Investments In Renewable Energy Technologies Research Articles

Assessing the advancement of new renewable energy sources in Latin American and Caribbean countries

The research focuses on the evolution of non-hydroelectrical renewable installed capacity from 2001 to 2017 in nineteen countries from the Latin America and the Caribbean (LAC) region. The deployment of new renewables has several characteristics that point to nonlinear relationships with its drivers. In accordance, the quantile regressions econometric technique of Canay was used. The option to use this econometric technique stem from Canay model estimation can capture the variation between different countries (cross-section). The Canay model estimation results support that renewable energy finance flows, economic globalisation index, and carbon dioxide emissions positively affect non-hydroelectrical renewable installed capacity. The positive impact of carbon dioxide (CO2) emissions on non-hydroelectrical renewable installed capacity could be related to increased environmental, political, and social pressure regarding the increase of environmental degradation caused by the growth in emissions that encouraged the new investments in renewable energy technologies. It also could be related to the consumption of new renewable energy sources that mitigate CO2 emissions in the LAC countries.

Global 100% energy transition by 2050: A fiction in developing economies?

Global 100% energy transition by 2050: A fiction in developing economies?

Pathways to eliminate carbon emissions via renewable energy investments at higher education institutions

Higher education institutions are among the many public and private sector entities that have committed to long-term sustainability goals in response to the threat of climate change. A key challenge for these institutions is establishing a commitment to make targeted investments in renewable energy technologies in support of emissions reduction goals. Such strategies require a vision to simultaneously coordinate strategic investments in renewable energy technologies with tactical operational decisions to achieve the desired benefits. In this paper, we formulate and solve a least-cost renewable energy capacity investment planning model to determine pathways to achieve emissions reduction strategies. Specifically, we apply our model to Rutgers University to evaluate its target of 100 % carbon neutrality. Using these insights, we share recommendations on how these strategies can be executed. This research serves as a springboard for administrators to assess and deploy their emissions reduction strategies, while ensuring system and financial constraints are satisfied.

Public awareness and their attitudes toward adopting renewable energy technologies in Afghanistan

This research investigates the factors that potentially affect public attitudes and their adoption of renewable energy technologies for electrical energy production in Afghanistan. The study is carried out with a survey from Kabul and its neighboring provinces including Logar, Maidan Wardak, Nangarhar, Ghazni, Parwan & Kapisa provinces. We used a random sampling process to collect data using a web-based questionnaire. The survey was well designed to highlight conveniently the public understanding, willingness, and attitudes toward adopting renewable energy technologies (RETs). The outcome of the survey is then evaluated to discover the most potential factor affecting public acceptance of RETs. The results declared that the educational level, expertise in RETs, and income of respondents are positively related, while the age of respondents is negatively related to the public willingness on the use and investment in RETs. The majority of respondents have used one type of RETs, however, 23 % of respondents have not used any type of RETs. Study shows that the RETs use and access to grid electricity are reversely related, where the access is lower, the RETs use is higher and vice versa. Most of the respondents were not well informed and most disagreed with the government policies on RETs, therefore, public awareness programs on RETs and government policies are recommended. The majority of respondents were willing to invest in RETs, therefore, the government should commit itself and support private sectors to invest in RETs and take part in its development.

The impact of variable renewable energy technologies on electricity markets: An analysis of the Turkish balancing market

As global investment in renewable energy technologies continue to trend upward, the effects of variable (intermittent) renewable energy technologies on power markets have created serious challenges for regulators and policymakers. The literature on the effects of these technologies on day-ahead markets has been well established; however, further research is required on intra-day and real-time (balancing) markets to understand how these technologies are changing electricity market dynamics. In this respect, this study aims to assess the effects of the variable renewable energy technologies (wind and run-of-river hydro) on Turkish balancing market prices using quantile regression. In addition, ordered logistic regression is used to evaluate how system imbalances are changing as a result of these technologies. Model results show that system marginal price declines as variable renewable energy generation increases. Moreover, there is a higher probability of positive imbalance as the positive difference between real-time and projected variable renewable energy generation increases. Overall, an increase in variable renewable energy generation implies lower prices, but higher positive imbalances for the system. Hence, we recommend that Turkey should revise its current market design to incorporate the geographical and temporal generation characteristics of these technologies.

