Dynamic Economic Analysis of Subsidies for New and Renewable Energy in South Korea

Choi, Gobong; Heo, Eunnyeong; Lee, Chul-Yong

doi:10.3390/su10061832

Cited by 8 publications

(5 citation statements)

References 21 publications

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“…28/2009 issued by the European Commission (EC). This move is in line with a general trend worldwide to replace traditional energy resources with renewables, by means of subsidies, market integration schemes, support mechanisms and various other incentives [32][33][34].…”

Section: Methodology Of the Researchmentioning

confidence: 73%

The Evolution of the Romanian Renewable Energy Market: A Critical Assessment

Marinescu¹

2021

Advances in Energy Research

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This research assesses the evolution of the renewable energy market in Romania. Attracted by a generous support scheme, foreign and domestic investors flocked to the market. Subsequently, the sector witnessed remarkable progress, especially in the wind power category. Romania closed in rapidly on the national target set by the European Union concerning the share of the country's energy consumption from renewable sources. However, frequent changes in the support scheme and in the regulations issued by public authorities led to chaos. The aim of the paper is to emphasize the evolution of renewable energy policy in Romania, to investigate the incentives and their effects, and to critically assess the impact of the changes on renewable energy producers. It highlights, by means of an exploratory study and several interviews with executives of renewable energy companies, the challenges and shortcomings of policymaking. The main finding is that the revision of the subsidy scheme and the changes in energy policy that followed are the major determinants for the declining financial performance of renewable energy producers. Some recommendations for improved policymaking so as to reestablish the trust of investors and to foster the sustainable development of the energy sector are suggested in the final part.

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Section: Methodology Of the Researchmentioning

confidence: 73%

The Evolution of the Romanian Renewable Energy Market: A Critical Assessment

Marinescu¹

2021

Advances in Energy Research

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Section: Methodsmentioning

confidence: 73%

Changes in Renewable Energy Policy and Their Implications: The Case of Romanian Producers

Marinescu

2020

Energies

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This paper analyzes the impact of policy changes on the Romanian renewable energy producers. Attracted by a generous subsidy scheme, foreign and domestic investors flocked to the market. Consequently, the sector witnessed remarkable progress, especially in the wind power category. Romania fast approached the national target set by the European Union concerning the share of the country’s energy consumption from renewable sources. However, frequent changes in the support scheme and in the regulations issued by public authorities led to chaos. The aim of the paper was to emphasize the evolution of renewable energy policy in Romania, to investigate the incentives and their effects, and to critically assess the impact of the changes on renewable energy producers. It highlights, by means of an exploratory study and several interviews with executives of renewable energy companies, the challenges and shortcomings of policymaking. The main finding was that the revision of the subsidy scheme and the changes in energy policy that followed are the major determinants for the declining financial performance of renewable energy producers. Subsequently, some recommendations for improved policymaking are suggested, so as to re-establish the trust of investors and to promote the sustainable development of the sector.

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“…The analysis of the economic viability of projects in photovoltaic panels is commonly performed by traditional methods, as discussed by [84][85][86]. However, analysis methods that incorporate managerial uncertainties and flexibilities promote more accurate results.…”

Section: Discussionmentioning

confidence: 99%

Photovoltaic Solar Energy in Forest Nurseries: A Strategic Decision Based on Real Options Analysis

et al. 2023

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With the growing demand for investment projects in renewable energy, it is essential for the economic feasibility analysis to consider the inherent uncertainties of these projects and enable more accurate investment decisions. In this way, we analyze whether investment projects in photovoltaic panels to produce electrical energy in a forest nursery are economically viable through the analysis of real options. We consider the energy demand of a forest nursery with an initial investment of USD 90,417 in photovoltaic panels. The managerial flexibilities of deferral, expansion of 30.0% of the energy production capacity, and the project’s abandonment were inserted into the binomial model of the decision tree, built in discrete time. The project’s expanded net present value was 79.2% higher than the traditional net present value, capturing the value of flexibilities for managers. The deferral option was the one that most impacted the expanded net present value. Investment projects in photovoltaic panels to produce electricity in a forest nursery are economically viable when analyzed through real options.

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Dynamic Economic Analysis of Subsidies for New and Renewable Energy in South Korea

Cited by 8 publications

References 21 publications

The Evolution of the Romanian Renewable Energy Market: A Critical Assessment

The Evolution of the Romanian Renewable Energy Market: A Critical Assessment

Changes in Renewable Energy Policy and Their Implications: The Case of Romanian Producers

Photovoltaic Solar Energy in Forest Nurseries: A Strategic Decision Based on Real Options Analysis

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