Energy Investment Research Articles

Optimal planning of hybrid power systems under economic variables and different climatic regions: A case study of Türkiye

Renewable energy-based hybrid power systems (HPS), proposed based on demand in the transition to clean energy-indexed societies, are high-potential investments. However, cost-based optimal sizing and feasibility analyses are complicated due to unforeseen variables and do not guarantee a reliable and robust optimization framework. This study optimizes minimum-cost HPS planning for diverse loads across varied climates and economic conditions, providing holistic comparisons of technical, financial, and environmental viability. According to the analysis, fluctuating economic structure emphasizes that unsubsidized hybrid power system installations are inefficient, the severe imbalance between inflation and interest rates limits the benefits of hybrid power systems and creates an uncertain investment environment for stakeholders. The gradual increase in interest rates to limit inflation has created a more viable renewable energy investment environment, while payback periods are reduced to 7.21 years. Even under identical economic conditions, the renewable fraction of energy in regions with high solar potential can be up to 25 % higher than in regions with less potential. Moreover, payback periods can vary up to 6 years, depending on the variability in solar generation and load profiles. Considering the significant impact of economic uncertainty on HPS investments, optimization plans that reduce investment risks will be helpful to stakeholders.

Examining public private partnership investment in energy towards achieving sustainable development goal 7 for ASEAN region

The gradual progress in aligning financial flows with the adoption of clean technologies reveals a persistent funding gap, signaling a global misallocation of capital. Addressing this challenge necessitates political leadership and robust policies to counteract the insecurities impeding the redirection of financial flows. This study investigates into the impact of energy-related public–private partnership investments (PPPIE) and macro-environmental variables on the attainment of Sustainable Development Goal 7 (SDG7) across Association of Southeast Asian Nations (ASEAN) member countries from 1999 to 2021. Employing the Dynamac command technique, we conduct autoregressive distribution lag analysis and the Bounds Cointegration Test to evaluate ASEAN’s efforts in achieving SDG7. Results indicate that a ten-year exogenous shock to the GDP growth rate initially causes a temporary decline in both GDP and PPPIE, albeit not statistically significant. However, in the long run, the shock becomes statistically significant, correlating with a negative decline in the GDP growth rate. This underscores the negative impact of external factors like the COVID-19 pandemic on the economic growth of ASEAN member countries. Specifically, a percentage increase in PPPIE leads to an 8.3% reduction in the GDP growth rate, revealing a detrimental and unsustainable impact on the economy. This signifies that energy investments in the ASEAN region, are predominantly unsustainable and adversely impact economic growth. Moreover, these energy investments contribute to a significant 52.6% increase in greenhouse gas emissions, indicating a substantial setback in the region’s progress towards meeting SDG7’s clean energy objectives by 2030. This suggests the present state of PPPIE does not align with sustainable clean energy goals of the region. Therefore, recommendations should include diversifying energy sources and investment strategies to enhance sustainable clean energy. Also, policymakers and researchers should reassess the terms and conditions of PPPIE, refining frameworks for private sector involvement to align with long-term economic sustainability goals.

An electricity-driven mobility circular economy with lifecycle carbon footprints for climate-adaptive carbon neutrality transformation

Under the carbon neutrality targets and sustainable development goals, emergingly increasing needs for batteries are in buildings and electric vehicles. However, embodied carbon emissions impose dialectical viewpoints on whether the electrochemical battery is environmentally friendly or not. In this research, a community with energy paradigm shifting towards decentralization, renewable and sustainability is studied, with multi-directional Vehicle-to-Everything (V2X) and lifecycle battery circular economy. Approaches are proposed to quantify the lifecycle carbon intensity of batteries. Afterwards, pathways for zero-carbon transformation are proposed to guide the economic feasibility of energy, social and governance investment behaviors. Results show that lifecycle zero-carbon battery can be achieved under energy paradigm shifting to positive, V2X interaction, battery cascade utilization and battery circular economy in various climate regions. This study proposes an approach for lifecycle battery carbon intensity quantification for sustainable pathways transition on zero-carbon batteries and carbon-neutral communities.