Towards robust renewable energy investment decisions at the territorial level

Considerable and fast investments in renewable energy technologies are needed in order to reduce greenhouse gas emissions to achieve the Paris Agreement climate change mitigation targets. Many of these investment decisions are made at the territorial level, especially those related to the heating sector. When choosing the most suitable energy investments, decision makers need to consider several performance indicators—economic, social and environmental—simultaneously. In addition, decision makers face profound uncertainty concerning the future, as decisions on energy systems are always long-term investments. We aim to provide territorial decision makers with a simple decision-making framework that combines a robust decision-making method with multi-criteria analysis and allows the inclusion of territorial features. The main aim is to develope a simple tool that provides data to seek robust solutions which will perform well over a wide range of plausible futures. The method proposed is illustrated with a case study on renewable heating solutions based in France. Heat pumps or central biomass plants are robust in various future conditions, while current domestic natural gas based heating performs badly compared to the renewable technologies.

A probabilistically constrained extension to the generation expansion problem

This paper presents a probabilistic modeling approach to the generation expansion problem, where the energy manager of a firm aims at minimizing the investment costs of an energy park subject to the stochastic supply-demand balance constraint. We consider a reliability-based framework, where the energy manager determines robust generation expansion by imposing a probabilistic guarantee on the demand coverage distribution, specifying the required system reliability. We compare two solution methodologies to solve the probabilistically constrained generation expansion problem, i.e. (i) the sample approach and (ii) the sample average approximation. Applicability of the model is demonstrated in the use case, where the two renewable energy sources wind and solar technology are considered. We recover the energy manager's efficient frontier characterizing the optimal level of investment in renewable energy technologies as a function of the ex-ante imposed level of reliability, which quantifies the substitution rate of investment and reliability. The portfolio selection depends on the required reliability and is shifted towards a higher share in solar power when required reliability increases. Within the probabilistically constrained framework we demonstrate the potential of Demand Side Management in reducing capital expenditures. With increasing participation in DSM, the energy manager is able to reduce the necessary level of investment to obtain required reliability, thereby mitigating investment risks.

Comparing Government Support, Firm Heterogeneity, and Inter-Firm Spillovers for Productivity Enhancement: Evidence from Korean Solar Energy Technology Industry

Numerous issues, such as technological and market uncertainty, and financial role-players’ avoidance of long-run investment in renewable energy technologies, have deterred investments in innovation. Therefore, we investigate the direct and indirect (inter-firm spillover) effects of government support and firm heterogeneity on productivity. Using panel data concerning Korean solar energy technology manufacturers, the significance of firm heterogeneity in improving productivity is found. Specifically, the positive impact of physical capital and organizational slack on productivity in the short and long run, and the positive spillover effect of intellectual capital on productivity in the long run are established. Additionally, productivity increases only when government support interacts with firm heterogeneity. This increase relates to short- and long-run direct effects of the interaction between intellectual capital and non-R&D (Research and Development) subsidy, and organizational slack and R&D subsidy, and long-run spillover effect via the interaction between non-R&D subsidy and organizational slack. Lastly, for the solar energy technology industry, the policy and strategic repercussions for firm-level productivity enhancement are deliberated based on the findings of this study.

Financing the future infrastructure of sustainable energy systems

The development of suitable financing models plays an important role for long-term investments in green energy infrastructures necessary to achieve energy and climate targets. In this context, it is important to state that people do not demand energy per se, but energy services such as mobility, heating, cooking and lighting. These services are provided by a combination of different energy carriers and technologies. In this paper, the focus lies on the optimal financing of innovative technologies from the society's point-of-view. Therefore, long-term financing models of new energy solutions play a key role in three core areas: (ⅰ) investments in renewable energy technologies, e.g., large solar thermal, PV, wind power systems, (ⅱ) investments in new network infrastructure for electricity, district heating, hydrogen, charging stations for battery electric vehicles, etc.; (ⅲ) investments in energy efficiency. In this paper we observe that there is practically no degree of freedom in the market regarding choice of financing parameters such as interest rate and depreciation time. In real life, all long-term investments, e.g., in the area of electricity or district heating networks, are located in a strictly regulated environment.

