Investment In Renewable Technologies Research Articles

Comparative Approaches to Energy Transition: Policy Guideline for Enhancing Thailand’s Path to a Low-Carbon Economy

Thailand’s transition to a low-carbon economy faces significant challenges, including a dependency on fossil fuels, fluctuating energy costs, and limited policy clarity. This study conducts a comparative analysis of energy transition policies in Germany, Japan, Australia, Malaysia, and Singapore to derive actionable lessons that can be adapted to Thailand’s socio-economic and energy contexts. Using the Integrated National Energy Planning (INEP) framework and Network Governance Theory, the research identifies key strategies, such as setting clear and achievable renewable energy targets, establishing robust legal frameworks, fostering multi-stakeholder engagement, and encouraging decentralized governance. The findings highlight the importance of long-term vision, inclusive governance, and targeted investments in renewable technologies to accelerate energy transitions. This paper presents policy guidelines to enhance Thailand’s energy security and contribute to its climate goals by promoting public awareness and strengthening institutional capacities. By adapting these strategies, Thailand can align with global energy trends, reduce its reliance on fossil fuels, and advance toward a resilient and sustainable energy system, aligned with global energy trends while addressing its unique socio-economic context.

Natural resources management efficiency: The role of green innovation for digital government

Natural resource management efficiency is currently one of the key issues that policy makers are trying to address via digital government efficiency. To address the challenges of ecological degradation, this research scrutinizes the nexus of green innovation and CO2 emissions in Saudi Arabia from 1990 to 2022. It also incorporated the role of financial development (FD), economic expansion (GDP), renewable energy consumption (REC), and oil revenue (ORNT). Moreover, pertinent time-series practices include ADF with structural breaks to find the covariates of static at level or first difference and the Johansen equilibrium test for long-run equilibrium during the least squares method with structural breaks as a primary method in the study. For robustness, the research included simple quantile regression to check the outcomes in both settings of the techniques. The results show that the covariates are static at the first difference and that long-run equilibrium exists among the variables. Moreover, the empirical outcomes reveal that FD and GDP increase CO2 emissions despite the structural breaks applied in the research. Moreover, green innovation has a significant negative influence on CO2 emissions in both models with and without the role of income. It is suggested that emerging economies increase investments in renewable technologies and green energy to reduce their reliance on fossil fuels and increase environmental sustainability. Moreover, REC has a significant and negative influence on CO2 emissions, while ORNT has a positive but weak influence on CO2 emissions in both models. The robustness protocols provide similar and robust outcomes because oil revenues are a curse for CO2 emissions in the upper quantiles. Ultimately, enhancing green innovation, increasing the utilization of renewable energy, and effectively managing financial resources, natural assets, and sustainable economic growth can serve as the foundation for bolstering environmental sustainability.

Europe’s independence from Russian natural gas — Effects of import restrictions on energy system development

With the Russian invasion on Ukraine in 2022 and the following disruption of Russian natural gas imports, Europe’s energy reliance on Russia has become more apparent than ever. To tackle the resulting challenges of a limited supply of fossil fuels from Russia and especially its effects on energy system development, short and long-term effects need to be investigated thoroughly. This paper aims to quantitatively analyze the impact of reduced natural gas availability from Russia on the European energy system, both in the coming years, as well as in the future. Using the Global Energy System Model (GENeSYS-MOD), three scenarios with varying amounts of Russian natural gas and further impacts of reduced fossil fuel imports from Russia are calculated. Results show that strong effects are mostly observed in the short to medium-term, but an overall earlier phase-out of fossil fuels can be achieved in the long-term. The reduction of natural gas imports is tackled by an increase in LNG imports and domestic natural gas production to overcome the supply gap. Strong reactions are seen in the levelized costs of electricity generation between 2022 and 2025, with higher costs in scenarios with restrictions on Russian natural gas imports, but with a negligible difference in the long-term. Most importantly, lower emissions in scenarios with reduced natural gas supply from Russia highlight the positive effect of an early reduction in fossil fuels and investment in renewable technologies, resulting in a near 100% emission-free energy system by 2045, 5 years before the Base scenario with unrestricted Russian gas imports. The results find that a limitation of Russian fossil imports does not pose a long-term threat to the European energy system or its required transition away from fossil fuels, but can rather accelerate its decarbonization and energy demand reductions.

