• Energy Research

AbstractInvestment cost associated to the generation of renewable energy such as wind and solar is generally estimated to be higher. As the wind and solar energy generation do not require any fuel, the marginal cost of electricity generation through renewable energy technologies is very low. Therefore, in the long run, the prices are expected to get reduced, once investment cost is recovered; whereas, in the short run, the expected energy price of electricity increases.However, the final electricity price depends on several factors such as distribution cost, operating cost, storage cost (if any), load factor, and cost associated to switching of technology for electricity generation through total energy mix. In case of solar and wind energy generation, the technologies have grid priorities, but solar and wind are highly sensitive to weather conditions. Therefore, to make the system efficient, an energy system also depends on coal fired plant, gas fired plants, nuclear plants, biomass, hydro, etc. for meeting the energy supply needs. Based on overall capacities, investment costs, energy imports and fuel prices, the final electricity prices are decided. With the current trends in advancement of technologies, and priority for one technology over the other, the prices can still fluctuate in the future.In the current energy literature, methods available for price forecasting followed the modelling approaches that use range of variables for forecasting the possible scenarios. These scenarios and forecasting might affect an investment decisions of investors. However, the challenging future scenario in European energy mix addresses the issue of falling electricity price while the renewable energy technologies getting cheaper; which tends to freeze further investments, unless sufficient government support is available.The current study aims to explore the various economic forecasting methods presented in the literature for the purpose of energy price modelling, in different contexts, such as geographies, demand, supply, marketing, strategy, etc. The results suggest a large variation in the methodologies being used by scientists to address the issues in different countries. A wide range of variable selection approach has been observed. Our study suggests that the current market has not researched well on long run forecasting methods. This study also aims to present some thoughts on energy marketing in the context of emerging economies, such as India for the energy policy framing.

This special issue presents some of the latest energy planning-related research as presented at the 2019 International Conference on Energy & Environment (ICEE), University of Minho, Portugal, 2019. In this issue, work is presented which investigates policy initiatives’ effects on electricity prices. Other authors apply Modern Portfolio Theory to analyse the energy and environmental policies of the European Union member states. Solar thermal systems are analysed based on a novel costing methodology and lastly carbon dioxide emissions from a Portuguese energy system with further deployment of electric vehicles are assessed. International Journal of Sustainable Energy Planning and Management, Vol. 26 (2020): Special Issue from the the ICEE 2019

We question the fiscal advantage enjoyed by diesel fuel in Portugal based on economic and environmental grounds. To do so, we estimate price and income elasticities for diesel and gasoline. Our results show that diesel consumption is inelastic to price changes in Portugal, and instead, this consumption is highly dependent on economic growth, given its strong use for commercial purposes. Consequently, higher taxes on diesel are not very effective to moderate demand and would hinder firm’s competitiveness. To protect the environment other policy options should be explored, such as environmental standards and incentives to electric mobility.

Abstract This paper provides an empirical evaluation of feed-in tariff and renewable portfolio standard policies applied to onshore wind power in the EU-28 over the period 2000–2014. It allows policy-makers to know: a) if these policies have actually increased onshore wind generation capacity compared to a scenario without regulatory supports, b) which policy led to most onshore wind generation capacity, c) the impact of policy design elements on onshore wind generation capacity. The results suggest that only feed-in tariff policies and their main policy design elements (contract duration and tariff price) have significant impacts in terms of installed capacity. The establishment of a more risk-free framework would be necessary in renewable portfolio standard policies in order to increase investor confidence.

Abstract The European Union׳s commitment to increase the presence of renewable energy sources in its portfolio has resulted in better levels of security of supply, competitiveness and environmental sustainability. This proposed work reviews European legislation regarding the promotion of renewable energy sources, as well as the bibliography that applies portfolio theory methodology to energy policy. This double revision gives rise to the question whether the share limits of renewable energy technologies anticipated for the European power mix in 2020 and 2030 are actually efficient. The optimization model corrects for the attractiveness of renewable energy sources as opposed to conventional sources in terms of costs, risks and pollutant gas emissions. This model successfully and explicitly identifies the positive effect on the environment that is represented by the inclusion of renewable energy sources in the portfolio. The goal is to minimize the cost and risk that society must bear to produce electricity, in addition to compliance with European pollutant gas (CO2, SO2, NOx and PM) objectives. The results for 2020 indicate that the EU would not be able to reach its emissions reduction goals with the anticipated shares of renewable energy sources. In 2030, achieving a lower emissions portfolio would not mean taking on greater costs, although it would be necessary to assume a greater level of risk. The anticipated shares of renewable energy sources (+5%) and fossil fuel technologies (+15%) would be overdimensioned in the forecasts analyzed. In terms of technologies, both nuclear and wind energy stand out, both with shares above 20%. On the contrary, biomass and solar photovoltaic energies would be unnecessary in order to reach efficiency. In any case, one thing is clear: The EU would be the master of its energy future if it prioritizes the importance of renewable energy sources in its efficient portfolio.

The energy transition requires widespread electrification of the transport sector. To promote the penetration of electric vehicles (EVs), it is essential to understand consumers’ perceptions and behavior, particularly regarding the main determinants of EV purchase and the acceptance of electric mobility (EM). With this aim, we focused on an industrialized city in Portugal, addressing the differences between the effective ownership of an EV and the acceptability of EM and between the domestic sector (DS) and the business sector (BS) through questionnaires. Our results indicate that sociodemographic variables are the main determinants of the purchase of EVs and the acceptance of EM in the DS. Men and higher income individuals are more likely to own an EV. On the other hand, younger generations are more likely to have high EM acceptance. Individuals who already own an EV are the ones that have the desire and economic means to do so, regardless of any incentives. Still, widespread market penetration of EVs requires incentives for individuals who desire to own one of these vehicles but do not have the economic power to do so. Additionally, the DS and the BS behave differently; hence, specially designed policies are needed.

We build a general equilibrium model with renewable (non-polluting) and non-renewable (polluting) resources to analyze the interaction and compatibility between economic growth and a cleaner environment. The study is in two phases: (i) resource extraction/production costs are constant; (ii) resource producers invest in knowledge to reduce extraction/production costs, endogenizing technical change. With constant costs, there is a permanent trade-off between economic growth and a cleaner environment. With endogenous technical change, it is possible to harmonize more output and less emissions by replacing non-renewable resources for renewable ones. We also conduct a sensitivity analysis to explore three specific policy actions. With constant costs, the best policy action is the imposition of a higher renewable resources standard, while with endogenous technical change, under certain conditions, all policy interventions may benefit both the economy and the environment.

We compare the economic and environmental effects of several specifications of a green tax reform (GTR) where tax revenues are used to support renewable energy sources (RESs) and carbon capture and...

The 2008-2012 financial crisis experienced in the Europe has impacted both the politics of energy and the activity of agents that operate at the level of production, trading or distribution of energy. 2010 year marks the increasing severity and peaking of sovereign debt crisis, mainly in EU peripheral countries, but having significant economic effects on entire EU. This article characterizes the business context and presents an analysis of the environmental, social, economic and financial information, generically reported by European electric utilities in 2010 to characterize the impact of the financial crisis on their performance. European electricity utilities were chosen as the object of the present study, both because having a large impact on society, economy and environment and because integrating a regulatory and market specific context. Having to deal with a crescently challenging scenario drived by EU policies, electric utilities were also strongly affected by economic, social and financial consequences of the crisis. The use of PCA techniques allowed identifying a set of indicators representative of the drivers and challenges of that particular period of time, which was determinant for coming developments. International Journal of Sustainable Energy Planning and Management, Vol 18 (2018)