Renewable Energy Installations Research Articles

Crowdfunding and Energy Efficiency Contracting: Exploring New Pathways for Private Investment in Building Renovations

Energy Efficiency Contracting (EEC) enables structural improvements in buildings by financing upgrades through the savings generated, eliminating the need for upfront investment by property owners. Although the model supports the energy transition and the reduction in GHG emissions, its adoption in the private sector faces relevant barriers such as the lack of information from the Energy Service Companies (ESCOs), distrust from clients in benefits with no upfront costs, and legal and behavioral barriers. To overcome these challenges, the FinSESCo platform, funded by Era-Net 2020 joint call, aims to channel private investments into building renovations and renewable energy installations via a crowdfunding portal. The platform allows individuals and organizations to finance small-scale renewable energy installations and energy efficiency measures for homeowners, tenants, and apartment owners. The new platform is likely to change the way EE investments are made and reach out to new audiences. A survey of 2585 German households sought to understand the drivers of EE investments, factors affecting the decisions, and their relationships with several demographic variables. Using a stepwise backward regression model, the study found significant differences between traditional investors in EE and those who would use the FinSESCo platform. Low- and medium-income households were more likely to take up the platform, and previous renewable energy ownership, experience with EEC models, and knowledge of crowdfunding further raised willingness to participate. The results point to the potential of the FinSESCo platform to expand EEC to new audiences, underlining its role of democratization and diversification of investments in building energy efficiency.

Integrated Renewable Energy Systems for Buildings: An Assessment of the Environmental and Socio-Economic Sustainability

Developing a green energy strategy for municipalities requires creating a framework to support the local production, storage, and use of renewable energy and green hydrogen. This framework should cover essential components for small-scale applications, including energy sources, infrastructure, potential uses, policy backing, and collaborative partnerships. It is deployed as a small-scale renewable and green hydrogen unit in a municipality or building demands meticulous planning and considering multiple elements. Municipality can promote renewable energy and green hydrogen by adopting policies such as providing financial incentives like property tax reductions, grants, and subsidies for solar, wind, and hydrogen initiatives. They can also streamline approval processes for renewable energy installations, invest in hydrogen refueling stations and community energy projects, and collaborate with provinces and neighboring municipalities to develop hydrogen corridors and large-scale renewable projects. Renewable energy and clean hydrogen have significant potential to enhance sustainability in the transportation, building, and mining sectors by replacing fossil fuels. In Canada, where heating accounts for 80% of building energy use, blending hydrogen with LPG can reduce emissions. This study proposes a comprehensive approach integrating renewable energy and green hydrogen to support small-scale applications. The study examines many scenarios in a building as a case study, focusing on economic and greenhouse gas (GHG) emission impacts. The optimum scenario uses a hybrid renewable energy system to meet two distinct electrical needs, with 53% designated for lighting and 10% for equipment with annual saving CAD$ 87,026.33. The second scenario explores utilizing a hydrogen-LPG blend as fuel for thermal loads, covering 40% and 60% of the total demand, respectively. This approach reduces greenhouse gas emissions from 540 to 324 tCO2/year, resulting in an annual savings of CAD$ 251,406. This innovative approach demonstrates the transformative potential of renewable energy and green hydrogen in enhancing energy efficiency and sustainability across sectors, including transportation, buildings, and mining.

Green villages by Wind + Solar + Hydrogen

This paper describes 5 steps on the move to cost-effective green villages, powered mainly by Solar, Wind and Hydrogen. In Britain, there are around 6000 villages comprising almost half the total population. These village dwellers wish to reduce their expensive energy bills, achievable by profitably going green with local Wind and Solar generation of electricity plus Hydrogen energy storage. The first step is to measure the total energy usage in the village. This defines the size of the required renewable private wire energy installations. The second step calculates savings on grid bills for electricity, natural gas and petroleum transport products, to ensure rapid payback for the renewables to be installed. A third concern is the planning permission for Wind/Solar installations that may take months to approve. Perhaps the most important requirement is to attract investment in the fourth step. Finally, the fifth step is to procure and commission the equipment needed in the village to prove that local energy can beat the present centralized grid energy systems, using Hydrogen as the vital energy storage molecule to fill gaps in Wind/Solar supply.

