scholarly journals Profitability Determinants of Unlisted Renewable Energy Companies in Germany—A Longitudinal Analysis of Financial Accounts

2021 ◽  
Vol 13 (24) ◽  
pp. 13544
Author(s):  
Maria-Kristiine Luts ◽  
Jyrki Savolainen ◽  
Mikael Collan
Keyword(s):  
Renewable Energy ◽  
Life Cycle ◽  
Financial Aid ◽  
Energy Production ◽  
Economic Importance ◽  
Energy Industry ◽  
The Government ◽  
Environmental Goals ◽  
Energy Companies ◽  
Climate Crisis

The fight against a climate crisis has urged nations and the global community to cut emissions and to define ambitious environmental goals. This has highlighted the importance of the renewable energy (RE) industry. Germany has been one of the most active countries in RE adoption. In this vein, the purpose of this research is to study and identify key profitability determinants of unlisted German electricity-producing RE-companies, many of which have been supported by the German Feed-in Tariff (FIT). A multi-year analysis based on panel data from 783 companies for the years 2010–2018 is used. The results show that both company- and industry-specific profitability determinants are statistically significant, but the company-specific determinants seem to be more important. The results shed new light on what drives the profitability of private German RE companies during the period of financial aid from the government and are of use to managers, regulators and investors alike, e.g., when the effects of different regulatory climates and industry environments, as well as states of business life cycle are considered. Furthermore, the implications of this study have wider environmental and economic importance as the performance of the RE companies is critical in achieving the emission targets of the energy industry and ensuring a more sustainable energy production for the future.

scholarly journals An Influence of Group Purchasing Organizations on Financial Security of SMEs Operating in the Renewable Energy Sector—Case for Poland

Energies ◽  
2020 ◽  
Vol 13 (11) ◽  
pp. 2926 ◽  
Author(s):  
Grzegorz Zimon ◽  
Marek Sobolewski ◽  
Grzegorz Lew
Keyword(s):  
Renewable Energy ◽  
Environmental Changes ◽  
Research Question ◽  
Energy Sector ◽  
Energy Industry ◽  
The European Union ◽  
Operating Cycle ◽  
Cash Conversion Cycle ◽  
Energy Companies ◽  
Renewable Energy Industry

European countries are increasingly using renewable energy. Poland is an outsider of such solutions. The Polish energy sector is primarily based on energy produced from coal. However, environmental changes and regulations of the European Union are forcing the increased use of energy from renewable sources. Renewable energy is an industry that is still developing in Poland. At the same time, Poland is a country where the political decisions of the government over the last few years have resulted in a significant limitation of the possibilities of renewable energy development. These actions have also resulted in lowering the profitability of the currently operating renewable energy enterprises, especially those from the sector of small and medium-sized enterprises. An opportunity for SMEs operating in the renewable energy sector is to merge into industry purchasing groups. The aim of the article—and at the same time the research question—is: Is it financially safer for renewable energy companies to operate within purchasing groups compared to companies operating independently in this industry? Traditional ways of purchasing can be transferred to integrated purchasing systems, which will be created by purchasing groups associating renewable energy companies. For this purpose, the financial effects of the implementation and functioning of the purchasing groups in the renewable energy sector in relation to entities operating independently were examined. In the research of renewable energy SMEs, a comparative analysis of key indicators determining the possibility of continuing the activity of these entities was made. The following indicators were examined: current financial liquidity ratio, return on sales, operating cycle, cash conversion cycle, share of receivables in current assets, share of inventory in current assets, turnover ratios, level of receivables, liabilities and profitability. The scientific literature is dominated by studies on purchasing groups in the pharmaceutical and construction industries. Thanks to the research conducted, it has been indicated that the renewable energy industry can also improve its profitability, and thus the possibility of safe continuation of operations by extending the business model to inter-entity cooperation within purchasing groups. Increasing the efficiency of individual entities of the renewable energy industry within purchasing groups becomes particularly important during the COVID-19 pandemic. Statistical analyses and their graphic presentation present the significant impact on the safety and profitability of renewable energy entities in the form of purchasing groups.

scholarly journals The Potential and Status of Renewable Energy Development in Malaysia

Energies ◽  
2019 ◽  
Vol 12 (12) ◽  
pp. 2437 ◽  
Author(s):  
Wan Syakirah Wan Abdullah ◽  
Miszaina Osman ◽  
Mohd Zainal Abidin Ab Kadir ◽  
Renuga Verayiah
Keyword(s):  
Power Generation ◽  
Renewable Energy ◽  
Natural Gas ◽  
Energy Development ◽  
Energy Industry ◽  
Energy Mix ◽  
Renewable Energy Development ◽  
Challenges And Opportunities ◽  
The Government ◽  
Current Energy

