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]

Appropriate management of energy sources is one of the basic undertakings in the energy sector. Climate policy changes and the development of technologies enabling the acquisition of energy in a way to reduce the negative impact on the natural environment lead to diversity in the structure of the energy sources being used. Therefore, it is important to assess the impact of these changes on the development of energy sectors by particular countries. The article contains the analysis of various energy sources utilization by European Union (EU) countries and the assessment of the energy production sector potential, and the development of this potential in relation to changes in the energy sources structure. For this purpose, a multidimensional comparative analysis was used. The data for the analysis are derived from the Eurostat database for the years 2017 and 2019 for 28 EU countries and they concern the use of energy sources such as combustible fuels, coal and manufactured gases, natural... [more]

Decarbonisation and efficiency goals set as a response to global warming issue require appropriate decision-making strategies to promote an effective and timely change in energy systems. Conceptualization of change is a relevant part of energy transitions research today, which aims at enabling radical shifts compatible with societal functions and market mechanisms. In this framework, construction sector can play a relevant role because of its energy and environmental impact. There is, however, the need to move from general instances to specific actions. Open data and open science, digitalization and building data interoperability, together with innovative business models could represent enabling factors to accelerate the process of change. For this reason, built environment research has to address the co-evolution of technologies and human behaviour and the analytical methods used for this purpose should be empirically grounded, transparent, scalable and consistent across different tem... [more]

In the context of the increasing popularity of self-sufficient communities around the globe, this study aims to compare the economic performance of energy management in two distinct situations: whether it is conducted individually or collectively within a community. After setting the context and completing a literature review, a research gap concerning the influence of regulatory frameworks in the economic results is identified. Therefore, this work presents this comparison under several frameworks employed to promote renewable energy, in order to provide a more realistic point of view and deliver insights in policy making. To this end, a mixed integer linear program (MILP) is developed, and the formulation of three key regulatory schemes is embedded into it: feed-in tariff, net metering, and self-consumption schemes. A what-if analysis is performed in order to take into account different combinations of rewarding parameters for each regulatory framework, as well as different profiles... [more]

Air pollution caused by traffic and other sources remains a challenge in big cities and urbanized areas in Germany and abroad. Nitrogen dioxide emissions, particulate matter, noise emissions, and ozone are still problematic issues with negative impacts on both the environment and human health. In 2018, the German Federal Government launched the “Lead City Program,” a €130-million fund to support five selected so-called Lead Cities in developing and implementing air quality policies. This article comparatively analyzes the policy-making process and policy content for better air quality in the three (out of five) Lead Cities—Essen, Herrenberg, and Reutlingen. Conceptually, we rely on two theoretical frameworks—the policy package approach (PPA) and the multiple streams framework (MSF). The objective, thus, is an ex-post analysis of policy development by means of two policy science-based concepts. Based on document-based desk research and qualitative interviews with policymakers and stakeh... [more]

With the roll-out of smart meters and the increasing prevalence of distributed energy resources (DERs) at the residential level, end-users rely on home energy management systems (HEMSs) that can harness real-time data and employ artificial intelligence techniques to optimally manage the operation of different DERs, which are targeted toward minimizing the end-user’s energy bill. In this respect, the performance of the conventional model-based demand response (DR) management approach may deteriorate due to the inaccuracy of the employed DER operating models and the probabilistic modeling of uncertain parameters. To overcome the above drawbacks, this paper develops a novel real-time DR management strategy for a residential household based on the twin delayed deep deterministic policy gradient (TD3) learning approach. This approach is model-free, and thus does not rely on knowledge of the distribution of uncertainties or the operating models and parameters of the DERs. It also enables lea... [more]

Poland is facing demanding challenges to achieve a sustainable energy mix in the near future. Crucial and tough decisions must be made about the direction of the national energy economy, safety, and environmental impact. Considering the electricity and heating demand forecast, this paper proposes an optimization model based on the Grey Wolf Optimizer meta-heuristic to support the definition of ideal energy mix considering the investment and operational costs. The proposed methodology uses the present energy mix in Poland (the most recent values are from 2017) to calibrate the model implemented in the EnergyPLAN tool. Afterwards, EnergyPLAN relates to an optimization process allowing the identification of the most convenient energy mix in 2040 in Poland. The values obtained are compared with those proposed by Polish public entities showing advantage regarding the global costs of the project nevertheless respecting the same levels of CO2 and the energy import and export balance. The expe... [more]

