Share Of Renewable Energy Sources Research Articles

Development and calibration of a bio-geo-reactive transport model for UHS

The increased share of renewable energy sources will lead to large fluctuations in energy availability and increases energy storage’s significance. Large-scale hydrogen storage in the subsurface may become a vital element of a future sustainable energy system because stored hydrogen becomes an energy carrier available on demand. Large hydrogen amounts can be stored in porous formations such as former gas fields or gas storages, while caverns can contribute with high deliverability. However, the storage of hydrogen induces unique processes in fluid-fluid and rock-fluid interactions (for example, bio- and geochemical reactions), which may affect the efficiency of the storage. In the present study, a mathematical model describing the two-phase multicomponent flow in porous media, including bio- and geochemical reactions, is developed to predict these hydrogen-related processes. The proposed model extends an existing model in the open source simulator DuMux describing the bio-reactive transport process considering methanation and sulfate-reduction by geochemical reactions. Significant attention is placed on the reduction from pyrite-to-pyrrhotite coming with the generation of harmful hydrogen sulfide. This reaction is calibrated by developing a kinetic model in DuMux that mimics the observations of reactor experiments from literature. The developed and calibrated model is afterwards used for simulation runs on field scale to assess the impact on Underground Hydrogen Storage (UHS) operations. The developed kinetic model describes the reduction from pyrite-to-pyrrhotite in agreement with the observations in the literature, whereby particular focus was placed on the hydrogen sulfide production rate. The consecutive implementation of the transport model in DuMux on field scale, including the bio- and geochemical reactions, shows the potential permanent hydrogen losses caused by reactions and temporary ones induced by gas-gas mixing with the initial and cushion gas.

Investigations on application of curve fitting in power system inertia estimation

ABSTRACT As the share of renewable energy sources in the power system keeps growing, a new issue with frequency stability – diminishing and changing inertia – has emerged. Estimating power system inertia has received a lot of attention lately in order to market design of synthetic inertia as an additional service and implement timely corrective steps for robust frequency control. Curve fitting technique has emerged as one of the promising techniques for estimation of power system inertia, however, many challenging aspects need to be addressed for its practical applications. This study aims to systematically assess the effectiveness of the curve fitting method under a range of operational parameters and conditions, such as the curve fitting order, the length of data to be used for curve fitting after an event begins, and the length of the moving average filter applied to the frequency data to remove oscillatory and noise from the frequency transient. The simulation studies have been performed on DIgSILENT and MATLAB platforms. The results show that very high and very low order curve fitting results are high errors and the 5th order model with mean error in estimated value of inertia less than 1% has outperformed others. The analysis on various window width of moving average filter found that increasing the window width results in more error. For IEEE-9 bus system, a filter up to 850 ms width has a mean percentage error below 1%. The analysis also revealed that the duration of the data used for curve fitting is not significant. For variation of the duration of the data used for the curve fitting from 50 ms to 500 ms, the estimated inertia values are found to be in a close range of 2.4881 s to 2.5262 s, for the single machine system with H = 2.5 s. The analysis presented in this study will be useful for effective application of curve fitting method in inertia estimation.

Small-scale district heating system as heat storage for decentralized solar thermal collectors during non-heating period

Solar thermal energy usage in the Baltic countries is currently low, so there is a need to find technically and economically feasible solutions to increase the appeal of this technology. Integration of solar energy into existing district heating systems is a way to increase the share of renewable energy sources while utilizing the existing infrastructure, thereby reducing capital investments, as well as mitigating the risk of solar collector overheating and eliminating the need for local storage tanks in buildings. This study presents a parametric study for evaluating the effectiveness of using a district heating system to store heat produced by decentralized solar thermal collectors and comparing the district solution to the traditional local solution. The TRNSYS 18 model was developed for this purpose. The model investigates the impact of different hot tap water demand profiles as well as pipeline diameters and lengths on system energy efficiency, showing a statistically significant difference (p < 0.05) between installing solar collectors on residential and restaurant or office roofs, and no significant difference (p = 0.24) between restaurant and office. The model shows that solar energy can be shared within a 500 m distance between neighborhoods and that a larger main pipeline diameter can increase overall system efficiency.

