Renewable energy growth in Portugal may slow

2017 ◽  
Keyword(s):  
Renewable Energy ◽  
Wind Power ◽  
Western Europe ◽  
Public Support ◽  
Energy Sector ◽  
Electricity Prices ◽  
Content Type ◽  
Overhead Lines ◽  
Substantial Investment ◽  
Local Opposition

Subject Portugal’s renewable energy sector. Significance Portugal made international headlines in May 2016 when it was able to sustain its electricity demand solely from renewable sources for 107 consecutive hours, setting a European record. This result was the culmination of Portugal’s substantial investment in renewable energy, particularly wind power, notably under former Prime Minister Jose Socrates in 2005-11. However, investment in renewables has slowed since then. Impacts Generous renewables subsidies have contributed to rising electricity prices. New investments in the renewable energy sector are unlikely to obtain the generous public support given to wind power in 2005-11. Better interconnection with France would lower electricity prices and allow Portugal to export excess energy to central and western Europe. However, there is local opposition to overhead lines to France, so more expensive underground lines may be the most feasible option.

scholarly journals Firm performance and diversification in the energy sector

2020 ◽  
Vol 46 (11) ◽  
pp. 1373-1390
Author(s):  
Wim Westerman ◽  
Adri De Ridder ◽  
Marijn Achtereekte
Keyword(s):  
Renewable Energy ◽  
Firm Performance ◽  
Western Europe ◽  
Univariate Analysis ◽  
Energy Sector ◽  
Return On Assets ◽  
Content Type ◽  
Firm Strategies ◽  
Diversification Strategies ◽  
The Difference

PurposeThe study aims to fill a gap in the literature on the economic impact of industrial and international diversification on firm performance in the energy sector. Li et al. (2016) investigate firms listed in China, and this study analyzes firms listed in (Western) Europe.Design/methodology/approachA sample of 129 energy firms is extracted from Datastream and covers the period from January 2009 to December 2015. Univariate and multivariate regression analyses are used to determine a plausible relation of diversification on corporate performance. Also, the difference between renewable energy firms and conventional energy firms is explored.FindingsA univariate analysis using both return on assets and Tobin's Q as a variable shows that renewable energy firms have a higher profitability than conventional energy firms. However, a multivariate analysis does not confirm this result. The authors also document a negative relation between diversification strategies and firm performance.Research limitations/implicationsThe study uses main industry codes. Yet, one might make a distinction between renewable energy and conventional energy amounts with corporations. Also, the authors cover financial crisis years. Researchers might take into account more recent years.Practical implicationsThe findings of the study highlight the importance of short-term and long-term considerations for practitioners related to demand, the energy mix, oil prices and firm strategies.Originality/valueThe authors contribute to the debate and the literature when identifying similarities and differences between conventional energy firms and renewable energy firms in their application of diversification strategies and their (relation to) firm performance.

US financial sector may be sound, but not safe

2015 ◽  
Keyword(s):  
Renewable Energy ◽  
Productivity Growth ◽  
Fossil Fuels ◽  
Financial Sector ◽  
Energy Sector ◽  
Too Big To Fail ◽  
Carbon Pricing ◽  
Content Type ◽  
Bank For International Settlements ◽  
Oil Gas

Subject The implications of a large US financial sector. Significance The largest US banks have posted strong first-quarter earnings amid attacks by Senator Elizabeth Warren, who has presented programmes to scale back the size and influence of too-big-to-fail (TBTF) banks. However, a recent Bank for International Settlements (BIS) paper argues that the growth of large financial sectors stymies wider productivity, growth and innovation. This case could motivate policymakers of both parties to take a renewed look at the industry. Impacts Consolidation in the financial sector may be leaving the industry vulnerable to future shocks. The energy sector could be the next bubble, as renewable energy and carbon pricing could drive oil, gas and coal companies into bankruptcy. This would imperil the 6 trillion dollars of global investment into fossil fuels since 2007.

