Renewable Energy Companies Research Articles

Driving Renewable Energy Innovation Investments: Is Venture Capital a Novel Strategic Choice? Evidence from China

The relationship between venture capital (VC) and corporate innovation has been a topic of debate. Most existing studies have focused on the general effects of VC on innovation investments, neglecting the specific mechanisms. In the global transition toward low-carbon energy, renewable energy (RE) is increasingly becoming a focus area for VC. However, whether VC can effectively stimulate innovation investments in RE firms remains uncertain. This study addressed these gaps by systematically investigating the impact of VC on renewable energy innovation investments (REII) using data from 114 listed RE companies in China from 2011 to 2023. Our findings demonstrate that VC significantly stimulates REII, with a particularly pronounced effect in high-growth and profitable companies, thereby providing new empirical evidence to the ongoing debate on VC's role in corporate innovation. Furthermore, we uncover that VC not only alleviates financial mismatch but also reduces rent-seeking costs, thereby indirectly fostering innovation. These mechanisms help explain how VC can enhance the innovation capabilities of RE companies. Lastly, we find that joint VC, state-owned VC, and long-term VC are especially conducive to promoting innovation. Based on these findings, we offered targeted policy suggestions to boost the innovation potential of China’s RE sector.

Optimization of Renewable Energy Company Stock Portfolio for Investment Decision Making using the Markowitz Model

This study focuses on optimizing the renewable energy company's stock portfolio using the Markowitz model, which aims to balance risk and return for proper investment decision making. With the increasing demand for clean energy, portfolio optimization in the renewable energy sector is important for investors. This research takes into account historical stock performance and applies the Mean-Variance Optimization framework to minimize risk while maximizing return. This portfolio consists of selected renewable energy companies, and the analysis runs from September 2021 to August 2024. This study aims to analyze the allocation of investment portfolios in renewable energy company stocks in Indonesia. Based on the analysis results, the investment portfolio is allocated to five main stocks, namely BUMI.JK with an investment value of IDR 17,075,844 (17.08%), INDY.JK of IDR 5,825,852 (5.83%), KEEN.JK of IDR 33,766,798 (33.77%), RAJA.JK of IDR 43,084,876 (43.08%), and WIKA.JK of IDR 246,630 (0.25%). These results indicate that most of the funds are invested in RAJA.JK and KEEN.JK stocks, which contribute more than 75% of the total investment portfolio

Impact of Servitization on Employee Satisfaction with Performance Evaluation Systems: A Case Study of China’s New Energy Sector Amid Power Market Reforms

This study investigates the mechanisms by which service-oriented transformation affects employee satisfaction with performance evaluation systems within the context of China’s electricity market reform. Using CGN New Energy’s Guangxi Branch as a case study and applying the grounded theory method, the research systematically analyzes employees’ perceptions of fairness, transparency, and career development during the transition from a product-oriented to a service-oriented model, based on in-depth interviews and surveys. The findings reveal that while servitization enhances employee skill development and career satisfaction, it also introduces challenges, such as increased work pressure and the demand for more transparent performance evaluation systems. This study provides valuable insights into optimizing management practices and performance evaluation systems in renewable energy companies, contributing both theoretically and practically to the literature on organizational transformation in the energy sector. These conclusions are not only significant for Chinese enterprises but also offer important reference points for global energy companies undergoing similar transitions.

Can Renewable Energy Be a Driving Factor for Economic Stability? An In-depth Study of Sector Expansion and Economic Dynamics

India has emerged as one of the world's most appealing locations for renewable energy development. It has set lofty renewable energy goals to reach 450 gigawatts (GW) capacity by 2030. These aims indicate India's determination to move to greener and more sustainable energy sources. India has been investing in R&D to promote technological innovation in renewable energy. This includes improvements to solar photovoltaic technology, wind energy, energy storage technologies, and smart grid systems. Innovation is critical for improving efficiency, lowering prices, and increasing the reliability of renewable energy sources. This paper aims to analyse the linkages between economic growth and renewable energy usage in India. For this, the Granger Causality technique is adopted, and it is found that no short-run causality exists among the economic growth and RE installed capacity. However, Industrial Production Granger Causes both GDP and Renewable Energy Capacity. When the stock price data of the last five years of top renewable energy companies was also collected, it was found that all the companies are showing an upward trend. While renewable energy is growing rapidly, especially solar and wind power, it is insufficient to meet the bulk of India's energy demands. Renewables contribute to reducing carbon emissions and diversifying the energy mix, but they still account for a smaller percentage compared to thermal power.