Renewable electricity generation target setting in developing countries: Modeling, policy, and analysis

Many countries have set renewable energy targets in their electricity supply mix to encourage investments in renewable energy technologies. In developing countries, however, many of such targets are either abandoned or fall far short of the target date, primarily due to issues of financing, cost of electricity, and level of unmet demand. This paper presents a Generation Expansion Planning model that can be used to assess such issues when setting a renewable electricity generation target. In particular, the model can be used by developing countries to set renewable electricity generation targets that are in line with their financial ability and thus, stand a higher chance of being achieved. Additionally, the analysis offered can inform developing countries of the cost and benefits of a renewable electricity generation target policy. The usefulness of the model is demonstrated using Ghana as a case. The results indicate that Ghana will need a budget of not less than 1% of its GDP for generation capacity investment if it desires to achieve its 10% renewable electricity generation target by 2030 while keeping unmet demand at reasonable levels. If Ghana however enforces the target at its current capacity investment levels, it risks raising unmet demand levels by an average of 4% per year and cost of electricity provision by about US$224 million annually between 2019 and 2030 when compared to the absence of a renewable electricity generation target.

Assessing the renewable energy investment risk factors for sustainable development in Turkey

In the wake of Paris agreement, global economies have been putting their full efforts in mitigation and adaption to limit the global temperature within 2 °C higher than the pre-industrial level. Redirection of investment flows to renewable energy technologies (RETs) is paramount to achieve the goals set in global climate agreement. The Turkish government is determined to attract investment in RETs for cleaner energy production and sustainable socio-economic development in Turkey. However, it is very challenging to substitute environmentally harmful traditional energy systems with renewable energy production and supply. Investing in and developing renewable energy projects (REPs) are posed to various inherent risks. Assessment and analysis of risk factors of renewable energy investments (REIs) are indispensable for a practical and profound policy guideline for mitigation. This study provides a Multi-Criteria Decision Methodology (MCDM) based three-stage decision framework to assess and examine the risk factors of REIs in Turkey. The first stage is the identification of risk factors of REI using the Delphi method. The second stage is the assessment of identified risk factors of REI by using the Analytical Hierarchy Process (AHP). The third stage is the evaluation and prioritization of strategies to overcome risk factors of REI projects by using Fuzzy Weighted Aggregated Sum Product Assessment (FWASPAS). The Delphi method unveiled 6 major risk factors with 23 sub-risk factors. Results of AHP analysis unfolded economic & business risk as a major risk factor. The FWASPAS analysis concluded a comprehensive and explicit explanation of the RET choices to be the most suitable of six strategies to deal with the investment risk factors for sustainable development in Turkey.

The Effect of Electric Vehicle Deployment on Renewable Electricity Generation in an Isolated Grid System: The Case Study of Cyprus

Decarbonisation of national economies to mitigate climate change requires transformation of the entire energy system. Investments in renewable energy technologies in the electricity supply system are increasing, but substantial effort is called for in other sectors, such as transport. While European Union member states have submitted their integrated National Energy and Climate Plans, this paper focuses on partial electrification of the transport sector as a measure to reduce carbon dioxide emissions in the isolated grid system of Cyprus in a cost-effective manner. The present work assesses the impact of electric vehicle deployment on the share of renewable electricity generation, electricity costs and carbon dioxide emissions. Quantification of these aspects is provided with an outlook until 2035. A cost-optimisation model (OSeMOSYS) is used that takes into account the electricity supply, road transport, and heating and cooling sectors. Smart charging option is also evaluated as a possibility.

Renewable energy investment risk: An investigation of changes over time and the underlying drivers

Building an energy system compatible with the Paris Agreement requires large-scale investment in renewable energy technologies (RET). Designing effective energy policies, therefore, requires an understanding of the dynamics of RET investment risk. This study draws on RET project data and 40 interviews with investors in Germany, Italy and the United Kingdom. We identify the five most relevant RET investment risk types (curtailment, policy, price, resource and technology), show their relative importance over time and use a network analysis of interview transcripts to identify the drivers behind the observed changes. We show that risk premiums and investment risk have declined for solar photovoltaics and onshore wind technologies in all three countries. Increasing technology reliability at a lower cost, data availability, better assessment tools and credible and stable policies were crucial elements of this declining investment risk. While policy and technology risks have become relatively less important over time, curtailment and price risks are becoming relatively more important. From these insights, we derive recommendations for policymakers aiming to accelerate the transition towards a Paris-compatible energy system.

