• Energy Research
• 2016-2025close

Our paper focuses on assessing the role of state funding in supporting wind energy projects with a focus on economic efficiency and risk assessment. In particular, we analyze the new program aimed at supporting Russian renewable energy (RE) projects envisaged for the period from 2024–2035 that involves a reduction in investments in such projects and the introduction of large fines for non-compliance with regulatory requirements for localization and export. These strict rules imposed by the regulatory authorities, as well as the withdrawal by foreign manufacturers of equipment for renewable energy from the domestic energy market, put into doubt the economic feasibility of the participation of sector players in state-supported programs. Our paper assesses the economic justification for the practicality of the Russian energy market to implement renewable energy projects under the influence of negative environmental factors and the reduction of state support programs. We employ a case study of wind energy projects carried out in 2018–2020 as a part of the first sector support program. Our methodology is based on the calculations of the classical indicators of economic efficiency of projects (NPV, IRR, and DPP). Our own approach reveals that these indicators are supplemented by taking into account the cost of specific political, environmental, and economic risks of wind energy projects. Our results reveal that, at the moment, Russian wind energy projects in various scenarios retain a sufficient margin of financial strength and are able to withstand a reduction in the amount of financial support from the state. Our findings allow the formulation of some practical recommendations for reducing the share of governmental support for wind energy projects on the local energy market as a measure of cutting costs and increasing overall economic efficiency.

Economic sanctions between the European Union and Russia have significantly changed trade relations between them, while there are controversial assessments of sanctions’ impact on both economies. Russian import ban has changed domestic producer prices in Russia, offering domestic producers a unique opportunity. There is an opinion that increasing self-sufficiency supports sustainable growth in agricultural production. At the same time, there is question of when and whether Russian import ban will be lifted? This paper offers an overview of changes in milk producer prices and support for milk producers in Russia in the period after the Russian import ban. We argue that currently the Russian Government has little incentive to lift import ban for milk and dairy products, as state support of agricultural producers has been decreased in significance for producers and was replaced by market prices support. Main findings suggest that all Russian federal regions experienced significant increases in transfers to producers from consumers; however, the pace of the increase appears to be different across regions. Paradoxically, the Western sanctions helped Russian milk and dairy industry to strengthen its position.

Currently, there is a growing number of studies related to assessing the cost-effectiveness of renewable energy projects around the world. This topic is also very relevant for the Russian energy market that is otherwise dominated by oil and gas. The Russian Ministry of Energy forecasts that local power plants running on the renewable energy sources (RES) may not become economically efficient until 2025 or later. However, a research question arises: Is it possible to effectively implement RES projects in Russia without any state support? In order to answer this question, the authors need to assess the economic feasibility of seven scenarios for the construction of a solar power plant in the Orenburg region of Russia. The methodological basis of this work is the widely used in the energy sector classic method of investment analysis based on the calculation of discounted indicators: net present value (NPV), payback period (DPP) and internal rate of return (IRR) of the project. All our calculations are based on industry-specific initial capital investment estimates, energy storage equipment costs, and related annual operating costs. This led to the development of the scenarios on the basis of an analysis of the features of electricity and capacity generation in the Orenburg region, the existing options for joining the trading system of the energy market, energy storage applications, as well as the availability of the Russian government support and funding for the solar energy projects. Our results demonstrate that the economic feasibility of the development of renewable energy in Russia can become a reality. Out of the seven scenarios, three yielded the positive economic outcome (among them there were the two project scenarios without government support). These two projects featured the sale of electricity in retail markets and the installation of an additional energy storage system, despite an almost twofold increase in capital investments. The projects in question achieved the best economic results according to the three calculated criteria. In particular, the scenario that provided for the work on the retail market directly to the energy consumer receives an NPV of more than 1.5 times higher than other projects, an IRR of 10% and pays off at least 3 years faster. Achieving a positive economic result in the wholesale market was possible only in case of state support for the project. In addition, this scenario of the project numerically reached almost identical indicators, as in the case of selling energy on the retail market in the region where the power facility operates: NPV is almost 127 million rubles, IRR is within 13.9%, and DPP is 15 years. Other scenarios that do not provide for the use of energy storage systems or do not have state support for working in the wholesale market are not self-sustaining even during the 25-year life of energy equipment. These results might have practical significance and will be used in developing an approach to creating a profile of regions in terms of the advancements of renewable energy, as well as in developing strategies for the incentives of this sector in Russia.

