scholarly journals Analysis of Competitiveness and Support Instruments for Heat and Electricity Production from Wood Biomass in Latvia

2012 ◽  
Vol 49 (2) ◽  
pp. 3-13
Author(s):  
G. Klavs ◽  
I. Kudrenickis ◽  
A. Kundzina
Keyword(s):  
Electricity Market ◽  
Cost Estimation ◽  
Renewable Energy Sources ◽  
Economic Feasibility ◽  
Electricity Production ◽  
Minor Role ◽  
Wood Biomass ◽  
Estimation Model ◽  
The Impact ◽  
Feed In Tariff

Analysis of Competitiveness and Support Instruments for Heat and Electricity Production from Wood Biomass in Latvia Utilisation of renewable energy sources is one of the key factors in a search for efficient ways of reducing the emissions of greenhouse gases and improving the energy supply security. So far, the district heating supply in Latvia has been based on natural gas, with the wood fuel playing a minor role; the same is true for decentralised combined heat-power (CHP) production. The paper describes a method for evaluation of the economic feasibility of heat and electricity production from wood biomass under the competition between different fuel types and taking into account the electricity market. For the simulation, a cost estimation model is applied. The results demonstrate that wood biomass can successfully be utilised for competitive heat production by boiler houses, while for electricity production by CHP utilities it cannot compete on the market (even despite the low prices on wood biomass fuel) unless particular financial support instruments are applied. The authors evaluate the necessary support level and the impact of two main support instruments - the investment subsidies and the feed-in tariff - on the economic viability of wood-fuelled CHP plants, and show that the feed-in tariff could be considered as an instrument strongly affecting the competitiveness of such type CHP. Regarding the feed-in tariff determination, a compromise should be found between the economy-dictated requirement to develop CHP projects concerning capacities above 5 MWel - on the one hand, and the relatively small heat loads in many Latvian towns - on the other.

scholarly journals Legal nature of the Power Purchase Agreement at the feed-in-tariff

1970 ◽  
pp. 169-174
Author(s):  
Nataliia Nykytchenko ◽  
Katerina Gordienko
Keyword(s):  
Electricity Market ◽  
Alternative Energy ◽  
Renewable Energy Sources ◽  
State Regulation ◽  
Operating Conditions ◽  
Electricity Production ◽  
Energy Sources ◽  
National Commission ◽  
Renewable Electricity ◽  
Feed In Tariff

The article analyzes the procedure of buying the electricity according to the feed-in-tariff (FIT) and the model («Typovyi») Power Purchase Agreement, in connection with the introduction of a new electricity market and the order of Renewable producers` business. Specific features of the model Power Purchase Agreement conclusion between Renewable producers and the Guaranteed Buyer are defined. It also analyzed the differences between the model Power Purchase Agreement and the oriental agreement as well as researched a mechanism of investors protection who would invest in the Renewable projects. The authors of the article have made a comparative analysis of the different Power Purchase Agreement`s editions, in particular: actual model agreement form and oriental agreement according to which the Renewable producers are no longer work but the provisions contained therein make it possible to analyze the process and the reasons for adoption of the new one form. Effectiveness of a new electricity market introduction from July 1, 2019 depends on the regulation of the activities for all the market participants. Special operating conditions have been provided for the Renewable electricity producers. In particular, with the introduction of a new market, Renewable electricity producers began to sell electricity to the Guaranteed Buyer, the successor of the SE «Energorynok». However, in order to implement the new procedure of work for the Renewable producers, the Regulator needed to approve certain regulatory acts. With this purpose, in September 2018, the National Commission for State Regulation in the Fields of Energy and Utilities published a draft resolution «On approval of regulatory acts regulating the activity of a guaranteed buyer and purchase of electricity at feed-in-tariff», which contained the form a new model contract for the sale of electricity at feed-in-tariff between a Guaranteed buyer and an entity that produces electricity using alternative energy sources as well as the order of purchase and sale of electricity at FIT. As rightly expected, the approval of these regulations is an important element not only for functioning of the new electricity market, but also for the continued growth of electricity production from renewable energy sources and attracting international investments.