Analysis of Hybrid Energy Modelling (Grid and Inverter Based Resources) Using Grid Following Inverter for the Integration of Renewable Energy Generation

The energy dependency of the grid will cause its own problems because the energy generated comes from fossil fuels. On the other hand, centralized electrification using renewable energy has a high risk on frequency and voltage stability. Renewable energy depends entirely on climate conditions and has no inertia to maintain stability. Hybrid energy between grids and Inverter Based Resources (IBRs) are alternative solutions used. The research applies an inverter control scheme to IBRs to be penetrated the grid. The research will apply a zero-export load with electricity requirements to be charged to renewable power plants using grid distribution networks. The inertia less properties of renewable energy will cause interference when combined with the power grid (synchronous generator). It will also be analyzed on this study by applying the following inverter scheme by paying attention to the phase angle and synchronization against the voltage, current and frequency variables of the grid. The results obtained in this study; renewable energy can contribute 90% to the load. This is due to the Losses factor and efficiency system in the plant. Renewable energy generators feed active power to the grid as well as support grids with a Total Harmonic Distortion (THD) indicator of <10%. In the design of this hybrid power system, it is done on MATLAB software with installation configuration in accordance with IEEE standards so that it can be a reference for the installation of real-condition renewable energies with grid. Keywords—Renewable Energy, Grid Following, Green Electricity, Hybrid Energy

Operation of a hybrid heating system based on heat pumps using a photovoltaic installation

In Poland, heating systems using renewable energy sources have gained importance in construction projects, especially in newly designed buildings. This is mainly due to the Regulation of the Minister of Infrastructure, which sets technical conditions for buildings. As of December 31, 2020, the primary energy index for newly designed single-family buildings should not exceed 70 kWh/(m2year). This requires efficient energy sources in building design. Renewable energy installations have significantly lower primary energy utilization rates than fossil fuel systems, making them the preferred choice. In a facility in Batowice near Krakow, a hybrid energy system with ground-source and air-source heat pumps has been installed. These pumps are powered by electricity from a photovoltaic installation connected to the grid. The study aims to determine the optimal heat pump choice based on the facility’s conditions and optimize electricity consumption from the photovoltaic installation. Both heat pumps showed similar efficiencies during the heating season from December 2022 to March 2023: the ground-source heat pump achieved an annual coefficient of performance of 2.69, and the air-source heat pump achieved a seasonal coefficient of perfor-mance of 2.63. Given the high non-renewable primary energy factor for grid electricity, the feasibility of replacing gas boilers with heat pumps requires careful evaluation. The results indicate that integrating a heat pump with a photovoltaic installation substantially reduces the primary energy utilization index, supporting climate protection and the advancement of renewable energy sources. However, heat pumps alone may not be sufficiently efficient without the support of a PV installation.

Sustainable Construction Practices For Affordable Housing: A Focus On Green Building In The U.S

This article offers a comprehensive analysis of sustainable construction in affordable housing across the U.S., presenting key techniques such as energy-efficient materials, renewable energy installations, and adherence to green certifications like LEED, Energy Star for Homes, and Living Building Challenge. Through evaluation of some case studies that include projects on sustainable housing in Texas, California, and other global examples, the article explores how sustainable practices can reduce operational costs, and improve healthy living and environmental impact. Results from the study show that projects integrating solar energy and optimized construction methods that involve heat regulations, water conservation, use of sustainable materials, lower utility expenses, enhance indoor comfort, and improve community health. By reducing long-term costs and environmental footprints, sustainable building techniques present a viable solution to the affordable housing crisis, with the potential to be scaled nationally.

A comprehensive review on power quality issues and disturbances mitigation through shunt active power filters

In contemporary power systems, power quality (PQ) has become a matter of paramount concern. The challenges associated with PQ extend beyond conventional three-phase systems, encompassing the integration of various distributed generation (DG) sources like renewable energy installations, storage systems, and diverse power generation technologies such as diesel generators and fuel cells. The prevalent adoption of rapid-switching devices within the utility infrastructure has resulted in a surge of harmonics and reactive power disturbances. The increased use of harmonics-producing loads has led to several power quality issues, particularly harmonics. The distortions caused by these power quality issues must adhere to the limits established by international standards. Mitigation of these concerns is critical, and active power filters are a realistic option. However, passive filters have problems such as bulkiness, and resonance with either/both load and utility impedance, and the source impedance affects filtering properties. As a result, active power filters (APF) are designed to address the shortcomings of passive filters. Active power filters (APF) offer several advantages over passive filters, including compact size, enhanced filtering characteristics, dynamic performance, and flexible operation. The control strategy of APF strongly influences the APF performance, efficiency, and reliability. This paper presents a detailed assessment of current active filter control systems, highlighting their key features. The characteristics, performance, applicability, and implementation of various control techniques are explored and investigated.

