policy change found insignificant in long-run and with positive significant result in short-run. Also, we applied the Granger causality test in linear multivariate models to evaluate how important is the causal impact of energy consumption on economic growth. The results give the evidence of causality running from economic growth to energy consumption supporting “conservation hypothesis”, implying that reducing energy consumption may be implemented with little or no adverse effect on economic growth. Hence, this study recommended the policy makers to improve the existing policies on energy consumption so as to enhance the level of efficiency in the energy sector i.e. energy regulation policies supporting the shift from lower-quality to higher-quality energy services.