To improve access to affordable, reliable and sustainable energy in rural areas of the global south, off-grid systems using renewable generation and energy storage are often proposed. However, solution design is often technology-driven, with insufficient consideration of social and cultural contexts. This leads to a risk of unintended consequences and inappropriate systems that do not meet local needs. To address this problem, this paper describes the application of a capabilities-led approach to understanding a community’s multi-dimensional energy poverty and assessing their needs as they see them, in order to better design suitable technological interventions. Data were collected in Tlamacazapa, Mexico, through site visits and focus groups with men and women. These revealed the ways in which constrained energy services undermined essential capabilities, including relating to health, safety, relationships and earning a living, and highlighted the specific ways in which improved energy... [more]

The paper analyzes the impact of energy consumption on the three pillars of sustainable development in 74 countries. The main methodological challenge in this research is the choice of a single integral indicator for assessing the social component of sustainable development. Disability-adjusted life year (DALY), ecological footprint, and GDP (Gross domestic product) are used to characterize the social, ecological, and economical pillars. The concept of physics, namely the concept of density (specific gravity), is used. It characterizes the ratio of the mass of a substance to its volume, i.e., reflects the saturation of a certain volume with this substance. Thus, to assess the relationship between energy consumption and the three foundations of sustainable development, it is proposed to determine the energy density of the indicators DALY, the ecological footprint, and GDP. The reaction to changes in energy consumption is described by the elasticity of energy density functions, calculate... [more]

This article substantiates the need to find and implement innovative tools to improve the efficiency of the domestic system for energy sector control. The authors determined that energy policy renewal should consider Ukraine’s commitments to transition to a carbon-neutral economy. The systematization of scientific achievements shows that one of the priority tasks is to minimize the gaps in the energy efficiency of the national economy. It is established that, despite the significant scientific achievements in this area, the scientific community has not adopted a single approach to assessing energy efficiency yet. The purpose of this article is to assess the energy efficiency gaps in the national economy, in order to identify their peak values and the factors causing them, and appropriate mechanisms to minimize them. The energy efficiency gaps are assessed using frontal analysis and Shepard’s energy distance function. Analytical data from the World Bank, the Swiss Institute of Economics... [more]

Web portals have the potential to promote sustainable environmental ideas due to the capacity of digital media, such as easy accessibility, openness, and networking. Local authorities (LAs) are responsible for activating carbon savings in homes, and they are key actors when it comes to providing neutral information to their citizens. Local authority web portals may thus create environmental awareness, particularly regarding owner-occupied single-family home renovation. Nevertheless, the experiences of LAs developing web portals have rarely been studied. Therefore, this paper analyses the development process of various LA web modules and investigates how LAs foster modular web portals to stimulate the adoption of home renovation with parameters to assess LAs’ actions in terms of the management of web-modules development. A homeowner renovation journey model is applied to map current local authority developments. Case study research and interviews were done to analyse and evaluate the ad... [more]

The United Kingdom has declared a climate change policy of 100% reduction in carbon dioxide emissions by 2050. Efforts thus far have been limited solely to electricity generation methods. While progress has been admirable, effort now must be directed at the nation’s non-electrical energy use. Nuclear energy is an essential part of any energy future, since it is low-carbon, firm and supplies synchronous electricity; however the nation’s nuclear strategy to date has been erratic, costly and lacking in strategic oversight. A multitude of reactor designs are on offer for potential uptake, and decision-makers must have clarity of vision on what these systems must deliver before forming a strategy. Choosing between these systems, given the uncharted energy future faced by the UK is a daunting prospect. Generic feasibility assessment offers a tool for decision-makers to assist them in selecting the most suitable nuclear system for chosen future conditions. Generic feasibility assessment offer... [more]

This paper aims to identify the determinants of the decarbonisation processes in Poland within the scope of energy transformation. The purpose of the study is to identify how the public perceives decarbonisation determinants in order to develop a sustainable energy strategy for Poland. The transition of the energy market to low-carbon technology is a policy challenge. Governments must implement policies that are environmentally friendly, cost-effective, but, most of all, socially acceptable. Social acceptance risk plays a significant role in Poland, influencing the decarbonisation process. In Poland’s case, the coal share is decreasing, but it is still the most important fuel for electricity production. This process of decarbonisation is a fundamental influence on the transformation of the energy sector in Poland. The social perception of solutions that can be applied was examined. The Polish natural environment is poisoned. Poles suffer from diseases related to the burning of coal for... [more]