Voltage Frequency Differential Protection Algorithm

Advancements in new technologies, a reduction in CO2 emissions, and the rising demand for energy are causing a growth in the share of renewable energy sources. In distribution networks, an increasing number of distributed generators (DGs) makes the utility grid’s protection complex and demanding. Vector surge and rate-of-change-of-frequency are the established anti-islanding protection methods, recognizing that the standard paradigm for protection, involving distributed generation, cannot be set only once but has to be continuously updated following the requirements and changes in the system. One of the requirements is active participation in the preservation of system frequency and voltage, which can be interrupted if the DG trips and disconnects from the utility grid. Anti-islanding protection and spurious tripping can be avoided by implementing new algorithms and techniques. This paper presents a novel protection scheme based on a voltage frequency differential. The proposed algorithm employs remote and local frequency measurements in such a manner that, for the occurrence of a frequency difference, it is assumed that the DG is in an islanding state. In this article, we demonstrate the feasibility of the algorithm through numerical analysis of grid events and laboratory testing emulating real grid-measured values. The test results show that the algorithm is resilient to false tripping for non-islanding events and more reliable than conventional methods in islanding detection. The algorithm can be set to low-frequency differential values, drastically reducing the non-detection zone in any DG type, regardless of its size and voltage level at the point of common coupling. Unlike standard anti-islanding methods, the algorithm supports the ability of the DG to fault-ride through demand.

Pumped Storage Hydropower as a Part of Energy Storage Systems in Poland—Młoty Case Study

The increase in the share of renewable energy sources (RES) leads to a growing need for sources or systems/actions to stabilize the national energy grid. Such stabilizing actions include market tools, such as prices and demand-side response (DSR) tools, as well as flexible energy sources (e.g., gas). In addition, energy storage, where pumped storage hydroelectricity (PSH) accounts for 90% of global storage capacity, plays an important role. Therefore, the authors presented a detailed analysis of PSH in the context of the dynamic growth of installed capacity in renewable energy sources. They analyzed the economic viability of this type of power plant, with a particular emphasis on operational costs, energy production, and revenue. The Młoty case study and market data, including historical data on various PSH, were presented and analyzed. This study uses copulas, simulation, and statistical analysis. The authors proved that market prices and arbitrage actions alone are not sufficient to achieve profitability of the investment; however, additional benefits, such as fees for available power, enable the achievement of economic profitability. The reason for this is the fact that one of the main goals of PSH is to serve as a power reserve. In addition, this paper presents the analysis of the utilization of existing PSH in the form of full pumping and energy generation cycles (charging and discharging storage).

Transforming Turkish electricity system in the context of circular economy and green deal: impacts on steel and agricultural production

ABSTRACT Two important but conflicting goals in Turkey’s energy policy have been ensuring energy security through increased indigenous energy resource utilization and meeting the 2053 net zero emission commitment. Based on this, this work explores emission mitigation pathways for Turkey’s electricity system through circularity approaches of CO2 utilization and framework material recycling (FMR). Using mathematical models, eight life cycle impact potentials are evaluated including global warming potential (GWP). The extended impact on steel and agricultural production was also examined in the Green Deal context. The circularity approaches investigated showed that the GWP of Turkey’s wind, solar, and lignite energy sources reduce from the base values of 7.3 gCO2eq./kWh, 29.5 gCO2eq./kWh and 1130 gCO2eq./kWh to 2.72 gCO2eq./kWh, 21.08 gCO2eq./kWh and 241.26 gCO2eq./kWh, respectively. Fifty percent recycling ratio is also determined as the optimum for CO2 utilization and FMR. With this ratio, 21.84% CO2 emission reduction corresponding to 0.083 GT annual CO2 savings is achieved in the Turkish electricity mix. The decarbonization of electricity results in 25.0% and 27.0% GWP impact reductions in the agricultural and steel sectors, respectively. Hence, the decarbonization of electricity mix can significantly ease the negative impacts of the Green Deal on Turkey’s economy. Additionally, promoting and increasing the share of renewable energy sources in the electricity mix can further enhance these environmental benefits.

Dynamic Management of Flexibility in Distribution Networks through Sensitivity Coefficients

Due to a rising share of renewable energy sources on the production side and electrification of transport and heating on the consumption side, the efficient management of flexibility in distribution networks is crucial for ensuring optimal operation and utilization of resources. Nowadays, the sensitivity-based approach is mainly used in medium-voltage (MV) networks for regulating voltage profiles with reactive power of distributed energy resources (DER). The main disadvantage of the simplified sensitivity-based method is its inaccuracy in case of a high deviation of the network voltage from the nominal values. Furthermore, it was also noted that despite the fact that the method is well described in the literature, there is a lack of systematic approach to its implementation in real-life applications. Thus, the main objective of this paper is to address this disadvantage and to propose an algorithm designed to calculate required consumer flexibility in near real-time to ensure distribution grid operation within operational criteria. In the first part of the paper, network state, including line loading and node voltages, is assessed to determine distribution network node capacity. By analyzing the sensitivity of network busbars to changes in consumption and production, our algorithm effectively identifies the most efficient nodes and facilitates strategic decision-making for resource allocation. We demonstrate the effectiveness of our approach through simulations of real-world distribution network data, highlighting its ability to enhance network flexibility and improve resource utilization. Leveraging sensitivity coefficients, the algorithm enables flexible consumption and production management across various scenarios, supporting the transition to a more dynamic and efficient power system.

