Generation Investment Research Articles

Does economic growth promote electric power consumption? Implications for electricity conservation, expansive, and security policies

The purpose of this study is to determine the relationship between electric power consumption per capita (kWh) and real GDP per capita (PEN, constant 2007 prices), in Peru, during the period 1971–2014. The four theoretical hypotheses behind this relationship are the growth hypothesis –electricity consumption explains economic growth–, the conservation hypothesis –economic growth explains electricity consumption–, the feedback hypothesis –mutually affecting explanation between electricity consumption and economic growth–, and neutrality hypothesis –electricity consumption does not explain economic growth and vice versa–. Empirically, we initially conclude that the conservation hypothesis can be confirmed using the Granger Causality test, after estimating the dynamic impacts of the long-run equilibrium and short-run models. We highlight the inelastic behavior of electric power consumption per capita with regard to real GDP per capita. These results have implications for electricity conservation, expansive and security policies. We also discussed investments in electricity generation, transmission and distribution from renewable energy sources such as hydro, wind and solar. These eco-sustainable energies also called green and clean energies, are necessary for the sustainability of the electric power demand and the level of national electrification.

Multiobjective Optimization for Improving Sustainable Equipment Options in Road Construction Projects

The increasing awareness of sustainability has resulted in the progressive regulation of contractors for public projects to lower the pollution associated with their equipment fleet. Nevertheless, such implementation has not been fully developed yet due to the challenges this presents to contractor profitability and the practical usefulness of decision-support tools. This paper developed a sustainable equipment fleet (SEF) decision-support optimization model with the capability to reduce the CO2 emissions of construction equipment and to minimize the equipment fleet modification cost, subject to the contractor’s budget and time constraints. The model utilizes a multiobjective genetic algorithm (GA) to search for the combination of equipment utilization, equipment model, and sustainable options that provide the optimal equipment fleet options to contractors. The results from the case study of a road construction project demonstrated the tradeoff between emissions and costs, with a wide range of optimal sustainable equipment fleet options. In addition, the fuel equivalent ratio (FER) and the equipment cost-effective ratio (CER) were newly established to normalize pollutant generation and equipment investment and to enable equipment comparisons for facilitating equipment selection by the contractor. The findings suggested that equipment selection involving a lower FER is preferable for sustainability and likewise, a lower CER for the cost aspect. However, effectiveness was measured as the proportion of FER to CER, with higher effectiveness when the proportion was lower. This paper facilitates the assessment and prioritization by construction companies of their equipment investment options to satisfy sustainability requirements.

The International Investment Regime and Climate Change Goals: Clash of the Existing Systems and Available Balancing Tools

International commitments of states require them to adopt regulatory measures aimed at reducing CO2 emissions to combat climate change. This is likely to trigger a wave of investor-state claims by affected foreign investors, mostly from the fossil fuel industry. As no precedent currently exists, this article seeks to analyse how investment tribunals might approach such claims and balance substantive protections under international investment agreements with host states’ obligations under the international climate change regime. After a brief overview of international climate change law, the article considers whether investor-state dispute settlement may serve as an enforcement mechanism for states’ international climate change commitments, or rather investors’ claims cause a regulatory chill. The article further analyses how international climate change law might be applied in investment treaty disputes and concludes that it is likely to be invoked to interpret standards of investment protection. Finally, the view is adopted that the police powers doctrine defence and invocation of general public policy exceptions, contained in new generation investment treaties, might excuse host states from compensation for regulatory measures adopted in furtherance of climate goals.

Urbanization and health impacts of air pollution in Ukraine: threats and opportunities

The aim to conduct a content analysis of studies on the impacts of air pollution on the urban residents’ health in the world and Ukraine, to show the relationship between urbanization and the selected environmental risk factor, to assess its contribution to the global disease burden for Ukraine minimizing harmful effects.Material and methods: Content analysis of research on the air pollution exposure on the urban residents’ health in the world and Ukraine was used. The Data Visualizations / Institute for Health Metrics and Evaluation (IHME) hub data was used to study the contribution to the global burden of disease. GBD 2019 Cause and Risk Summary.Results: At present, changes in thinking and a synergistic approach are needed to fulfill all the goals of achieving the Sustainable Development Goals, approved, agreed and set by governments around the world, including Ukraine. Important Global Task 3.9 "Significantly reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and poisoning", was not chosen by Ukraine due to a lack of reliable indicators with a proven cause-and-effect relationship with the environmental factor that caused this disorder. Reducing the level of air pollution can significantly reduce the burden of diseases, primarily those caused by heart disease and stroke, lung cancer, and chronic respiratory diseases, including asthma.Conclusions: Policies that encourage investment in cleaner transport, energyefficient homes, electricity generation, industry and better household waste management can reduce key sources of air pollution.