Renewable energy transformation using solar panels in the Red Tilapia Intensive System community

The transition to renewable energy is a strategic response to the global energy crisis and climate change. A community service project was conducted to promote energy independence for the Red Tilapia Intensive System (REDTIS) community by installing solar panels. Utilizing the Asset-Based Community Development (ABCD) method, the initiative involved installing two solar panels with a total capacity of 200 WP, a 100 AH battery, a 30 A solar charge controller, and a 500 Watt inverter to power a 100-Watt aerator. The project began with community asset identification, renewable energy analysis, system design, installation, and performance monitoring. The solar panel system generated an average of 1 kWh daily, covering approximately 41.3 percent of the aerator's 2.4 kWh daily energy requirement. This reduced reliance on conventional energy, lowering electricity costs and carbon emissions. While the solar panels did not fully meet the aerator's energy needs, the initiative demonstrated significant potential for scalability. Enhancing energy production, storage, and management is expected to achieve complete energy independence. This project serves as a replicable model for other communities seeking sustainable energy solutions.

Towards circularity in the wind industry: Optimal reverse supply network design under various policy scenarios

Wind energy is key to supply renewable energy. However, the increasing number of end-of-life wind turbines is still predominantly landfilled, while regulatory aspects such as waste shipment and landfilling rules hinder the development and scalable implementation of reverse supply networks.This work aims to understand how EU directives impact the structure and viability of circularity-enabling networks by investigating the optimal reverse supply network design for end-of-life wind turbine blades under different policy scenarios. Three policy scenarios were explored through a Mixed-Integer-Linear-Programming model: (i) ‘as-is’; (ii) ‘EU Proposal 2021/0367′, removing transboundary restrictions on waste shipments; (iii) ‘Landfilling Ban’ enforcing an EU-wide ban on landfilling composites. The optimal reverse supply networks with minimum costs were identified for each scenario, contextually determining location and sizing of recycling facilities and calculating landfilling quota and GHG emissions. The costs and emissions were minimum for the EU Proposal scenario, at 15,706,041€ and 2,081 tCO2e respectively. A sensitivity analysis on landfilling gate fees highlighted that they should be significantly increased to incentivise higher recycling rates and close material loops.This research is the first to evaluate the effects of policy initiatives on the shaping of optimised reverse supply chains through mathematical programming methods. The work contributes to the waste management literature by designing optimal circular supply chain networks for the management of waste from wind turbines decommissioning at the EU-level to improve sustainability of renewable energy installations.

Dynamic Simulation of a Hybrid PV/Awe/SOFC Stand-Alone System for Heat and Power Generation

Global energy demand increased from 528 EJ in 2012 to 604 EJ in 2022, with CO2 emissions rising from 34 Gt to 36.8 Gt during the same period. According to the IEA, global energy demand is projected to reach 670 EJ by 2030. To meet this energy demand and simultaneously reduce greenhouse gas emissions, the capacity for renewable energy installations is expanding. However, renewable energy faces the issue of lacking flexibility to balance supply and demand due to its intermittency and variability. Sector coupling, which converts power to heat (P2H), gas (P2G), and liquid fuels (P2L), can overcome the flexibility challenges of renewable energy by integrating energy across sectors (power, transportation, industry, agriculture, and residential). As an energy storage medium, hydrogen serves as a key component in P2G and P2L and holds potential as a future energy carrier.The residential sector requires both heat and electricity, yet the power supply through photovoltaics (PV) leads to an imbalance between energy demand during day and night. To alleviate this energy imbalance while flexibly meeting heat and electricity demands, a hydrogen-based 'PV-AWE-Batt-SOFC' hybrid system was proposed. Numerous previous studies have performed capacity optimization of hybrid systems with cost as the objective function. However, research on Energy Management Strategies (EMS) for stable operation of each system in conjunction with renewable energy is limited. Therefore, a stable hybrid system EMS based on the analysis of the dynamic behavior of AWE and SOFC needs to be established.In this study, a dynamic model of the PV-AWE-Batt-SOFC hybrid system was developed using AMESim®. The AWE system consists of a stack, pump, heat exchanger, gas-liquid separator, cooling system, condenser, oxygen catalytic combustor, and dryer. The SOFC system comprises a stack, blower, heat exchanger, and after-burner. The stack was modeled with an in-house code to accurately resolve the electrochemical reactions. To establish a stable EMS for the hybrid system integrated with renewable energy, the dynamic behavior of both the AWE and SOFC systems was analyzed, and EMS scenarios were proposed. The scenarios were evaluated by comparing the state of charge of the battery and the state of charge of the hydrogen tank. Analyzed parameters in the AWE system include stack temperature/voltage, condenser temperature/hydrogen purity, oxygen catalytic combustor temperature/conversion rate, and dryer temperature/hydrogen purity. In the SOFC system, analyzed parameters are stack temperature/voltage/fuel utilization, and after-burner temperature/conversion rate. Figure 1