Decarbonization, Opportunities and Dilemma for Developing Countries

Purpose: The purpose of this paper is to analyze the dilemma of third world countries in the decarbonization policy drive by drawing a comparison of power generated by third world countries and quantity of CO2 emissions against that of first world nations to ascertain third world nations' CO2 emissions.
 Materials and Methods: This is achieved by conducting an extensive literature review, conducting questionnaires, and conversing with industry experts aimed at identifying and comparing sources of power generation and consumption by third-world countries and developed countries. Analysis of collected data is conducted by statistical methods to arrive at conclusive deductions regarding the implications and opportunities available for decarbonization. 
 Findings: The study revealed that fossil fuel still constitutes about 64% of energy generation and over 80% of the carbon dioxide (CO2) generated by human activity (around 35 billion tonnes a year) comes from burning fossil fuel. This paper proposes unique practical solutions that would ensure a smooth transition during decarbonization like unbundling the national grid and power infrastructure to create smaller and more efficient microgrids (energy efficiency), improving the energy efficiency of existing power infrastructure, proper short, midterm and long-term Government policies on energy, investments in renewable technologies like solar, wind and Nuclear, acquisition of energy storage systems, transparency to curb corruption), and more investment in homegrown technological drive.
 Implications to Theory, Practice and Policy: Conclusively, policymakers are encouraged to take necessary steps to ensure that decarbonization can be achieved without significant challenges on infrastructural growth and development.

Capacity expansion in liberalized electricity markets with locational pricing and renewable energy investments

We study the long-term incentives for expanding production capacity in liberalized electricity markets. How does electricity market design affect the prices of energy, capacity, and social welfare? And how is this capacity market affected by the geographical features of the electricity market? Should the system operator design the capacity market to provide incentives for investment in renewable technologies? We analyze the conditions under which capacity payments and markets enable higher investment relative to an energy-only market in which generators sell electricity but not capacity. We show that capacity markets benefit consumers and investors by increasing investment and reliability and capping peak prices. We prove that generators benefit from owning a portfolio of peak and baseload plants and show that investment strategies must consider regional capacity auctions. We demonstrate that a capacity payment per technology increases investment in renewable technologies and leads to the early retirement of older, carbon-emitting technologies. Regional capacity investment targets effectively decrease energy prices and significantly increase investment in renewable technologies.

Does R&D investment in renewable energy technologies reduce greenhouse gas emissions?

In this paper, we investigate the impact of public investment in R&D in renewable energy technologies on environmental quality using a spectrum of environmental emissions. We employ new and innovative panel data methods to address the existing econometric issues in estimating the effect of R&D on greenhouse gas emissions. Then, using data from advanced and emerging economies that span the period from 1980 to 2020, we find that R&D investment in renewable technologies has a significant positive effect on environmental quality by reducing a range of pollutants, including carbon dioxide, methane, and other pollutants. The results are robust to a series of sensitivity tests. The findings have important policy implications for climate change and various recent environmental initiatives, including the transition to net-zero emissions and sustainability.

Varying Coefficient Models and Design Choice for Bayes Linear Emulation of Complex Computer Models with Limited Model Evaluations

Computer models are widely used to help make decisions about real-world systems. As computer models of large and complex systems can have long run-times and high-dimensional input spaces, it is often necessary to use emulation to assess uncertainties in computer model output. This paper presents methodology for emulation of complex computer models motivated by a real-world example in energy policy. The computer model studied is an economic model of investment in electricity generation in Great Britain. The computer model was used to select parameters in a government policy designed to incentivize investment in renewable technologies to meet government targets. Limited computing time meant that few runs of the computer model were available to fit an emulator. The statistical methodology developed was therefore focused on accurately capturing the uncertainty in computer model output arising from the small number of available model runs. A varying coefficient emulator is proposed to model uncertainty in model output when extrapolating away from model runs. To maximize use of the small number of runs available, this varying coefficient emulator is paired with a criterion-based procedure for design selection.