The Malaysian Government has set an ambitious target to achieve a higher penetration of Renewable Energy (RE) in the Malaysian energy mix. To date, Malaysia has approximately 2% of its energy coming from RE generation sources compared to the total generation mix and targets achieving 20% penetration by 2025. The current energy mix for Malaysia power generation is mainly provided by natural gas and coal. The discussion will cover the traditional sources of generation including natural gas, coal and big hydro stations. In addition, the paper will cover in depth the potential of RE in the country, challenges, and opportunities in this sector. This study can give an initial evaluation of the Malaysian energy industry, especially for RE and can initiate further research and development in this area in order to support the Government target to achieve RE target of 20% by 2025.

scholarly journals Level of Accumulated Depreciation of Energy Companies’ Assets

2021 ◽  
Vol 1 (1) ◽  
Author(s):  
Maria SIERPIŃSKA
Keyword(s):  
Natural Gas ◽  
Nuclear Fuel ◽  
Production Capacity ◽  
Energy Industry ◽  
Internal Source ◽  
Energy Transformation ◽  
Tax Base ◽  
Fixed Assets ◽  
Environmental Goals ◽  
Energy Companies

The paper presents the degree of accumulated depreciation of fixed assets in Polish energy companies against the background ofglobal energy companies. The coal-fired energy units used in the Polish energy industry are outdated and require replacement. Inthe course of the energy transformation, they will be replaced with energy from renewable sources, natural gas and nuclear fuel. Thetransformation of the energy sector will allow the achievement of climate and environmental goals. Depreciation charged to expenseis an internal source of financing for processes of restoration of the production capacity. However, the Accounting Act and the IncomeTax Act provide for different methods of calculating depreciation, which means that not all depreciation is tax-deductible and that itdoes not reduce the tax base. Reducing the discrepancies in legal solutions regarding the calculation of depreciation in companies maystimulate the implementation of the processes of energy transformation.

Renewable energy choices and their water requirements in South Africa

2014 ◽  
Vol 25 (4) ◽  
pp. 80-92 ◽  
Author(s):  
Debbie Sparks ◽  
Amos Madhlopa ◽  
Samantha Keen ◽  
Mascha Moorlach ◽  
Anthony Dane ◽  
...  
Keyword(s):  
Climate Change ◽  
South Africa ◽  
Renewable Energy ◽  
Life Cycle ◽  
Water Supply ◽  
Energy Production ◽  
Fossil Fuels ◽  
Sustainable Energy ◽  
Water Withdrawal ◽  
Water Requirements

South Africa is an arid country, where water supply is often obtained from a distant source. There is increasing pressure on the limited water resources due to economic and population growth, with a concomitant increase in the energy requirement for water production. This problem will be exacerbated by the onset of climate change. Recently, there have been concerns about negative impacts arising from the exploitation of energy resources. In particular, the burning of fossil fuels is significantly contributing to climate change through the emission of carbon dioxide, a major greenhouse gas. In addition, fossil fuels are being depleted, and contributing to decreased energy security. As a result of this, the international community has initiated various interventions, including the transformation of policy and regulatory instruments, to promote sustainable energy. With this in mind, South Africa is making policy and regulatory shifts in line with international developments. Renewable energy is being promoted as one way of achieving sustainable energy provision in the country. However, some issues require scrutiny in order to understand the water footprint of renewable energy production. Due to the large gap that exists between water supply and demand, trade-offs in water allocation amongst different users are critical. In this vein, the main objective of this study was to investigate and review renewable energy choices and water requirements in South Africa. Data were acquired through a combination of a desktop study and expert interviews. Water withdrawal and consumption levels at a given stage of energy production were investigated. Most of the data was collected from secondary sources. Results show that there is limited data on all aspects of water usage in the production chain of energy, accounting in part for the significant variations in the values of water intensity that are reported in the literature. It is vital to take into account all aspects of the energy life cycle to enable isolation of stages where significant amounts of water are used. It is found that conventional fuels (nuclear and fossil fuels) withdraw significant quantities of water over the life-cycle of energy production, especially for thermoelectric power plants operated with a wet-cooling system. The quality of water is also adversely affected in some stages of energy production from these fuels. On the other hand, solar photovoltaic and wind energy exhibit the lowest demand for water, and could perhaps be considered the most viable renewable options in terms of water withdrawal and consumption.

