Energies

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43 pages, 15201 KB

Open AccessArticle

Evaluating the Impact of Energy–Cost Management on Financial and Environmental Performance Using an Exergy-Based Network DEA Framework

by Maryam Hajishams, Shahed Rasekh, Margarita Robaina and João C. O. Matias

Energies 2026, 19(11), 2694; https://doi.org/10.3390/en19112694 - 3 Jun 2026

Viewed by 252

Abstract

In the context of the energy transition and increasing environmental pressures, firms’ competitiveness increasingly depends on effective energy–cost management and environmental performance. However, integrating energy, financial, and environmental dimensions into performance evaluation remains methodologically challenging. This study develops an exergy-based two-stage Network Data [...] Read more.

In the context of the energy transition and increasing environmental pressures, firms’ competitiveness increasingly depends on effective energy–cost management and environmental performance. However, integrating energy, financial, and environmental dimensions into performance evaluation remains methodologically challenging. This study develops an exergy-based two-stage Network Data Envelopment Analysis (NDEA) framework linking energy and cost management in Stage 1 to financial performance under environmental constraints in Stage 2. Using Refinitiv/London Stock Exchange Group (LSEG) data for 45 firms across 18 industries in Portugal and Spain in 2023, the model integrates thermodynamic, financial, and environmental indicators within a unified efficiency framework. The Exergy-to-Sales ratio serves as a fixed intermediate link between thermodynamic and financial efficiency. Results show that incorporating environmental performance increases the number of fully efficient firms in overall efficiency from 3 to 5, while 27 firms move closer to the efficiency frontier. The environmental specification reduces the average improvement required for Return on Sales (ROS) and Return on Equity (ROE) but increases the adjustment needed for Return on Assets (ROA), indicating heterogeneous profitability responses. The study contributes to sustainable performance assessment literature by integrating exergy analysis and NDEA within a unified decision-support framework for managers and policymakers pursuing competitiveness and decarbonization objectives. Full article

(This article belongs to the Special Issue Energy Economics, Finance and Policy Towards Sustainable Energy—3rd Edition)

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27 pages, 1671 KB

Open AccessArticle

Adequacy Costs of CCGTs in Portugal: Calculating CONE and CORP to Inform Capacity Mechanisms

by Miguel Gaspar and Rui Castro

Energies 2026, 19(10), 2358; https://doi.org/10.3390/en19102358 - 14 May 2026

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Abstract

The European energy transition is rapidly reducing the role of fossil-based generation, raising concerns about system adequacy and the financial sustainability of dispatchable plants. Combined Cycle Gas Turbines (CCGTs) remain essential to ensure grid flexibility and security of supply, particularly in markets with [...] Read more.

The European energy transition is rapidly reducing the role of fossil-based generation, raising concerns about system adequacy and the financial sustainability of dispatchable plants. Combined Cycle Gas Turbines (CCGTs) remain essential to ensure grid flexibility and security of supply, particularly in markets with high renewable penetration such as Portugal. This paper applies the European Union’s adequacy assessment methodology to compute the Cost of New Entry (CONE) and the Cost of Renewal or Prolongation (CORP) for CCGTs, establishing the minimum annual revenues required for new investments and for extending the lifetime of existing units. A simplified market closure algorithm is developed using 2023 MIBEL data to estimate CCGT revenues under current conditions. Results show that annual market revenues (about 20 k€/MW) are far below the calculated thresholds of 123 k€/MW for CONE and 39 k€/MW for CORP, revealing a substantial investment gap. These results suggest the need for capacity remuneration mechanisms (CRMs) to maintain existing plants and attract new capacity. Indicative values of about 103 k€/MW/year for new entrants and about 20 k€/MW/year for renewals are obtained, which should be interpreted as order-of-magnitude estimates rather than direct payment levels for market implementation. The findings highlight the critical role of CRMs in guaranteeing energy security during the decarbonization process and provide policy-relevant benchmarks for Portugal and other EU countries facing similar challenges. Full article

(This article belongs to the Special Issue Energy Economics, Finance and Policy Towards Sustainable Energy—3rd Edition)

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24 pages, 1690 KB

Open AccessArticle

Quantifying the Trade-Offs Between Clean-Energy Expansion and Land Requirements: Evidence from Greece

by Diamantis Koutsandreas, Armin Ardehali, Spyros Giannelos and Danny Pudjianto

Energies 2026, 19(10), 2261; https://doi.org/10.3390/en19102261 - 7 May 2026

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Abstract

Land availability is a critical dimension in high-renewable power generation strategies, as renewable technologies typically require substantially more area for infrastructure deployment and operational spacing than incumbent fossil-fuel-powered technologies. Land use has mainly been considered in energy system modeling studies as a post-processing [...] Read more.

