Stimulation of investment processes in renewable energy sector

Abstract

The purpose of the article is to assess the pace of capital contribution and investment in solar energy in order to increase the energy security of national economies. The study analyzes the development of the global solar industry for years 2009-2019 in the context of investment support. The main stages of development of world solar energy are marked and the priority of countries and regions is determined. Factors of attractiveness of solar energy for private investment are noted, namely the investment climate is formed at the expense of legislative maintenance of this sphere, and in the economic plan at the expense of introduction of the «green» tariff. Two main investment processes in the development of solar energy are noted. First, these are large private companies that implement large-scale projects from solar stations. Secondly, this small private investment to provide electric for households that identified a small city urbanization and climatic conditions. It was found that the solar energy market depends more on capital intensity than on resource intensity. The result of economic calculation is indicated, which allowed to determine the term of reduction of the cost price of 1 kW of photovoltaic power station electricity to the level of NPP production cost for ten years.

Does improvement in capital intensity facilitate the transition to renewable energies? Evidence from Tunisia

“…Therefore, this finding is in line with that of Wang et al ( 2019 ), who found that capital intensity stimulates modern energy transition in the long run but not in the short run for China from 1978 to 2015. Moreover, Savina et al ( 2021 ) argue that capital intensity influences the solar energy market.…”