Modeling of Risk Aversion Linked to Renewable Energy Policy and Decision-Maker Behavior

This paper presents the behavior of decision makers, the possible choices and the strategies 1 resulting from the uncertainties related to the integration of renewable energies. Its uncertainties 2 are the risks associated with the volatility of renewable sources, the dynamics of energy production 3 as well as the planning and operation of the electricity grid. The goal is to model the risk-averse 4 decision-maker’s behavior and the choice of integrating renewable energies into the electrical system. 5 Following a bibliographic approach, we expose a methodology to model the decision-maker’s 6 behavior(risk aversion and predilection for risk) to risk taking. The risk-averse decision maker may 7 adopt nonlinear utility functions. Risk aversion is a behavior that reflects the desire to avoid risk 8 decisions and thus reduces the risk of adverse consequences. A decision support tool is provided to 9 the decision-maker to choose a best-fit strategy based on his preferences. The rational and risk-averse 10 decision-maker would seek to maximize a concave utility function instead of seeking to minimize its 11 cost. Taste or aversion to risk can be modeled by a thematic function of utility.

Renewable energy policy and governance in West Sumatera Province: an overview

West Sumatera Province is the province with the highest renewable energy mix target in Indonesia. To realize this target, the Province of West Sumatera has designed a policy and institutional or governance strategy. Therefore, the purpose of this paper is to see the policies and forms of governance in the development of renewable energy in West Sumatera Province descriptively. The research was conducted in a descriptive qualitative way using 2 (two) data collection techniques: Interview and Documentation Review. Policy planning that targets 1) Formulation of the legal basis for development and utilization; 2) Development of utilization areas in the form of power plants (solar cell, garbage, wind, biomass, micro-hydro, mini-hydro, water, geothermal); and 3) Empowerment of local communities to support the success of energy sustainability in renewable energy installations. However, the wide-scale of energy development requires institutional forms that involve multi-stakeholders: government bodies and non-government bodies. However, unfortunately, in its implementation, the involvement of these stakeholders in an ideal collaboration forum never happened. Stakeholder involvement is limited to official formalities. We have again found the “magical word”: the tasks, principals, and functions that hinder the movement of the bureaucracy in Indonesia.

Analysing Climate Change Mitigation Policy Options in the Renewable Energy Sub-Sector in Tanzania

Public policies influence reduction of greenhouse gas emissions. Also the extent to which policies are developed and implemented can influence the achievement of the national, regional and international climate change mitigation policy framework in the renewable energy sub-sector. This paper provides a critical overview of key policy options influencing the development of renewable energy sub-sector through climate change mitigation policy options in Tanzania. Questionnaire surveys were used to collect primary data from 100 relevant experts who represented 64 organizations in Tanzania. Secondary data were collected by literature review. The state of climate change mitigation policy options in the renewable energy sub-sector was assessed by using Statistical Product and Service Solutions (SPSS) version 26.0 and content analysis. The results showed Tanzania lacks adequate climate change mitigation policy and renewable energy policy frameworks. A specific national climate change policy and national renewable energy policy are needed to guide stakeholders to undertake climate change mitigation actions in the renewable energy sub-sector in Tanzania. Perceptions gained and recommendations made are essential for undertaking climate change mitigation actions in Tanzania, and can be relevant for other developing countries because of similar climate change mitigation contexts. Keywords: climate change, renewable energy, greenhouse gases, policies, Tanzania

The Role of Advocacy Coalitions in Shaping the Technological Innovation Systems: The Case of the Russian Renewable Energy Policy

Many hydrocarbon-rich countries have recognized the global shift towards renewable energy sources, and Russia is not an exception. Drawing on two strands of literature—technological innovation systems and the advocacy coalition framework—we investigate the roles of actors and coalitions in shaping the Russian renewable energy policy and explore why particular renewable energy sources have progressed more than others, and what the main reasons are for their sudden development. The results show that the more successful renewable energy industries are those that were promoted by influential actors from traditional energy industries. Moreover, these actors also promoted the specific design of support schemes for renewable energy policy in Russia. We discuss the importance of policy process theories for understanding energy transition studies and provide specific policy recommendations for policy creation in the renewables industry.

Renewable energy policy around the globe

Renewable energy systems (RESs) have an inherent quality of achieving independence Vis a Vis useful energy harnessing for self or localized use. At larger scale the renewable energy system allows the power generation and distribution without a significant harm to the environment. Propagation and proliferation of RESs and the Renewable Energy Technology (RET), collectively demand an effective policy making infrastructure to be in place to ensure their penetration locally and globally. Renewable Energy Policies have a great impact on how readily these systems are adopted by the investors and market, how efficient these systems are which is dependent on the research and development (R&D) of RESs, how effectively the country or region copes with the scourge of environmental harm with the use of RESs. Renewable Energy Policies also have an impact on how costly these technologies are and how these technologies fiscally benefit common man, investors and industries. Efficiency enhancement, stability and intelligent management of grids integrated with RES are also renewable policy dependent. This paper thoroughly and critically examines the importance of renewable energy policy. not just at domestic or national level but also at global level. It discusses in detail the core ingredients of renewable energy policy which were adopted in the past, which are being adopted now and which should be adopted in future. This paper also discusses policy, business and financial models; importance of tariff formulation, incentives and subsidies and a few factors which may pose a risk to the development and adoption of RESs. At the end a few suggestions have also been made which, if adopted, would help promote the RESs proliferation across the globe at a rapid pace and would ensure energy security, sustainable development and environmental conservation.

Does renewable energy policy increase energy intensity? Evidence from the ECOWAS region

Purpose The purpose of this paper is to assess how the Economic Community of West African States (ECOWAS) renewable energy policy (EREP) affects energy intensity using the difference-in-difference (DID) and the propensity score matching methods (PSM). Based on the current debates on renewable energy policies (REP) and due to the fact that energy efficiency has been a challenge for ECOWAS member states. The authors set up a framework to assess the EREP effect on energy intensity. Design/methodology/approach Using the DID and PSM approaches the paper assesses the effect of EREP on energy intensity. The following three different paths are considered: Path 1 tests the EREP effect on electricity access. Path 2 tests the use of renewable energy sources as a factor to enhance the energy intensity. Path 3 tests whether or not use of renewable energy deployment has the potential to raise the total percentage of primary energy supply. The principle is to investigate if and to what extend the EREP increases the energy intensity. Findings The results indicate that EREP has a significantly positive effect on increasing the percentage of energy intensity in ECOWAS member states that has implemented the policy, resulting for a large percentage of the population to electricity access in treated groups. Empirical estimation results largely corroborate the three paths’ hypotheses. The result indicated that the EREP has increased the percentage of electricity access throughout the region. Originality/value The paper explores a more appropriate framework to examine the effect of EREP and enriches the literature on the impact of REP by combining a policy evaluation approach (PSM-DID) method. This paper is the first to the knowledge to estimate the EREP effect by using a non-parametric approach. The majority of previous studies have focused on using case studies, exploratory analysis approaches and econometric methods.