A Perspective on the Decarbonization of the Metals Industry

The decarbonization of the metals industry is a major challenge for the energy transition. Metals are indeed essential elements in the expansion of renewable energy installations worldwide, but they also represent a relevant source of carbon emissions. Therefore, metals producers need to carefully shift their technologies towards less carbon intensive routes. After ranking all the metals in terms of world production volume and total estimated carbon emissions, the three most relevant ones have been selected: steel, aluminum and chromium. Concentrating the rest of the analysis on them, several production processes are available for implementing the decarbonization step, but none of them is currently capable of overcoming the challenge alone and being compatible with the 1.5°C trajectory. In this perspective, the main production routes are reviewed and proper combinations of proven or emerging technologies are streamlined with the aim to provide an industrially feasible approach to curb the carbon emissions from the metals industry.

Financial subsidy optimization to promote renewable energy development for sustainable development goal

Enhancing the efficacy of financial subsidies holds paramount significance in fostering sustainable development due to their influence on energy utilization, installation scalability, and the crucial pursuit of decarbonization. Despite a surge in scholarly interest surrounding financial subsidies for renewable energy, the literature studies fall short in comprehensively addressing the factors that impact on the accuracy and reliability of the model for identifying optimal financial subsidies. This paper introduces a robust approach to optimize financial subsidies to achieve the predefined target for renewable energy installation, considering the equilibrium between investor remuneration and government subsidy outlay. Center to this approach is the integration of a forward-looking price forecasting model and the establishment of an economic evaluation approach based on empirical data encompassing weather patterns, technical factors, investor expectations, subsidy disbursements, market risk assessments, and other pertinent parameters. The case study of Taiwan is conducted, and the results indicate that, in the baseline scenario, the financial subsidy is only effective in the risk-neutral market with a small solar system; in the mix scenario, the benefit of energy system increased at least 4.5%, however, the mix scenario is still ineffective to encourage the renewable energy development; and in the optimal scenario, by providing accurate recommendations for optimal financial subsidies, government can achieve the predefined target, even with reduced subsidies due to declining installation costs.

Research on the Possibilities of Expanding the Photovoltaic Installation in the Microgrid Structure of Kielce University of Technology Using Digital Twin Technology

Global challenges related to sustainable development are increasingly focusing on the use of digital twin technology as a universal tool for optimizing and monitoring renewable energy installations. This article discusses digital twin technology as a support for sustainable development based on the analysis of microgrid structures. Digital twins allow the creation of virtual models of physical systems. This capability facilitated the accurate replication of the microgrid model at Kielce University of Technology using ETAP (Electrical Transient Analyzer Program) software (version 22.5). The operational parameters of the microgrid structure were analyzed for the examined power range of the photovoltaic installation to determine the possibilities of expanding the existing installation. The impact of the photovoltaic installation’s power on the operational parameters of the microgrid structure was visualized, and final conclusions were formulated. Moreover, the integration of digital twin technology into renewable energy systems not only enhances operational efficiency but also plays a pivotal role in advancing sustainability objectives. Through real-time monitoring and predictive maintenance, digital twin technology facilitates the optimization of energy production and distribution, thereby reducing waste and contributing to the overall sustainability of energy systems. This technology enables the simulation of various scenarios, such as fluctuations in energy demand or the integration of new renewable sources, which can inform more sustainable decision-making processes. In the context of microgrids, digital twin technology ensures that energy production is closely aligned with consumption patterns, minimizing energy losses and enhancing grid resilience. Furthermore, digital twin technology supports the sustainable expansion of renewable installations by providing detailed insights into potential environmental impacts and the long-term sustainability of various energy configurations. As the demand for clean energy continues to grow, digital twin technology will be indispensable in achieving a balance between energy needs and environmental stewardship, ensuring that the expansion of renewable energy sources contributes positively to global sustainability objectives.