Green Silk Road and Belt Economic Initiative and Local Sustainable Development: Through the Lens of China’s Clean Energy Investment in Central Asia

Green Silk Road and Belt Economic Initiative and Local Sustainable Development: Through the Lens of China’s Clean Energy Investment in Central Asia

EU legislators approve the electricity market reform

The European electricity market is on the brink of transformative regulatory changes designed to reshape its landscape fundamentally. These changes encompass measures aimed at ensuring market stability, enhancing efficiency, promoting investment in clean energy, and safeguarding stakeholders from energy crises. Central to these reforms is the promotion of Power Purchase Agreements (PPAs) and Contracts for Difference (CFDs) to stabilize markets. Considering that existing barriers are impeding PPAs widespread adoption, the new design of the electricity market prompts regulatory adjustments to streamline access while maintaining fair competition. Concurrently, the design of CFDs must navigate competition distortions and ensure long-term viability, posing challenges for the European Commission in aligning them with State aid rules. Efforts to boost market efficiency include the reduction of intraday gate closure times, effective January 2026, and the establishment of minimum bid sizes to optimize resource allocation and pricing mechanisms. Moreover, the regulatory framework prioritizes incentivizing investments in clean energy, underscoring Europe’s commitment to sustainability. Member states will wield the power to implement non-fossil flexibility support schemes, offering payments for available non-fossil flexibility capacity, thereby fostering the transition towards cleaner energy sources. Lastly, protective measures are being instituted to shield consumers and undertakings from energy crises, emphasizing the need for resilience and stability in the sector. As these reforms unfold, policymakers must delicately balance fostering innovation, ensuring competitiveness, and safeguarding stakeholders’ interests. This article delves into the complexities of these reforms, offering insights into their implications and challenges.

Gold Production and the Global Energy Transition—A Perspective

Gold is neither a critical mineral nor a metal that is central to the global energy transition in terms of demand from new energy production technologies. Yet, gold is unique among mined commodities for its role in financial markets and for its global production footprint including in numerous developing economies. Since the production of gold incurs CO2 emissions and other environmental risks including water pollution and land degradation, gold producers seek to adopt clean production solutions through electrification and renewable energy adoption. Further, gold’s unique role as a store of value creates new potential green business models in gold, such as the digitalisation of in-ground gold inventories, which can further reduce negative environmental externalities from gold mining. A net-zero emissions, future global gold industry, is possible. Major gold producers are targeting net-zero Scope 1 and 2 emissions by 2050, coupled with a lower overall environmental footprint to meet heightened societal expectations for cleaner production. An analysis of emissions data from Australian gold mines shows systematic differences between mining operations. Further clean energy investment in gold production is required to reduce emission levels towards the target of net zero.

Carbon pricing policies and renewable energy development: Analysis based on cross-country panel data

While studies have theoretically discussed the impact of carbon pricing on renewable energy, the practical implementation and effectiveness of these policies remain uncertain. This study empirically examines the role of carbon emissions trading and carbon tax in global renewable energy development using panel data from 196 countries and regions and employing the staggered difference-in-differences (DID) model and Bacon decomposition method. The results suggest that: (1) From the perspective of policy shocks, carbon trading has increased non-hydro renewable electricity generation by 73.32%, while carbon tax has increased it by 31.79%. This indicates that the overall impact of carbon trading on renewable energy is greater than that of carbon tax. However, the elasticity coefficients of renewable energy to carbon trading prices and carbon tax rates are 0.1801 and 0.1845, respectively, suggesting a slightly greater marginal effect of carbon tax on renewable energy compared to carbon trading. (2) Both carbon tax and carbon trading have mitigated the growth of fossil electricity and encouraged public investment in renewable energy, thereby fostering its development. (3) The influence of carbon pricing on renewable energy varies by income level; notably, the implementation of these policies in high-income countries has diminished their promotional effect on renewable energy. (4) The contribution of technological innovation to renewable energy development is smaller than that of policies including carbon trading and carbon tax, indicating that renewable energy development during the sample period was predominantly driven by policy measures. The findings indicate that the application of carbon pricing policies should be further promoted to accelerate the energy mix transition.

Towards Sustainable Energy Communities: Integrating Time-of-Use Pricing and Techno-Economic Analysis for Optimal Design—A Case Study of Valongo, Portugal

This paper presents a comprehensive analysis of optimal energy community design, leveraging time-of-use pricing mechanisms and techno-economic parameters. Focusing on a case study of Valongo, Portugal, this study explores the intricate interplay between energy infrastructure planning, economic considerations, and pricing dynamics. Through a systematic approach, various factors, such as renewable energy integration, demand–response strategies, and investment costs, are evaluated to formulate an efficient and sustainable energy community model. Time-of-use pricing schemes are incorporated to reflect the dynamic nature of energy markets and consumer behavior. By integrating techno-economic analyses, this study aims to optimize energy resource allocation while ensuring cost-effectiveness and environmental sustainability. The influence of optimized sizes of photovoltaics (PV), battery storage, and electrical vehicles (EVs) on self-sufficiency rates, self-consumption rates and CO2 savings is analyzed. The findings offer valuable insights into the design and implementation of energy communities in urban settings, highlighting the importance of adaptive strategies in the transition towards a resilient and low-carbon energy future. The novelty of this paper lies in its comprehensive approach to energy community design, which integrates time-of-use pricing mechanisms with techno-economic parameters. By focusing on the specific case of Valongo, Portugal, it addresses the unique challenges and opportunities present in urban settings. Additionally, the analysis considers the interaction between renewable energy production, demand profiles and investment costs, providing valuable insights for optimizing resource allocation and achieving both cost-effectiveness and environmental sustainability.