Modelling of Solar Thermal Electricity Plants in the POSYTYF Research Project for an Extensive Integration of Renewable Energy Sources

This article presents a simplified simulation model of a concentrated solar thermal power plant developed in the framework of the European research project POSYTYF (POwering SYstem flexibiliTY in the Future through RES). Increasing the share of Renewable Energy Sources (RES) in modern power grids is of critical importance for the transformation of the energy markets worldwide. However, the stability of the grid and the limited participation in ancillary services of RES limit their use, especially when high penetration is expected from them. A solution to overcome these issues is to increase the share of so-called dispatchable RES (hydropower, biomass, concentrating solar thermal power). The main objective of the POSYTYF project is to group several renewable and non-renewable energy sources into a Dynamic Virtual Power Plant (DVPP). The simplified simulation model of a parabolic-trough solar thermal power plant developed consists of sub-models for the solar field, thermal energy storage system and power block and it has been validated with real DNI profiles and production data of a commercial STE plant in Spain. The differences between the simulation and real data of daily net production for the days analysed are lower than 1%. Parts of this paper were published as journal article “Using time-windowed solar radiation profiles to assess the daily uncertainty of solar thermal electricity production forecasts”, Journal of Cleaner Production, Volume 379, Part 2, 2022. Mario Biencinto, Lourdes González, Loreto Valenzuela (https://doi.org/10.1016/j.jclepro.2022.134821).

Factors Influencing People’s Willingness to Shift Their Electricity Consumption

AbstractAs the share of renewable energy sources, which are weather dependent and consequently volatile, continues to grow, it becomes increasingly important to explore strategies for organising both electricity production and consumption to ensure system stability. People’s flexibility in their energy consumption is one option to regulate the system. To better understand people’s willingness to align their electricity-consuming activities with a flexible pricing system, an online survey with 962 respondents was conducted. The analysis focused on the factors influencing their willingness to shift electricity-consuming activities away from peak hours, as well as the maximum shift duration of using certain devices. The results indicate that people with more flexible lifestyles and those who perceive shifting activities as taking less effort are more willing to shift their activities and indicate longer shift durations. The data also show that attitudes towards the environment, as well as financial, ecological, and motivational factors, play a role in explaining the variance in the willingness to shift and the shift duration. To conclude, increasing flexibility in everyday life could make a valuable contribution to the optimal use of electricity resources.

Effect of hydrogen blending on the accuracy of smart gas meters

The exploitation of green hydrogen blending with natural gas (NG) is expected to contribute in lowering greenhouse gas emissions and fostering the share of renewable energy sources (RES). The NG infrastructure, in fact, can act as a storage facility for green hydrogen produced from excess RES, also providing flexibility to the electric system. However, the unbalance of the networks and the raise of protection issues for consumers may occur as a consequence of the potential decay of the metrological performance of gas meters operating with natural gas and hydrogen blends. In this paper, the authors present the results of an experimental campaign aimed at analysing the effect of hydrogen blending on the accuracy of smart domestic gas meters. Experimental tests were performed in the laboratory using air, natural gas and gas-hydrogen blends up to 23%vol. The results show no criticalities occur for diaphragm and ultrasonic gas meters, regardless of the hydrogen content. On the other hand, thermal mass gas meters show good reliability when hydrogen blends are within 2%vol, whereas for higher hydrogen contents, reliability is demonstrated only when they are equipped with a specific new design routine capable to address the gas quality changes.