Causal Relationship between Renewable Energy Consumption and Unemployment in Nigeria: Evidence from Toda and Yamamoto Causality Technique

The paper examines the causal association among renewable energy consumption and unemployment in Nigeria for the sample of 1991-2015 periods via the technique of Toda and Yamamoto causality. The outcome of the long-run causality specifies that bidirectional causality exist between renewable energy consumption and unemployment; foreign direct investment and renewable energy consumption; investments and renewable energy consumption; credit to private sector and renewable energy consumption; foreign direct investments and investments; credit to private sector and investments with unidirectional causality among investments and unemployment; credit to private sector and unemployment. This suggests that higher consumption of energy from renewable sources will go a long way in providing the long-lasting solution to the problems of unemployment in the country. It is therefore recommended that Nigerian government should put more efforts on increasing production and consumption of energy from renewable source as it has the tendency of decreasing the rate of unemployment in the long-run and barriers in the form of higher cost of acquisition and taxes on the production and consumption of energy from the renewable sources should be completely eliminated in order to increase the rate of investments in renewable energy technologies and subsequently create employments.

Sequential investment in renewable energy technologies under policy uncertainty

Although innovation and support schemes are among the main forces that drive investment in renewable energy (RE) technologies, both involve considerable uncertainty. We develop a real options framework to analyse the impact of technological, policy and electricity price uncertainty on the decision to invest sequentially in successively improved versions of a RE technology. Technological uncertainty is reflected in the random arrival of innovations, and policy uncertainty in the likely provision or retraction of a subsidy that takes the form of a fixed premium on top of the electricity price. We show that greater likelihood of subsidy retraction (provision) lowers (raises) the incentive to invest, and, by comparing a stepwise to a lumpy investment strategy, we show how an embedded option to adopt an improved technology version mitigates the impact of subsidy retraction on investment timing. Specifically, we show how stepwise investment facilitates earlier technology adoption compared to lumpy investment, and that, under stepwise investment, technological uncertainty accelerates technology adoption, thus further offsetting the incentive to delay investment in the light of subsidy retraction.

Is guarantee of origin really an effective energy policy tool in Europe? A critical approach

Guarantees of origin are tradeable energy certificates defined by directives 2009/28/EC and 2018/2001/EU of the European Union. They serve the aim of informing final consumers on energy sources used for their electricity supply. They are also expected to encourage new investments in renewable electricity generation. This paper investigates how the use of guarantees of origin meets these expectations. A literature review, an analysis of related regulations and an evaluation of empirical data shows that there are regulatory failures both at national and the European Union levels. Furthermore, due to a contradiction between certain rules in European Union level regulation, consumers receive unreliable information on their electricity consumption mix. Therefore, although national rules should be improved, the problem of reliability cannot be resolved until the Union level framework is modified. Furthermore, the present framework does not incentivise investments in renewable energy technologies either. Accordingly, recommendations are formulated for policy makers to ensure reliable and sufficient operation of the certificate system.

Low-carbon transition: Private sector investment in renewable energy projects in developing countries

• Dependence on fossil fuel reduces the hazard of private sector investment in renewable energy sector. • The role of fossil fuel dependence decreases in countries with prior investment projects. • Changes in oil price have competing effects on investment hazard. • Regulatory quality and renewable energy policies stimulate private sector investments in developing countries. Given the rapid population growth and subsequent increase in energy demand in developing countries, private sector investment in renewable energy projects is key for sustainable economic development. However, the current energy mix is still dependent on conventional fossil fuels. The paper examines the time duration to private sector investment in renewable energy projects and how the hazard rate is affected by dependence on fossil fuels. Using data on private sector participation in renewable energy projects in 134 developing and middle-income countries for the (1990–2012) period, this paper applies multiple failure time model. The results show significant negative effects of fossil fuel consumption and fuel rent on investment likelihood. Consistent with literature, a set of socio-economic variables, such as renewable energy policy and energy security concerns, play an important role in increasing the likelihood of private sector investment in renewable energy technologies. The findings of the paper resonate with concerns of the international community regarding the effect of fossil fuel dependence on the rate of adoption of renewable energy sources in developing countries.