Life Cycle Assessment of Renewable Energy Production from Biomass

2018 ◽  
pp. 81-98 ◽  
Author(s):  
Lucia Lijó ◽  
Sara González-García ◽  
Daniela Lovarelli ◽  
Maria Teresa Moreira ◽  
Gumersindo Feijoo ◽  
...  
Keyword(s):  
Life Cycle Assessment ◽  
Renewable Energy ◽  
Life Cycle ◽  
Energy Production ◽  
Renewable Energy Production

scholarly journals Environmental Impact of Energy Systems Integrated with Electrochemical Accumulators and Powered by Renewable Energy Sources in a Life-Cycle Perspective

2021 ◽  
Vol 11 (6) ◽  
pp. 2770
Author(s):  
Anna Stoppato ◽  
Alberto Benato ◽  
Francesco De Vanna
Keyword(s):  
Renewable Energy ◽  
Life Cycle ◽  
Environmental Impact ◽  
Energy Production ◽  
Storage Systems ◽  
Renewable Energy Sources ◽  
Energy Systems ◽  
Energy Sources ◽  
Renewable Sources ◽  
Life Cycle Perspective

The aim of this study is to assess the environmental impact of storage systems integrated with energy plants powered by renewable sources. Stationary storage systems proved to be a valid solution for regulating networks, supporting frequency, and managing peaks in electricity supply and demand. Recently, their coupling with renewable energy sources has been considered a strategic means of exploiting their high potential since it permits them to overcome their intrinsic uncertainty. Therefore, the storage systems integration with distributed generation can improve the performance of the networks and decrease the costs associated with energy production. However, a question remains regarding the overall environmental sustainability of the final energy production. Focusing on electrochemical accumulators, the problems mainly concern the use of heavy metals and/or impacting chemical components of storage at the center of environmental hazard debates. In this paper, an environmental assessment from a life-cycle perspective of the hybrid energy systems powered by fossil and renewable sources located on two non-interconnected minor islands is presented. Existing configurations are compared with new ones obtained with the addition of batteries for the exploitation of renewable energy. The results show that, for batteries, the assembly phase, including raw material extraction, transport, and assembly, accounts for about 40% of the total, while the remaining part is related to end-of-life processes. The reuse and recycling of the materials have a positive effect on overall impacts. The results also show that the overall impact is strongly related to the actual energy mix of the place where batteries are installed, even if it is usually lower than that of the solution without the batteries. The importance of a proper definition of the functional unit in the analysis is also emphasized in this work.

scholarly journals The Effect of Technology Innovation on Corporate Sustainability in Chinese Renewable Energy Companies

2021 ◽  
Vol 9 ◽  
Author(s):  
Pei Wang ◽  
Zijin Zhang ◽  
Yeli Zeng ◽  
Shucheng Yang ◽  
Xu Tang
Keyword(s):  
Sustainable Development ◽  
Renewable Energy ◽  
Environmental Sustainability ◽  
Technology Innovation ◽  
Positive Impact ◽  
Corporate Sustainability ◽  
Moderating Effect ◽  
Government Subsidies ◽  
The Government ◽  
Energy Companies

Technology innovation has become the main driving force of China’s economic growth. Sustainable development highlights the harmonious symbiosis of the economy and the ecological environment. Renewable energy companies characterized by technology-intensive and environmental friendliness are playing an increasingly important role in achieving economic development while alleviating environmental pressure. Therefore, this paper selects the A-share renewable energy listed companies in China between 2014 and 2019 as samples, using the fixed-effect model and the logit model to explore the effect of technology innovation on corporate sustainability. We find that technology innovation has a positive effect on both financial sustainability (FS) and social and environmental sustainability (SES). Due to the imbalance of regional social and environmental development and different degrees of emphasis placed on environmental and social responsibility, the positive impact of technology innovation on SES is heterogeneous between the east and the central and west regions. Moreover, as the strategic emerging industry, although the renewable energy industry is granted lots of subsidies from the government, the results show that when government subsidies exceed the threshold, the effect of technology innovation on FS is weakened. Government subsidies have a negative moderating effect on the relationship between innovation and SES. Furthermore, we subdivide government subsidies into government subsidies beforehand (GSB) and government subsidies afterwards (GSA). We reveal that the threshold effect of government subsidies mainly comes from GSA, while the moderating effect of government subsidies is caused by GSA and GSB. This paper is an expansion and enrichment of current studies on sustainable development and also puts forward feasible suggestions for the government to formulate precise and effective subsidy policies to stimulate technology innovation.

scholarly journals The Crisis of US Coal Communities: Strategies for a Just Transition to Renewable Energy

2021 ◽  
Vol 18 (02) ◽  
Author(s):  
Grace E. Chesmore ◽  
Rachel L. Starr ◽  
Rebecca Van Hoeck ◽  
Meredith L. Ward
Keyword(s):  
Renewable Energy ◽  
Working Group ◽  
Coal Industry ◽  
Rapid Decline ◽  
Market Forces ◽  
Economic Stability ◽  
The Us ◽  
Economic Revitalization ◽  
Energy Companies ◽  
Climate Crisis

