Solar Energy Investments Research Articles

SOLIS—A Novel Decision Support Tool for the Assessment of Solar Radiation in ArcGIS

The global Sustainable Development Goals influence the implementation of energy development strategies worldwide. However, in order to support local stakeholders in sustainable energy development strategies and climate change adaptation plans and the implementation of policies, there is a need to equip local decision makers with tools enabling the assessment of sustainable energy investments. In order to do so, the aim of this study is to create a novel tool for the assessment of solar radiation (SOLIS) in ArcGIS. The SOLIS tool builds on the existing ArcGIS algorithm by including input data conversion and post-processing of the results. This should expand the group of potential users of solar radiation analyses. The self-filtering tool excludes surfaces that are not suitable for solar energy investments due to geometrical reasons. The reduction of the size of the output data is positive for technical reasons (speed of the calculation and occupied storage place) and for cognitive reasons (reduction of the number of objects necessary to analyse by the user). The SOLIS tool limits the requirement for users to insert three-dimensional (3D) models of roofs (with any geometry) and select solar radiation calculation periods. The highlight of this research is to develop the decision support tool for the assessment of solar radiation, which would reduce the requirements for potential users, in order to promote indicator-based assessments among non-Geographical Information Systems (GIS) specialists.

Pythagorean fuzzy engineering economic analysis of solar power plants

The total world energy consumption is rising, and the alternative energy sources are sought to meet this demand. Renewable energy sources have distinctive features that make these sources environmental friendly and increase their share in total energy supply. Renewable energies, which are inexhaustible and renew themselves, are predicted to be the primary energy source for the future. The sun, which is the most important renewable energy source and the source of other energies, is also used for direct and indirect energy generation. In order to realize investments in solar energy systems that require high initial investment, their economic suitability must be assessed appropriately. Life cycle cost (LCC) and levelized cost of energy (LCOE) methods are widely used in economic evaluation and comparison of the large-scale solar energy system. Yet, solar energy investment decisions involve uncertainty and imprecision due to the vagueness in production levels and energy prices. An ample economic analysis should be able to evaluate the uncertainty and consider the dynamic costs and benefits. Pythagorean fuzzy sets are excellent tools for dealing with uncertainty and imprecision inherent in a system. In this study, the Pythagorean fuzzy set theory is applied so that the uncertainties and the opinions of the decision makers are more realistically incorporated into the economic analysis. The proposed Pythagorean LCC and LCOE methods enable dealing with the solar energy investments with fuzzy parameters. Alternative energy systems with different technological features and economic conditions can be more accurately compared using the proposed method.

Intuitionistic Fuzzy Real-Options Theory and its Application to Solar Energy Investment Projects

Conventional methods used in project evaluation have a static nature, which cause decision makers to examine investment projects within a narrow scope. As an alternative, real-options theory allows decision makers to use the concepts of uncertainty and managerial flexibility, which classical methods do not deal with, in valuing investment projects. Carlsson and Fuller’s fuzzy real-options theory has been a solution for situations where cash flow and cost variables used in the model cannot be expressed by using classical numbers but by using fuzzy numbers. The idea of using intuitionistic fuzzy numbers in real options theory can expand the narrow scope more effectively than the idea of ​​using classical real-options theory, thereby providing an opportunity to evaluate investment projects from a wider perspective. In this study, intuitionistic fuzzy real-option valuation model has been developed and applied to the evaluation of solar energy investment projects. Studies have shown that solar energy investments that do not seem profitable today in Turkey can perform profitably in the future. Moreover, the historical volatility model differs from the expected valuable models, whereas the optimum investment year between the models formed by the uncertainty inductions from the expected values ​​exhibit minimal difference.DOI: http://dx.doi.org/10.5755/j01.ee.29.2.19206

Investors' perspective on determinants of foreign direct investment in wind and solar energy in developing economies – Review and expert opinions

