Modeling the effects of the new Russian capacity mechanism on renewable energy investments

Kozlova, Mariia; Collan, Mikael

doi:10.1016/j.enpol.2016.05.014

Cited by 34 publications

(23 citation statements)

References 24 publications

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“…The scheme takes into account changing market conditions and the project-specific performance [41,42]. For more information about the Russian RE investment incentive mechanisms, see [43][44][45][46].…”

Section: Numerical Case-based Illustration Of the Two Methods And Commentioning

confidence: 99%

Comparison of the Datar-Mathews Method and the Fuzzy Pay-Off Method through Numerical Results

Kozlova

Collan

Luukka

2016

Advances in Decision Sciences

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The paper compares numerically the results from two real option valuation methods, the Datar-Mathews method and the fuzzy pay-off method. Datar-Mathews method is based on using Monte Carlo simulation within a probabilistic valuation framework, while the fuzzy pay-off method relies on modeling the real option valuation by using fuzzy numbers in a possibilistic space. The results show that real option valuation results from the two methods seem to be consistent with each other. The fuzzy pay-off method is more robust and is also usable when not enough information is available for a construction of a simulation model.

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Section: Numerical Case-based Illustration Of the Two Methods And Commentioning

confidence: 99%

Comparison of the Datar-Mathews Method and the Fuzzy Pay-Off Method through Numerical Results

Kozlova

Collan

Luukka

2016

Advances in Decision Sciences

Self Cite

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“…According to existing estimates, by realizing the potential of renewable energy in the Krasnodar region, it is possible to produce up to 1300 MW instead of burning hydrocarbon fuels. The most important types of renewable resources for the Krasnodar region are solar and wind energy, which account for 80% of the energy potential of renewable energy sources in the region [52,56,57].…”

Section: Empirical Model: a Case Study Of Krasnodar Region Of Russiamentioning

confidence: 99%

Efficient Methods of Market Pricing in Power Industry within the Context of System Integration of Renewable Energy Sources

Lisin

Kurdiukova

Okley³

et al. 2019

Energies

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Currently, the majority of world economies (even those located in the sunbelt (+/− 35 degrees of latitude with good sunshine with low seasonality) uses various types of fossil fuels as the main source of energy for their economies. However, this represents a very volatile and unsustainable strategy, since according to various estimates, the fossil fuel era will inevitably end as all carbon fuels are going to be spent in the next few centuries. Unlike traditional energy, renewable energy sources (RES) are not based on energy resources, but rather rely upon natural energy flows. With regard to its unique property, there has been an active construction of power plants of renewable energy and their gradual integration into national energy supply systems in recent decades. At the same time, the existing models of electricity markets were unprepared for their wide distribution. Hence, determination of the market value of energy generated by power plants using renewable energy sources becomes a particularly significant issue. This market value has to take into account the prevention of costs from the use of fossil fuels, as well as the resulting environmental benefits. Our paper proposes methods for solving this problem, contributing to the increase of economic efficiency of investment projects for the construction of renewable energy facilities and the formation of economic incentives for their propagation in energy supply systems. The proposed methods are based on the dynamic differentiation of tariffs for consumers with renewable energy sources depending on their structure of electricity consumption. Its effectiveness is demonstrated by calculating the cost of electricity for households located in the Krasnodar region using renewable energy sources. It is shown that this approach to the formation of tariffs for consumers allows the household to receive additional savings from the efficient use of energy installations on RES and energy storage devices in terms of alignment of the energy consumption schedule. This creates a significant incentive for households to use them and contributes to increasing the effectiveness of government renewable energy support programs, including by solving the acute problem of raising electricity tariffs from the grid.

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“…The possible solution might be the usage of renewables energy sources (RES) which requires substantial investments and support. In general, RES lack wide acclaim in Russian and are often perceived as the costly alternative to cheap oil and gas [82][83][84]. Therefore, it appears important to be able to assess the energy security level with a help of the empirical model such as we have just constructed and presented in the previous section.…”

Section: Empirical Model: a Case Study Of Far Eastern Regionmentioning

confidence: 99%

Assessment of the Territorial Energy Security in the Context of Energy Systems Integration

et al. 2018

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Our paper tackles the timely and highly-debated issue of assessment of the level of energy security for Russia’s territorial entities. Our analysis is carried out from the perspective of economic and management threats to reliable power supply for consumers caused by the process of integration of energy systems and the expansion of market regulation mechanisms. In particular, we focus on the creation and integration of energy systems using a case study of the remote territorial entity represented by Russia’s Far Eastern region that present a topic of special interest with respect to the subject and the scope of this research. We define and build the methods that might be used for determining the economically justified level of energy security under the market economy conditions based on ensuring a balance of interests between territorial government bodies and territorial generating companies in the process of forming a strategy for the development of a territorial energy system. Our results clearly demonstrate that current electricity tariffs and prices for the end consumers at the remote territorial entities, such as the Russian Far Eastern region, pose a threat to energy security since they are underestimated due to social and political concerns and often lead to unprofitable power generation. We argue that political consideration aside, energy systems creation and integration should be made viable and sustainable not only in Russia, but also in other countries. Our outcomes show that a more reasonable energy tariff policy might be appropriate when relevant stakeholders and policy-makers attempt to create conditions for the advanced development of remote industrial areas.

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Modeling the effects of the new Russian capacity mechanism on renewable energy investments

Cited by 34 publications

References 24 publications

Comparison of the Datar-Mathews Method and the Fuzzy Pay-Off Method through Numerical Results

Comparison of the Datar-Mathews Method and the Fuzzy Pay-Off Method through Numerical Results

Efficient Methods of Market Pricing in Power Industry within the Context of System Integration of Renewable Energy Sources

Assessment of the Territorial Energy Security in the Context of Energy Systems Integration

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