The expansion of photovoltaics in German cities has so far fallen short of expectations. The concept of ‘tenant electricity’ (‘Mieterstrom’ in German), in which tenants of a building are supplied with solar power produced on site, offers great potential here. A study on behalf of the German Federal Ministry for Economic Affairs and Energy estimated the number of tenant households with good conditions for solar tenant electricity at 3.8 million. At the same time, the federal tenant electricity promotion scheme has been in place since 2017, but only about 1% of the annual budget has been claimed. The aim of this study is to identify the barriers for and drivers of diffusion of the tenant electricity model. To this end, a qualitative document analysis and a range of semi-structured expert interviews have been conducted. The theoretical framework used to guide the analysis is the multi-level perspective. The main barrier found for tenant electricity diffusion is the legal framework on the... [more]

Wind power generators face risks derived from fluctuations in market prices and variability in power production, generated by their high dependence on wind speed. These risks could be hedged using weather financial instruments. In this research, we design and price an up-and-in European wind put barrier option using Monte Carlo simulation. Under the existence of a structured weather market, wind producers may purchase an up-and-in European wind barrier put option to hedge wind fluctuations, allowing them to recover their investments and maximise their profits. We use a wind speed index as the underlying index of the barrier option, which captures risk from wind power generation and the Autoregressive Fractionally Integrated Moving Average (ARFIMA) to model the wind speed. This methodology is applied in the Colombian context, an electricity market affected by the El Niño phenomenon. We find that when the El Niño phenomenon occurs, there are incentives for wind generators to sell their e... [more]

Coronavirus Disease 2019 (COVID-19) became a pandemic around the world and has huge impacts on our economic and social systems, particularly on the healthcare system and the transportation and energy sectors. To examine a relationship between healthcare and energy sectors in the COVID-19 era, we propose a holistic application of Data Envelopment Analysis for Environmental Assessment (DEA-EA) to assess the COVID-19 response performance of 33 OECD (Organization for Economic Co-operation and Development) nations and investigate whether health insurance systems contribute to the performance. We also associate the performance with mobility, which is an energy consumption measure, to test the relationship through statistical analyses. In the DEA-EA, particularly, this study incorporates undesirable outputs (i.e., the number of confirmed cases and that of deaths) as well as desirable outputs (i.e., the number of total recovered people and that of total tested people) during April 2020 as the... [more]

The development of a complete system of indicators and a composite sustainable energy index could prove useful to evaluate both the state of the art and the progress of national energy towards sustainable development. However, in the case of energy sustainability, a knowledge gap arises due to incomplete coverage and lack of systematic focus on sustainability components. The objective of our research is to obtain Sustainable Energy Development Aggregated Index to rank the EU Member States on the path to sustainable energy. We propose a set of indicators related to sustainable development in energy policy in the EU-28, grouped in three dimensions: social, economic and environmental and apply the standardized sums method in order to obtain the dimensional and aggregated indexes. The countries on the podium are Denmark, The Netherlands and Austria. The worst-performing countries (with index values below the first quartile) are Estonia, Malta, Slovakia, Poland, Greece, Cyprus and Bulgaria.... [more]

The COVID-19 pandemic represents not just a global health crisis, but may signal the beginning of a new era of economic activity, the potential consequences of which we currently do not fully understand. In this context, the mid-to-long-range impacts of the pandemic on the energy sector have been studied extensively in the last few months. Despite these efforts, the pandemic still raises many open questions concerning the long-term operation and planning of power systems. For instance, how will the pandemic affect the integration of renewable energy sources? Should current power system expansion plans change in light of the COVID-19 pandemic? What new tools should be provided to support system operators during global health crises? It is the purpose of this paper to better understand the many aspects of these open questions by reviewing the relevant recent literature and by analyzing measured data. We point out the main challenges that the pandemic introduced by presenting patterns of... [more]

The aim of this article was to identify challenges of emissions trading that the Polish and CEE Central and Eastern Europe energy industry will face, as well as to indicate key implications for the competitiveness of the companies from the energy sector resulting from that trading. The EU Emissions Trading Scheme (ETS) is the emissions trading system, which results from the EU policy concerning climate change. It is a tool for reducing greenhouse gas emissions (GHG). The system regulates an annual allocation of the allowances. The price of CO2 emission allowances is subject to constant fluctuations because it depends on various macroeconomic factors as well as is an effect of proprietary trading by global investment banks. Polish energy companies have an increasing share in the emission of CO2 in the European market. This is due to the fact that other European countries are rapidly moving away from fossil fuel-fired sources. The cost per MWh related to CO2 price has been growing in the... [more]

