Special Issue "Financial Development and Energy Consumption Nexus"

A special issue of Energies (ISSN 1996-1073). This special issue belongs to the section "Energy Economics and Policy".

Deadline for manuscript submissions: 31 December 2021.

Special Issue Editor

Prof. Dr. Yuriy Bilan
E-Mail Website
Guest Editor
Rzeszow University of Technology, Aleja Powstancow Warszawy 12, PL-35959 Rzeszow, Poland
Interests: economics; energy and society; energy consumtion; environmental science
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Special Issue Information

Dear Colleagues,

This Special Issue has the aim to present high-quality research on the investments in the energy sector linked to the most recent advances in the energy market development in its macro- and microeconomic aspects. The SI will be also addressing the impact of CO2, green and white certificates on electricity prices, energy market vs. economic growth issues, the impact of weather and climate conditions on energy consumption, blackout risks, the development of renewable energy, the possibility of using weather derivatives in the energy sector, and the socioeconomic and geopolitical aspects of energy security. Special emphasis is placed on different success rates and indicators of the European integration plan taking, into account the limits of countries’ energy potential. In parallel to searching for some new renewable energy strategies, some states are also eager to find the right strategy to overcome energy poverty. This matter is also covered in this Special Issue.

Prof. Dr. Yuriy Bilan
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All papers will be peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Energies is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2000 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • Financing of sustainable energy sector development
  • Responsible financing of energy sector
  • Financing of renewables
  • Financing of energy transition
  • Risks, returns, and investment across energy sectors
  • Climate change mitigation and energy investments
  • Financial measures to promote renewables and energy efficiency
  • Financial measures to promote energy security
  • Financial measures to prmote energy affordability
  • Modelling and forecasting of energy consumption

Published Papers (11 papers)

