Policy analysis and technical evaluation index of multi-energy complementary projects in China

Asian economies are often characterized as having bank-dominated financial systems and underdeveloped capital markets, in particular with regard to venture capital. In economies that banks are the main source of funding, the main obstacle for financing infrastructural projects including renewable energy (RE) projects is lack of access to long-term finance. The second obstacle for development of RE energy projects is their lower rate of return comparing to fossil fuel projects as more subsidies are globally going to fossil fuels. For larger RE projects insurance and pensions are sustainable financing alternatives. Pension funds and insurance companies hold long-term savings, so these institutions could be a proper alternative for financing mega-size RE projects. In addition, utilizing the spillover effects originally created by energy supplies in form of tax revenues refund to RE projects will increase their rate of return and make them interesting for private investors. For smaller-size RE projects, the paper provides a theoretical model for combining utilisation of carbon tax and a new way of financing risky capital, i.e., Hometown Investment Trust Funds (HITs). The paper theoretically shows that by environmental taxation and allocating these tax revenues to HITs, RE projects will become more feasible and more interesting for private investors; hence the supply of investment money to these funds will increase.

There is an acute electricity shortage in Sub-Saharan Africa (SSA), and electricity blackouts are common. Climate change and carbon dioxide gas emissions from conventional power-generating systems are also of great concern. Africa has vast renewable energy resources, including hydropower, solar, wind, biomass and geothermal, which are relatively unexploited. However, there is currently a knowledge gap on how renewable energy projects can be derisked to increase the flow of international private capital into them. Based on a literature review, this study aims to identify the risk factors that hinder investment in renewable energy development in SSA. The review finds that barriers to renewable energy development include fragmented electricity markets, utilities with poor balance sheets and low credit ratings, high energy transmission losses, political risks, high initial capital costs, poorly directed subsidies, insufficiently developed money markets, and a poor regulatory framework. Efficient risk mitigation strategies are proposed. The study also finds that the global utility-scale levelized costs of electricity from renewable energy resources compare favourably with those of conventional sources. Countries in SSA need to draw up a clear policy framework with legally binding targets for the contribution of renewable energy to the energy supply portfolio. In addition, subsidies currently enjoyed by conventional energy generators need to be restructured to target low-income groups. SSA countries should identify pipelines of suitable renewable energy projects, complete feasibility studies and invite potential developers. Risks faced by international investors in renewable energy projects, including political, commercial and financial risks, are insurable. SSA faces a large infrastructure financing gap. Closing this financing gap requires building efficient local capital markets to mobilise domestic savings, reduce the costs of capital for renewable energy projects, and reduce reliance on foreign debt. An important consequence of this work is that it is possible to accelerate the development of innovative financing solutions to ramp up investment and deliver clean energy for all. Keywords: Finance, Renewable Energy Projects, Risk Management

Renewable energy has attracted researcher attention in recent years, and the number of studies conducted on the topic has increased. The importance of renewable energy has increased because certain energy resources are exhaustible and they damage the environment in various ways. Fossil fuel-based energy is the main culprit for environmental damage and lately renewable energy is the main focus as a safe alternative to fossil fuels. However, replacement of fossil fuels by renewables may have a negative impact on human development, even if it has a positive impact on the environment. With this rationale, this study investigates the relationship between renewable energy and human development in 28 OECD (Organization for Economic Cooperation and Development) countries from 1990 to 2017 by using the Westerlund and Edgerton panel cointegration test with structural breaks and the Dumitrescu and Hurlin causality test. The results of the panel data analysis revealed that renewable energy affected human development positively. In addition, the causality test determined the presence of a bidirectional causality relationship between renewable energy and human development. This study is unique in the sense that it is the only study in the literature examining the relationship between human development index and renewable energy for the countries in question. While similar analyses were conducted in the past for different regions or for just one type of renewable energy, no such study has been conducted in this scale with this method. Another differentiating feature of the study is that it demonstrates the bidirectional nature of the study not just the unidirectional causality. Policymakers are advised to invest in renewable energy projects and also create frameworks which provide incentives to the private sector for renewable energy production.