Abstract Foreign direct investment (FDI) in renewable energy projects in 2015 has reached more than 10% of the total green-field FDI worldwide, and developing economies were increasingly at the forefront of these investments. However, there are few studies that focus on the FDI in this emerging sector. Understanding determinants behind the location decisions of the FDI would lead to creating a better investment climate and further facilitate worldwide deployment of renewable energy technologies. Thus, this paper identifies the determinants of FDI in wind and solar energy in developing economies based on a literature review and semi-structured interviews. Factors that are identified through the literature review are categorized into the following categories: institutional environment, macroeconomic environment, natural conditions, and renewable energy policies. Semi-structured interviews were conducted with experts from multinational corporations that are active in FDI in wind and solar energy. Based on these interviews, 18 factors that could be considered as important determinants are selected and presented along with expert opinions. The experts' opinions suggest strong importance of renewable energy policies when compared to traditionally argued determinants of FDI including macroeconomic environment, institutional environment and natural conditions. Among traditionally argued determinants, exchange rate stability is suggested to be one of the most important factors considering the positioning of investments in solar and wind energy in most of the companies’ investment portfolios.

Renewable Resources Future and Awareness in Saudi Arabia, Solar Photovoltaic as a Model

The global awareness regarding economy expansion and environmental preservation in the same time made the solar energy investment a vivid topic nowadays more than before. The solar energy project or the new Saudi oil made by the crown prince Mohammad bin Salman Al Saud was the focus of the current study. We designed the questionnaire with three categories to assess citizens of Saudi Arabia awareness about solar energy represented by photovoltaic system. The responses collected electronically from 424 respondents ranged between 18 - 41 years old to examine their awareness and acceptance of the solar system. The results showed a positive tendency of solar panel installment and use instead of electricity as source of energy. The respondents’ confidence of photovoltaic use ability to reduce electricity bills was positive. Moreover, the Saudi public awareness and approval of electricity bills regulation were in agreement with the government policy. Around 30% of respondents thought that solar energy is the sole source of energy where they resident. While 75% of respondents thought, they might get greater benefit from solar energy in comparison of the other renewable resources as wind and earth energy. The study emphasized the great awareness of Saudi public views analogues with the global trend and energy shift. The Photovoltaic (PV) system will be the vital investment in Saudi Arabia near future with great approval of public and government system.

Solar radiation measurements in Algeria: case of Ghardaïa station as member of the enerMENA meteorological network

A comprehensive knowledge of available solar energy amount in a specific location is crucial for the successful development for solar energy policies and investment. Indeed, PV or CSP systems require reliable information on solar radiation measurements. This could be obtained from solar radiation data measured by meteostations installed in different places of the site under consideration. In this paper, an overview of solar radiation measurements assessment in Ghardaïa region has been analysed. The choice of this site is based on its membership to the enerMENA meteorological network. The investigation of the data has exposed a huge solar potential where the average annual global solar radiation received on horizontal surface is about 2149 kWh/m2 and the DNI about of 2305 kWh/m2. The comparison with satellite derived data has provided and error of about 4.67% for the global radiation and 0.25% for DNI solar radiation.

A fuzzy multi-criteria spatial decision support system for solar farm location planning

In recent years, investment in solar energy has increased substantially across countries. Thus, selecting convenient locations for solar farms has become a fundamental problem when determining the investment required due to differences in climatic factors, the type and availability of land, transportation infrastructures, and the quality of power lines. Multi-Criteria Evaluation approaches based on crisp data are generally used in the selection process of optimal locations. However, despite being crisp, the data available when considering the evaluation criteria of the different alternatives constitute a discrete approximation performed on a spatial grid of potential locations. Thus, we introduce a three-stage fuzzy evaluation framework designed to account for the imprecision inherent to the evaluations when identifying the most convenient location for constructing solar power farms. First, we implement ANFIS (Adaptive Neuro-Fuzzy Inference System) on the set of grid intersection crisp data points and derive a coherent set of approximations per each potential discrete location and evaluation criterion. Then, the fuzzy AHP (Analytic Hierarchy Process) method is used to determine the weights of the different criteria considered from the linguistic evaluations provided by different experts. Finally, we define a set of if-then rules combining the different ANFIS evaluation criteria and their weights within a FIS (Fuzzy Inference System) whose output is used to determine the most convenient location for constructing a solar power farm. The efficacy of the proposed evaluation framework is demonstrated through its application to the Iranian regions of Kerman and Yazd.

The Political Economy for Low-carbon Energy Transition in China: Towards a New Policy Paradigm?