The Impact of Deep Decarbonization Policy on the Level of Greenhouse Gas Emissions in the European Union

The Green Deal, a cornerstone of the European Union’s climate goals, sets out to achieve a substantial 55% reduction in greenhouse gas emissions by 2030 compared to 1990 levels. The EU’s decarbonization strategies revolve around three pivotal avenues. First, there is a focus on enhancing energy efficiency and decreasing the energy intensity of economies. Second, concerted efforts are made to diminish the reliance on fossil fuels, particularly within industrial sectors. Lastly, there is a deliberate push to augment the share of renewable energy sources in the final energy consumption mix. These measures collectively aim to propel the decarbonization of EU economies, establishing EU member countries as global leaders in implementing these transformative processes. This manuscript seeks to evaluate the efficacy of three primary decarbonization strategies adopted by EU economies, namely the enhancement in energy efficiency, the promotion of renewable energy consumption and the reduction in fossil fuel consumption. The objective is to discern which strategies wield a decisive influence in achieving decarbonization goals across EU countries. The analysis encompasses all 27 member states of the European Union, spanning from 1990 to 2022, with data sourced from reputable outlets, including Eurostat, Our World in Data and the Energy Institute. Research findings underscore that, in the realm of decarbonization policies, statistically significant impacts on carbon dioxide emission reduction are attributable to the strategies of improving energy efficiency and augmenting the share of renewables in energy consumption across almost all EU countries. Conversely, the strategy with the least impact, embraced by a minority of EU member states, revolves around diminishing the share of fossil fuels in primary energy consumption. This approach, while statistically less impactful, is intricately linked with transitioning the economies toward renewable energy sources, thus playing a contributory role in the broader decarbonization landscape. The uniqueness of this research lies not only in its discernment of overarching trends but also in its fervent advocacy for a comprehensive and adaptive approach to EU decarbonization policy. It underscores the enduring significance of prioritizing energy efficiency, endorsing the integration of renewable energy and acknowledging the distinctive dynamics inherent in diverse regions. The study accentuates the necessity for nuanced, region-specific strategies, challenging the conventional wisdom of a uniform approach to decarbonization. In doing so, it accentuates the critical importance of tailoring policies to the varied energy landscapes and transition strategies evident in different EU member states.

Operation optimization of ventilated floor heating system in nearly-zero-energy building

As the share of renewable energy sources increases and building energy systems become more complex, optimizing system operation is necessary to fully improve economic, environmental, renewable penetration and thermal comfort performance. Most current studies focus on single-objective or multi-objective optimization of building systems, but the impact of different objectives and their combinations on operation is unclear. In this study, optimal schedules for a ventilated heating floor in a nearly-zero-energy building were determined using an improved particle swarm optimization algorithm coupled with prior knowledge-based search accelerating strategy. System performance was investigated under different combinations of optimization objectives, including reducing operational costs and carbon emissions, increasing wind power penetration, and improving thermal comfort. The results show that under the influence of prior knowledge, stochastic algorithm converges quickly with reasonable results even when the solution space is large. The performance of some single-objective optimization cases is unsatisfactory due to the exclusion of some control variables. In contrast, multi-objective optimization yields optimization problems better, which finds better dynamic operation status and leads to better system performance. Specifically, co-optimization of operational cost, wind power penetration and environmental cost together produces the most reasonable solution.

Coal Share Reduction Options for Power Generation during the Energy Transition: A Bulgarian Perspective

The sustainable energy transition to a low-carbon and climate-neutral economy by 2050 requires a consistent increase in the share of renewable energy sources (RESs) at the expense of the share of fossil fuels. The coal power plants in the Republic of Bulgaria have provided about one third of the annually produced electric power for decades, utilizing mainly locally available sources of lignite. The present work aimed to review the progress of the energy transition, its rejection and acceptance at the national and international scene alongside the available research for cleaner coal combustion in Bulgaria, as well as discuss a Bulgarian perspective for coal share reduction options for power generation during the energy transition. A comprehensive review was carried out, based on freely accessible data such as research and open media articles, officially published field reports, legislative and strategic acts as well as validated statistical data. Three groups of critical gaps (socioeconomic, sociotechnical and cultural and political) were indicated, claimed to be capable of guiding the just transition. Key factors influencing the process dynamics were identified and categorized in the context of the critical gaps. The peculiar policy criteria for the carbon-intensive regions are as follows: the dominant energy carriers, existing infrastructure, involved actors and choice of strategy. The observations allowed us to conclude that in addition to the efforts achieved and ambitious political will, the identification of reliable technological and socioeconomic measures is needed more than ever (accompanied by interdisciplinary research involving the technical, social and environmental and policy factors), while renewables still have long way to go towards complete substitution of the fossil fuels for power generation, transport, and manufacturing. Limited literature was found for reducing the share of coal from currently operating Bulgarian coal-fired power plants (CFPPs). Herein, short- and/or medium-term measures for carbon emission reduction were discussed, capable of promoting the limited operation of existing CFPPs, thus paving the road towards a sustainable, long-term transition. These measures concerned the typically used power units in the largest CFPPs located at the Maritsa Iztok Mining Complex (MIMC). Analyses of the biomass production, supply and cost for the same type of power units were proposed, considering the use of 100% biomass. Estimated costs, unit efficiencies and power generation were discussed along with the evaluations about the land use, ensuring a given annual productivity of wood chips from fast growing plants, e.g., Paulownia.