Assessing global carbon sequestration and bioenergy potential from microalgae cultivation on marginal lands leveraging machine learning

This comprehensive study unveils the vast global potential of microalgae as a sustainable bioenergy source, focusing on the utilization of marginal lands and employing advanced machine learning techniques to predict biomass productivity. By identifying approximately 7.37 million square kilometers of marginal lands suitable for microalgae cultivation, this research uncovers the extensive potential of these underutilized areas, particularly within equatorial and low-latitude regions, for microalgae bioenergy development. This approach mitigates the competition for food resources and conserves freshwater supplies. Utilizing cutting-edge machine learning algorithms based on robust datasets from global microalgae cultivation experiments spanning 1994 to 2017, this study integrates essential environmental variables to map out a detailed projection of potential yields across a variety of landscapes. The analysis further delineates the bioenergy and carbon sequestration potential across two effective cultivation methods: Photobioreactors (PBRs), and Open Ponds, with PBRs showcasing exceptional productivity, with a global average daily biomass productivity of 142.81mgL−1d−1, followed by Open Ponds at 122.57mgL−1d−1. Projections based on optimal PBR conditions suggest an annual yield of 99.54 gigatons of microalgae biomass. This yield can be transformed into 64.70 gigatons of biodiesel, equivalent to 58.68 gigatons of traditional diesel, while sequestering 182.16 gigatons of CO2, equating to approximately 4.5 times the global CO2 emissions projected for 2023. Notably, Australia leads in microalgae biomass production, with an annual output of 16.19 gigatons, followed by significant contributions from Kazakhstan, Sudan, Brazil, the United States, and China, showcasing the diverse global potential for microalgae bioenergy across varying ecological and geographical landscapes. Through this rigorous investigation, the study emphasizes the strategic importance of microalgae cultivation in achieving sustainable energy solutions and mitigating climate change, while also acknowledging the scalability challenges and the necessity for significant economic and energy investments.

Conditions for the Development of Wind Energy for Individual Consumers: A Case Study in Poland

This article presents the economic viability of using 10 m wind turbines in households with financial support from the government. The aim of this study was to indicate whether and how state subsidies affect the efficiency and estimated payback periods of wind energy investments for individual households. The research conducted thus far has focused on the analysis of effectiveness, feasibility, and economic profitability, but it has not taken into account government support for the investment readiness of households, which constitutes a research gap in the literature and economic practice. In addition, this study analyzed a new program that is scheduled to come into force this year. The analysis used the Homer Pro software (ver. x64) module, and simulations were performed for three locations in Poland. Due to differences in the location of wind zones, as well as the location of two locations on the Baltic Sea, an additional factor characterizing the studied voivodeships was introduced. Government support may therefore constitute a mechanism for correcting the geographical location and local wind potential. It has been shown that financial support significantly accelerates the payback period, even in locations with weaker wind potential. Complementary and substitutive possibilities for renewable energy sources, such as sun and wind, were indicated. The conclusions from this research can be used by decision makers and individual households to take advantage of government support to shorten the return on investment in wind energy and the validity of this support.

Retraction Note: Assessing the role of energy finance, green policies, and investment towards green economic recovery.

Retraction Note: Assessing the role of energy finance, green policies, and investment towards green economic recovery.

Retraction Note: Does green finance mitigate the effects of climate variability: role of renewable energy investment and infrastructure.

Retraction Note: Does green finance mitigate the effects of climate variability: role of renewable energy investment and infrastructure.