Working Paper 53: Good governance and the just transition

There is broad agreement that ensuring a just energy transition is key for achieving the trust and support from citizens needed to succeed with the green transition and the COP28 goal of tripling renewable energy capacity by 2030. This paper discusses the concept of a just transition, with a particular focus on the importance of achieving a transition that benefits both local communities and society at large. It examines the governance and corruption challenges that could jeopardise this goal and discusses how industry associations and companies in the renewable energy sector could step up its efforts to address these challenges to realise the ambition of a just transition. The paper draws on lessons from the experience of tackling governance and corruption risks in the extractive sector and sets out proposals on how to accelerate collective action in the renewable energy sector. About this report This is a guest Working Paper of the Basel Institute on Governance, ISSN: 2624-9650. You may share or republish the report under a Creative Commons CC BY-NC-ND 4.0 licence. The contents are the sole responsibility of the authors and do not necessarily reflect the official position of the Basel Institute on Governance, University of Basel or funding organisations. Suggested citation: de Vibe, Maja, and Mark Robinson. 2024. ‘Good governance and the just transition: Implications for renewable energy companies.’ Working Paper 53, Basel Institute on Governance. Available at: baselgovernance.org/publications/wp-53.

The impact of U.S. political decisions on renewable and fossil energy companies in the era of the Paris Agreement

This study explores the complex relationship between U.S. political decisions and the financial performance of renewable and fossil energy companies under the Paris Agreement. Employing the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) model and financial ratios, this study spans six distinct temporal phases, beginning with the anticipation of the Paris Agreement negotiations (2013–2015) and culminating in the recommitment of the United States to the Agreement under President Biden's administration (2020–2021). Our findings provide compelling insights into the dynamic interplay between politics and finance in the energy sector. Notably, the average TOPSIS scores for renewable energy companies showed a substantial 6.05% increase for the period leading up to the United States’ formal entry into the Paris Agreement as a result of anticipation and global consensus building. Conversely, the average TOPSIS scores exhibited a significant 7.4% decline for the period when President Trump announced the United States’ withdrawal from the Agreement (2016–2018). These results highlight the profound and lasting impact of political decisions. Our study provides valuable insights into the complex dynamics between political choices and the financial success of energy companies, thereby offering a holistic view of the evolving energy landscape in the era of climate change and global cooperation.

Strategic Management of Clean Energy Investments: Financial Performance Insights by Using BWM-based VIKOR and TOPSIS Methods

Market share of renewable energy companies increases with the increase in green-energy production. Companies increase their investments depending on the increase in energy production and can provide capital by offering the company to the public. Companies are traded in the exchange market in order to fund their increasing investments and access a large investor base. The increase in the market values of clean energy companies in recent years draws attention of investors. The study aims to identify key financial indicators that influence company growth and investment value by analyzing companies listed in the S&P North America and Europe Clean Energy Index. Therefore, the study evaluates the financial performance of clean energy companies using Best-Worst Method (BWM)-based VIKOR and TOPSIS methods to provide investors with a comprehensive assessment of investment opportunities in the clean energy sector. Also, the comparison of the two methods will contribute to the literature. The sample of this study consists of 10 big companies in S&P North America and Europe Clean Energy Index. Financial tables and exchange market data of the companies for the years 2019, 2020, and 2021 were used in this study. Remarkably, the analysis findings of the two methods differ from each other. The findings reveal significant insights into the financial health and growth potential of clean energy companies, offering valuable guidance for future.

An integrated expert recommender system approach to environmental service priorities in renewable energy

The purpose of this study is to analyze the investment success of renewable energy generation projects design. A novel model has been constructed for this purpose. At the first stage, collaborative filtering methodology is taken into consideration to complete missing evaluations. After that, M-SWARA based on QUSFSs with golden cut is used to compute the weights of these factors. Finally, the components of the service design are ranked by TOPSIS approach. The main contribution of the paper is that a new methodology (M-SWARA) has been created in this study by making improvements to SWARA. With the help of this new model, causal directions between the indicators can also be examined. Similarly, collaborative filtering methodology is taken into consideration to complete missing evaluations. In this process, the decision makers are allowed to leave the questions they wanted blank. This situation is considered as the superiority of the proposed model compared to many previous models in the literature. The findings indicate that cost is the most significant factor for the success of renewable energy investments because it gets the highest weight (.261). The ranking results also demonstrate that product is the most essential component of the service design of renewable energy investments. Therefore, solving the high-cost problem is of vital importance to increase these investments. First, renewable energy companies can reduce costs with more effective financial management. To carry out this process effectively, a finance department consisting of qualified personnel is needed. Thanks to this team, current situations in the financial markets will be better followed and this will play an important role in reducing costs.