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Research

Open AccessArticle
The Impact of Weather Factors on Quotations of Energy Sector Companies on Warsaw Stock Exchange
Energies 2021, 14(6), 1536; https://doi.org/10.3390/en14061536 - 10 Mar 2021
Viewed by 282
Abstract
Recent researches on behavioral finance have tested for, among others, evidence for the relations between weather, investors’ mood, and investment decisions. Many of the researches related to the influence of some weather factors, such as sunshine duration on stock exchange returns, but there [...] Read more.
Recent researches on behavioral finance have tested for, among others, evidence for the relations between weather, investors’ mood, and investment decisions. Many of the researches related to the influence of some weather factors, such as sunshine duration on stock exchange returns, but there is no complex research taking into account a wide group of weather factors determining investors’ mood. The main goal of the article is to verify the influence of weather factors on basic market parameters of energy sector companies quoted on the Warsaw Stock Exchange. Rates of return, trading volumes, and values of trading volume are taken into account during the research. All analyses are based on econometric models assuming the existence of typical problems of estimation such as: autocorrelation of residuals, heteroskedasticity, or abnormality of residuals. The best approximation of models was obtained for GARCH (Generalized Autoregressive Conditional Heteroskedasticity) type models. Full article
(This article belongs to the Special Issue Financial Development and Energy Consumption Nexus)
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Open AccessArticle
Influence of the Share of Renewable Energy Sources on the Level of Energy Security in EECCA Countries
Energies 2021, 14(4), 903; https://doi.org/10.3390/en14040903 - 09 Feb 2021
Cited by 1 | Viewed by 410
Abstract
In this study we aimed to determine the extent to which changes in the share of renewable energy sources, their structural complex, and the level of energy security in Eastern Europe, Caucasus and Central Asia (EECCA) countries in the medium- and long-term are [...] Read more.
In this study we aimed to determine the extent to which changes in the share of renewable energy sources, their structural complex, and the level of energy security in Eastern Europe, Caucasus and Central Asia (EECCA) countries in the medium- and long-term are interconnected. The study was performed through modeling and determination of the structural characteristics of energy security in the countries. The methodology of the approach to modeling was based on solving the problem of nonlinear optimization by selecting a certain scenario. For the study, the data of EECCA countries were used. The ability of EECCA countries to benefit from long-term indirect and induced advantages of the transformation period depends on the extent to which their domestic supply chains facilitate the deployment of energy transformation and induced economic activity. This study provides an opportunity to assess the degree of influence of renewable energy sources on the level of energy security of countries in the context of energy resource diversification. The high degree of influence of renewable energy sources on energy security in the EECCA countries has been proven in the implementation of the developed scenarios for its increase. Energy security is growing. At the same time, its level depends not only on an increase in the share of renewable sources but also on the structure of energy resources complex of countries, and the development of various renewable energy sources. Therefore, today the EECCA countries are forced not only to increase the share of renewable energy sources but also to attach strategic importance to the structural content of their energy complex. Full article
(This article belongs to the Special Issue Financial Development and Energy Consumption Nexus)
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Open AccessArticle
Trade-Offs for the Optimal Energy Efficiency of Road Transportation: Domestic Cases in Developing Countries
Energies 2020, 13(24), 6538; https://doi.org/10.3390/en13246538 - 11 Dec 2020
Cited by 3 | Viewed by 609
Abstract
The increase in domestic transportation in developing countries may adversely affect the energy efficiency of road transportation due to effective productivity and carbon dioxide emissions (CO2). When evaluating quantitatively the countries on the efficiency frontier, poor efficiency can still be seen [...] Read more.
The increase in domestic transportation in developing countries may adversely affect the energy efficiency of road transportation due to effective productivity and carbon dioxide emissions (CO2). When evaluating quantitatively the countries on the efficiency frontier, poor efficiency can still be seen sometimes due to the slack available in undesirable output measures. This paper uses desirable and undesirable output variables, such as passenger-kilometers (PKM), tones-kilometers (TKM), and carbon dioxide (CO2), to compute the weakly efficient decision-making units (DMUs). The data envelopment analysis (DEA) technology is used to assess the efficiencies of the decision-making units (DMUs), which are countries in our case. Then, the trade-off method with efficient binding surfaces is used to attain the optimal efficiencies of the weakly efficient DMUs. The marginal rates aid this trade-off analysis. Resultantly, such marginal trade-offs do not deteriorate the efficiency of the DMUs below the frontier line. We calculate the maximum change (margin) in a specific variable amount when another variable’s amount is changed. Thus, such a computation gives us different margins, with which each output variable can be a traded off to bring a DMU further toward the closest optimal point possible. The marginal trade-off can help the managers and policymakers in effective decision-making, and it is further recommended to address efficiency damages (by the undesired outputs). Full article
(This article belongs to the Special Issue Financial Development and Energy Consumption Nexus)