ABSTRACTChina has become the leading country to develop wind and solar energy industries. By presenting the institutional arrangement and interest constellations of China’s regulatory system of renewable energy sectors, this paper argues that the reasons for China’s swift expansion of wind and solar energy investment go beyond the notion of a state-led model. It also reveals that due to a series of internal power struggles and external shocks, the current regulatory system is undergoing significant restructuring. A new policy paradigm is emerging that is largely different from the previous decades of policy orientation that centred on capacity expansion and instrumental interests for renewable energy development. The new paradigm would face tremendous challenges from existing institutions and vested interests, and it requires new set of ideologies that can help renewable energy sector to truly competing with the energy incumbents in order to bring about meaningful low-carbon energy transition in China.

Optimal site selection for solar power plants using multi-criteria evaluation: A case study from the Ayranci region in Karaman, Turkey

Currently, coal, oil and natural gas are mainly used for energy in most countries. These sources, called fossil fuels, are not renewable. Fossil fuels are limited, and their reserves are steadily decreasing. This situation causes the prices to rise constantly. On the contrary, renewable energy is clean, economical and unlimited. Turkey has a very high potential for renewable energy, and the Turkish government has made significant reforms for solar energy investments over the last decade. Site selection for solar power plants is a critical issue for large investments because of quality of terrain, local weathering factors, proximity to high transmission capacity lines, agricultural facilities and environmental conservation issues. Multi-criteria evaluation is a tool that allows one to choose the best criterion among multiple and offer a structure with a wide range of applications. In this paper, the ideal locations for solar power plant were selected using the geographic information system and analytic hierarchy process which is one of the multi-criteria evaluation methods. The resulting land suitability was grouped into three categories: low suitable, suitable and best suitable using an equal interval classification method. Consequently, 15,550 ha or 6.23% of the evaluated region was determined as the best suited areas for solar power plants.

Optimal design of solar-assisted industrial processes considering heat pumping: Case study of a dairy

Abstract Pinch analysis and Mixed Integer Linear Programming (MILP) have been extensively studied for optimization of industrial processes addressing heat recovery, utility selection and sizing. Analysis of renewable utility integration, such as solar thermal or photovoltaics, introduces several obstacles for established methods: the time-dependency of resources, storage inertia and losses, and intrinsic non-linearities of the system performance are difficult to represent by linearized, time-invariant MILP equations. Moreover, waste heat recovery options such as heat pumping cannot be neglected as a potential competitor to solar heat. This work presents a set of multi-period MILP equations for solar technologies as well as a superstructure for optimization of heat pump cycles. Additionally, a methodology is proposed and applied to simultaneously optimize the process' refrigeration and renewable utility system using ɛ-constrained parametric optimization. The proposed methodology is illustrated on the basis of a dairy plant for which the different utility technologies are compared and evaluated based on economic and environmental criteria. It is illustrated that integration of solar energy can contribute to strongly reduce the environmental impact of the process (65–75% reduction in CO2 equivalent emissions), but only in combination with heat recovery (27%) and an improved heat pump system (33%). Heat recovery and heat pump placement for industrial processes are hereby shown to reduce exergy destruction and total cost while improving system energy efficiency by means of thermo-economic optimization. The solutions show that investment in solar energy can be economically and environmentally attractive for industrial processes by considering the whole system and ensuring that solar energy is optimally integrated and utilized.

Solar Renewable Energy Credit Price Volatility and Investment Returns: Have Policies Stranded Capital Investment?

Pennsylvania is one of a number of U.S. states that provide incentives for the generation of electricity by solar energy through Solar Renewal Energy Credits (SRECs). This article develops a return on investment model for solar energy generation in the PJM (mid-­Atlantic) region of the United States. Model results indicate that SREC values of roughly $150 are needed for residential scale systems to break even over a 25-­year project period at 3% interest. Market prices for SRECs in Pennsylvania have been well below this range from late 2011 through the first half of 2016, indicating that previous capital investments in solar generation have been stranded as a result of steep declines in the value of SRECs. A simple conceptual supply and demand model is developed to explain the sharp decline in market prices for SRECs. Also discussed is a possible policy remedy that would add unsold SRECs in a given year to the SREC quota for the subsequent year.