Quantile connectedness in renewable energy companies and related commodities during Covid-19 outbreak

Quantile connectedness in renewable energy companies and related commodities during Covid-19 outbreak

The Role of Latent Information

The pressure of climate change and policy guidance has attracted plenty of enterprises to expand their renewable energy business, presenting an opportunity to investigate whether latent information can contribute to improved performance in their transformation. This context also offers a broader application scenario for studying information management theory. Therefore, this paper explores the above topic using business data from listed Chinese renewable energy companies between 2003 and 2021, focusing on three aspects of latent information related to diversification. The findings reveal that: 1) Market power information plays a fundamental role in explaining the performance enhancement from renewable energy business expansion, and non-dedicated resource information is a significant factor for understanding the enhancement, whereas agency problems have no significant effect. 2) The latent information exhibits notable heterogeneity concerning the expansion of renewable energy business among enterprises with different transformation backgrounds.

The influencing factors of green technology innovation in renewable energy companies based on hyper-network

Green technology innovation is a critical factor in ensuring the long-term stable development of renewable energy enterprises. Based on the super network theory, this paper constructs a network model of green technology innovation influencing factors of renewable energy enterprises, which includes the knowledge sub-network of green technology innovation of renewable energy enterprises, the research and development member sub-network of green technology innovation team of renewable energy enterprises and the policy sub-network of green technology innovation of renewable energy enterprises. It explores the mechanism of its influence on innovation in the preparation stage. Simulation analysis by Netlogo software concludes that innovation knowledge sharing, R&D membership, and innovation policy all have a significant positive impact on green technology innovation in renewable energy companies.

Research on Innovation and Reuse of Renewable Energy Enterprises by Digital Government from Perspective of Sustainable Development

This paper explores the impact of digital government on the innovation and reuse of renewable energy firms in depth from a sustainability perspective. The survey found that digital government support for renewable energy businesses has grown at an average annual rate of 30% over the past five years. In the past three years, digital government investment in technological innovation of renewable energy enterprises has increased by 70%, enabling renewable energy enterprises to make breakthroughs in technology research and development. The digital government has implemented a series of policies and measures conducive to the development of renewable energy enterprises, such as tax incentives, subsidies, and green finance, which have provided more development opportunities for renewable energy enterprises and opportunities for innovation and reuse. In the future, digital government will continue to play a role in the field of renewable energy and contribute to the achievement of the SDGS. This study reveals the significant promotion effect of digital government support on the innovation and reuse of renewable energy enterprises, and further promotes the development of sustainable energy. These findings not only provide access to policy makers with valuable information on how to promote the green energy transition through digital means, but also provide innovative directions for renewable energy companies, and provide researchers with a perspective to further explore the relationship between digital government and sustainable development.

Load Shedding and Its Crippling Effect on The South African Economy: An Entrepreneurial Perspective

The country has experienced industry shutdowns, decreased productivity, educational setbacks, increased unemployment rates, and negative healthcare outcomes. Load-shedding in South Africa is primarily caused by inadequate maintenance, internal mismanagement, corruption, and a lack of skills. This issue has had a significant impact on small businesses, as they often lack the necessary resources to handle power surges, equipment damage, and the costs associated with replacing stock. This paper explores how load-shedding has impacted the South African economy from an entrepreneurial perspective. The research is qualitative and exploratory in nature, and it was found that load-shedding has had a significant impact on businesses' finances, resources, and performance. Load-shedding in South Africa has had a severe impact on the daily lives of people, causing disruptions in businesses, households, and the overall economy. Eskom, the primary supplier of energy in South Africa, has been facing significant challenges in meeting the growing demand for electrical energy, leading to job losses, decreased productivity, and a loss of billions of rands. Small businesses have been particularly affected, with an estimated 75% of them failing after being operational for less than three years due to load-shedding. To ensure small businesses have electricity to operate during load-shedding it is recommended that small businesses adopt alternative energy sources like solar power to increase the businesses’ independence and mitigate the effects of load-shedding. The South African government should also encourage and support small businesses to collaborate with successful renewable energy companies.

The Risk-Return Trade-Off of US Renewable Energy Sector

This study applies the Fama-French three-factor model to analyze the impact of market risk premium, size, and value factors on the stock returns of eight major renewable energy companies listed on the U.S. stock market. Employing linear regression analysis. The analysis indicates that while market trends heavily influence stock returns, the size and value factors' effects vary across different companies. This study contributes to understanding the financial performance of renewable energy firms and underscores the need for industry-specific risk management approaches to bolster investor confidence and facilitate sector growth. The results serve as a foundational reference for investors and policymakers interested in the renewable energy market's dynamics and its future development trajectory.