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Open AccessArticle
Impact of Non-Financial Factors on the Effectiveness of Audits in Energy Companies
Energies 2020, 13(23), 6212; https://doi.org/10.3390/en13236212 - 25 Nov 2020
Cited by 2 | Viewed by 526
Abstract
The purpose of this study is to assess the impact of non-financial factors in the structure of a financial audit on its quality in energy companies. To assess the impact of the audit on performance indicators of companies under study, it is proposed [...] Read more.
The purpose of this study is to assess the impact of non-financial factors in the structure of a financial audit on its quality in energy companies. To assess the impact of the audit on performance indicators of companies under study, it is proposed to use the authors’ method by determining the length of the integrated audit vector as well as analysis of variance. The study was carried out on the basis of materials from five large energy (oil and gas) companies from different countries. Santos’ conversion of oil well pumps to solar power has clear environmental benefits. Gazprom’s social responsibility has, although stable, the lowest results. When conducting a financial audit, this component of performance does not have a significant impact. This explains the company’s focus on financial performance. The most effective corporate social responsibility is characteristic of Pioneer Natural Resources (PNR). In Gazprom and E.ON, despite the annual increase in financial indicators according to the classical audit option, the integrated audit vector has lesser value. Changes in the conditions for the formation of efficient activities of energy companies in the context of not only the financial component, but also sustainable development and social responsibility require the transformation of a financial audit in the context of its integration. Full article
(This article belongs to the Special Issue Financial Development and Energy Consumption Nexus)
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Open AccessArticle
Reactive Power Optimization and Price Management in Microgrid Enabled with Blockchain
Energies 2020, 13(23), 6179; https://doi.org/10.3390/en13236179 - 24 Nov 2020
Cited by 3 | Viewed by 570
Abstract
The energy market is gradually changing from centralized trading to peer-to-peer trading due to the tremendous increase in a microgrid with green energy resources. When more generating units are included in the microgrid, the possibilities of more reactive power flows exist in the [...] Read more.
The energy market is gradually changing from centralized trading to peer-to-peer trading due to the tremendous increase in a microgrid with green energy resources. When more generating units are included in the microgrid, the possibilities of more reactive power flows exist in the system that leads to high transmission loss which has to be optimized. The reactive power is one of the essential ancillary services in the microgrid towards preserving the voltage in the transmission and distribution line. The major contribution of the paper is towards managing the ancillary service in the distributed energy network economically and technically. This study aims to estimate and optimize the power loss, reactive power, and price management as well. Towards optimization, the self-balanced differential evolution algorithm (SBDE) is used in this study. A distribution system operator is involved in coordinating the sellers and buyers. The proposed layered microgrid architecture uses the blockchain technology for reactive power price management by providing transparency and security among peers. The process of converging various transactions into a block and adding in the distributed blockchain is illustrated. Multiple transactions are performed by using the proposed methodology, giving efficient energy transaction. The results show that the power loss is minimized using SBDE algorithm for different cases. Additionally, the study has demonstrated the price allocation of the optimal reactive power obtained from providers. The blockchain technology embedded in reactive power pricing will play a significant role in the evolution of traditional power distribution systems to active distribution networks. Full article
(This article belongs to the Special Issue Financial Development and Energy Consumption Nexus)
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Open AccessArticle
Energy War Strategies: The 21st Century Experience
Energies 2020, 13(21), 5797; https://doi.org/10.3390/en13215797 - 05 Nov 2020
Cited by 2 | Viewed by 668
Abstract
The purpose of this study was to identify the potential initiators of energy wars and determine their boundaries of influence through the prism of energy dependency. The study also evaluated the impact of energy resources on the economic development of 48 countries. The [...] Read more.
The purpose of this study was to identify the potential initiators of energy wars and determine their boundaries of influence through the prism of energy dependency. The study also evaluated the impact of energy resources on the economic development of 48 countries. The development priorities of those countries were substantiated through establishing the linkage between energy intensity and indicators reflecting the impact of energy resources on economic development. The study offered an energy dependence matrix, which shows which market players can actively participate in energy wars. Using data from the matrix and integrative analysis of energy dependence indicators, the energy dependence forecast was made. The forecast presents optimistic, realistic, and pessimistic scenarios for the short-term (up to 2025) and long-term (up to 2030) impacts of energy wars. The study proposes a novel approach to assessing the impact of energy wars, which implies that the consequences of energy-induced conflict should be evaluated based on forecasted and threshold values. The major threat to the global energy market was found to be political instability in energy-rich countries. The proposed methodological approach is suitable for all groups of countries and allows preventing negative consequences of energy wars through minimizing the level of energy dependence. Full article