The impact of Direct Air Capture during the last two decades: A bibliometric analysis of the scientific research, part I

The controversy about meeting the expected capture demands from carbon dioxide removals such as Direct Air Capture (DAC) are debatable. In the past, the vast investment in renewable technology is allowing today's rapid deployment. Why is this not currently happening in the CO2 capture area? This bibliometric analysis which focused on the use of solid sorbents in the CO2 capture field between 2001 to 2021, aims to answer these questions. The study reviewed three capture methods: post-combustion, pre-combustion and DAC, with particular emphasis on the latter. To understand the evolution of DAC, this novel approach highlights which authors and countries have been investigating the use of solid sorbents. The outcomes of this research showed that, during the first decade, there was a minor interest in funding and investigating solid sorbents for DAC solutions. It was only at the end of the second period when the use of these materials in the topic emerged to the surface. Acting as an example, the United States, China and the United Kingdom spent more financial help to investigate the use of sorbents. However, all of today's CO2 capture plants are working for enhanced oil recovery. In the Republic of Ireland, there are a few articles exploring the use of these materials to uptake CO2. It is possible that certain articles were not considered by the software. Upcoming analysis will answer this question and include all the existing materials in the wide spectrum of solid sorbents at the CO2 capture field.

The nexus of energy resources and the environment

Currently, every country is striving to realize development for its people. Thus, to achieve this there is a need for ensuring access to reliable energy at all levels. The world is currently relying on the use of non-renewable energy such as fuels, and coal. However, these sources are not environmental friendly. Thus, renewable energy sources such as hydropower, solar energy, geothermal, and biofuels must be emphasized to replace the use of non-renewable energies. People need to understand well the relationship between energy resources and the environment. This paper, therefore, aims at providing the nexus of energy resources and the environment. To achieve this, the author has explained well the concept of energy and energy resources; energy uses and energy efficiency and energy security. Moreover, the author has discussed the impact of energy resources on the environment. Finally, energy savings and practices to best energy use; use of technologies to reduce the pollutant emissions in the atmosphere; and investment in renewable technologies are needed for attaining sustainable energy and environment.

Static concentrating photovoltaic modelling using MATLAB

The world has recorded an increasing interest and staggering investment in renewable technology in the last two decades, specifically in solar photovoltaic (PV). Concentrating PV (CPV) is one of PV’s technology advancements and is gaining popularity for integration in a building. Various CPV designs are currently being investigated by researchers. The aim of this paper is to design and develop a MATLAB programme that can predict the electrical properties of a static concentrator that is designed with a ±40° acceptance angle. The programme was utlizied to determine the angular characteristics of the static concentrator between acceptance angle of -50° and 50°. It is proposed that the optoelectronic gain, Copto-e values be incorporated into the model to simulate a CPV design. The incident angle values (within ±50°) were chosen to demonstrate that the static concentrator could collect solar energy within its designed acceptance angle of ±40°. The current-voltage and power-voltage characteristics are generated for each simulation, and critical parameters such as the maximum power, open-circuit voltage, short-circuit current, and optoelectronic gain were identified and measured. The programme was found to be able to determine the electrical properties for the static concentrator.

A two stage cap-and-trade model with allowance re-trading and capacity investment: The case of the Chilean NDC targets

In this work, we study an alternative approach for capping and pricing carbon emissions in electric markets: the cap-and-trade paradigm with re-trade of allowances. We model the electric market (generators and allowances’ auctioneer) as a two stage stochastic capacity expansion equilibrium problem, where we allow future investment and re-trading of emission permits among generators. The model studies generation and future investments in the electric sector in two regimes of demand: deterministic and stochastic. The configuration enforces the reduction of carbon emissions by setting a carbon budget, which allows to assess the impact of green policies and pledges concerning an electric system. We use the proposed model to analyze the Chilean electric sector under a cap-and-trade paradigm as an alternative to the existing carbon tax. We show that the Chilean pledge regarding emissions reductions does not encourage a shift to greener technologies. Moreover, we characterize two strategies to comply with the renewable targets by mid-century. On the one hand, a stringent carbon budget that induces high price of carbon permits and phases out coal-based generators. On the other hand, a less stringent target which significantly encourages investment in renewable technologies, but with low remaining shares of coal-based electric generation towards 2050.