Land availability is a critical dimension in high-renewable power generation strategies, as renewable technologies typically require substantially more area for infrastructure deployment and operational spacing than incumbent fossil-fuel-powered technologies. Land use has mainly been considered in energy system modeling studies as a post-processing evaluation, at a sub-national scale, or in non-Mediterranean regions. Consequently, there remains a gap in endogenizing land requirements within an energy planning optimization model for a Mediterranean country with high renewable potential, thereby allowing examination of the trade-offs between land use, mitigation and economic efficiency. In this study, we address this gap by focusing on the Greek power system, developing alternative land supply curves, and integrating them into an optimization model for the Greek power sector (OSeMOSYS-Greece). This approach generates a large ensemble of mitigation scenarios with varying land intensities and cost requirements. The results highlight strong substitution effects between land-intensive and less-land-intensive renewable technologies. Notably, onshore wind power generation is found to decline by up to approximately 70% by 2050 between the land-unconstrained case and the most stringent land-constrained scenario, chiefly substituted by offshore wind and, to a lesser extent, solar PV. Furthermore, under integrated energy-land planning, land occupation for power generation can be reduced to 3% of Greece’s total land area by 2050, compared to around 11% under a land-unconstrained pathway. Full article

(This article belongs to the Special Issue Energy Economics, Finance and Policy Towards Sustainable Energy—3rd Edition)

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22 pages, 2609 KB

Open AccessArticle

Financing the Clean Energy Transition: A Spatial Analysis of Green Finance and Energy Poverty

by Hong Yi, Yanan Hao, Yongcang Wang and Ziyu Zhang

Energies 2026, 19(8), 1825; https://doi.org/10.3390/en19081825 - 8 Apr 2026

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Abstract

Green finance seeks to reconcile economic expansion with environmental protection and may, by relaxing financing constraints on clean-energy projects, contribute to lower energy poverty. Using provincial panel data from China over 2010–2019, this study examines the relationship between green finance development and energy [...] Read more.

Green finance seeks to reconcile economic expansion with environmental protection and may, by relaxing financing constraints on clean-energy projects, contribute to lower energy poverty. Using provincial panel data from China over 2010–2019, this study examines the relationship between green finance development and energy poverty and evaluates potential spatial spillovers. The results show that green finance development is negatively associated with energy poverty, and this relationship remains statistically robust in dynamic-panel specifications estimated using system generalized method of moments (system GMM). Mechanism analyses further provide suggestive evidence that this negative association may operate partly through greater energy-supply investment and improved energy-infrastructure conditions. Spatial econometric evidence also indicates the presence of spillover effects: improvements in green finance in one province are associated with lower energy poverty in neighboring provinces. These findings imply that efforts to eradicate energy poverty should explicitly incorporate green finance, recognize regional heterogeneity in green finance development, and improve the transmission of green finance into tangible investment in clean energy and energy infrastructure. Interprovincial policy coordination is also warranted given spatial interdependence. Full article

(This article belongs to the Special Issue Energy Economics, Finance and Policy Towards Sustainable Energy—3rd Edition)

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23 pages, 491 KB

Open AccessArticle

The Influence of Financial Development on Renewable Energy Consumption: A Nonlinear Analysis from a Global Perspective

by Xiaoxin Ma, Xin Zhang and Qian Mao

Energies 2026, 19(8), 1822; https://doi.org/10.3390/en19081822 - 8 Apr 2026

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Abstract

Financial development is widely regarded as an important factor influencing renewable energy consumption. Nevertheless, empirical studies conducted by various scholars have revealed that the effect of financial development on renewable energy consumption remains controversial. Based on this backdrop, this paper endeavors to analyze [...] Read more.

Financial development is widely regarded as an important factor influencing renewable energy consumption. Nevertheless, empirical studies conducted by various scholars have revealed that the effect of financial development on renewable energy consumption remains controversial. Based on this backdrop, this paper endeavors to analyze the nonlinear influence of financial development on renewable energy consumption from the perspective of moderating effects. First of all, this paper theoretically analyzes the potential moderating effects of financial development itself, urbanization, and environmental regulation on the impact of financial development on renewable energy consumption. Subsequently, leveraging the Panel Smooth Transition Regression (PSTR) model and the global panel data of 143 countries from 1996 to 2020, the empirical tests are conducted to verify these moderating effects. The results indicate that the variations in moderating variables can lead to disparities in the influence of financial development on renewable energy consumption. Specifically, with the increase in financial development level, urbanization rate, and environmental regulation intensity, the promoting effect of financial development on renewable energy consumption gradually strengthens. Finally, based on the aforementioned research findings, this paper proposes corresponding policy recommendations from the perspectives of these moderating factors. Full article

(This article belongs to the Special Issue Energy Economics, Finance and Policy Towards Sustainable Energy—3rd Edition)

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24 pages, 567 KB

Open AccessArticle

Fueling or Impeding the Green Shift? The Role of Energy Price Dynamics in Shaping Sustainable Industrialization (SDG 9)

by Adeel Riaz, Cuijian Zhong and Assad Ullah

Energies 2026, 19(7), 1796; https://doi.org/10.3390/en19071796 - 7 Apr 2026

Viewed by 490

Abstract

As escalating energy prices challenge global efforts toward sustainable development, the intricate relationship between energy costs and industrial transformation stands at the forefront of economic and environmental policy debates. Against this backdrop, this study explores the impact of energy prices on sustainable industrialization [...] Read more.