Optimizing Energy Yield and Economic Benefit of Renewable Energy Technologies for Urban Mediterranean Dwellings

Mediterranean European cities are characterized by high population density and limited space for large-scale implementation of renewable energy installations. This paper addresses the optimization of renewable energy installations in Mediterranean dwellings with the scope of increasing their energy contribution and cost-effectiveness. In a case study for Malta, the three technologies studied were solar photovoltaics, solar water heating, and heat pump water heating. Technical and economic analyses were performed on a number of reference configurations using Polysun software (version 2022.8). Sensitivity analyses were also conducted to study the impact that different technical and economic factors have on the performance of the configurations considered. Finally, comparisons were made between the techno-economic results obtained from the reference and sensitivity analyses. Based on data collected, the presence of renewable energy source (RES) technologies in the residential sector of Malta was characterized and correlated with the types of dwellings considered. Among the results obtained, it was found that although a solar RES installation may experience some shading, this does not mean that it is rendered economically unfeasible. Moreover, from the simulations conducted, electrical energy storage technology was considered as too premature unless strongly subsidized, making economic sense only in specific circumstances. On the other hand, although heat pump water heating technology is also relatively modern, it was concluded to be the most beneficial in terms of both energy yield and economic benefit, generally speaking. Furthermore, it was determined that in a higher occupancy dwelling, solar water heating (SWH) and heat pump water heating (HPWH) result in considerably more attractive energy savings.

Sinusoidal PWM Generation for 3 Phase Inverter and RPM Measurement using Hercules TMS570LC43xx Launchpad

This project focuses on implementing a 3 phase Sinusoidal PWM generation using the Hercules TMS570LC43xx Launchpad Development Kit (Launchpad). The primary objective is to generate synchronized Sinusoidal nature PWM signals using the onboard High-End Timer (HET) and Enhanced Pulse Width Modulation (ePWM) module, which can be given to the Inverter for conversion of Direct current (DC) power into Alternating current (AC) power. This conversion is essential in various applications where AC power is required but the power source provides DC power. It is used in Solar photovoltaic (PV) systems and other renewable energy installations. These systems generate power suitable for powering household appliances or feeding into the electrical grid. Itis alsoused in electric vehicles (EVs) to drive the electric motor with variable speed. For verification of the wave nature, we have used an external lowpass filter (LPF) to transform the dynamic PWM signals into sinusoidal waveforms, ensuring compatibility with various applications like Inverters which can be further used in equipment and machinery such as Brushless DC motors, pumps and compressors. With the addon functionality to control the signal’s frequency which will be given to the Inverter to control the speed of the motor. Additionally, the project incorporates RPM measurement of the motor using an optical encoder setup interfaced with the Enhanced Quadrature Encoder Pulse (eQEP) module on the Launchpad. This feature enables accurate measurement of rotational speeds, position and Revolution per minute (RPM), enhancing the functionality of the system in real world applications like the speed of conveyor belts and other automated transport systems. Through successful implementation, this project demonstrates wide control for the Inverter, achieving reliable synchronized 3 phase signals with its variable speed having 120-degree phase shift signals alongside precise RPM measurement. The project highlights the Launchpad’s capabilities in handling complex signal processing tasks essential for modern power electronics applications. Looking forward, this project establishes a foundation for future enhancements and innovations in power electronics.

Regional Analysis and Evaluation Method for Assessing Potential for Installation of Renewable Energy and Electric Vehicles

Many countries are adopting renewable energy (RE) and electric vehicles (EVs) to achieve net-zero emissions by 2050. The indicators of RE and EV potentials are different. Decision-makers want to introduce RE and EVs; however, they need a method to find suitable areas. In addition, this is required in the time-series analysis to provide a detailed resolution. In this study, we conducted a time-series analysis in Japan to evaluate suitable areas for the combined use of RE and EVs. The results showed the surplus RE areas and shortage RE urban areas. The time-series analysis has quantitatively shown that it is not enough to charge EV batteries using surplus RE. Moreover, a ranking methodology was developed for the evaluation based on electric demand and vehicle numbers. This enables the government’s prioritization of prefectures and the prefectures’ prioritization of municipalities according to their policies.

The risk of energy hardship increases with extreme heat and cold in Australia

Climate change is shifting the experience of energy hardship. Here we examine the effect of the intensity, frequency, and duration of temperature extremes on energy hardship, and how this risk is shaped by individual, housing and neighbourhood resiliencies across Australia, using nationally representative data (269,500 observations) on energy hardship linked to temperature records between 2005 and 2021. Findings suggest that the risk of energy hardship increases with more intense extreme heat and cold, with greater risks for older individuals, lone-person or single-parent households, and rental tenants. These vulnerabilities can be offset by quality housing and renewable energy installations. Energy hardship risks under moderate and high emissions global warming scenarios are projected to increase by 0.1%−2.6% and 0.6%−3.3% respectively in the long run. Energy hardship will remain a concern despite raising temperatures, especially for colder regions less prepared for heat and populations with individual vulnerabilities and lacking housing and neighbourhood adaptations.