Analyzing the impact of fossil fuel import reliance on electricity prices: The case of the Iberian Electricity Market

2017 ◽  
Vol 28 (7) ◽  
pp. 687-705 ◽  
Author(s):  
Blanca Moreno ◽  
María T García-Álvarez
Keyword(s):  
Carbon Dioxide ◽  
Electricity Market ◽  
Fossil Fuel ◽  
Carbon Dioxide Emission ◽  
High Energy ◽  
Electricity Production ◽  
The European Union ◽  
Electricity Prices ◽  
The Impact ◽  
The Eu

Spain and Portugal are highly dependent on energy from abroad, importing more than 70% of all the energy they consume. This high energy dependence could involve important effects on the level and stability of their electricity prices as a half the gross electricity generated in both countries came from power stations using imported combustible fuels (such as natural gas, coal and oil). In general, changes in the prices of these fossil fuels can directly affect household electricity prices, since generation costs are likely to be transmitted through to the wholesale electricity market. Moreover, in the framework of the European Union Emission Trading System, electricity production technologies tend to incorporate their costs of carbon dioxide emission allowances in sale offers with the consequent increase of the electricity prices. The objective of this paper is to analyze the influence of fossil fuel costs and prices of carbon dioxide emission allowances in the EU on the Spanish and Portuguese electricity prices. With this aim, a maximum entropy econometric approach is used. The obtained results indicate that not only the price of imported gas are very important in explaining Spanish and Portuguese electricity prices but also the price of carbon dioxide emission allowances in the EU.

scholarly journals Energy Production from Biogas: Competitiveness and Support Instruments in Latvia

2016 ◽  
Vol 53 (5) ◽  
pp. 43-53
Author(s):  
G. Klāvs ◽  
A. Kundziņa ◽  
I. Kudrenickis
Keyword(s):  
New Technologies ◽  
Local Economic Development ◽  
Renewable Energy Sources ◽  
Distribution Network ◽  
Scale Up ◽  
Electricity Production ◽  
Small Scale ◽  
Gas Distribution ◽  
Ex Post ◽  
The Impact

Abstract Use of renewable energy sources (RES) might be one of the key factors for the triple win-win: improving energy supply security, promoting local economic development, and reducing greenhouse gas emissions. The authors ex-post evaluate the impact of two main support instruments applied in 2010-2014 – the investment support (IS) and the feed-in tariff (FIT) – on the economic viability of small scale (up to 2MWel) biogas unit. The results indicate that the electricity production cost in biogas utility roughly corresponds to the historical FIT regarding electricity production using RES. However, if in addition to the FIT the IS is provided, the analysis shows that the practice of combining both the above-mentioned instruments is not optimal because too high total support (overcompensation) is provided for a biogas utility developer. In a long-term perspective, the latter gives wrong signals for investments in new technologies and also creates unequal competition in the RES electricity market. To provide optimal biogas utilisation, it is necessary to consider several options. Both on-site production of electricity and upgrading to biomethane for use in a low pressure gas distribution network are simulated by the cost estimation model. The authors’ estimates show that upgrading for use in a gas distribution network should be particularly considered taking into account the already existing infrastructure and technologies. This option requires lower support compared to support for electricity production in small-scale biogas utilities.

scholarly journals THE PARADIGM OF ECONOMIC ENERGY SECURITY BY ORIENTATION ON RENEWABLE ENERGY SOURCES

2020 ◽  
pp. 114-125
Author(s):  
Tetyana DERKACH ◽  
Denys CHEBANENKO
Keyword(s):  
Renewable Energy ◽  
National Economy ◽  
Energy Security ◽  
Renewable Energy Sources ◽  
Energy Sector ◽  
Economic Feasibility ◽  
Energy Sources ◽  
Energy Prices ◽  
Equal Distribution ◽  
The Impact