From oil surges to renewable shifts: Unveiling the dynamic impact of supply and demand shocks in global crude oil market on U.S. clean energy trends

Transitioning to renewable energies has become undeniably important in recent decades, especially for the United States. Oil price shocks are prominent determinants of renewable energy. Hence, this study examines the impacts of oil supply, aggregate demand, and oil-specific demand shocks on renewable energy consumption from 1973:01 to 2021:05 using Structural VAR and Time-Varying Parameter VAR models. Based on the results, oil supply shocks generally have a negligible effect on renewable energy, except those that originate from sharp changes in Saudi Arabian oil production and the U.S. recession-induced oil supply deficit. Aggregate demand shocks, such as those caused by the Persian Gulf War and the Asian financial crisis, negatively affect renewable energy by reducing investments and making oil more affordable. Conversely, oil-specific demand shocks, such as the 1979 Iranian Revolution and the 2008 financial crisis, initially reduce renewable energy attractiveness but ultimately lead to increased renewable energy consumption due to soaring oil prices. This study’s unique approach of separately examining global oil market shocks provides new insights, complementing and extending previous research on the relationship between oil prices and renewable energy consumption. Eventually, policy implications for strengthening incentive policies and adding punitive policies to seeking investment in renewable energy are proposed.

Smart Initiatives to Drive Solar Energy Investments under Environmental Uncertainty: Exploring Linear and Quadratic Relationships

Smart Initiatives to Drive Solar Energy Investments under Environmental Uncertainty: Exploring Linear and Quadratic Relationships

The interconnectedness and spillover effects among economic uncertainty, energy-related risks and sovereign risk in BRICS economies

ABSTRACT Emerging economies experiencing energy-intensive growth face increased energy price volatility, which could fuel macroeconomic instability with possible implications on their debt repayment capacity. This study implements a quantile vector autoregressive model on a dataset collected between April 2011 and July 2024 to examine the interplay among economic uncertainty, energy-related risks and sovereign risk in BRICS economies. The empirical results show these risk factors exhibit strong interconnectedness under low- and high-risk profiles. Under a low-risk profile, energy risks are transmitters in all countries except Russia and India. Sovereign risk receives shocks in Brazil, India and South Africa but transmits shocks in Russia and China, whereas economic risk is a shock transmitter in South Africa and India and plays the receiver role in Brazil, Russia and China. In high-risk conditions, economic risk is a shock transmitter in Russia and India but receives shocks in Brazil, China, and South Africa; Sovereign risk receives shocks in all countries except China while energy risk is a transmitter across countries except Russia. Therefore, the dynamics of the studied risks are driven by individual country heterogeneities including risk profile, economic structure, market conditions and energy trade status. Policymakers should combine energy, economic and debt management policies to promote economic stability and build crisis resilience. In conclusion, debt management and investment in renewable energy are alternative policy instruments to promote creditworthiness in emerging countries.

SCAPS 1D based study of hole and electron transfer layers to improve MoS2–ZrS2 solar cell efficiency

In the realm of photovoltaic applications, scientists and technocrats are striving to maximize the solar cell input photon energy conversion to electricity. However, achieving optimal cell efficiency requires significant time and energy investment for each variation and optimization. To overcome this issue authors simulated and studied the fabricated cell for optimizing conditions, which can save time and efforts for the relatively better outcomes. The family of transition metal chalcogenides holds promise as a material that yield improved outcomes in optoelectronic applications, particularly in photovoltaics. These materials are employed in experimental investigations aimed at enhancing solar cell parameters, resulting in the development of the FTO/ZnO/ZrS2/MoS2/CuO/Au composite cell. Numerical simulations utilizing SCAPS-1D software is conducted, focusing on the significance of CuO as a hole transport layer (HTL), and ZnO as an electron transport layer (ETL). The investigation examines into the impact of various factors, including thickness, bandgap, and carrier densities for both HTL and ETL, on fundamental solar cell parameters. The study indicates that device parameters are influenced by factors such as recombination rate, photogenerated current, charge carrier length, and built-in-voltage. Optimized parameters for HTL, including thickness, bandgap, and carrier concentration, are determined to be 0⋅35 μm, 1⋅2 eV, and 1⋅0 × 1020 cm–3, respectively. For ETL, the optimized parameters are found to be 0⋅05 μm, 3⋅1 eV, and 1⋅0 × 1018 cm–3, respectively. With these optimized parameters, the efficiency of the solar cell reached 20⋅64%, accompanied by open circuit voltage, short circuit current density, and fill factor values of 0.836 V, 36.021 mA⋅cm–2, and 68⋅54%, respectively. The simulated results indicate that addition of two extra layers and the use of efficient binary materials in heterojunction formation can effectively enhance device parameters, offering advantages such as low-cost and large-scale fabrication.