Investigate The Economic and Environmental Impact of Transitioning to Renewable Energy Sources

The transition to renewable energy sources has profound economic and environmental implications that resonate globally. On the economic front, this shift represents a catalyst for job creation, fostering growth in sectors like solar, wind, and hydropower. Investments in clean energy infrastructure and technology open avenues for innovation, stimulating economic development and creating a more resilient energy landscape. Moreover, by reducing dependence on finite fossil fuel reserves, nations enhance energy security and insulate themselves from the volatility of global oil markets. In the environmental sphere, the move towards renewables is a linchpin in the fight against climate change, significantly lowering greenhouse gas emissions. This transition also translates to improved air and water quality; as renewable sources produce energy without the harmful pollutants associated with conventional fuels. Furthermore, embracing renewable energy aligns with sustainability goals, promoting biodiversity conservation and fostering a more harmonious coexistence between human activities and ecosystems. Transitioning to renewable energy sources has significant implications for both economic and environmental landscapes. On the economic front, this shift sparks innovation and job creation, particularly in burgeoning sectors like solar and wind power. Investments in renewable technologies not only drive economic growth but also enhance energy security by diversifying the energy mix and reducing reliance on fossil fuels. Moreover, the renewable energy industry fosters a global market that presents new business opportunities and stimulates sustainable development. Environmentally, the adoption of renewables is a pivotal strategy in the fight against climate change, as it markedly reduces carbon emissions and air pollution. The shift to clean energy contributes to improved air and water quality, mitigating the adverse effects of pollution on ecosystems and human health. The transition to renewable energy sources is a pivotal moment with profound economic and environmental ramifications. Economically, this shift fuels job creation, technological innovation, and investment opportunities. The renewable energy sector emerges as a dynamic driver of economic growth, offering sustainability-focused employment and fostering a resilient energy infrastructure. Additionally, by decreasing reliance on fossil fuels, nations enhance energy security and reduce exposure to volatile energy prices. Environmentally, the move towards renewables represents a crucial strategy in combating climate change. The reduction in greenhouse gas emissions and the mitigation of air and water pollution contribute to improved environmental health. Biodiversity conservation and resource sustainability are further benefits, aligning with a global commitment to a greener and more sustainable future. Economic Indicators, Environmental Metrics, Technological Innovation, Social Equity and Life Cycle Analysis. Economic Impact, Environmental Impact, Greenhouse Gas Emissions Reduction, Air and Water Quality Improvement and Climate Change Mitigation and Adaptation. the Rank of GRA for Economic and Environmental Impact of Transitioning. Life Cycle Analysis is got the first rank whereas is the Technological Innovation is having the Lowest rank

Adjacent Markets Influence Over Electricity Trading—Iberian Benchmark Study

This paper presents a study on the impact of adjacent markets on the electricity market, realizing the advantages of acting in several different markets. The increased use of renewable primary sources to generate electricity and new usages of electricity such as electric mobility are contributing to a better and more rational way of living. The investment in renewable technologies for the distributed generation has been creating new opportunities for owners of such technologies. Besides the selling of electricity and related services (ancillary services) in energy markets, players can participate and negotiate in other markets, such as the carbon/CO2 market, the guarantees of origin market, or provide district heating services selling of steam and hot water among others. These market mechanisms are related to the energy market, originating a wide market strategy improving the benefits of using distributed generators. This paper describes several adjacent markets and how do they complement the electricity market. The paper also shows how the simulation of electricity and adjacent markets can be performed, using an electricity market simulator, and demonstrates, based on market simulations using real data from the Iberian market, that the participation in various complementary markets can enable power producers to obtain extra profits that are essential to cover the production costs and facilities maintenance. The findings of this paper enhance the advantages for investment on energy production based renewable sources and more efficient technologies of energy conversion.