The effect of structural oil shocks on stock returns of Indian renewable energy companies across market conditions

PurposeThis study aims to evaluate the structural oil shocks effect on stock returns of Indian renewable energy companies across market conditions.Design/methodology/approachThis study applies the structural vector autoregression model to estimate sources of oil shocks such as oil supply shock, aggregate demand shock and oil price-specific demand shock. In the next step, the panel quantile regression model estimates the effect of these oil shocks on stock return across market conditions. Monthly data are collected from January 2009 to December 2019. All renewable energy companies listed on the National Stock Exchange of India are considered for the analysis.FindingsIn the whole sample analysis, this study finds that oil shocks negatively affect stock returns in most of the market conditions except oil price-specific demand shock. In sub-groups, oil shocks driven by supply and aggregate demand also negatively affect stock return in most market conditions. This study finds the positive interaction of oil price-specific demand shock. A majority of these positive interactions happen in bearish market conditions. In the whole sample, the asymmetric effects of shocks driven from oil supply and oil price-specific demand are seen in most quantiles or market conditions. At the same time, aggregate demand shock does not affect asymmetrically. In the sub-group analysis, standalone renewable energy companies stock returns are least asymmetrically affected by these oil shocks. The asymmetries of oil supply-driven shock on stock returns of the renewable energy sub-group companies are found in most quantiles.Originality/valueFirst, this is a company-level study of the stock returns response to the structural oil shocks in the renewable energy sector. Second, to the best of the authors’ knowledge, this type of study is the first in the Indian context. Third using panel quantile regression model along with capital asset pricing model framework, the authors investigate these effects across market conditions.

WTO체제하의 중국 신재생 에너지 자동차 보조금 정책에 관한 연구

Purpose - The purpose of this study is to derive improvement measures for China's renewable energy vehicle subsidy policy under the WTO system. The parts of the new and renewable energy vehicle subsidy system enacted by China that are inconsistent with the WTO subsidy agreement are identified, and policy improvement measures are suggested. Design/Methodology/Approach - This study conducted existing literature studies and case analysis to derive improvement measures for China's renewable energy vehicle subsidy policy under the WTO system. First, the existing literature research analyzed previous studies on the renewable energy vehicle subsidy policy. Second, the case analysis identified the inconsistency of China's renewable energy vehicle subsidy policy with the WTO subsidy agreement based on the results determined in WTO-related dispute cases. Findings - Since it is stipulated that only renewable energy vehicle producers are eligible for subsidies under China's renewable energy vehicle subsidy policy, renewable energy vehicle subsidies establish the specificity specified in the WTO subsidy agreement. Local governments established factories locally and provided subsidies only to renewable energy companies using on-site facilities, which is a prohibited subsidy under the WTO subsidy agreement. Research Implications - First, prohibited subsidies must be removed by expanding the subject of subsidies or changing the payment method. Second, the central government should strengthen the supervisory capabilities of local governments. Third, it is necessary to encourage and expand the introduction of personal capital in the field of renewable energy infrastructure. Fourth, various support measures in addition to the subsidy policy should be added to reduce the suspicion of prohibited subsidies in other countries and promote industrial development.

THE EFFECT OF WORKPLACE INCIVILITY, PERCEIVED SUPERVISOR SUPPORT, JOB SATISFACTION ON ORGANIZATIONAL IDENTIFICATION THAT RESULTS EMPLOYEE PERFORMANCE AND TURNOVER INTENTION

Purpose: This study analyses the influence of Workplace Incivility, Perceived Supervisor Support, Job Satisfaction on Organizational Identification and its implications for Employee Performance and Turnover Intention. Theoretical Framework: Workplace incivility is related to a range of work attitudes, stress indicators, and behaviours, both for the person experiencing incivility as well as for those engaging in uncivilised behaviour. The incivility experienced is closely associated with low job satisfaction and sub-optimal employee performance, high levels of stress and burnout, and a strong desire to leave the job. Perceived supervisor support refers to the perception among employees of how much their supervisors value their contributions and care about their well-being. Design/Methodology/Approach: Determination of the sample using purposive sampling method involving employees who work in the renewable energy industry in Jakarta as many as 210 respondents. Analysis tool is Structural Equation Modeling (SEM) using AMOS version 22.0. Findings: It was found that Workplace Incivility does not affect Organizational Identification but, Perceived Supervisor Support and Job Satisfaction have an influence on Organizational Identification. The implication of Organizational Identification has an influence on Employee Performance and Turnover Intention, but Employee Performance does not affect the Turnover Intention of employees working in renewable energy in Jakarta. Research, Practical & Social Implications: From the results of this study, management can get used to the culture that superiors should pay more attention to the performance of employees. In addition, management can consider that employees are part of the company, with this, employees will be more confident in their identity in the company which will increase Organizational Identification. High Organizational Identification is proven to improve Employee Performance and reduce Turnover Intention of employees. Originality/Value: The addition of turnover intention variables is the difference between this research and the previous one. The research was conducted in renewable energy company in Jakarta, Indonesia. This is the uniqueness and originality of this research.