The development of renewable energy (RE) projects is closely tied to the financial attractiveness of these investments. Despite the extensive literature, most studies focus on a static analysis, which is no longer adequate for dealing properly with the uncertainty associated with RE projects. This study proposes a stochastic model based on the levelized cost of energy (LCOE) and the application of VaR (value at risk) and CvaR (conditional value at risk) measures for risk assessment. Using a hypothetical case consisting of a solar farm with a rated capacity of 10 MWp, the analysis was conducted for nine Colombian municipalities. The irradiation levels at each site were considered the sole source of uncertainty. In addition, the Colombian regulatory framework was considered, represented by accounting and tax benefits. The results obtained from this work made it possible to evaluate the effect of resource behavior on the financial risk level of PV projects. The results provide a ranking of the nine assessed municipalities from a financial point of view and highlight the influence of considering solar resources as a risk factor on the project´s financial expected performance.

Design and optimal scheduling of forecasting-based campus multi-energy complementary energy system

This article reviews the sustainability dilemma raised by the need for increased renewable (low-carbon) energy generation – replacing fossil-based sources – to accommodate the desired climate targets while at the same time enhancing the social acceptance by local communities. A “triple challenge” of climate change, renewable energy production, and the social license are at the center of such a dilemma. Even though a low-carbon or ultimately a net-zero emissions development pattern is hypothetically conceivable – the social acceptance of “social license to build and operate” renewable energy developments (e.g., wind parks) remains a key to successfully achieving the climate targets. The drivers of a social license to operate onshore wind farms are diverse. This paper looks at benefit sharing and meaningful community participation schemes as mechanisms to attain the social license to operate new renewable energy projects. We identified challenges that affect the efficacy of these mechanisms. In the absence of certain conditions, these mechanisms might not achieve the expected social license. The challenges can be grouped into two categories: those under the scope of the regulators or planning authorities; and those related to the developers. The need for and the advantages of community engagement and benefit-sharing initiatives to achieve the social license to operate are illustrated with examples from wind development projects (in the UK and Spain).

The number of renewable energy (RE) projects that have been implemented in Sub-Saharan Africa (SSA) has soared over the past couple of years. The number of projects to be implemented within the coming years is expected to rise considerably. However, the societal benefits of RE projects implemented in SSA have not been studied thoroughly. This study attempts to: (i) uncover the differences between the expected and the realized societal benefits of utilizing renewable energy technologies (RETs) in SSA, (ii) reveal any empirical failures in realizing those benefits and (iii) create awareness towards the sustainable implementation of RE projects. Within the realm of publicly-funded projects, we aim to provide solutions that assist these and future projects to meet their societal benefits. We investigate 29 projects that have been implemented in ten SSA countries taking into account direct experiences of the local users and project developers. We find that most of the projects investigated in this study have few to no societal benefits within a short period of time after the “cutting the ribbon” event. To counteract this, we present corresponding recommendations.

China has been experiencing a remarkable economic growth for the past three decades accompanied by significant energy consumption and environmental pollution, which led to great pressure on energy supply and environmental protection. The development of renewable energy has therefore become a major strategic issue for the country’s energy security, economic development, environmental sustainability and social stability. Meanwhile the participation of the private sector into the renewable energy sector has become increasingly important and necessary to utilize their knowledge, skills and resources as an effective supplement to the Chinese government which dominates the sector but suffers low efficiency and declining credit lines. Aiming at a better understanding of the activities and trends of the private sector in the renewable energy sector of China, this study retrieved project level data from the Private Participation in Infrastructure (PPI) database of the World Bank, and examined the data from various dimensions, such as investment size, PPI type, technology, and geographical distribution. Important and interesting observations were drawn such as emerging western China market and fast growing biomass sub-sector. A comparison between conventional fossil fuel projects and renewable energy projects was also undertaken in terms of unit cost and the results confirmed the high installation cost of renewable energy projects and highlighted the importance of government subsidies at present and technological advances in the long run to support the development of renewable energy. The empirical findings, although restricted by shortcomings of the data source, can provide valuable implications to policy makers and infrastructure investors interested in the renewable energy market of China.