Modeling renewable energy usage with hesitant Fuzzy cognitive map

Renewable energy sources (solar, wind, tidal, etc.), which are unlimited and have a fair distribution in the world, are an alternative to the depleting fossil fuels (coil, petroleum, natural gas, etc.). It is necessary to identify the right technologies and methods to make more effective use of renewable energy sources including uncertainty and irregularity in resource creation. In this study, dynamic environmental factors affecting the production of solar and wind energy are defined and the relations among them are linguistically expressed by the experts. These linguistic relationships among factors and their initial states are assessed by new developed hesitant linguistic cognitive map method that is an extension of hesitant fuzzy sets and fuzzy cognitive map. Relational development between factors was observed by simulating the model according to the initial condition of the factors. Thus, the model helps investors and governments to direct their solar and wind energy investment decisions.

Lobatto-Milstein Numerical Method in Application of Uncertainty Investment of Solar Power Projects

Recently, there has been a growing interest in the production of electricity from renewable energy sources (RES). The RES investment is characterized by uncertainty, which is long-term, costly and depends on feed-in tariff and support schemes. In this paper, we address the real option valuation (ROV) of a solar power plant investment. The real option framework is investigated. This framework considers the renewable certificate price and, further, the cost of delay between establishing and operating the solar power plant. The optimal time of launching the project and assessing the value of the deferred option are discussed. The new three-stage numerical methods are constructed, the Lobatto3C-Milstein (L3CM) methods. The numerical methods are integrated with the concept of Black–Scholes option pricing theory and applied in option valuation for solar energy investment with uncertainty. The numerical results of the L3CM, finite difference and Monte Carlo methods are compared to show the efficiency of our methods. Our dataset refers to the Arab Republic of Egypt.

European Union funds in the development of renewable energy sources in Poland in the context of the cohesion policy

The paper aims at determining the role played by funds from the European Union in the development of renewable energy sources in Poland in the context of European Union cohesion policy. We have derived data from the official European Funds Portal for the size of projects and the financial support obtained from the European Union for the use of a specific renewable energy source. We have analyzed all (928) projects related to hydro- and geothermal energy, biomass (together with biogas), wind, and solar energy implemented in all 16 voivodships (administrative regions of the second order, NUTS 2). It must be mentioned that, in the programming period 2007–2013, the available European Union funds made it possible to obtain the largest support for all investments in renewable energy sources in Poland so far. The total value of the projects co-financed from these funds has amounted to 2 billion euro. Analyzing the value of investments in technologies based on varied renewable energy sources, an evident disproportion in either the size of particular installations or the costs of investments is observed. We demonstrate that large wind farms constitute more than 60% of the total value of investments in renewable sources subsided by the European Union. Small projects have also been subsided, but mainly those related to solar energy. Generally, the wind energy investments are established in northern and western parts of Poland, including Zachodniopomorskie, Pomorskie, Dolnośląskie, and Łódzkie voivodships, while the solar energy investments are found in the eastern and southern parts of Poland.

The effect of sample size on European Union’s renewable energy investment drivers

ABSTRACTMacroeconomic modelling results based on relatively varying sample sizes may lead to incoherent results. Such effects have not been adequately understood in the renewable energy literature regarding the European Union (EU). This study focuses on the comparison of results obtained for renewable energy investment drivers (for solar and wind energy investments) on different samples of EU countries, including all EU-27, former EU-15 and 11 high renewable investment EU countries. The study used a random effect panel data modelling approach over the period 1995–2011 for studying the impact of the levelized cost, regulation perception, carbon emissions and climatic condition on wind and solar investments over the three samples. The results demonstrate the importance of trustable regulation schemes to ensure that regulation will not have a significant negative effect on investment, showing also the need to further extend the model to include support schemes as fundamental drivers for investment.