Recent movements for the decarbonization of the electricity sector have become a priority for many countries around the world and will inevitably lead to the sharp decline of fossil-fuel-based energy. Energy from fossil fuels is to be replaced by renewable energy sources (RES), although the transition will neither be cheap nor smooth. One sustainable and environmentally friendly alternative to fossil fuels and which will take a considerable share in the increasing supply of renewable energy resources is biofuels. There are various types of biofuels used in practice; however, biodiesels represent one of the most popular and widespread ones. This paper focuses as a case study on the byproducts of Jatropha curcas, a crop and a plant that is already used for biofuel production and which is subsequently employed in electricity generation in Jatropha curcas producing regions. This paper identifies the limitations and prospects of Jatropha curcas utilization. Also, Jatropha curcas is compared to other materials suitable for biomass generation. An economic analysis for a 2 MW biofuel powerplant was conducted incorporating various market-related risks. The study shows that at current prices, net profitability can be achieved using Jatropha curcas byproducts for producing electricity.

Small Nuclear Reactors (SNR) can provide climate-neutral, stable electricity and heating if located in people’s neighborhoods close to people’s dwellings. The extensive use of SNR would reduce capacity requirements for energy transmission systems and increase the overall stability of energy grids. However, the public fear location of SNR close to their homes. This paper hypothesizes that the public acceptance of SNR in the neighborhood is contingent upon knowledge of technology, fear of nuclear energy (NE), trust in the government, the expected increase of future electricity needs and the expected ability of renewables to cover these needs, environmental and climate concerns, and media exposure. We rely upon representative survey data from the Czech Republic (N = 1,013, 51.2% female, aged 18–91, M ± SD: 47.7 ± 17.6; 19.6% with higher education). Methodologically we conduct exploratory Principal Component Analysis and a series of ordinal regressions. The results suggest that the knowledge of technology, trust in the government, the preference for NE expansion, and media exposure increased the acceptance of SNR, while fear of NE decreased SNR acceptance. The perceived replaceability of conventional energy sources with renewables decreased acceptance of SNR in most cases. Surprisingly, worries about climate change reduced the support for SNR. Women accept fewer SNRs located close to their residence compared to men. More educational effort is needed in the specifics of SNR technology and the environmental effects of SNR. Media proved to be an excellent way to start.

With the EU Green Deal initiatives, European members seek to launch the first climate neutral continent by 2050. This paper assesses the stochastic convergence of per capita energy consumption series for an illustrative sample of 15 EU countries with memberships prior to the 2004 enlargement, using data spanning the 1970–2018 period. Results from the confidence interval subsampling (asymmetric and equal-tailed) highlight that 11 out of the 15 EU series exhibit a long-run memory behaviour, while a diverging pattern was observed for the UK, Germany, Portugal, and Italy. Finally, per capita energy use series persist but fail to reveal one of the above dynamics for Ireland and Spain. Also, findings from the non-parametric Bayesian application (ANOVA/linear Dependent Dirichlet Process (DDP) mixture model) show how economic growth operates as a converging energy consumption-enabler over the long-run, from which the EU membership cannot be excluded. In particular, we highlight how the nature of energy-GDP hypotheses vary with the stochastic properties of energy use (converging behaviour with temporary shocks, converging pattern with permanent shocks, and diverging dynamic). Finally, our conclusions overcome the well-established development stage argument as we claim that countries with similar energy convergence patterns may need to adopt similar energy policies.

The production of foodstuffs for an ever-increasing population is the basic, irreducible and unalienable function of agriculture. It involves environmental impacts, including greenhouse gas emissions. This is what makes it so important to examine the levels of environmental efficiency of agriculture. As countries differ in their emission levels, it is reasonable to look for what determines them. Hence, the purpose of this study was to identify the changes in the environmental efficiency of agriculture in Visegrád Group countries and worldwide in 1961–2020. These countries share a similar economic history and demonstrate comparable environmental and geographic conditions, making it possible to pinpoint the factors responsible for how the parameters covered by the study change over time. The research used data from the FAOSTAT database. Environmental efficiency of agriculture was defined as the relationship between production volumes in kilocalories and emissions. Initially, this parameter deteriorated in the Visegrád countries, but since the late 1970s it has improved, first linked to the crisis of the socialist economy and its collapse (including a drastic decline in livestock production) and then to the implementation of CAP instruments.