Determinants influencing ecological footprints of China; An empirical evidence from factor analysis

China has advanced significantly in the last decades, but ecological concerns raise questions about the nation's long-term affluence. The hunt for possible determinants in explaining the quality of the environment (ecological footprint) is still in progress. Therefore, the current study attempts to investigate the influencing factors from various explanatory variables (eco-innovation, economic complexity, renewable energy consumption, economic growth, natural resource rent, foreign direct investment, the energy intensity level of primary energy, economic development, Public-private partnerships investment in energy, electric power consumption, and population growth) through factor analysis augmented with Back Propagation Neural Network (BPNN) approach. The annual data from 1995 to 2021 for China is retrieved for empirical analysis. The data set comprises the factors classified into training, validation, and testing divisions with a ratio of 2:1:1. The outcomes revealed that extracted factors are robust in explaining China's ecological footprint variation. Outcomes of the BPNN algorithm suggest that renewable energy consumption, eco-innovation, economic complexity, natural resource rent, and electric power consumption are the most useful determinants in explaining the ecological footprints of China. The study furnishes the possible policy implications of the research.

The impact of taxation, technological innovation and trade openness on renewable energy investment: Evidence from the top renewable energy producing countries

In the context of contemporary global warming, transitioning from traditional fossil energy to renewable energy sources emerges as a crucial strategy to reduce carbon emissions and achieve the 7th sustainable development goal (SDG). Tax policy significantly shapes the investment landscape, influencing all factors concerning the transition to renewable energy, such as technological innovation and trade openness. However, no empirical studies have examined the direct and moderating role of taxation on renewable energy investment, mainly due to the scarcity of tax data. Therefore, this paper utilizes the recently released Government Revenue Dataset (2023) to explore the complex link between taxation, technological innovation, trade openness, and renewable energy investment for a sample of the top 37 renewable energy-producing countries during the period (1996–2021). The results of the cross-section ARDL (CS-ARDL) and the pooled mean group ARDL (PMG-ARDL) models indicate that taxation has a negative and significant influence on renewable energy investment across all model specifications, both in the short and long run. Conversely, innovation and trade openness exhibit a positive and significant influence on clean energy investment. Regarding the moderating influence of taxation, the results revealed that tax revenues depress the positive impact exerted by technological innovation and international trade. Furthermore, the fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) models affirm the robustness of the long-run results obtained from CS-ARDL and PMG-ARDL models. The study's findings offer significant insights into how countries engaged in renewable energy production can enhance their taxation framework to leverage trade and innovation to promote renewable energy investment.

Achieving carbon-neutrality goals in Asian emerging economies: Role of investment in clean energy, eco-regulations, and green finance

Predicting the future of the globe due to severe climate changes caused by the emission of human-induced gases is heated debate of this era. Paris Climate Accord (COP26) is one of the initiatives taken by the nations to achieve carbon neutrality (zero carbon) and prevent the planet from the hazardous effect of carbon emission. This study aims to examine if renewable energy consumption, green finance and eco-regulations help in reducing carbon emission in four emerging Asian economies. Utilizing the panel data from 2010 to 2021, this study applies cross sectional ARDL regression estimation to empirically examine the research issue. The findings indicate that the promotion of clean energy initiatives via renewable energy consumption, implementation of eco-regulations and utilization of green finance substantially reduce carbon emissions while enhancing a nation’s capacity to reach the objective of carbon neutrality. The findings have practical implication for the regulatory bodies to develop eco-regulations and motivate the nation towards using renewable energy in order to combat with carbon emission.

Assessing the environmental impacts of clean energy investment in Pakistan using a dynamic autoregressive distributed lag model

In this study, the authors projected the impacts of clean energy investment on environmental degradation by applying a novel and dynamic Autoregressive Distributed Lag (DARDL) model for Pakistan from 1990 to 2022. Most researchers have used ecological footprint or CO2 emissions indicators to look at how clean energy investment affects environmental degradation, which primarily represents contamination induced by humans' consumption patterns and does not consider the impact of the supply side. Against this background, the study scrutinized the dynamic interaction between clean energy investment and environmental sustainability using the load capacity factor (LCF) as an ecological indicator in Pakistan, including economic growth, population density, trade openness, urbanization, and industrialization in the analysis. The long-run estimates from DARDL indicate that a 1 percent upsurge in clean energy investment mitigates environmental degradation by approximately 0.42 percent on average, controlling for other factors. Further, the study also revealed that a 1 percent increase in clean energy investment diminishes dirty energy consumption by approximately 0.45 percent. The validity of the findings is confirmed using alternate methods, i.e., KRLS. The study recommends that Pakistan prioritize investment in clean energy projects to promote environmental sustainability and enforce environmental regulations to reduce the adverse externalities associated with dirty energy activities.