The purpose of this study, which applies the policy cycle framework, is to ascertain why certain renewable energy policy aims being formulated in the former Soviet bloc (Azerbaijan, Kazakhstan, Russia, Georgia, Armenia, Ukraine, Moldova, and Poland), as well as to review what policy instruments are being used to promote renewable energy technologies. In addition, it reviews how the renewable energy sectors are progressing in the covered countries and determines what their prospects are for the future, bearing in mind the impact of the ongoing COVID-19 pandemic. With a global move toward a reduction in greenhouses gas emissions these countries are mandated to explore alternative or renewable energy supplies. Thus, command-and-control instruments have been established by a number of regulations and pieces of legislation such as laws on renewable energy development, guaranteed purchase by grid operators, and guaranteed grid interconnection. Market-based instruments have been established by imposing feed-in tariffs and offering tax incentives for renewables projects. As for information policy instruments, investor guides detailing renewable energy projects with corresponding estimates for wind, solar, biomass, and mini-hydro energy potentials are being developed. However, looking at the countries covered in this paper, Ukraine, Azerbaijan, Kazakhstan, and Russia might struggle to meet their long-term climate and energy targets. The analysis ultimately highlights policy implications for Soviet bloc countries including the need to enhance national laws on renewable energy projects, to revise feed-in tariff design models, to develop short-, medium-, and long-term renewable reserve funds, and to establish practical guidelines for national and international investors.

Today, there is a lot of focus on using renewable energy sources to address climate change and achieve sustainable development goals. This paper investigates the non-linear relationship between financial development (FIDI), economic complexity (EC), R&D investment as a control variable on renewable energy transition. FIDI’s vital role in facilitating investment in renewable energy (RE) projects has been identified. To reduce the cost of RE projects and attract more investors. Developed financial systems facilitate RE deployment by providing access to diverse financing mechanisms, such as green bonds and project finance. This is evident in countries like Australia, where a robust financial sector has supported substantial investments in solar and wind energy projects. This research investigates the nonlinear effects of FIDI on renewable energy use. It can be acknowledged that economic complexity, which is evaluated by the diversity and complexity of a country’s export products, affects the adoption of RE technologies. Can countries with higher ECs that tend to develop more advanced industrial capabilities and know-how support the development of RE solutions? On the other hand, another factor that makes use of RE is investment in research and development. Research and innovation in clean energy technologies will drive down costs, improve productivity, and produce new developments that can make RE competitive with fossil fuels. Countries investing in RE research and development have faster adoption rates and greater market penetration. Data from OECD countries in the years 2000 to 2022 show that, at the 5% confidence level, the use of RE follows a U-shaped curve with respect to financial development (using quadratic regression analysis, both the coefficients of the linear and square terms are statistically significant. These findings confirm a U-shaped relationship between FIDI and RE). Our results suggest that the increase in economic complexity may deter, at an initial stage, the transition toward renewable energy, but it can indeed be substantially expedited through strategic R&D investments. Therefore, we recommend that policymakers should invest in infrastructure that secures diversification in the energy sector and lowers adverse complexity effects and massively increase public funding for renewable energy R&D, stimulate private–public partnerships in this regard, and establish very clear rules and regulations to maximize innovation effects in renewable energy deployment. These would be critical steps in rapidly achieving a low-carbon economy and realizing sustainable development goals.

This study investigates the critical factors influencing investment in renewable energy projects and their subsequent impact on development across various countries. By examining government policies, financial incentives, technological advancements, and market dynamics, the research aims to provide valuable insights for policymakers, investors, and stakeholders seeking to accelerate the transition to a sustainable energy future. The analysis delves into case studies from Spain, Côte d'Ivoire, Canada, and China, highlighting the diverse factors that have contributed to their renewable energy success. In Spain, abundant solar and wind resources, coupled with supportive government policies, have driven significant growth in the sector. Côte d'Ivoire, facing electricity shortages, has recognized renewable energy as a crucial solution to meet increasing demand. Canada's reliance on hydropower and recent advancements in wind and solar energy have positioned it as a leader in clean energy. China,with its massive scale and ambitious targets, has demonstrated the potential for rapid renewable energy deployment. The findings from these case studies offer valuable lessons for countries seeking to replicate or surpass their achievements. By understanding the determinants of investment and their impact on renewable energy development, policymakers can design effective strategies to promote sustainable energy transitions and achieve economic, environmental, and social benefits.

Renewable energy (RE) projects are increasingly contested. We present bio- and wind energy projects in Argentina, Mexico, and Nicaragua with reference to different frameworks of justice. We bridge the concept of energy justice with insights from climate change and climate justice research and argue that the social groups facing energy injustices related to the implementation of RE projects face a situation of ‘triple inequalities of decarbonisation policies’: they are negatively affected by climate change although, from a global and historical perspective, they have not contributed much to it, and now face injustices related to the mitigation of climate change. We underscore this argument by presenting cases of wind energy generation and biomass production for fuel. We conclude that relating different strands of justice debates with a historically grounded analysis of triple inequalities can imply the denial of RE projects by actors who belong to marginalised groups – despite of a global urgency of decarbonisation.