Are Renewables Profitable in 2030? A Comparison between Wind and Solar across Europe

The European Commission (EC) and the European Council have set ambitious energy targets for 2030 in order to secure clean and efficient energy in the European Union. In 2014, EU countries agreed that by 2030, the share of renewables should be 27% of total energy consumption in order to achieve the overall target of 40% GHG emission reduction. In 2018, this overall renewable target has been increased to 32% of total energy consumption. This target holds at the EU level, so all countries should work together either by reducing the energy demand or increasing generation from renewable energy sources (RES), to achieve the overall goals. Electricity generation is one of the sectors affected by the EU targets together with transport, agriculture and industry, as it is one of the major sectors responsible for total emissions. Following the track started with the 2020 targets on emission reductions, renewable electricity generation (RES-E) should increase to 49% of total electricity demand by 2030 in order to be consistent with the overall target on total energy demand, as noted by the in its own impact assessment analysis. The installed capacity in renewable energy has increased strongly during the last decade, when every EU country set up different incentives to promote the investment in renewable generation. There are several works that focus on the costs and the regulatory changes needed to promote the investments in renewable energy. All these works highlight that subsidies given to renewables are positively related with the investment in this type of generation in all EU countries. Despite the positive correlation between subsidies and investment in RES-E, it is widely recognised that the use of subsidies is suboptimal with respect to the first best solution of carbon-pricing, so a rigorous analysis is needed to assess under which conditions investments in renewable energy are economically profitable without subsidies. Looking at 2030, investment costs associated with renewables should decrease over time, making the investment in renewable energy more attractive to market operators. However, European countries are quite different in terms of natural resources and the availability of wind and solar irradiation, thus a careful analysis of the profitability of investments in renewable technologies is required to determine where it is optimal to invest in the future, as capital costs of renewables are often higher than for fossil fuels. Despite the importance of the subject, there are not many studies focusing on the profitability of renewable technologies in 2030 or beyond, in particular when it comes to comparing countries across Europe.

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.

Evaluating the reliability of efficient energy technology portfolios

This paper develops a decision evaluation framework to assess how the treatment of risk affects the reliability of, and investment into, electricity generation infrastructure. First, portfolios of electricity generation technologies that comprise the energy supply systems in the US are evaluated using a mean-variance approach. Second, this research assesses the reliability of the portfolios with the aid of loss of load expectation and loss of energy expectation metrics. The methodology considers the least-cost technology mix coupled with the reduction of market and system risks. The variation in the portfolio cost is based on the prevailing policies in the geographic locations. Overall, the current mix of technologies evaluated along the cost-risk latitudes shows an inefficient electricity technology portfolio system. First, investments in renewable technologies may create a bifurcation. On the one hand, the portfolios with significant proportions of the high-cost intermittent technologies exhibit low market risks. On the other hand, these portfolios have less desirable system reliability measures. Second, policy makers will find it instructive that a more diverse electricity technology mix offers the potential to migrate to the efficient frontier in the near term. However, it is imperative to craft policies in support of the transition with the caveat that technology diversity is not always a panacea for improving system reliability even if the portfolio is on the efficient frontier. This work projects some intriguing insights and offers guidance for policy makers.

In the transformation of energy systems: what is holding Australia back?

Australia has had a strong GDP growth rate, is endowed with a diversity of renewable energy resources yet has been unable to unshackle its dependency on fossil fuels. Our study identifies causes underlying Australia’s underachievement in its transformation towards a renewable-energy economy. We apply a combined mixed-methods case-study and multi-criteria analysis to evaluate the greenhouse gas emissions and energy targets, policies and programs of four Australian Prime Ministers between 1996 and 2015. We identify four high-impact factors that contribute to Australia’s underachievement. The Prime Minister’s political stance on climate and energy is critical in setting the direction of government. The absence of target-driven policy frameworks results in less-effective policy outcomes. Orderly and cost-effective energy system transformation requires bipartisan, strategic long-term planning and substantial capital investment to provide policy certainty and stability that can induce new investment in renewable technologies and industries. Energy policy is primarily a political and ideological issue not one driven by underlying economic conditions. Going forward, Australia must achieve a bipartisan position on climate and energy policy at both federal and state levels. This will provide long-term certainty and stability to support investment in renewable energy and so doing achieve international emission reduction obligations.