ENERGY POLICY OF THE EUROPEAN UNION

The article provides a retrospective analysis of the development of the European Union’s contemporary energy policy with a focus on green energy. This study also delves into the transformations taking place in the EU’s energy sector under the influence of recent geopolitical dynamics. The article extensively analyzes the factors influencing the EU’s energy policy. Special attention is given to the REPowerEU plan, aimed at increasing the share of renewable energy sources in the energy structure of EU countries. The author discusses the issues of the practical implementation of the REPowerEU plan and the timeline for its deployment. The article also studies the challenges facing the EU in the process of transition to green energy amidst the freeze of long-term energy cooperation with Russia. The author also draws conclusions regarding possible prospects and directions for the future energy transition of the EU in the context of adjusting energy policy. The article addresses the challenges of diversifying energy resource suppliers, enhancing collaboration with other regions, and diminishing reliance on carbon-based energy sources.

Analysis of Influencing Factors of the Energy Transition Process in Sustainable Nautical Tourism: Case Study—The Netherlands

According to the International Maritime Organization, the shipping industry contributes to 3.3% of global CO2 emissions. Reducing carbon emissions by 50% for all ships by 2050 is the main concern of all stakeholders. In the last 20 years, the share of renewable energy sources in electricity production in the European Union has doubled, from around 15% to almost 35%. The main driver of this development has been the increase in the share of wind energy and solar photovoltaic energy. The authors of this paper aim to analyze the favorable influencing factors and the inhibiting factors affecting the energy transition process applied to nautical tourism, from polluting energy to renewable solar energy. The research approach consists of using the framework provided by the energy transition process from the perspective of the socio-technical and economic approach, by applying a qualitative research method with a deductive approach. The tool used to achieve the objective is a semi-structured interview, which brings up concrete issues that operators in this field are currently facing. The research unitarily, holistically, and specifically approaches the problem of energy transition from polluting sources to renewable ones offered by solar energy, in the case of nautical tourism with direct implications on the specific industry in The Netherlands. The research results are structured in four areas: technological, governance, economic, and user preferences. This research has the potential to provide support for finding optimal solutions to encourage users to accelerate the energy transition process by adopting sustainable solutions for nautical tourism.

Progress and Challenges Connected with the Integration of Renewable Energy Sources with Railway Distribution Networks

Rail is the most efficient and low carbon means of transport, but efforts are still being made to improve the energy efficiency of this sector. In Poland, one of the elements of the implementation of the energy transformation in rail is the “Green Railway” program, which assumes an increase in the share of renewable energy sources (RES) in the power supply structure of the sector to 50% in 2025 and 85% in 2030, and ultimately, to 100%. An increase in energy efficiency leads to a reduction in financial costs, and also contributes to improving the environment and, consequently, to enhancing the economic and social benefit through a cost–benefit analysis. Energy consumption in railway operations is characterized (unlike in construction) by being repetitive. This energy consumption is produced in four areas: in the movement of trains; in auxiliary systems in the trains; in auxiliary systems in the infrastructure (lighting consumption of tunnels or sections of track, point heating systems, the signaling and communication systems, etc.); and in stations, workshops and by other consumers. The aim of this article was to review modern technologies using renewable energy sources in rail transport for traction and non-traction customers.

Model predictive control of bidirectional heat transfer in prosumer-based solar district heating networks

District heating networks with decentralized heat production are ideally suited to include a high share of renewable energy sources for heat production in urban areas with limited space. A new concept is a prosumer-based district heating network in which some or even all buildings are equipped with decentralized building-level heat storages and heat generation plants. To exploit the full potential of the interconnected heating network, buildings with surplus heat are intended to transfer heat to buildings with heating demands to prevent the activation of the central heating plant. This work presents an initial feasibility study on using a model predictive control strategy to manage bidirectional heat transfer between buildings in a district heating network. We formulate this problem as an optimal control problem, incorporating binary decision variables for each potential heat transfer connection. This results in a mixed-integer nonlinear optimization problem that is hard to solve. The problem is solved with a fast gradient-based optimization algorithm in combination with a combinatorial integral approximation strategy. A case study concerning a residential heating network with building-level solar thermal collectors and storage tanks is carried out. The optimized operation is compared to the real operation obtained from one month of measurements. The results show that the optimized strategy with bidirectional heat transfer can exploit the total heat generated in the whole network. The central heating provider is only required when the heat produced or stored by all the buildings is insufficient to meet the total heat demand within the network. In the case study, this leads to a reduction of almost 75% of the required thermal energy from the central heat provider.