The outbreak and rapid spread of the COVID-19 pandemic has hit the global financial markets, including the energy sector. Alternative energy belongs to the economy’s key sectors concerning environmental issues and seems to be a full-fledged alternative for fossil-based conventional energy. This paper aims to assess the impact of COVID-19 on the stock market indices related to the alternative and conventional energy sector. We use daily data on the Morgan Stanley Capital International (MSCI) Global Alternative Energy Index, the MSCI All Country World Index (ACWI) Energy Index, and self-developed Average-49 COVID-19 New Cases Index and Average-49 Stringency Index. The research covers the period January−October 2020. The average level of the MSCI Global Alternative Energy Index in COVID-19 year was more than a quarter higher than in 2019 while the MSCI ACWI Energy fell almost one-third in the same period. Based on the Markov-switching model, we show that both the MSCI Global Alternative E... [more]

More than 150 municipal utilities (so-called Stadtwerke) were established in Germany from the beginning of the millennium, bringing the total number of Stadtwerke currently established within the country to approximately 900. With responsibility for more than half of the supply of electricity, gas and heat in Germany, these Stadtwerke play a central role in the transformation of the energy sector, or Energiewende. In addition, due to their local and regional ties, Stadtwerke have a particular role to play in energy politics, the economy and across society. This article focuses on the motives behind, and grounds for, the current wave of newly established Stadtwerke. Further, it discusses the factors that were critical to the successful formation of new Stadtwerke in recent years. The results of our survey indicate that the establishment of municipal Stadtwerke is a suitable measure to implement the energy transition at the local level, whereby the concept of public value has a high leve... [more]

The energy sector and electricity generation in particular, is responsible for a great share of the global greenhouse gas (GHG) emissions. World electricity generation is still largely based on the burning of fossil fuels. However, Brazil has already a very low electricity carbon intensity due to the country’s large hydropower capacity. In countries with low grid carbon intensities such as Brazil, the investment in photovoltaic solar systems (PVSS) even if it is cost-effective, might become challenging as any new generation competes essentially against other renewable generation and the carbon offset is not a key driver for investment anymore. This study builds further upon that case to examine if national renewable energy incentives could actually lead to an increase of global net carbon emissions from the installation of PVSS in countries with a low grid carbon intensity. The study presents a life cycle analysis (LCA) of ten photovoltaic systems representative of the different operat... [more]

The decentralization of the large-scale energy sector, its replacement with pro-ecological, dispersed production sources and building a citizen dimension of the energy sector are the directional objectives of the energy transformation in the European Union. Building energy self-sufficiency at a local level is possible, based on the so-called Energy Communities, which include energy clusters and energy cooperatives. Several dozen pilot projects for energy clusters have been implemented in Poland, while energy cooperatives, despite being legally sanctioned and potentially a simpler formula of operation, have not functioned in practice. This article presents the coopetitive nature of Energy Communities. The authors analysed the principles and benefits of creating Energy Communities from a regulatory and practical side. An important element of the analysis is to indicate the managerial, coopetitive nature of the strategies implemented within the Energy Communities. Their members, while ope... [more]

Power-to-X is an upcoming sector-coupling technology that can play a role in the decarbonisation of energy systems. The aim of this study was to widen the current knowledge of strengths, weaknesses, opportunities, and threats (SWOT) of this innovative technology in the Danish context by utilizing the analytic hierarchy process (AHP) to evaluate and compare perception of academic and industrial experts. The results of this analysis indicate that the external factors such as current policy framework are more important than the internal technology related factors. Further, positive factors predominate negative ones, with academic experts indicating strengths as the most important category and practitioners’ opportunities. All experts consider the country being a P2X knowledge hub as one of the most important factors, and in the given context of the Danish energy system, wind developments and Danish industrial environment, seizing this opportunity could be the biggest enabler for P2X succe... [more]

This paper scrutinizes existing policy efforts to address energy poverty at the governance scale of the European Union (EU) and its constituent Member States. Our main starting point is the recent expansion of energy poverty policies at the EU level, fuelled by the regulatory provisions of the Clean Energy for all Europeans Package, as well as the establishment of an EU Energy Poverty Observatory. Aided by a systematic and customized methodology, we survey the extensive scientific body of work that has recently been published on the topic, as well as the multiple strategies and measures to address energy poverty that have been formulated across the EU. This includes the principal mitigation approaches adopted by key European and national institutions. We develop a framework to judge the distributional and procedural justice provisions within the recently adopted National Energy and Climate Plans, as an indicator of the power, ability and resolve of relevant institutions to combat the c... [more]

