• Energy Research

Bioenergy is the form of clean energy with the greatest potential for growth in Spain, especially in those regions with a large forest area and a high potential for the utilization of forest resources for energy purposes. This is the case in Galicia (a region located in northwestern Spain), where the communal management of forest resources is widespread. Within this type of management, there is a pioneering case study in which biomass energy use activities have been initiated through an international project. The possible success of this project is of great importance since it could represent an alternative to the main energy activity in the common management of forests: the production of wind energy. In recent years, and with a special increase in 2022, Galician public opinion has expressed its opposition to the implementation of new wind farms in its forests. The aim of this article is to analyze whether or not it is profitable for forest management communities to participate in bioenergy initiatives, which is a novel analysis of the Galician geographical area. For this purpose, the main economic and financial variables of the Galician forest management communities participating in the bioenergy project, SilvaPlus Project, have been analyzed, before and during their participation in the project. In addition, a financial comparison is also made with a group of Galician forest management communities without the energy use of their resources. The evolution of the relevant variables, analyzed between 2011 and 2020, shows a generally positive trend in the values of the forest communities participating in the bioenergy generation project, resulting in a positive experience, both environmentally and financially, for the forest community.

Spain is a country with a high dependence on fossil fuels. For this reason, in 2007, it implemented a bonus system that aimed to encourage the production of renewable energies, particularly photovoltaic solar energy. These production bonuses, guaranteed by the Spanish government, led to an exponential increase in the number of companies in the market and, consequently, the MWh produced. However, in 2012, given the excessive budgetary burden involved in maintaining this “feed-in tariff” system and after several years of institutional instability, the aforementioned system of incentives for phoyovoltaic (PV) energy was eliminated. This paper has tried to analyze the consequences of this institutional change, a clear example of the “hold up” problem. For this purpose, a sample of 5354 companies, which was divided, geographically, into Spanish regions and, temporarily, into three different periods, has been taken, considering diverse economic and financial variables. The results show a notable weakening of the sector that, due to the effects of the regulatory change, has lost attractiveness and profitability for investors and is consequently suffering from stagnation, which has led to the disappearance of many companies in the sector.

[Abstract]: The economic crisis in Spain (2008–2012) led to a massive decrease in the feed-in tariff on photovoltaic solar energy production, which caused stagnation in the growth of this market. The objective of this paper is to analyze how institutional changes have affected the structure of the market; for this purpose, concentration and stability indices have been calculated. The analysis period is from 2004 to 2018 and data from 5,353 firms in the sector have been used. The results of the analysis show that the incentive policy increased the degree of competition and attracted mostly small companies. This was due to the profitability guaranteed by the premiums. Despite the progressive decrease in the number of companies since the cancellation of the premium policy, concentration in the sector is low. However, from 2016 onwards there has been an increase in the degree of concentration. This is because we are facing the beginning of a new photovoltaic "boom" in Spain, this time led by large companies, attracted both by a new legislative turn and by the low costs of photovoltaic technology. Xunta de Galicia; ED431C2018/48 Xunta de Galicia; ED431E2018/07 Xunta de Galicia; ED481B2018/095 The authors acknowledge financial support from Xunta de Galicia, Spain (ED431C2018/48 and ED431E2018/07) and from the Ministry of Economy and Competitiveness, Spain (RTI2018-099225-B-100). Raquel Fernández-González also thanks for financial support of the Postdoctoral Program Xunta de Galicia, Spain under grant ED481B2018/095.

Abstract We consider a theoretical model in which non-regulated producers may use renewable and non-renewable sources to produce electricity. Renewable sources require ex ante investment and generate uncertain output with no operating costs. Non-renewable sources do not require investment (existing capacity suffices), are dispatchable, and have linear operating costs. Producers may: use only non-renewables; use renewables and dispatch non-renewables when weather is adverse for renewables; use only renewables. Dynamic pricing has no effect on the introduction of renewables in the production mix, but promotes elimination of non-renewables. Dynamic pricing increases investment in renewables if, under static pricing, producers mix both sources; and reduces investment if, under static pricing, producers only use renewables. In both cases, dynamic pricing improves welfare as consumers and producers become better off.