МОДЕЛЮВАННЯ ВИКОРИСТАННЯ ВІДНОВЛЮВАЛЬНИХ ДЖЕРЕЛ ЕНЕРГІЇ НА ПРИКЛАДІ КРАЇН ЄС ТА УКРАЇНИ

The research examines the use of renewable energy sources in the countries of the European Union and Ukraine, as well as modeling the dependence between indicators of the country's energy dependence and the share of renewable energy in the final energy consumption. The purpose of the article is a theoretical-statistical analysis of the prospects for the use of renewable energy sources and modeling of the impact of the intensity of renewable energy usage on energy security indicators on the case of the European Union and Ukraine. The mechanisms of regulation of the renewable energy market in European countries were considered, the analysis of the use of renewable energy sources in Germany and France was carried out. The dynamics of the use of renewable energy facilities in Ukraine are analyzed. Despite the promising development of renewable energy sources in Ukraine, most projects are currently suspended during military operations, although the renewable energy sector plays a significant role in Ukraine's recovery plans. Based on the data of the EU countries and Ukraine, a correlation analysis was conducted between the level of energy dependence and the share of renewable energy sources in final consumption and the existence of a negative correlation between the variables was established. On the basis of indicators of energy dependence and the share of RES in final consumption by the method of cluster analysis, the analyzed countries are divided into five clusters. However, for a more detailed study of the influence of the indicators of the intensity of use of renewable energy sources on the indicators of the economic and social spheres, additional data are needed, which constitutes the perspective of further research in this field. The conducted analysis revealed significant differentiation between the analyzed countries. Ukraine is included in the cluster with EU countries that have a share of RES in final consumption from 10% to 30% and the level of energy dependence exceeds 50%. Ukraine has the lowest level of RES share in final consumption. The development of renewable energy will allow the country to reduce the level of energy dependence, which will positively affect the energy and economic security of the country.

Zelene javne nabavke - instrument za dostizanje ekoloških ciljeva u transportnom sektoru

Transport, especially road transport is one of the main sources of emissions of greenhouse gasses as well as numerous air pollutants that have harmful effects on human health, particularly in urban areas. The European Union, as well as many of its Member States are making huge efforts to reduce these emissions and their harmful effects. One possible solution is the application of green public procurement, which can be used as a powerful tool to stimulate the demand for zero and low emission vehicles and to promote the introduction and increase the share of renewable energy sources in the transport sector. The activities of the European Union related to encouraging greater use of green public procurement as an instrument for solving environmental problems and the experience of the countries with the longest tradition in their application are the subject of the analysis in this paper. At the end of the paper, special attention is paid to the challenges and possibilities of using green public procurement as a means to achieve the environmental goals of the transport sector of the Republic of Serbia.

Investing in Green Energy: Profitability Analysis of Solar Energy for Household Consumption in Albania

Exhaustion of conventional non-renewable energy sources together with climate change mitigation presents challenges for policy makers globally. An alternative to address the increased demand for energy with less negative impacts on the environment is using renewable energy sources whose reserves are supplemented by natural ecosystems. Furthermore, EU directives impose actions on Member States for the reduction of pollution from conventional sources. Countries must aim to increase the share of renewable energy sources in energy consumption, as significant measures towards sustainable development. However, several factors affect the succession of green energy adoption, where financial considerations remain key determinants in decision-making by companies, families, and institutions. The study conducts a cost-benefit analysis using methods of capital budgeting to evaluate the profitability of solar energy for household consumption in Albania. The paper aims to provide insights into the potential of green energy investment in Albania, focusing on the solar energy sector and financial factors that are relevant to these investments’ succession. Data analysis and forecasting are conducted for a lifespan of 30 years, assessing average data of electricity prices, the productivity of solar panels, direct costs of investment, interest rates, exchange rates, and inflation rates. The study concludes that investing in solar panels for household consumption in Albania is profitable, as it is reported that discounted benefits exceed the investment cost.