Application of Distributed Ledger Technology in Distribution Networks

In the transition to a society with net-zero carbon emissions, high penetration of distributed renewable power generation and large-scale electrification of transportation and heat are driving the conventional distribution network operators (DNOs) to evolve into distribution system operators (DSOs) that manage distribution networks in a more active and flexible way. As a radical decentralized data management technology, distributed ledger technology (DLT) has the potential to support a trustworthy digital infrastructure facilitating the DNO–DSO transition. Based on a comprehensive review of worldwide research and practice, as well as the engagement of relevant industrial experts, the application of DLT in distribution networks is identified and analyzed in this article. The DLT features and DSO needs are first summarized, and the mapping relationship between them is identified. Detailed DSO functions are identified and classified into five categories (i.e., “planning,” “operation,” “market,” “asset,” and “connection”) with the potential of applying DLT to various DSO functions assessed. Finally, the development of seven key DSO functions with high DLT potential is analyzed and discussed from the technical, legal, and social perspectives, including peer-to-peer energy trading, flexibility market facilitation, electric vehicle charging, network pricing, distributed generation register, data access, and investment planning.

A system dynamics investigation on the long-term impacts of demand response in generation investment planning incorporating renewables

By exchanging demand and price data between demand and supply sides, demand response (DR) exerts a substantial impact on the power system planning. This study proposes a novel dynamic model for long-term generation capacity investment planning with DR implementation. The relation between price and responsive loads is modeled regarding a two-way market-based relevance. Renewable energy resources alongside common thermal technologies are considered in the proposed investment process. Further, uncertainty of power generation in the thermal units, renewables' availability, and participation in the DR programs are modeled. Different levels of DR, penetration of renewables, and capacity payment are investigated to obtain the most advantageous supply by simulating several cases. Special attention is drawn to quantifying the results of DR implementation in long-term planning. The results identify that, from an environmental point of view, DR can contribute to enhancing renewables penetration and diminishing CO2 emissions. From the economic viewpoint, by postponement or preventing the new power plants construction and mitigating price spikes, DR causes more economic power system. Furthermore, from the reliability perspective, with the participation of responsive consumers, DR improves the power system's reliability and security. The proposed model allows the regulatory body to analyze the economical, technical, and environmental effects of DR in the long-term.

Independent power producers and deregulation in an island based small electricity system: The case of Papua New Guinea

The small island economy of Papua New Guinea (PNG) is facing severe electricity shortages and is therefore turning to implementing broader power sector reforms as a vehicle to attract private capital and investments in electricity generation. This study, based on a case-study approach, revisits the reform progress and plans in the electricity sector of PNG alongside the development and integration of IPPs in its small power system. Lessons of reform experiences and IPPs integration are drawn from three other smaller systems of Nepal, Nicaragua and the Northern Territory of Australia including stakeholder consultations, which includes two IPPs of PNG. We find a widening gap between reform ‘theory’ and ‘practice’ in the PNG power sector. Cost reflective pricing is implemented while cost recovery is never achieved by the vertically integrated state-owned utility and the insolvency of this state-owned single buyer poses the greatest perceived revenue risk to the IPPs. This lack of revenue reimbursement to the IPPs by the single buyer is a barrier towards attracting private capital into electricity generation. We recommend that strong political will and strengthening of institutional arrangements are urgent reform measures to attract private capital in power generation as political instability continue.

A New Reconfigured Electricity Market Bidding Strategy in View of Players' Concerns

The electricity market has become a competitive model due to generation, transmission, distribution, and large-scale investments in microgrids where no electricity supplier intends to set the price. However, the competition itself provides opportunities for the buyer to be able to experience more profit. Based on the available optimal bidding model, the supplier can only offer the final bid. Hence, active participation on the demand side creates an efficient and reasonable electricity market, and also promotes additional optimal allocation of economic resources. This article has concentrated over the final marginal bidding price and creating an optimal bidding strategy for consumers. It has specifically focused and proposed a new optimized model for electricity market bidding to improve and obtain a maximum turnover and profit for players. Since the solution of the aforementioned issue is inadequate due to multiple decision variables in mathematical and classical methods; a new enhanced Harris Hawks optimization (HHO) is proposed. Trapping into local optimum point can be occurred in different optimization algorithms, while the proposed model has simple and efficient structure, without derivative operator, which is integrated with mathematical techniques to increase local and global search abilities. The standard HHO algorithm is utilized to increase the probability of entrapment in local optima through increasing the number of optimization variables; however, the challenge of large number of variables is resolved through proposing a novel local/global operators. The proposed model is examined with a standard IEEE system in 2-scenarios, with symmetric and asymmetric information through finding the optimal solution desirably.