As escalating energy prices challenge global efforts toward sustainable development, the intricate relationship between energy costs and industrial transformation stands at the forefront of economic and environmental policy debates. Against this backdrop, this study explores the impact of energy prices on sustainable industrialization in 32 OECD countries for the period of 2000–2021 by employing linear and non-linear models. Our findings indicate that energy prices are negatively associated with sustainable industrialization. Meanwhile, trade openness and economic development promote sustainable industrialization. Heterogeneity analysis indicates that developed and more open economies are better at utilizing and directing the resources towards industrial sustainability. Our findings further suggest that pursuing sustainable industrialization depends on a balanced policy strategy that incorporates energy prices in industrial and environmental settings. Policymakers should also promote the shift to renewable energy, use trade liberalization to support sustainable technology adoption, and redirect economic growth into innovation-based and sustainable industries. By addressing the challenges of rising energy prices while focusing on the favorable effects of trade and income, OECD countries can move toward a more stable and sustainable industrialization structure. Full article

(This article belongs to the Special Issue Energy Economics, Finance and Policy Towards Sustainable Energy—3rd Edition)

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17 pages, 1064 KB

Open AccessArticle

The Relationship Between Energy Dependency, Energy Diversification, and Economic Growth: Assessing Energy Resilience in Europe

by Levente Dimen, Khatira Huseynova, Abdin Muhammadali, Alida Huseynova, Emin Aslanov, Nargiz Hajiyeva and Alina Cristina Nuta

Energies 2026, 19(7), 1723; https://doi.org/10.3390/en19071723 - 1 Apr 2026

Viewed by 714

Abstract

Several successive crises during the first three decades of the third millennium created the premises for a world that, after expanding international relations, entered a new reality of slowbalization or deglobalization, shaping new development paradigms for national economies. In this context, where economic [...] Read more.

Several successive crises during the first three decades of the third millennium created the premises for a world that, after expanding international relations, entered a new reality of slowbalization or deglobalization, shaping new development paradigms for national economies. In this context, where economic activity remains highly sensitive to energy market disruptions and strategic resource constraints, nations seek new opportunities to reduce their foreign dependencies through energy diversification and a green transition. Nations are seeking strategies to leverage their advantages and moderate their weaknesses. This research evaluates the relationship between energy-related features and economic growth in a complex context, describing dependency on foreign markets. Furthermore, the study discusses the effects of a selection of variables describing the green transition (energy import dependency, energy diversification, and the share of renewable energy) on economic growth. The data covers the period between 1995 and 2024 for 25 European countries. The study uses cross-sectionally ARD (CS-ARDL) for the main empirical analysis and augmented mean group (AMG) to check the robustness of the main results. Furthermore, the method of moments quantile regression (MMQR) is employed to capture the impact more precisely across various stages of countries’ development. The findings suggest a direct relationship between employment and renewable energy adoption across all quantiles. Moreover, the negative coefficient for the energy dependency in the first quantile documents an increased sensitivity of less developed economies to energy market uncertainties. Full article

(This article belongs to the Special Issue Energy Economics, Finance and Policy Towards Sustainable Energy—3rd Edition)

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21 pages, 607 KB

Open AccessArticle

The Interplay Between Economic (In)Security and Energy Dependency: An Analysis of EU Countries

by Laura Diaconu (Maxim), Cristian C. Popescu and Andrei-Ionut Pricop

Energies 2026, 19(5), 1384; https://doi.org/10.3390/en19051384 - 9 Mar 2026

Viewed by 559

Abstract

This article aims to analyze the impact of the energy sector on the economic security of European households over the period 2010–2023, addressing an important gap in the literature since there is no EU cross-country evidence linking energy dependence on non-EU countries to [...] Read more.

This article aims to analyze the impact of the energy sector on the economic security of European households over the period 2010–2023, addressing an important gap in the literature since there is no EU cross-country evidence linking energy dependence on non-EU countries to a multidimensional measure of household economic insecurity over a long-time span. To achieve our goal, the dependent variable considered was an aggregate index of economic insecurity developed in previous research and constructed based on three fundamental dimensions: basic needs of the household, household fragility, and the burden of unemployment. Subsequently, panel data regression analysis with fixed effects was performed (considering 23 EU countries and the time period 2010–2023). The results highlight how more energy dependency on third countries could lead to more economic insecurity for European households. The robustness tests confirmed the initial results and underlined structural differences between countries. The research demonstrates how the energy dependence of EU states on countries outside the EU could have serious repercussions on the long-term economic security of Europeans, but, at the same time, this can be counterbalanced by a possible shift towards domestic renewable energy sources. Based on these results, both our hypotheses were confirmed. Full article

(This article belongs to the Special Issue Energy Economics, Finance and Policy Towards Sustainable Energy—3rd Edition)

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