COVID-19 has disrupted all aspects of human life. To mitigate the impact of the pandemic, several efforts have been taken, including by Indonesian scholars abroad. This book entitled Indonesia Post-Pandemic Recovery Outlook: Strategy towards Net-Zero Emissions by 2060 from the Renewables and Carbon-Neutral Energy Perspectives explores energy sustainability and climate change issues and how it can progress further. There are also discussion on the delays caused by the COVID-19 pandemic to a few major renewable energy projects that should have been done in 2020-2021. Comprising of 14 chapters, this book is divided into three sections. The first part, Indonesia's Current Position and Strategy for Renewable Energy, explores Indonesia's current position and strategy on New and Renewable Energy. This chapter also explores Indonesia's commitment towards Net-Zero Carbon Emission 2060. Second, Carbon-Free and Renewable Energy in Indonesia, discusses the status of renewable energy use in the world, elaborate on the carbon impact of energy shift from fossil to renewable sources, and introduce a new criterion in renewable energy: carbon-neutral energy. The last part, Indonesia's New Strategy to Achieve Net-Zero Emission in 2060, explores the macroeconomic benefits of renewable and carbon-neutral energy deployment which are increasing energy security, fueling GDP development, creating job opportunities, enhancing human welfare, and achieving gender equality. We hope that this book can be a valuable reference for stakeholders, policymakers, as well as society to recover from the pandemic crisis and find better solutions to benefit future generations.

As the concept of integrated resource planning has spread among states and utilities, a reexamination of the role of renewable energy sources in the utility resource mix is taking place. This report documents the findings of a study of state regulatory commissions undertaken to: (1) help assess the state of knowledge and awareness about renewable energy resources and technologies; (2) assess the impacts of state policies on renewable energy development; and (3) identify important information needs. The key findings from this effort are: Renewable energy development has occurred only slowly over the last decade, and a small number of states account for the bulk of development. The development that has occurred has been limited to non-utility entities. Directed state policies have been a key driver in renewable energy development. Those states not currently addressing renewables may need more data and information before they proceed with directed policies. Other important observations are: The cost of renewables is an overriding concern. Regulators distinguish between emerging'' and established'' renewable energy technologies. Specific data are lacking on state-level renewable energy development. Detailed renewable resource assessments have yet to be performed in many states. This report identifies renewable energy information needs of state regulators. However, a number of concerns are also identified that must be addressed before renewables will receive serious attention in many of those states with limited renewables experience. Finally, the report catalogs a wide variety of policies that have been utilized in the states to promote greater development of renewable energy.

Renewable energy is a sustainable and green energy converted from renewable energy resources in the nature. There is a huge amount of renewable energy resources in the ocean that can be changed into useful energy like electricity, store for long time use, or apply in the daily energy consumption. These marine renewable energies (MRE) include wave energy, ocean thermal energy, tidal energy, ocean current energy, salinity gradient energy, and offshore energy. With a big area, the oceans have been prospected that it brings endless renewable energy sources for social development and human demand. The renewable ocean energy shows many advantages of sustainable energy, clean energy, and non-carbon dioxide emissions by generating from wave and water in the ocean with an enormous amount of natural energy resources. The MRE can service at many areas of off-shore, on-shore, and remote areas where need energy to drive daily living demands. The MRE reveals some disadvantages such as the influence of daily, monthly, season, and period of time. The solutions have been developed to solve the limitations of the MRE such as developing the storage method to store energy for long time use or making the balance of the output performance to improve quality of the renewable energy. The MRE has also received many concerns from countries by promulgating policies, strategies, and plans to develop the renewable ocean energy such as green economy development, blue economy strategy, carbon dioxide emission reduction, and encouragement of using marine renewable energy. This paper reviews current marine renewable energy with its generation, storage, and application. The work also mentioned some advantages, disadvantage, policies, strategies, and solutions to encourage the development of the renewable ocean energy in over the world. The results hope that it will be spread development, exploitation, and application of marine renewable energy in the near future. Keywords: Marine renewable energy, energy storage, generation, application, sustainable energy