Seven outstanding issues in energy network regulation

Despite many decades of experience with the theory and practice of energy network regulation, a number of outstanding issues remain to be resolved. This paper sets out a list of outstanding issues and suggests a possible way forward for each. The issues canvassed include matters related to distribution network pricing, the economic foundation of public utility regulation, the regulation of non-commercial enterprises, the coordination of transmission and generation investment, the handling of uncertainty in the regulatory process, the estimation of cost of capital, and the design of incentive mechanisms. It is hoped this list of issues will inspire a new generation of researchers to tackle important questions in public utility regulation.

The bioeconomics of planetary energy transitions—a theoretical note

Evidence is mounting that unprecedented economic growth experienced by human societies over the past two centuries has induced a state of crisis for the Earth’s ecological systems—a crisis that threatens human society’s existence and heightens the risk of violent conflict. This article presents a simplified model of bioenergetic evolution on a planetary level. It examines human energy exploitation based on three strategies vis-à-vis the natural world: (1) predation, (2) competition, and, more cursorily, (3) mutualism. Predation involves the capture of energy pre-processed by the biotic community (living organisms sharing a common environment). Competition involves appropriating lands to capture solar-generated energy, edging the biotic community out. Mutualism involves engaging the biotic community in a mutualistic effort to harvest energy (and discard energy waste in the form of heat) outside of the planetary system. The model implies that, theoretically, substantial government investment in Earth-based solar generation may be required to effect a planetary energy transition to avert ecological collapse. The model suggests that this transition is not likely to happen automatically as a function of substitution by individual economic actors prior to ecological collapse; rather, it requires top-down coercive and/or incentive measures applied by government.

Peer-to-Peer trading with Demand Response using proposed smart bidding strategy

The electricity demand is increasing rapidly among residential consumers due to the utilization of many smart appliances. The renewable-based Distributed Generation (DGs) and Electric Vehicles (EV) investment is also rising among residential consumers. Consumers with renewable-based DGs and smart appliances are considered prosumers in this work. The main objective of this work is to reduce the electricity cost of the smart home by scheduling the smart appliances with Demand Response (DR) using Binary Particle Swarm Optimization (BPSO) algorithm and Peer-to-Peer (P2P) trading using a smart bidding strategy. The smart home consists of two prosumers and two consumers with different Distributed Generation (DG) availability, battery, EV, and smart appliances (thermal and electrical loads). The smart appliances are scheduled based on Real-Time Pricing (RTP), DGs and storage devices availability. The available excess power in the prosumers after self-consumption is traded to the neighbouring consumers to reduce the grid dependency. The novelty of this article lies in the trading decision and trading cost determination for P2P trading, which is called the proposed smart bidding strategy in this work. The proposed smart P2P trading algorithm involves the double auction mechanism, where the bidding occurs between the prosumers and consumers based on the supply–demand ratio (SDR) and RTP. The trading cost calculated is beneficial for both prosumers and consumers in reducing their electricity costs. The electricity cost of consumer 1, consumer 2, prosumer 1, and prosumer 2 is reduced by ₹58.073, ₹20.37, ₹51.656, and ₹20.37, respectively, as compared with grid tariff under the category of normal condition. Similarly, the electricity cost of consumer 1, consumer 2, prosumer 1, and prosumer 2 is reduced by ₹63.514, ₹3.208, ₹98.155, and ₹34.049, respectively, as compared with grid tariff under the category of EV uncertainty in both consumer & prosumer premises. The simulation results proved that the proposed smart bidding strategy effectively reduced the electricity cost of the prosumers and consumers under normal and uncertain conditions compared to the grid tariff.

Powering Europe with North Sea offshore wind: The impact of hydrogen investments on grid infrastructure and power prices

Hydrogen will be a central cross-sectoral energy carrier in the decarbonization of the European energy system. This paper investigates how a large-scale deployment of green hydrogen production affects the investments in transmission and generation towards 2060, analyzes the North Sea area with the main offshore wind projects, and assesses the development of an offshore energy hub. Results indicate that the hydrogen deployment has a tremendous impact on the grid development in Europe and in the North Sea. Findings indicate that total power generation capacity increases around 50%. The offshore energy hub acts mainly as a power transmission asset, leads to a reduction in total generation capacity, and is central to unlock the offshore wind potential in the North Sea. The effect of hydrogen deployment on power prices is multifaceted. In regions where power prices have typically been lower than elsewhere in Europe, it is observed that hydrogen increases the power price considerably. However, as hydrogen flexibility relieves stress in high-demand periods for the grid, power prices decrease in average for some countries. This suggests that while the deployment of green hydrogen will lead to a significant increase in power demand, power prices will not necessarily experience a large increase.