Though coal was once a leading source of energy and economic growth, negative health impacts, detrimental environmental effects, and market forces have led to a rapid decline in production. Without nationwide legislation aiding them, coal-dependent communities in the US are suffering from financial downfall during this shift. Here, we propose three policy options to uplift these communities by providing subsidies to renewable energy companies that expand operations in former coal communities, reclaim the land, and provide job retraining. These options, alongside suggested federal funding for direct community aid, work cohesively to provide a lasting source of economic stability, improve environmental and public health in former coal-dependent communities, and mitigate the climate crisis. We call upon the Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization (Interagency Working Group) to ensure the diversion of subsidies away from the coal industry and towards these efforts to promote a just transition for the affected communities.

scholarly journals Selection of the Most Sustainable Renewable Energy System for Bozcaada Island: Wind vs. Photovoltaic

2019 ◽  
Vol 11 (15) ◽  
pp. 4098 ◽  
Author(s):  
Elif Oğuz ◽  
Ayşe Eylül Şentürk
Keyword(s):  
Renewable Energy ◽  
Life Cycle ◽  
Production Process ◽  
Life Cycle Cost ◽  
Energy Production ◽  
Economic Impacts ◽  
Unit Cost ◽  
Energy Systems ◽  
Renewable Energy Systems ◽  
Photovoltaic Power

Energy production without destroying the environment has been one of the most crucial issues for people living in today’s world. In order to analyze whole environmental and/or economic impacts of the energy production process, life cycle assessment (LCA) and life cycle cost (LCC) are widely used. In this study, two distinct renewable energy systems are assessed. First, a land-based wind farm, which has been operating in Bozcaada Island since 2000, is compared to a proposed solar photovoltaic power plant in terms of Energy Pay-Back Time (EPBT) periods and greenhouse gas (GHG) emissions and life cycle cost. The energy production process including the recycling phase evaluated “from cradle to grave” using GaBi software for both cases. All scenarios are compared by considering different impact categories such as global warming potential (GWP), acidification potential (AP), and eutrophication potential (EP). Following this, levelized unit cost to produce 1 MWh electricity (LUCE) is calculated for both systems. This study revealed that LCA and LCCA are useful and practical tools that help to determine drawbacks and benefits of different renewable energy systems considering their long-term environmental and economic impacts. Our findings show that onshore wind farms have a number of benefits than proposed photovoltaic power plants in terms of environmental and cost aspects.

Internationalization to survive; the case of renewable energy companies in Spain

2017 ◽  
Vol 27 (4) ◽  
pp. 306-334 ◽  
Author(s):  
Seyed Meysam Zolfaghari Ejlal Manesh ◽  
Alex Rialp-Criado
Keyword(s):  
Renewable Energy ◽  
Small Firms ◽  
International Markets ◽  
Energy Industry ◽  
Firm Level ◽  
Sustainable Entrepreneurship ◽  
Content Type ◽  
Future Studies ◽  
Energy Companies ◽  
Renewable Energy Industry

Purpose In this study, entrepreneurial internationalization in renewable energy industry as a high-tech and emerging industry was explored. The focus of this study is on firm level factors to understand how and why these companies entered the international markets and what are their challenges and difficulties in this process. To answer these questions, two main streams of literature were used: international entrepreneurship (IE) and sustainable entrepreneurship. Design/methodology/approach Case study methodology is selected for this research. Because this subject is new and empirical researches in renewable energy industry are scarce, a method to gather research and in-depth data was adopted. Following suggestions by Eisenhardt (1989), a multiple-case design method was used with nine cases of entrepreneurial companies in renewable energy industry from Spain. Findings Results show that in renewable energy industry firms, resources and capabilities such as need for funding and rapid commercialization are key factors that encourage companies to enter the international market. However, having access to the technological knowledge cannot be a compelling reason for internationalization of renewable energy companies from Spain. Moreover, the interaction between the large and small firms is an important factor that facilitates the process of internationalization. Research limitations/implications In this study, the focus was only on firm level factors, whereas other levels of analysis such as entrepreneur, environment, policy scheme and industrial factors need further attention in future studies. Moreover, this study is only limited to Spanish companies, and future studies can be replicated in other context. Practical implications Findings of the study have significant theoretical and empirical implications. First of all, it explains the entrepreneurial internationalization by taking advantage of sustainable entrepreneurship literature. In addition, empirical results of this study are significantly important for entrepreneurs to implement effective internationalization strategy to survive. Findings of this study can help policy makers for designing a supportive scheme for further development of this industry in the international markets. Originality/value This paper explores the entrepreneurial internationalization of renewable energy companies as an emerging industry by taking advantage of two streams of literature: international entrepreneurship and sustainable entrepreneurship. The results show the phenomenon of early internationalization in pre-commercialization phase. These findings put emphasis on interaction between large and small firms in process of internationalization in this specific industry.

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