Prospects for generating electricity by large onshore and offshore wind farms

The decarbonisation of energy sources requires additional investments in renewable technologies, including the installation of onshore and offshore wind farms. For wind energy to remain competitive, wind farms must continue to provide low-cost power even when covering larger areas. Inside very large wind farms, winds can decrease considerably from their free-stream values to a point where an equilibrium wind speed is reached. The magnitude of this equilibrium wind speed is primarily dependent on the balance between turbine drag force and the downward momentum influx from above the wind farm. We have simulated for neutral atmospheric conditions, the wind speed field inside different wind farms that range from small (25 km2) to very large (105 km2) in three regions with distinct wind speed and roughness conditions. Our results show that the power density of very large wind farms depends on the local free-stream wind speed, the surface characteristics, and the turbine density. In onshore regions with moderate winds the power density of very large wind farms reaches 1 W m−2, whereas in offshore regions with very strong winds it exceeds 3 W m−2. Despite a relatively low power density, onshore regions with moderate winds offer potential locations for very large wind farms. In offshore regions, clusters of smaller wind farms are generally preferable; under very strong winds also very large offshore wind farms become efficient.

ENVIRONMENTAL TAXATION IN THE UK: THE CLIMATE CHANGE LEVY AND POLICY MAKING

Environmental taxation is different from many other forms of taxation as it is not only used to raise revenue but it is also able to marginally influence behaviour to protect and enhance the environment. It provides valuable market led mechanisms to help limit greenhouse gas emissions, encourage sustainable behaviour and improve environmental performance to address climate change. The Post Paris (COP21) agreement provides a framework for global actions to address climate change and this sets the context for the discussion of environmental taxation.Environmental taxes have enormous potential to change carbon usage. In 2012, the Coalition Government (2010-2015) opined that the definition of an environmental tax includes three principles, namely that the tax is explicitly linked to the government’s environmental objectives, that the primary objective of the tax is to encourage environmentally positive behaviour, and that the tax is structured in relation to environmental objectives, particularly the more polluting the behaviour the greater tax levied. The current Government has adopted and applied this definition. By way of contrast, the definitions of environmental taxation favoured by the Office for National Statistics (ONS) and the Organisation for Economic Cooperation and Development (OECD), respectively, give a wider remit for environmental taxation and policy making and include, for instance, various transport taxes which, as will be seen, do not fall within the Government’s definition of an environmental tax. The Climate Change Levy, which is the focus of this article, was introduced as one of a series of new environmental taxes on business energy use in 2001. It is charged on electricity, gas liquefied petroleum gas and solid fuels used by business.Generally, environmental taxes are intended to increase investments in renewable technologies while reducing carbon emissions, but they are vulnerable to political influence and policy changes. Thus, the rationale for environmental or ‘Green’ taxes has shifted perceptibly to raising revenue rather than enabling government to meet its obligations under the Climate Change Act 2008. Environmental taxes are also susceptible to oil prices and fluctuations in the global economy. The North Sea oil and gas industry is going through a difficult period of retrenchment. A recent independent report has suggested that the industry has two years to adjust to changing economic circumstances. Inevitably, this will impact on the tax revenues raised from this sector.In an ideal world, environmental taxes should be easy to avoid through a change in behaviour and, consequently, hard to evade. Environmental taxes provide important means to achieve policy objectives, but their full potential requires public support and, especially, engagement by the business community. The future of environmental taxes may depend on the success of ‘green’ investment. There is a case for introducing a single climate tax on business. Undoubtedly, environmental taxes deserve greater attention in the economic toolbox to meet climate change commitments. The UK faces some difficult policy decisions under the Climate Change Act 2008 to meet the 2030 energy and climate change package targets. Currently, the UK receives 7.5 % of tax revenue from environmental taxes. To date, environmental taxation has had mixed outcomes in the UK, though few doubt its potential to define the future of carbon based energy use.

Investments and cleaner energy production: A portfolio analysis in the Italian electricity market

The recent climate change, global warming, environmental disasters and the economic crisis are only the first signs of the failure of an economic system that, for too long, shows an uncontrolled utilization of the planet wealth. The Italian electricity market, which is strongly dependent on hydrocarbons, only in recent years has seen a first attempt to change towards renewable resources for electricity production aimed at self-consumption and for feeding into the grid. This paper presents an economic analysis whose purpose is to evaluate the profitability of investments in renewable technologies for the production of electricity. Each renewable source has its own profitability dependent on a number of factors and subject to market fluctuations, cost and frequent changes in the incentive policies. Applying Portfolio Theory is possible to select the right mix of renewable energy sources and simulate its evolution. Moreover the presented analysis can be useful for energy planners to select future green scenarios finalized to the reduction of emissions and energy imports through the increasing use of renewable energy.