Introduction. The topic of renewable energy today is one of the most relevant and requires consideration from the point of view of all components of this process, namely economic, financial, environmental, technological, and others. The transition to renewable energy is already irreversible today since natural resources are depleted, fuel prices are the subject to significant fluctuations, and the stable growth of the national economy is ensured by energy security. The purpose. The purpose of the article is to analyze the volume of global energy consumption, to analyze the impact of the introduction of renewable energy sources on the development of the national economy, to ensure energy security with the depletion of hydrocarbon resources and a slight diversification of their suppliers. Results. Today the Ukrainian economy is the most energy-intensive. Unstable energy prices are a threat both to the global economy and to each country separately. Therefore, in the event of a decrease in the supply of traditional energy resources, the importing countries experience the greatest difficulties. The existing tendency in Ukraine to increase the consumption of traditional energy sources, combined with the absence of a targeted policy aimed at reducing the volume of environmental pollution, will lead to an increase in negative economic consequences. The advantage of renewable energy sources is their equal distribution throughout the country (with the exception of water resources). This feature leads to the formation of one of the main characteristics of power systems based on renewable energy sources, namely, their decentralization. It should be borne in mind that the world energy market is made up of state and non-state participants. Non-state participants are showing an upward trend. However, the state should have the greatest influence on the national energy sector. Renewable energy is an area that, in the Ukrainian context, depends on state support, namely economic and administrative incentives. The dynamics of the development of renewable energy should be combined with the balanced development of the fuel and energy sector in Ukraine. Conclusions. The process of development and transition to renewable energy needs a systematic approach. Both qualitative and quantitative approaches are needed to assess the transition to renewable energy. An effective strategy for the transition to the introduction of renewable energy technologies should be justified by economic feasibility. The transition from traditional energy to renewable sources should lead to energy security, which contributes to stable economic growth, political independence, and improving the quality of the environmental component.

scholarly journals Operational Planning and Bidding for District Heating Systems with Uncertain Renewable Energy Production

Energies ◽  
2018 ◽  
Vol 11 (12) ◽  
pp. 3310 ◽  
Author(s):  
Ignacio Blanco ◽  
Daniela Guericke ◽  
Anders Andersen ◽  
Henrik Madsen
Keyword(s):  
Renewable Energy ◽  
Power Systems ◽  
Power System ◽  
Electricity Markets ◽  
Electricity Market ◽  
Renewable Energy Sources ◽  
District Heating ◽  
Operational Planning ◽  
Solution Approach ◽  
The Impact

In countries with an extended use of district heating (DH), the integrated operation of DH and power systems can increase the flexibility of the power system, achieving a higher integration of renewable energy sources (RES). DH operators can not only provide flexibility to the power system by acting on the electricity market, but also profit from the situation to lower the overall system cost. However, the operational planning and bidding includes several uncertain components at the time of planning: electricity prices as well as heat and power production from RES. In this publication, we propose a planning method based on stochastic programming that supports DH operators by scheduling the production and creating bids for the day-ahead and balancing electricity markets. We apply our solution approach to a real case study in Denmark and perform an extensive analysis of the production and trading behavior of the DH system. The analysis provides insights on system costs, how DH system can provide regulating power, and the impact of RES on the planning.

scholarly journals Managing Wind Turbine Generators with a Profit Maximized Approach

2020 ◽  
Vol 12 (17) ◽  
pp. 7139
Author(s):  
Dominik McInnis ◽  
Massimiliano Capezzali
Keyword(s):  
Wind Turbine ◽  
Electricity Market ◽  
Investment Decision ◽  
Production Costs ◽  
Variable Cost ◽  
Turbine Generators ◽  
Wind Turbine Generators ◽  
Short Run ◽  
The Impact ◽  
Feed In Tariff

In Europe, at least 3 GW installed capacity of wind turbine generators (WTG) will fall out of subsidy schemes every year from 2021 onwards. An estimated 50% of this capacity cannot be replaced with new WTG due to commercial and legal restrictions. The remaining options are either to sell the electricity without subsidies on the wholesale electricity market—a novelty for most WTG, as most are receiving a feed-in tariff—or their dismantlement. Since the electricity market fixes the price at the intersection of demand and short run marginal production costs, WTG might struggle to generate enough revenues to cover their costs. This paper proposes an innovative commercialization strategy for WTG after the end of the feed-in tariff, namely a profit-maximized approach that focuses on synergies between revenues and costs when increasing the curtailments of the WTG. The two key elements of this approach are a more flexible and variable cost structure and a central overall optimization process. The paper proves the potential of this new strategy and highlights the necessity of further research for WTG at the end of their lifetime from a technical and commercial perspective, due to the impact on the initial investment decision and best allocation of subsides.

scholarly journals Considerations Regarding the Negative Prices on the Electricity Market

Proceedings ◽  
2020 ◽  
Vol 63 (1) ◽  
pp. 26
Author(s):  
Pavel Atănăsoae ◽  
Radu Dumitru Pentiuc ◽  
Eugen Hopulele
Keyword(s):  
Renewable Energy ◽  
Electricity Markets ◽  
Electricity Market ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Electricity Prices ◽  
Market Areas ◽  
The Impact ◽  
Market Coupling