Implementation of a balanced scorecard for hybrid business models – an application for citizen renewable energy companies in Germany

2017 ◽  
Vol 11 (3) ◽  
pp. 426-443 ◽  
Author(s):  
Franziska Kahla
Keyword(s):  
Renewable Energy ◽  
Strategic Management ◽  
Citizen Participation ◽  
Balanced Scorecard ◽  
Business Models ◽  
Energy Sector ◽  
Bottom Line ◽  
Management Tools ◽  
Content Type ◽  
Energy Companies

Purpose This paper aims to introduce strategic management tools for companies with hybrid business models, for example, those with citizen participation. These models are often used of citizen renewable energy companies that have become a main pillar of the energy sector in Germany in recent years. The strategic management tools proposed here could help to achieve most of their objectives. Design/methodology/approach In the first step, a definition of hybrid businesses is derived by literature review, and the importance of strategic management in companies with citizen participation is discussed. In the next step, a new construct of a balanced scorecard (BSC) model is applied to citizen renewable energy companies by using survey data and previous studies. Findings Companies with citizen participation differ from profit-seeking companies and nonprofit organizations, and they are described by new hybrid business models. This study shows with a modification of the BSC that social or environmental aims are as important as financial ones to companies with citizen participation, which follow a double bottom line approach. Practical implications Hybrid businesses are important for the German energy sector, and strategic management tools are needed for their continued success and competitiveness. This paper can be a starting point for the management who want to implement these tools. Originality/value The paper addresses a gap in the strategic management literature on companies with citizen participation. The tools developed here can be modified for other hybrid businesses.

Stock market reactions to layoff announcements – analysis of the renewable energy sector

2017 ◽  
Vol 11 (2) ◽  
pp. 311-328 ◽  
Author(s):  
Stephan Kunert ◽  
Dirk Schiereck ◽  
Christopher Welkoborsky
Keyword(s):  
Renewable Energy ◽  
Stock Market ◽  
Capital Market ◽  
Abnormal Returns ◽  
Shareholder Wealth ◽  
Energy Sector ◽  
Market Reactions ◽  
Content Type ◽  
The Public ◽  
Stock Market Reactions

Purpose This study aims to analyze stock market reactions to layoff announcements in the renewable energy sector. The global renewable energy sector and most of the producers of wind and solar energy equipment are struggling. While changes in the regulation and in the promotion of energy production from renewable sources reduced the attractiveness of these technologies, many involved companies had to downsized their workforce to increase performance. The public often perceives these announcements as a way of increasing shareholder wealth at the cost of the employees. Support for this claim is often given in the form of isolated case study considerations. However, the case may be different for the renewable energy sector as changes in the overall institutional environment have sustainably deteriorated the prospects of this industry. Design/methodology/approach This study analyses stock market reactions of 65 layoff announcements made by companies in the renewable energy industry in the years from 2005 to 2014. The reactions are measured by cumulative abnormal returns, which are obtained by using the event study methodology. Findings It shows a significantly negative market reaction to the announcement of a layoff plan on the event day. The findings are generally in line with our expectations and underline the negative perspectives of the sector from a capital market point of view and the declining importance of the sector with respect to employment numbers. Originality/value The results of this study are important for investors when estimating the capital market reactions to layoff announcements and when they form their own expectations regarding possible future layoff announcements. For the public, the results are of interest as the prejudice, that layoff plans are used to increase shareholder wealth, can be dismantled. The opposite is shown.