The Spanish turbot aquaculture sector, the largest in Europe, presents a downward trend in the number of companies that compose it, being especially affected the small companies. The reasons behind this process are mainly due to the incompleteness of its institutional framework. The lack of effective regulation, the insecurity of property rights, the lack of consensus among agents competing for coastal use and the unequal allocation of public resources through subsidies have resulted in a process of concentration that has consolidated the dominance of large companies. As a result of this process, in 2021, the sector is composed of only four companies: two small companies and two large companies. The objective of this article is to provide a valuation framework where the real options methodology is applied to one of the small companies in the market to determine its abandonment possibilities. The results obtained show that the abandon option achieves a significant value, constituting a valid option for decision-makers. Xunta de Galicia | Ref. ED481A-2018/341 Xunta de Galicia | Ref. ED481B2018/095 Xunta de Galicia | Ref. ED431C2018/48 Xunta de Galicia | Ref. ED431E2018/07 Agencia Estatal de Investigación | Ref. RTI2018-099225-B-I00

[Abstract]: Climate change is one of the greatest challenges humanity faces globally. For this reason, governmental efforts to reduce emissions of polluting gases have multiplied in the last decade. Against this panorama, petroleum companies have adopted a strategic policy focused on energy diversification, intending to contribute to sustainable development. In the case of Spain, wind energy has been one of the renewable energies that have attracted the most investment from petroleum companies. In particular, this trend is especially acute in Galicia (a region located in the northwest of Spain), since its biophysical conditions and, above all, its institutional framework for the promotion of photovoltaic energy has aroused the interest of petroleum companies. The objective of this article is to perform a feasibility análisis of an average wind project in Galicia. through the calculation of the initial investment, the necessary financing, and the preparation of balance sheets and profit and loss accounts. For this purpose, the methodology used is based on the preparation of a feasibility plan, through which the necessary investment is analyzed and the flows of receipts and payments generated by the company are considered. In this way, this analysis is intended to be useful for companies that are considering the appropriateness/inappropriateness to carry out this type of investment. The results show a high internal rate of return, which indicates the high profitability of the project. Xunta de Galicia; ED431C2018/48 Xunta de Galicia; ED431E2018/07 This research has been funded by the Conseller ıa de Cultura, Educaci on e Ordenaci on Universitaria of the Xunta de Galicia in Spain the postdoctoral grant ED481B2018/095 and the following grants: ED431C2018/48 and ED431E2018/07. In addition, this publication is part of the Spanish R&D&I project RTI2018-099225-B-I00, funded by MCIN/AEI/10.13039/501100011033/and FEDER ‘A way of doing Europe’. The authors are also grateful for the valuable contributions made by Juan Carlos López Rodríguez. España; FEDER ‘A way of doing Europe’ España; MCIN/AEI/10.13039%2F501100011033/

AbstractThe institutional framework designed to protect the environment demands a growing involvement of companies. The new environmental paradigm drives the business community to embrace corporate sustainability more broadly and effectively. This trend is especially pronounced in the petroleum sector since, to a greater degree than in other industries, modern society demands that wealth creation be conducted while guaranteeing social and environmental wellbeing. To achieve this aim, it is necessary to implement an environmental management model that links sustainability planning with a control and supervision system. One of the most effective is the Sustainability Balanced Scorecard approach. This method will be used in this article to evaluate the sustainable performance of a Spanish company whose activity is focused on the marketing and distribution of petroleum products. The objective of this article is to analyze the environmental management of the hydrocarbon company and whether the four perspectives of its strategic vision have satisfactorily incorporated variables that promote sustainability. 2021 is the reference year for the indicator values, which will be compared with the target values for 2022. The results show that, while financial performance reveals a margin for improvement, as well as staff education and training in sustainability, the degree of environmental satisfaction of consumers is acceptable.