(This article belongs to the Special Issue Financial Development and Energy Consumption Nexus)
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Open AccessArticle
The Financing of Renewable Energy Sources and the Level of Sustainable Development of Poland’s Provinces in the Area of Environmental Order
Energies 2020, 13(21), 5591; https://doi.org/10.3390/en13215591 - 26 Oct 2020
Viewed by 524
Abstract
The overall purpose of this study is to evaluate the impact of financing renewable energy sources on the assessment of sustainable development in Poland’s provinces. There are also two detailed objectives: (1) define how Polish policies are being passed on to local authorities; [...] Read more.
The overall purpose of this study is to evaluate the impact of financing renewable energy sources on the assessment of sustainable development in Poland’s provinces. There are also two detailed objectives: (1) define how Polish policies are being passed on to local authorities; (2) realize a Poland’s provinces ranking, taking into account the indicators of sustainable development, thanks to the taxonomic measure of development in the area of environmental order. This study deals with the taxonomic assessment of local sustainable development in the local administration units of Poland. To this end, the methods of linear ordering were applied for the assessment of the level of objects differentiation with the use of a closed set of statistical features. The presented analysis proved that the taxonomic distances between synthetic measures for particular provinces are considerable. The highest values of the integrated measure in 2018 were obtained by the following provinces: Podlaskie, Subcarpathian and Lubusz. It is noteworthy to point to the big changes in the ranking between 2018 and 2016. The cluster analysis showed some progress in achieving the goals of sustainable development. The group of provinces with an average level of sustainable development in 2018 included six provinces compared to two provinces in 2016. Removing one indicator from the integrated measure (the financing of renewable energy sources (RES)) led to a moderate increase in the integrated measure across all the provinces. This implies that, on average, the financing of renewable energy sources exerts increasingly smaller impacts on the level of sustainable development in Poland. Full article
(This article belongs to the Special Issue Financial Development and Energy Consumption Nexus)
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Open AccessArticle
Cost of Equity of Coal-Fired Power Generation Projects in Poland: Its Importance for the Management of Decision-Making Process
Energies 2020, 13(18), 4833; https://doi.org/10.3390/en13184833 - 16 Sep 2020
Cited by 12 | Viewed by 644
Abstract
Our knowledge of discount rates plays an important role both in the discounted cash flow decision-making process and in the later phases of a project’s lifetime. It is useful than both for management and cash-flow monitoring purposes at operating stages. Investors putting money [...] Read more.
Our knowledge of discount rates plays an important role both in the discounted cash flow decision-making process and in the later phases of a project’s lifetime. It is useful than both for management and cash-flow monitoring purposes at operating stages. Investors putting money into power generation projects expect an appropriate rate of return to compensate them for a minimum acceptable real return available in the market (risk-free rate of interest) and the project’s specific risk. Due to its essential nature in the financial and economic evaluation of projects (it is the only parameter that reflects the risk), it is reasonable to assume that investors would also be interested in constituent components of that indicator. The discount rate is one parameter in the discounted cash flow analysis that takes into account the risk of a venture. Further, the previous research in this area has focused mainly on the dimension of this variable, and the structure of this parameter has not been dealt with any other studies. The proposed idea of this study met the expectations of the industry—it aimed to present a typical project implemented in the energy industry, a relatively simple methodology that allowed estimating the components within the cost of equity capital of the enterprise. In the power generation sector, one can find various types of discount rates—assessed for multiple technologies, at different development stages, and expressed differently. Owing to the know-how and decades-long experience, coal-fired power projects’ remarks may be a good benchmark for alternative low carbon technologies. That is why, in this work, a discount rate for valuing investment in new coal-fired power projects was evaluated. This assessment was made on the “bare-bones” assumption, meaning evaluations at 100% equity, after-tax, in constant (real) currency units. The analysis of the discount rate structure was performed by applying the procedure of the classical sensitivity analysis having the accuracy of key input parameters. Finally, the risk factors within the risk-adjusted discount rate were calculated. The obtained results showed the importance of individual risk factors within the risk-adjusted discount rate used in coal energy projects, which would enable a more pragmatic approach to controlling this parameter by decision-makers and understanding the risk. Full article
(This article belongs to the Special Issue Financial Development and Energy Consumption Nexus)
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Open AccessArticle
Taxonomic Analysis of the Diversity in the Level of Wind Energy Development in European Union Countries
Energies 2020, 13(17), 4371; https://doi.org/10.3390/en13174371 - 24 Aug 2020
Cited by 2 | Viewed by 592
Abstract
In this paper, the development of the wind energy sector in 28 European Union countries in 2017 is described. By means of taxonomic methods—i.e., Ward’s method and the Wroclaw taxonomic methods—clusters of countries similar in terms of their potential and level of development [...] Read more.