Demand response is a key element of future power systems due to its capacity to defer grid investments, improve demand participation in the market, and absorb renewable energy source variations. In this regard, demand response can play an important role in delivering ancillary services to power systems. The lack of standardization and ancillary services programs prepared for traditional generators have blocked the participation of demand in these services. Nowadays, increasing needs to ensure the security of supply, renewable fluctuations, and information and communication technology advances are boosting the interest in demand response products to deliver ancillary services. While countries have had lengthy experience with these programs, others are starting from almost zero to develop these programs. To our knowledge, no analysis or standardized comparison exists of the different parameters and prices of demand response in ancillary services among different countries. Our study revie... [more]

As policymakers and automotive stakeholders around the world seek to accelerate the electrification of road transport with hydrogen, this study focuses on the experiences of Germany, a world leader in fuel cell technology. Specifically, it identifies and compares the drivers and barriers influencing the production and market penetration of privately-owned fuel cell electric passenger vehicles (FCEVs) and fuel cell electric buses (FCEBs) in public transit fleets. Using original data collected via a survey and 17 interviews, we elicited the opinions of experts to examine opportunities and obstacles in Germany from four perspectives: (i) the supply of vehicles (ii) refuelling infrastructure, (iii) demand for vehicles, and (iv) cross-cutting institutional issues. Findings indicate that despite multiple drivers, there are significant challenges hampering the growth of the hydrogen mobility market. Several are more pronounced in the passenger FCEV market. These include the supply and cost of... [more]

This paper derives the optimal investment policy of an electricity producer during a pandemic. We consider three problems: (1) investing in a gas-fired plant, (2) investing in a wind plant, and (3) investing in the best of a gas plant and a wind plant. Optimal investment boundaries are characterized and valuation formulas derived. For single technology projects, a pandemic postpones wind investment, but can accelerate gas investment when the relative price of gas decreases. For choices between the two technologies, a substitution effect can reinforce the single technology effects, accelerating gas investment under certain conditions. The paper examines the impact of pandemic parameters, economic parameters and policy parameters on the investment boundaries, the values of projects and the premium for green energy.

Climate change is emerging as an issue of progressive attention, and therefore awareness, in societies. In this work, the problem is addressed from a generational perspective in Spanish society and is carried out from the approaches of awareness, human action, and self-responsibility. All this from the search of the subjective well-being and the citizens’ happiness, as one of the bases of sustainable development initiatives. With data from the European Social Survey R8, from EUROSTAT, we work in two phases: (1) descriptive and inferential on possible associations of the items with the variable Age, and (2) calculation of probabilities between groups through logistic regression. The results confirm a general awareness, but with apparent statistical differences between age groups. In general, the youngest are the most aware, blame human activity most intensely, are the most concerned, and are the most willing to act. And it is the older people who are less aware of all these issues. Base... [more]

Recently, the use of electric vehicles in a power grid has been attracting attention. The success of vehicle-grid integration (VGI) requires the active participation of not only VGI service providers but also electric vehicle owners, utility companies, and the government in the VGI service. However, until now, such research has not been sufficiently discussed. Thus, we propose a framework for analyzing the economic environment in which each stakeholder can participate, especially in the application of a demand response, and derive its economic value in Korea. Also, through the proposed framework, we suggest optimal scenarios and policy directions for each participant’s successful business. Our results show that government and a utility company need to share their benefits with a VGI service provider to make VGI a success.

The transition of the energy system in Poland has a long time horizon and demands a substantial investment effort supported by proper economic evaluation. It requires a precise Social Discount Rate (SDR) estimation as discounting makes the present value of long-term effects extremely sensitive to the discount rate level. However, Polish policymakers have little information on SDR: the predominant practice applies a priori fixed 5% discount rate, while studies devoted only to Poland are quite rare. To eliminate this research gap, our paper aims at estimating SDR for Poland, applicable in energy transition policies. We derive SDR for three datasets varying in length, twofold: using market rates via Consumption Rate of Interest (CRI) and Social Opportunity Cost (SOC) of capital, and prescriptive Ramsey and Gollier approaches based on Social Welfare Function (SWF). The results indicate that the rates based on CRI and SOC deviate substantially with changing data timeframes and market condit... [more]

Attaining sustainable development and cleaner production is a major challenge both for developed and developing economies; income, institutional regulations, institutional quality and international trade are the key determinants of environmental externalities. The current work attempts to study the role of environmental taxes and regulations on renewable energy generation for developed economies. For that, the authors have used the annual dataset for the period 1994 to 2018. More specifically, the study investigates the impacts of environmental taxes, environment-related technologies and the environmental policy stringency index on renewable electricity generation in 29 developed countries. Given the short available data of these countries, the authors have developed panel cointegration and panel regressions models (fully modified ordinary least square (FMOLS), quantile regressions). The heterogeneous panel empirics stated that environmental regulations and income level support renewab... [more]