Energy Storage and Renewable Energy Deployment: Empirical Evidence from OECD countries

Renewable energy can reduce greenhouse gas emissions by providing renewable electricity, heating, cooling and transportation. The main disadvantage of renewable energy supply is that once it reached a high share in electricity generation, the intermittency caused by renewable energy sources makes balancing of the energy system challenging. This study answers the question “What is the impact of renewable energy on public investment in R&D of energy storage technologies?” Empirical literature studying investments in renewable energy technologies is abundant, however empirical literature studying investments in energy storage technologies is highly limited. Using annual panel data from 28 OECD countries over the period 1990-2014 this paper provides an empirical evidence on the role of renewable energy deployment on public investments in energy storage technologies. The results of fixed effects estimation provide an empirical evidence that governments from countries with greater share of renewable energy invest more in energy storage technologies. Drawing from the empirical results, this paper provides policy recommendations on the need in investments in energy storage technologies due to a growing supply of renewable energy. Although this paper provides lessons from countries which experienced problems with high share of renewable energy and started to promote energy storage alongside with renewable energy, the results will be useful for policy-makers from developing countries with a growing share of renewable energy in total electricity.

Economic feasibility of feed-in tariff (fit) for biomethane injection into natural gas distribution grid

Feed-in Tariff (FiT) is a policy mechanism designed to promote investment in renewable energy technologies. Despite the successful implementation of FiT mechanism for renewable electricity generation in Malaysia since 2011, FiT for renewable gas, biomethane injection into the natural gas grid remains unexplored. This study aims to identify the financial feasibility of biomethane injection into natural gas grid by proposing FiT rate. Net Present Value (NPV) approach is used to calculate the FiT rate for the first five years of biomethane injection into natural gas distribution grid (NGDG), under 8 % degression rate. Preliminary results identified that FiT rate of 40.81 to 227.85 MYR/GJ for biomethane production plants within 1,000 m from the injection point at 4 different sizes: 250 m3/h, 500 m3/h, 750 m3/h and 1,000 m3/h. Biggest plant size (1,000 m3/h) shows lowest FiT rate (40.81 MYR/GJ), although the FiT rate is almost double the piped gas price, 28.85 MYR/GJ. Judging from the trend of increasing piped gas price, along with government subsidy rationalisation plan, it is foreseen that biomethane, under proper policy regulations and FiT mechanism, can be a competitive renewable gas as natural gas. Recommendations are discussed and provided for successful implementation of biomethane injection into the grid.

Environmental impact profile of electricity generation in Chile: A baseline study over two decades

Chile is one of the world largest copper producing countries, housing significant mineral reserves, and accounting for over 30% of national electricity consumption. Currently, the total installed electricity generation capacity amounts to over 20 GW and is expected to double within the next two decades. Since electricity generation is a well-known source of environmental impacts throughout its lifecycle, there is a permanent need to evaluate potential environmental burdens of alternative courses of action. Unfortunately, systematic information on the environmental performance of current electricity generation in the country is lacking. Therefore, this paper reports the potential environmental burdens of the Chilean electricity generation system over the last two decades, to account for temporal effects and serve as a baseline to which compare different strategies, following a cradle-to-gate approach based on ISO 14.040–44:2006 standards. The system limits included fuels extraction and transportation processes, and construction materials, as well as electricity generation, considering as a functional unit 1 kWh.Plant operation, thermal efficiency and infrastructure requirements were modelled based on primary data, whereas fuels extraction, refining, and manufacturing of construction materials were obtained from Ecoinvent databases.Changes in water availability, commercial constrains in natural gas supply, investment in renewable energy technologies, among others, have led to significant changes in the environmental profile along time. Results obtained here show stricter environmental legislation and more efficient environmental control technologies need to be introduced to promote improvements in environmental performance, with particular focus on human health and ecotoxic effects in coal-fired power plants.Finally, new electricity generation capacity based on solar, wind, and other renewable sources should be encouraged to reduce the environmental footprint of electricity generation, thus fostering the competitiveness of Chilean exports.This work provides a sound baseline for the assessment of future development scenarios, constituting an interesting case study for comparative studies.