The several government subsidies available in Poland contributed to an increased interest in PV installations. Installed PV capacity increased from 100 MW in 2016 up to 2682.7 MW in July 2020. In 2019 alone, 104,000 microinstallations (up to 50 kWp) were installed in Poland. The paper determines the energy gain and the associated reduction of CO2 emissions for two types of solar installation located in Poland. The monofacial solar modules with a power of 5.04 kWp (located in Leki) and bifacial solar modules with a power of 6.1 kWp (located in Bydgoszcz). Both installations use mono-crystalline Si-based 1st generation PV cells. With comparable insolation, a bifacial installation produces approx. 10% (for high insolation) to 28% (for low insolation) more energy than a monofacial PV installation. Avoided annual CO2 emission in relation to the installation capacity ranges from 0.58 to 0.64 Mg/kWp for monofacial and from 0.68 to 0.74 Mg/kWp for bifacial and is on average approx. 16% higher... [more]

To mitigate the spread of the Novel Coronavirus (COVID-19), governments around the world have imposed social distancing policies ranging from minor social activity suspensions to full curfews. These social distancing policies have altered electricity consumption behaviors in numerous countries. Many governments imposed strict social distancing policies during a temperature transition season where the impacts of temperature variations are particularly important for the operation of the electric grid. This paper studies how strict social distancing policies affect the relationship between electricity demand and ambient temperature. We first review the expected short- and long-term impacts of social distancing on the electricity demand. We then present a case study on the electricity demand of the Kingdom of Saudi Arabia during strict social distancing policies. The results of this case study suggest that strict social distancing policies result in a stronger correlation between temperatu... [more]

In 2018, the Dutch national government announced its decision to end natural gas extraction. This decision posed a challenge for local governments (municipalities); they have to organise a heat supply that is natural gas-free. Energy models can decrease the complexity of this challenge, but some challenges hinder their effective use in decision-making. The main research question of this paper is: What are the perceived advantages and limitations of energy models used by municipalities within their data-driven decision-making process concerning the natural-gas free heating transition? To answer this question, literature on energy models, data-driven policy design and modelling practices were reviewed, and based on this, nine propositions were formulated. The propositions were tested by reflecting on data from case studies of ten municipalities, including 21 experts interviews. Results show that all municipalities investigated, use or are planning to use modelling studies to develop plan... [more]

Global warming is an existential threat to humanity and the rapid energy transition, which is required, will be the defining social, political and technical challenge of the 21st century. Practical experience and research results of recent years have showed that our actions to cover the gap between real situation and aims of climate agreements are not enough and that improvements in climate policy are needed, primarily in the energy sector. It is becoming increasingly clear that hydrocarbon resources, which production volume is increasing annually, will remain a significant part of the global fuel balance in the foreseeable future. Taking this into account, the main problem of the current climate policy is a limited portfolio of technologies, focused on replacement of hydrocarbon resources with renewable energy, without proper attention to an alternative ways of decreasing carbon intensity, such as carbon sequestration options. This study shows the need to review the existing climate p... [more]

This paper aims to check the impact of investment and institutional determinants on the energy efficiency gap. The findings of the bibliometric analysis confirmed the growth of research interests in identifying the core determinants of the energy efficiency gap. The central hypothesises are: the increasing quality of the institutions leads to an increase of green investments in the energy sector and the dual relationships between investment and institutional determinants lead to additional synergy effects, which allow boosting the decline of energy efficiency gaps of the national economy. For the analysis, the times series were collected from the World Data Bank, Eurostat, Bloomberg, for Ukraine for the period of 2002−2019. The following methods were used: the unit root test—for checking the stationarity of data—and the Johansen test and VEC-modelling—for the cointegration analysis. The findings prove that to reduce the energy efficiency gaps in Ukraine by 1% next year, it is necessary... [more]