Renewable energy growth faces questions in Chile

2016 ◽  
Keyword(s):  
Renewable Energy ◽  
Fossil Fuels ◽  
Commodity Prices ◽  
Rapid Expansion ◽  
Electricity Prices ◽  
Content Type ◽  
Energy Growth ◽  
The Face ◽  
Almost All ◽  
Export Industries

Subject The rapid expansion of renewable energy in Chile. Significance A tender for power purchase agreements (PPAs) with Chile's main distributors, scheduled for late July, will be an important test not only of future electricity prices but also of the ability of the country's non-conventional renewable energy (NCRE) sector to maintain its rapid growth in the face of cheaper conventional fuels. NCREs offer many immediate advantages by way of supply diversification -- in a country that has to import almost all its fossil fuels -- and mitigation of greenhouse gas emissions. Impacts Government studies suggest that, by 2035, NCREs could be producing 40% of Chile's electricity. NCRE projects are boosting competition in Chile's electricity industry, previously dominated by a handful of players. Cheaper electricity is helping to cushion export industries, including mining, against lower commodity prices.

scholarly journals Review of the Legislative Framework for the Remuneration of Photovoltaic Production in Spain: A Case Study

2020 ◽  
Vol 12 (3) ◽  
pp. 1214 ◽  
Author(s):  
Patricia Blanco-Díez ◽  
Montserrat Díez-Mediavilla ◽  
Cristina Alonso-Tristán
Keyword(s):  
Renewable Energy ◽  
Electricity Market ◽  
Public Support ◽  
Real Data ◽  
Energy Sector ◽  
Electricity Production ◽  
Economic Losses ◽  
Economic Returns ◽  
Legislative Framework ◽  
Photovoltaic Plant

Spain is among the European countries with the greatest photovoltaic potential. During the first decade of the 2000s, Spain was a European leader in installed photovoltaic power and job creation in the renewable energy sector, strongly influenced by a very favorable regulatory framework and public subsidies at a time of economic growth. That situation would be completely reversed with the regulatory changes introduced in 2012 to combat the tariff deficit and the instability in the electricity supply system, problems accentuated by the economic crisis. The main objective of this study is to present an exhaustive review of the legislative changes that have affected photovoltaic energy in Spain. Using real data on electricity production and the remuneration of a typical photovoltaic plant, we show that there was a very significant fall in the economic returns that investors had come to expect, within a system that prioritized, first and foremost, the initial investment rather than the levels of electricity production. The changes to the legislative framework affecting a typical 100 kWp photovoltaic (PV) facility that entered into service before 2007 provoked a significant decrease of 8.7% in expected revenues, calculated from real data of production and income. These economic losses can be even higher, with a drop in revenue of almost 25% if the entire period of the installation’s useful life is analyzed. Public support for renewable energy is important for its introduction into the electricity market, but so is regulatory stability that offers investment security and predictability for maintaining investment and development in the renewable energy sector.

Current scenario of wind power in India, government policies, initiatives, status and challenges

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anand Vijay Satpute ◽  
E. Vijay Kumar
Keyword(s):  
Renewable Energy ◽  
Wind Energy ◽  
Wind Power ◽  
Social Life ◽  
Turbine Blades ◽  
Clean Energy ◽  
Government Policies ◽  
Energy Crisis ◽  
Role Of Government ◽  
Content Type

Purpose This paper aims to review the role of government initiatives for the development of wind power industries in India, to provide better and benevolent policies in the production of wind energy density and to maximize the use of the renewable source of energy which permits to reduce carbon emission from the coal-based power plant and to curtail tackle need of society and mitigate poverty. Design/methodology/approach The present study is carried out on the current position of wind power generation in India. Government policies for promoting clean energy and associated problems are also analysed herein detail. However, secondary approaches are opted in terms of alertness of caring for the environment hazardous and reduced the major economies aspects by fulfilling the schema of Kyoto Protocol and Paris Agreement, United Nations Framework Convention on Climate Change. Findings The prospective of wind energy generation is huge, as an ancient source of energy, wind can be used both as a source of electricity and for agricultural, irrigation uses. The study of wind turbine blades and its features showed how it can be properly fabricated and used to extract the maximum power, even at variable and low wind speeds. Research limitations/implications Although India has achieved a remarkable advancement in wind power sectors, it needs to eradicate all the loopholes to evolve as super power in wind energy sector leaving behind its rivalry China. To do this, it is required to develop in many fields such as skilled manpower, advancement in research and development, grid and turbine installation, proper distribution, smooth land acquisition, modern infrastructure, high investment and above all industry friendly government policy. Practical implications The present study finds out effects of wind power energy as a source of renewable energy to mitigate energy crisis. Social implications As a source of renewable energy and cost effectiveness, wind power can be evolved as a potential means enhance social life. Originality/value The present paper caries out critical analysis for the active use of renewable energy in the present and forthcoming days. Such unique analysis must help India as a developing nation to balance its energy crisis.