CO2 emissions–economic growth nexus: Validity of EKC in oil‐exporting and oil‐importing countries

AbstractThe purpose of this study is to examine and compare the validity of the environmental Kuznets curve and the relationship between carbon dioxide emissions, per capita GDP, fossil fuel consumption, oil prices and foreign direct investment in advanced oil‐importing and oil‐exporting countries from 1970 to 2020. The researchers consider these nations for their dependency on oil resources and their different economic characteristics. The Westerlund (Oxford Bulletin of Economics and Statistics, 2007, 69, 709) co‐integration test shows that the studied variables are co‐integrated in the long run in both panels of the countries. The pooled mean group‐autoregressive distributed lag (PMG‐ARDL) model established by Pesaran et al. (Journal of the American Statistical Association, 1999, 94, 621), which assesses the short‐ and long‐run nexus between the variables of interest, detects statistically significant associations, providing evidence to support the hypothesis of EKC in both groups. Furthermore, foreign direct investment and fossil fuel consumption have long‐term positive effects on CO2 emissions. The main difference between both groups of countries is that oil price has a positive effect on CO2 emissions in oil‐exporting countries, while it has a negative effect on environmental degradation in oil‐importing countries. The study suggests increasing investment in renewable energy infrastructure by encouraging research and development, providing subsidies and tax incentives for renewable energy companies and promoting large‐scale renewable energy projects as they contribute to environmental quality.

Market equilibrium with strategic pricing and strategic constraints in renewable energy: the role of private energy storage

With the increasing prevalence of renewable energy (RE) companies equipped with private energy storage (ES) systems, a dual capability emerges to offer strategic pricing and strategic constraints in market competition. Specifically, these RE companies can strategically leverage their own private ESs to modulate the variability of RE output limits and introduce modified constraints within the market. To examine these new strategic behaviors and the resulting market equilibria, we introduce an innovative bilevel strategic behavior model. The upper level of the model delineates the strategy for RE profit maximization through the imposition of strategic constraints and pricing schemes, while the lower level calculates the revenue outcomes for all entities in the day-ahead energy market clearing. The integration of the bilevel models from all strategic entities leads to the formulation of a new equilibrium problem with equilibrium constraints (EPEC), the solution of which indicates a novel market equilibrium. The impacts of these market equilibria on critical system operation metrics are then evaluated across two representative market mechanisms. Our numerical experiments reveal that RE exhibits low sensitivity to the private ES’s cost, suggesting that the behavior of imposing strategic constraints may be widespread among RE companies owning private ESs. Furthermore, the introduction of strategic constraints enhances the competitiveness of RE, significantly affecting social welfare, energy pricing, and RE integration rate. The study concludes with insights that could inform practical market transactions and system operations.

Renewable Energy Stocks’ Performance and Climate Risk: An Empirical Analysis

This article studies the relationship between renewable energy stocks’ performance and climate risk. It shows that publicly held renewable energy stocks underperform as a reaction to climate policy information releases, modeled by feed-in tariff (FIT) legislation announcements. The study examined stock price behaviors 2 days before and 30 days after FIT policy announcements. The stock sample used in the study has 3702 firm-day combinations, which included 180 cleantech firms and 32 events from 2007 to 2017. Based on the residual analysis of the sample’s abnormal return, it indicated that the FIT announcements are associated with significant declines in returns. The cumulative abnormal return until Day 18 was a significant −0.83%, while the average abnormal return on the day was −0.16% at normal levels. The study partially excluded the likelihood of a transitory result by varying the measurement horizon. It also adopted both the market model and the Fama–French three-factor models to rule out model misspecification when estimating abnormal returns and thus increased the robustness. In fact, the results were stable to changes in estimating the model’s specifications. In addition, the study compared the portfolio’s performance with mimicking portfolios in terms of size, book-to-market equity (BE/ME), and the firms’ geographic location. It demonstrated that the documented anomaly of the portfolio of renewable energy companies is robust.