Increasing of intermittent production from renewable energy sources significantly affects the distribution of electricity prices. In this paper, we analyze the impact of renewable energy sources on the formation of electricity prices on the Day-Ahead Market (DAM). The case of the 4M Market Coupling Project is analyzed: Czech-Slovak-Hungarian-Romanian market areas. As a result of the coupling of electricity markets and the increasing share of renewable energy sources, different situations have been identified in which prices are very volatile.

scholarly journals Renewable electricity in Western Balkans: Support policies and current state

2018 ◽  
Vol 22 (6 Part A) ◽  
pp. 2281-2296
Author(s):  
Nikola Rakic ◽  
Dusan Gordic ◽  
Vanja Sustersic ◽  
Mladen Josijevic ◽  
Milun Babic
Keyword(s):  
Renewable Energy ◽  
Electricity Market ◽  
Electricity Generation ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Western Balkans ◽  
Renewable Electricity ◽  
Current State ◽  
Balkan Countries ◽  
The Impact

The use of renewable energy sources for electricity generation in the Western Balkan countries is analyzed in this review paper. Since those countries are part of EU or intend to be, data for Western Balkan are also compared with data for EU-28. The first part of the paper presents a brief overview of main promotion mechanism for electricity generation from renewable energy sources. As a dominant support policy, the feed-in tariff is more elaborated as an incentive measure and a de?tailed overview of the amount of tariffs and quotas for dominant technologies in the Western Balkan countries is presented. Furthermore, the current state of installed capacities and annual productions of three particular renewable electricity technologies (small hydro power, wind power, and solar photovoltaic) are analyzed in detailes. Based on presented data, there is a discussion and consideration of the impact of incentive measures on the electricity market and power production from renewable sources.

scholarly journals Challenges in the Development of Hydropower in Selected European Countries

Water ◽  
2020 ◽  
Vol 12 (12) ◽  
pp. 3542
Author(s):  
Paweł Tomczyk ◽  
Mirosław Wiatkowski
Keyword(s):  
Renewable Energy ◽  
Energy Policy ◽  
Renewable Energy Sources ◽  
Electricity Production ◽  
The European Union ◽  
Change Factors ◽  
Hydropower Plants ◽  
Rational Management ◽  
Domestic Electricity ◽  
The Impact

Hydropower in Europe is playing an increasingly important role as a renewable source of energy. Its share of the final energy consumption varies from country to country, posing different challenges in each. The European Union member states are obliged, according to energy policy, to increase the share of renewable energy. This article presents the challenges related to the development of hydropower in four countries with different shares of domestic electricity production from hydropower plants: Albania (100% share in 2019), Slovenia (25.7%), Poland (1.1%), and Estonia (0.3%). Particular attention is paid to the issues of rational management of water resources in connection to Europe’s energy policy. As a result of the case study analysis, the challenges in the development of hydropower are identified, as well as ways to solve them. In addition, a comprehensive analysis of the impact of social, economic, environmental and climate change factors on the development of hydropower was conducted. At present, whether the assumed goals of the European Union’s energy policy will be achieved is impossible to determine for the whole of Europe. Achieving these goals will be possible only after individual countries prepare comprehensive reports on the topics of renewable energy sources, including hydropower.

scholarly journals Do They Still Matter? – Impact of Fossil Fuels on Electricity Prices in the Light of Increased Renewable Generation

2017 ◽  
Vol 9 (2) ◽  
Author(s):  
Johannes Lips
Keyword(s):  
Electricity Market ◽  
Fossil Fuels ◽  
Structural Breaks ◽  
Renewable Energy Sources ◽  
Energy Transition ◽  
Electricity Production ◽  
Test Statistic ◽  
Electricity Prices ◽  
Bootstrap Approach ◽  
The Stability

AbstractDuring the last years, the German energy sector and especially its electricity market was affected by a major energy transition, the so called „Energiewende“. This transition led to an increase of electricity production from renewable sources and thereby affected the whole electricity market. Therefore, it provides lessons for countries, which are only beginning a similar transition away from fossil fuels to renewable energy sources. The aim of this analysis is to assess if there still exists a relationship between fossil fuel and electricity prices. Due to possible structural breaks in the time series a minimum Lagrange Multiplier (LM) stationarity test is applied, which endogenously determines possible structural breaks. Subsequently a bootstrap approach is used to estimate confidence intervals (C.I.s) for the test statistic and the possible break dates. Furthermore, the stability of the cointegration vector is assessed with the test by Hansen and Johansen (

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