Role of Foreign Direct Investment in Employment Generation: Evidence from FDI Recipient Economies

Remarkable global FDI flows during last two decades have substantial impact on labor market in developed and developing economies. The present study intends to explore the role of FDI in employment generation. By taking the data from 1991-2020 for top twenty FDI recipient economies (developed and developing) the study used system GMM model to test the hypothesis empirically. Employment level is taken as dependent variable and net inflows of FDI to GDP ratio is taken as principal variable. Other control variables include in the study are, Gross fixed capital formation (GFCF), inflation (INF), Gross domestic product (GDP) per capita, labor force (LF) and trade openness (TOP). The findings of study reveal that inward FDI has strong positive impact on employment levels in both developed and developing economies. As policy suggestion it is recommended that inward FDI should be encouraged in those sectors which can generate more employment opportunities for local labor especially in developing economies.

PRIORITIZATION OF REGIONAL TRANSMISSION NETWORK PROJECTS TO SUSTAIN GENERATION AND MARKET DEVELOPMENT IN SOUTH EAST EUROPE

The region of South East Europe (SEE) has been experiencing an ongoing process of changes in the energy sector in the areas of power generation, power transmission and power distribution. These changes are reflected in each country through reorganization of vertically integrated electric power utilities, followed by functional separation of transmission from generation and distribution. Changes in the energy sector have also affected the philosophy of generation and transmission planning since most of the SEE countries are transition countries. In order to establish and harmonize the common regional and the wider European electricity market, many study activities have been undertaken in the last few years. This paper deals with the interaction between the most important regional generation and transmission studies that were presented and discussed at different occasions at the regional level (Athens Fora, conferences, workshops, web sites etc.). The main aim of the studies was to assist the European Commission (EC), the World Bank (WB) and the donors in identifying the indicative priority list of investments in power generation and related electricity infrastructure from the regional perspective and in line with the objectives of SEE regional electricity market. The scope of work within this study was to analyze the transmission network for investigated scenarios and in accordance with the findings and conclusions from the updated GIS. The final result is supposed to be a list of new interconnection line priorities in the region necessary for new generation and future market sustainability.

Structural, governance, & regulatory incentives for improved utility performance: A comparative analysis of electric utilities in Tanzania, Kenya, and Uganda

Public utilities in most African countries have failed to deliver adequate, reliable, and competitively priced electricity to support economic growth and improve the welfare of their populations. Despite more than two decades of power sector reforms, outcomes have been varied and often disappointing. A comparative case study analysis of electric utilities in three East African countries (Tanzania, Kenya, and Uganda) explores the drivers of utility performance. Findings show that Tanzania Electric Supply Company Limited performed the worst. Kenya Power performed better, while Umeme is the most financially sustainable of the three utilities. However, this ranking among the three utilities is inconsistent across all performance measures. PSP is widespread and brings in much-needed investments in generation and distribution. Countries that restructured their power systems have reduced conflicts of interest, enabled deeper management focus, improved transparency and accountability, and built institutional capacity that translates into improved utility performance. One of our major conclusions is that despite improved governance in market-oriented power markets, consistent regulatory decision-making for cost-reflective tariffs and adequate indexation is still necessary to guarantee financial viability and sustainability.

Can Distributed Intermittent Renewable Generation Reduce Future Grid Investments? Evidence from France

Abstract This paper estimates the relationship between investments in five distributed generation technologies and hourly net withdrawals from over 2,000 electricity distribution networks in France between 2005 and 2018. We find that investments in distributed wind and solar generation have little or no impact on the annual peak of hourly net withdrawals from the distribution grid, while investments in hydroelectric and thermal distributed generation significantly reduce it. An optimistic analysis of the impact of investments in battery storage suggests that high levels are required for distributed wind and solar to deliver similar reductions in the annual peak of hourly net withdrawals. Our results imply that public policies favoring distributed wind and solar generation over utility-scale generation cannot be rationalized by savings in future grid investments.