scholarly journals Making the most out of renewable energy opportunities

2019 ◽  
Vol 13 (1) ◽  
pp. 212-228
Author(s):  
Michel Leseure ◽  
Dawn Robins ◽  
Graham Wall ◽  
Dylan Jones
Keyword(s):  
Decision Making ◽  
Renewable Energy ◽  
Energy Policy ◽  
Social Acceptance ◽  
Energy Sector ◽  
Strategic Decision ◽  
Negative Consequences ◽  
Coastal Regions ◽  
Content Type

Purpose Offshore renewable energy technologies provide many new opportunities for coastal regions around the world, and although the energy policy literature has documented the success stories of many “first mover” regions, there is little guidance for “second mover” or “follower” regions. This paper aims to investigate the strategic challenges faced by coastal regions in the Channel area that are not first movers. Design/methodology/approach The authors use a multiple case study approach to analyse the behaviour of regional stakeholders when planning and assessing their participation in the renewable energy sector. Findings The paper reveals the tendency of regional planners to idealise investments in renewable energy. The negative consequences of idealisation are inadequate strategic visions. Research limitations/implications The findings are only relevant in the context of the regions that are part of the case study. Practical implications The paper illustrates how idealisation of technology or strategy is created and how it impacts strategic decision-making. It also discusses how to address idealisation. Social implications Although much of the energy policy literature discusses the challenge of social acceptance, this paper documents an opposite phenomenon, idealisation. There is a need in the energy sector to find a middle ground between these two extremes. Originality/value The paper provides evidence and a theoretical analysis of a decision-making bias, idealisation, which is not discussed in the literature.

Project feasibility analysis economic model for private investments in the renewable energy sector

2018 ◽  
Vol 8 (2) ◽  
pp. 215-230 ◽  
Author(s):  
Norayr Badasyan
Keyword(s):  
Renewable Energy ◽  
Public Sector ◽  
Energy Sector ◽  
Feasibility Analysis ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Content Type ◽  
The Public ◽  
Private Investments ◽  
Country Specific

Purpose The purpose of this paper is to explore the financial and economic aspects of the renewable energy sector aiming to develop and present a project feasibility analysis model that allows the public sector to master plan socially beneficial infrastructure projects and to find financially viable options for private investments. This paper develops a general frame that can be harmonized to a certain project by applying relevant country specific schemes. Design/methodology/approach The cost-benefit analysis (CBA) approach is used to develop relevant formulas aiming to compare the economic internal rate of return (EIRR) and financial internal rate of return (FIRR) of the possible investment options. The IRR method is used for the development of a platform that will allow comparing different project alternatives and choosing an optimal model for both public and private partners. A case study approach from Uzbekistan is used to highlight the implementation possibilities of the model based on a certain country example. Findings This paper develops a decision-making frame allowing the public sector to find organizational options that provide economically viable projects and at the same time attract private investors in the latter. The designed map of possible benefits, costs and revenue mechanisms allows practitioners to analyze the economic and financial viability of the existing combinations by using the developed model. Practical implications The developed model will allow the public sector to use the needed data on different possible design models in the developed formulas in order to identify the EIRR and FIRR of each option. Nevertheless, the application of the model will be possible after considering country specific options needed for CBA. The private sector can use the model to identify the financially acceptable options for the investments. Originality/value The paper provides the decision makers with a sound tool to identify the possible combinations of the options to conduct a relevant project with private investments in the renewable energy sector and to choose the model that generates the highest social welfare.

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