In this paper, the development of the wind energy sector in 28 European Union countries in 2017 is described. By means of taxonomic methods—i.e., Ward’s method and the Wroclaw taxonomic methods—clusters of countries similar in terms of their potential and level of development of the wind energy sector in the EU are distinguished. The main purpose of the paper is to separate and cluster EU countries due to the current development potential of the wind energy sector and determinants stimulating the development of this sector. By means of the ranking methods of linear ordering (Technique for Order of Preference by Similarity to Ideal Solution—TOPSIS method), a ranking of EU countries that defines their position in the development of this very important wind energy sector was determined. The results show that the research hypothesis of a great diversity of EU countries considering the development potential of the wind energy sector is justified. The countries of the former European Union, which have focused for a long time on the development of wind energy in their energy policy and have had favorable climate and natural conditions, as well as a large social acceptance of programs supporting the acquisition of energy from renewable sources, have primacy in the development ranking of the energy sector. Additionally, new members of the union, in spite of some delays associated with the development of “green” energy, are trying to increase their energy potential in this area. The research may be extended to include further analyses regarding other renewable energy sources and take into account other European and world countries. Full article
(This article belongs to the Special Issue Financial Development and Energy Consumption Nexus)
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Open AccessArticle
Commercial Biogas Plants: Lessons for Ukraine
Energies 2020, 13(10), 2668; https://doi.org/10.3390/en13102668 - 25 May 2020
Cited by 3 | Viewed by 944
Abstract
Ukraine has enough biomass resources for biogas production. However, this energy potential is not used sufficiently. This research is aimed at examining the current experience of commercial biogas systems in the Europe Union and its adaptation for Ukraine. Special attention was paid to [...] Read more.
Ukraine has enough biomass resources for biogas production. However, this energy potential is not used sufficiently. This research is aimed at examining the current experience of commercial biogas systems in the Europe Union and its adaptation for Ukraine. Special attention was paid to economic indicators, such as specific investment costs, production costs (biogas, biomethane, and electricity), and incentives. Using statistical data for the European Union and Ukraine, the biogas potential for Ukraine (based on European experience) was determined. The economic competitiveness of biogas production was evaluated compared to alternatives, such as photovoltaic, wind power, biomass, conventional fuels, and liquid biofuels. The results showed that biogas complexes have higher specific investment costs and produce more expensive electricity. It was highlighted that agricultural residues and industrial waste are sustainable feedstocks for biogas systems. A perspective biogas plant is a plant that is an integrated part of the circular bioeconomy that is based on organic residues. Biomethane production (as a substitution for vehicle fuel) combined with capture and utilization of carbon dioxide is a more profitable pathway. Awareness and perception of the importance of biogas are key factors for the development of the biogas industry. To develop an effective strategy for the biogas industry, it is necessary to create a positive image in order to raise awareness and knowledge of biogas technologies. Full article
(This article belongs to the Special Issue Financial Development and Energy Consumption Nexus)
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Open AccessArticle
Local Green Power Supply Plants Based on Alcohol Regenerative Gas Turbines: Economic and Environmental Aspects
Energies 2020, 13(9), 2156; https://doi.org/10.3390/en13092156 - 01 May 2020
Cited by 2 | Viewed by 706
Abstract
Growing economies need green and renewable energy. Their financial development can reduce energy consumption (through energy-efficient technologies) and replace fossil fuels with renewable ones. Gas turbine engines are widely used in transport and industry. To improve their economic attractiveness and to reduce harmful [...] Read more.
Growing economies need green and renewable energy. Their financial development can reduce energy consumption (through energy-efficient technologies) and replace fossil fuels with renewable ones. Gas turbine engines are widely used in transport and industry. To improve their economic attractiveness and to reduce harmful emissions, including greenhouse gases, alternative fuels and waste heat recovery technologies can be used. A promising direction is the use of alcohol and thermo-chemical recuperation. The purpose of this study is to estimate the economic efficiency and carbon dioxide emissions of an alcohol-fueled regenerative gas turbine engine with thermo-chemical recuperation. The carbon dioxide emissions have been determined using engine efficiency, fuel properties, as well as life cycle analysis. The engine efficiency was maximized by varying the water/alcohol ratio. To evaluate steam fuel reforming for a certain engine, a conversion performance factor has been suggested. At the optimal water/methanol ratio of 3.075 this technology can increase efficiency by 4% and reduce tank-to-wake emission by 80%. In the last 6 months of 2019, methanol prices were promising for power and cogeneration plants in remote locations. The policy recommendation is that local authorities should pay attention to alcohol fuel and advanced turbines to curb the adverse effects of burning petroleum fuel on economic growth and the environment. Full article
(This article belongs to the Special Issue Financial Development and Energy Consumption Nexus)
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