Regional parameters and solar energy enterprises

Purpose– The purpose of this paper is to investigate the relationship between regional factors and investment attractiveness of solar energy production. The aim is to create a rank order of the Greek regions based on their investment attractiveness.Design/methodology/approach– In this research, the analytic hierarchy process (AHP) was applied in its group choice approach combined with a purposive sampling of experts from the business, governmental and research fields.Findings– A rank order of the regions was developed related to their investment attractiveness based on the experts’ sampling and the specific criteria that were set. Analyzing the criteria, it was found that general macroeconomic performances of the regions are of low priority, while the ones related to the entrepreneurial development such as solar irradiation and land availability are of high priority.Practical implications– This work is practically applicable, as it conduces to the management of companies operating in the solar energy sector. It is also useful for policy makers as the regions are prioritized, identifying, in this way, opportunities for investment.Originality/value– The novel aspect of this research is regions’ ranking based on their dynamic in solar energy investments. The utilization of the AHP offers additional value to the research of energy planning and management, as it is applied for the first time in the solar energy sector, concerning regional factors, solar energy parameters, economic data and expert sampling to develop a rank order of the regions.

Investments in renewable energies by German households: A matter of economics, social influences and ecological concern?

We analyzed how internal factors (e.g., value orientations or attitudes) and external factors (e.g., incentives or social influences) affect households’ decisions to make an investment in solar thermal energy, and how these factors interact in the decision process. 232 German home owners were questioned using an online survey. Internal factors were measured in the form of value orientations. The influence of external factors was measured in a discrete choice experiment, which covered economic consequences, social influences and ecologic consequences. The data was analyzed using mixed logit models. We found decision makers with strong eco-social value orientations to be more likely to make an investment while strong conservative and strong hedonistic value orientations both reduced investment likelihood. Among the external factors, economic consequences and investment recommendations by trustworthy sources were found highly important. Ultimately, we found several interactions between value orientations and external factors: decision makers with strong conservative or strong hedonistic value orientations are more sensitive towards economic consequences; decision makers with strong eco-social value orientations, however, are more sensitive towards recommendations and ecological consequences of an investment. Our results propose that strategies fostering households’ investments in renewable energies should be appropriately adjusted for different groups of decision makers.

Rwanda – A Case Study in Solar Energy Investment

Solar power in Africa is on its way to becoming a market commodity: there has been a shift in the African solar photovoltaic (PV) sector away from donor-driven projects towards market-driven investments. This transition has been stimulated, in part, by a substantial reduction in the cost of PV panels over the last decade, which has improved the competitiveness of PV. Perhaps even more important has been the development of an attractive investment climate across much of Africa, combined with robust project agreements and appropriate credit enhancements. This paper analyses the development of East Africa's first utility-scale solar field from a legal practitioner's perspective. Tracing the lessons learned, it highlights how the reforms in Rwanda's energy policies have contributed to success, at both the country and the project level. This paper seeks to use the plant located in Rwanda as a case study for analysing the elements needed for the successful implementation of bankable utilityscale solar energy projects—projects that have the potential to help reduce Africa's acute power supply gap.

Thermal Solar Energy Use and Turkey Analysis

Energy is an important problem in Turkey as well as the whole world. Since Turkey has insufficient sources in terms of fossil energy sources, it is dependent on foreign. However, Turkey has rich resources in terms of solar energy (SE). The European Union countries (EU) try to generalize solar energy through promotions performing studies for raising awareness for generation of electricity from the sun. In Turkey, required importance is not given to the studies to raise the awareness and promotions In this study, the SE investments that will be made in the long turn, the promotions that can be given by the public and the economic contributions made to the country are examined by comparing the SE potential of the world countries. Assessments on the fact that Spain, as a sample, which has made a move benefitting from heat source SE with CSP systems in the last decade and which ranks the 4th in this field in the world can be a model for Turkey is included. As a result, analysis and assessments have been made on that Stirling Engine Solar Systems that are appropriate for using and generating electricity individually among CSP systems should be generalized in Turkey.

Can implicit cognition predict the behavior of professional energy investors? An explorative application of the Implicit Association Test (IAT)

This article reports on the results of two studies involving seventy-seven professional investment managers in Switzerland. We designed an Implicit Association Test (IAT) to investigate whether unconscious attitudes toward renewable versus non-renewable energy sources influence investment behavior. In Study 1, we find that there is indeed a correlation between implicit associations and our dependent variable, net investment in solar energy. In Study 2, we replicate the results from Study 1 and also show that implicit associations are more strongly correlated to investment behavior than explicit associations, suggesting that application of the IAT may add value to the analysis of energy investor behavior. As an example of investigating factors influencing decision-making “in the wild”, our study is subject to a number of limitations that can be used as starting points for further research in this area of high societal relevance.