Optimising VRE capacity in Renewable Energy Zones

Australia experienced significant growth in variable renewable energy (VRE) investment commitments during 2016–2021. A subset of projects experienced material entry frictions which stemmed from inadequate network hosting capacity. In this article we examine the development of Renewable Energy Zones (REZ) as a means by which to help guide forward market commitments and produce greater coordination between generation and transmission plant investments. Using an optimisation model comprising 1500 MW of transmission network infrastructure, we explore various definitions of a ‘fully subscribed REZ’ given portfolio benefits associated with complementary wind and solar resources in Southern Queensland. When minimising cost forms the objective function, full subscription is achieved by developing 2050 MW of VRE, comprising 1700 MW of wind and 350 MW of solar. When maximising output forms the objective function, ~3400 MW of wind and solar is developed in roughly equal proportions, accepting some curtailment is an economic result. And if maximising net cashflows forms the objective, VRE development is complicated by the dynamic nature of spot prices. Specifically, in the early stages of a REZ solar is preferred but as its market share rises and value of output falls, wind investments dominate holding technology costs constant.

Idealized analysis of relative values of bidirectional versus unidirectional electric vehicle charging in deeply decarbonized electricity systems

SummaryWe employed an idealized macro-energy system model to examine how the value of unidirectionally- and bidirectionally-charging electric vehicles (EVs) varies with EV penetration and mix of electricity generators. We find that EVs can help wind and solar-based electricity generation systems to be less costly by making better use of power that would otherwise be curtailed and, potentially, by giving electricity back to the grid at times of peak net load. At low levels of EV penetration, bidirectional EVs are valuable because they can provide electricity at times of main load peak. At today’s low levels of EV penetration, bidirectional EVs stimulate investments in solar and wind generation and substantially reduce the need for grid-battery storage compared to unidirectional EVs. At high levels of EV penetration, generation capacity must be increased, and most peaks in main net load demand can be met by reductions in charging by unidirectional EVs.

STRATEGI INVESTASI GENERASI MILENIAL DALAM MASA PEMULIHAN EKONOMI PASCA PANDEMI COVID 19

The research, entitled Millennial Generation Investment Strategy in the Post-Covid-19 Economic Recovery Period, discusses the strategies used by millennials in carrying out investments. This study uses a descriptive qualitative method where the method looks at the actual phenomena that occur in the community so that the resulting research is classified as new research. The results of this study show that millennials are starting to invest in several ways, namely by preparing emergency funds, diversifying wealth and understanding the risks resulting from each investment instrument. With this strategy, millennials are more careful and careful in choosing various investment instruments. This is also directly related to the economy that existed at the time of the COVID-19 pandemic where at that time the economy in Indonesia and other world countries affected by the pandemic experienced a decline in the wheels of the economy. Therefore, the government makes a new normal policy during the pandemic and makes a policy to increase investment with the aim of revitalizing the wheels of the economy that is happening in Indonesia.

Strategic low-cost energy investment opportunities and challenges towards achieving universal electricity access (SDG7) in forty-eight African nations

Abstract Strategic energy planning to achieve universal electricity access and meet the future energy needs of African nations is essential to formulate effective policy measures for climate change mitigation and adaptation. Africa cannot afford a cost-prohibiting green energy transition to achieve United Nations Sustainable Development Goal 7. In this study, I employ open-access energy models, enhanced with geospatial data, to identify least-cost power generation investment options for forty-eight African nations. Different levels of electricity consumption per capita and costs of renewables are considered across four scenarios. According to the analysis, to achieve universal electricity access by 2030 in Africa, the power generation capacity needs to increase between 211 GW–302 GW, depending on electricity consumption levels and the cost of renewables considered, leading electricity generation to rise between 6221 PJ–7527 PJ by 2030. Higher electricity generation levels lead to higher penetration of fossil fuel technologies in the power mix of Africa. Natural gas will be the dominant fossil fuel source by 2030, while the decreasing costs of renewables will lead solar to overtake hydropower. To meet the same electricity demand levels, decreasing the cost of renewables can enable a less carbon-intensive power system, although higher capacity is also needed. However, Africa is still hard to achieve its green revolution. Depending on electricity consumption levels and costs of renewables considered, grid-connected technologies are estimated to supply 85%–90% of total electricity generated in Africa in 2030, mini-grid technologies 1%–6%, and stand-alone technologies 8%–11%. Off-grid solar and hybrid mini-grid solar technologies are essential in electrifying residential areas. Higher penetration of renewable energy sources in the energy mix creates local jobs and increases cost-efficiency. The analysis demonstrates that 6.9 million to 9.6 million direct jobs, depending on the policies and renewable development levels, can be created in Africa by expanding the power sector from 2020 to 2030 across the supply chain. While increasing electricity consumption levels in Africa leads to higher total system costs, it is also estimated to create more jobs, fostering political and societal stability. Finally, the decreasing costs of renewables could further increase the penetration of renewables in the energy mix, leading to an even higher number of jobs.