Superconducting cable with energy storage function and its potential for next-generation power system compatible with large-scale renewable energy installation

Abstract The mass introduction of renewable energy is essential to realize a sustainable society. On the other hand, when photovoltaic (PV) and wind power generation are used as main power sources in a power system, it is indispensable to compensate for their severe output fluctuations up to the rating of the power system; however, this is difficult to achieve with conventional energy storage devices alone. To solve this problem, we have proposed a superconducting cable with energy storage function and its use in a DC power system. This cable provides large inertia to the power system without the need for additional energy storage equipment; as a result, the power system itself become capable of high-speed and high-power compensating operations for output fluctuations from renewable energy sources. This paper summarizes our recent works on this research topic: an overview of the proposal, conceptual design of the cable, experimental verification of the principle, and positive effects on the energy use efficiency of renewable energy. For example, an experiment with the use of a small model cable showed the capability of high-speed charge–discharge operations at a high power up to the rating of the microgrid. It was also showed that such a function was indispensable for real-time use of electric power from PV power generation resulting in significant enhancement of energy use efficiency of renewable energy. These results suggest that this concept hold the key to next-generation power systems enabling massive use of renewable energy in the future society.

Oceanographic preconditions for planning seawater heat pumps in the Baltic Sea – an example from the Tallinn Bay, Gulf of Finland

Abstract. The use of low-temperature seawater heat for renewable energy installations is demonstrated with an example from the Tallinn Bay, Baltic Sea, based on Copernicus Marine Service reanalysis data. Tallinn and its surrounding seaside counties are home to about half a million people and produce about half of Estonia's gross domestic product (GDP). The Tallinn Bay with an area of 223 km2 extends to the north and has an open connection to the Gulf of Finland. Depths more than 50 m that cover the halocline already appear at a distance of 3–4 km from the coast. Surface layers get too cold during winter to be used in heat pumps for district heating; therefore, a feasible option is to pump slightly warmer seawater from the deeper halocline layers. The lowest monthly mean halocline temperature – down to 2.6 °C at 50 m depth and 3.3 °C at 70 m – is found in March and April based on reanalysis data from 1993–2019. The seawater seasonally cools below 3 °C on average on 1 January at 20 m depth and on 12 February at 50 m depth. At the 70 m depth, the average start of T<3 °C was calculated on 28 February, although only 14 winters out of 26 had such water present; in 12 winters the condition T>3 °C was always fulfilled. The median number of cold days is 11, with a maximum of 128 d in the winter 1993/1994 when stratification became rather weak due to the prolonged absence of Major Baltic Inflows of saltier and warmer North Sea waters. During the recent warmer period of 2009–2019, the start of the cold seawater period was delayed on average by 5–10 d. Tallinn has, among other Baltic Sea cities and industrial sites, a favorable location for seawater heat extraction because of the short distance to the unfreezing sub-halocline layers. Still, episodically there are colder-water events with T<3 °C, when seawater heat extraction has to be complemented by other sources of heating energy.

Strategic investment in power generation and transmission under a feed-in premium scheme: a game theoretic real options analysis

The spread of renewable energy has been accelerated by investment in power generation and transmission systems under environmental policy support such as a feed-in premium (FIP) scheme. This study examines the decision-making of the transmission system operator (TSO) and the power generation company (GENCO), where the TSO maximizes social surplus by investing in transmission lines, and the GENCO maximizes its profit by investing in power generation facilities. Specifically, the TSO decides the investment timing, while the GENCO decides the capacity. We develop a real options model to analyze the equilibrium investment timing and capacity under uncertainties in a framework of game between TSO and GENCO. We consider several scenarios in which the GENCO invests in non-renewable energy (NRE); invests in renewable energy (RE) with FIP; and invests in RE with its installation cost reduction. Our results indicate that FIP and the installation cost reduction of RE affect the equilibrium decision in a different manner. We find that FIP tends to be more welfare-enhancing than the reduction of RE installation cost when the degree of uncertainty is larger. We also demonstrate that social surplus can be increased without FIP if the installation cost of RE is reduced sufficiently in the future.