Search Results (52)

This article examines the growing relevance of photovoltaic (PV) energy amid rising electricity demand, sustainability goals, and the need for flexible energy management in households and enterprises. It analyzes six PV business models, ownership, leasing, Power Purchase Agreement (PPA), energy communities/peer-to-peer (P2P), crowdfunding, and subscription-based Solar-as-a-Service, using the Business Model Canvas (BMC) framework. A systematic literature review was combined with a unified BMC for each model, enabling structured comparison of value propositions, customer segments, cost structures, revenue streams, and risk allocation. The results show that no single universal model exists; each addresses different financial capacities, risk preferences, and strategic needs of households, SMEs, large enterprises, and energy communities. Significant differences were found in investment requirements, operational involvement, scalability, and potential for energy independence. The study’s novelty lies in providing a coherent, cross-model comparison using a standardized BMC approach, offering insights not systematically explored in previous research. These findings support informed decision-making for organizations considering PV adoption and provide a basis for further research on innovative energy management strategies. The topic is highly relevant in the context of the accelerating global energy transition, technological advances, regulatory changes, and increasingly diverse customer profiles, highlighting the need for comprehensive comparative analyses to guide flexible photovoltaic deployment. Full article

The recent updates to the Single Day-Ahead Coupling (SDAC) framework in the European energy market, along with new rules for providing manual frequency restoration reserve (mFRR) products in the Nordic Energy Activation Market (EAM), have introduced a finer Market Time Unit (MTU) resolution. These developments underscore the growing importance of flexible assets, such as power-to-hydrogen (PtH) facilities, in delivering system flexibility. However, to successfully participate in such markets, well-designed and accurate bidding strategies are essential. To fulfill this aim, this paper proposes a Mixed Integer Linear Programming (MILP) model to determine the optimal bidding strategies for a typical PtH facility, accounting for both the technical characteristics of the involved technologies and the specific participation requirements of the mFRR EAM. The study also explores the economic viability of sourcing electricity from nearby wind turbines (WTs) under a Power Purchase Agreement (PPA). The simulation is conducted using a case study of a planned PtH facility at the Port of Hirtshals, Denmark. Results demonstrate that participation in the mFRR EAM, particularly through the provision of downward regulation, can yield significant economic benefits. Moreover, involvement in the mFRR market reduces power intake from the nearby WTs, as capacity must be reserved for downward services. Finally, the findings highlight the necessity of clearly defined business models for such facilities, considering both technical and economic aspects. Full article

This study investigates strategies for urban-scale renewable energy integration through a photovoltaic-centric approach, with a case study of a district in Barcelona. The methodology integrates spatial and morphological data using a geographic information system (GIS)-based and clustering framework to address challenges of CO₂ emissions, air pollution, and energy inefficiency. Rooftop availability and photovoltaic (PV) design constraints are analysed under current urban regulations. The spatial analysis incorporates building geometry and solar exposure, while an evolutionary optimisation algorithm in Grasshopper refines shading analysis, energy yield, and financial performance. Clustering methods (K-means and 3D proximity) group PV panels by solar irradiance uniformity and spatial coherence to enhance system efficiency. Eight PV deployment scenarios are evaluated, incorporating submodule integrated converter technology under a solar power purchase agreement model. Results show distinct trade-offs among PV scenarios. The standard fixed tilted (31.5° tilt, south-facing) scenario offers a top environmental and performance ratio (PR) = 66.81% but limited financial returns. In contrast, large- and huge-sized modules offer peak financial returns, aligning with private-sector priorities but with moderate energy efficiency. Medium- and large-size scenarios provide balanced outcomes, while a small module and its optimised rotated version scenarios maximise energy output yet suffer from high capital costs. A hybrid strategy combining standard fixed tilted with medium and large modules balances environmental and economic goals. The district’s morphology supports “solar neighbourhoods” and demonstrates how multi-scenario evaluation can guide resilient PV planning in Mediterranean cities. Full article

The phenomenon of rising forward price volatility, both historical and implied, as maturity approaches is referred to as the Samuelson effect or maturity effect. Disregarding this effect leads to significant mispricing of early-exercise options, extendible options, or other path-dependent options. The primary objective of the research is to identify a practical way to incorporate the Samuelson effect into the evaluation of commodity derivatives. We choose to model the instantaneous variance employing the exponential decay parameterizations of the Samuelson effect. We develop efficient calibration techniques utilizing historical futures data and conduct an analysis of statistical errors to provide a benchmark for model performance. The study employs 15 years of data for WTI, Brent, and NG, producing excellent results, with the fitting error consistently inside the statistical error, except for the 2020 crisis period. We assess the stability of the fitted parameters via cross-validation techniques and examine the model’s out-of-sample efficacy. The approach is generalized to encompass seasonal commodities, such as natural gas and electricity. We illustrate the application of the calibrated model of instantaneous variance for the evaluation of commodity derivatives, including swaptions, as well as in the evaluation of power purchase agreements (PPAs). We demonstrate a compelling application of the Samuelson effect to a widely utilized auto-callable equity derivative known as the snowball. Full article

This study evaluates four hybrid infrastructure scenarios for supporting battery electric buses (BEBs) and fuel cell electric buses (FCEBs), analyzing different combinations of grid power, solar energy, battery storage, and fuel cell systems. A multi-stage framework—comprising energy demand forecasting, infrastructure capacity planning, and multi-criteria decision-making (MCDM) evaluation incorporating total cost of ownership (TCO), carbon emissions, and energy resilience—was developed and applied to a real-world transit depot. The results highlight critical trade-offs between financial, environmental, and operational objectives. The limited rooftop solar configuration, integrating solar energy through a Solar Power Purchase Agreement (SPPA), emerges as the most cost-effective near-term solution. Offsite solar with onsite large-scale battery storage and offsite solar with fuel cell integration achieve greater sustainability and resilience, but they face substantial cost barriers. The analysis underscores the importance of balancing investment, emissions reduction, and resilience in planning zero-emission bus fleets. Full article

The construction sector is a significant contributor to global greenhouse gas (GHG) emissions, necessitating urgent decarbonization efforts to align with international climate goals such as the Paris Agreement and the European Green Deal. This study explores a comprehensive framework for construction companies to map and reduce their GHG emissions through a structured four-step approach: defining emission scopes, conducting GHG inventories, setting reduction targets, and planning actionable reductions. Four key pathways are proposed: electricity decarbonization through renewable energy adoption and energy efficiency measures; direct emissions reduction via fleet electrification and infrastructure optimization; recycling and resource efficiency improvements through waste diversion and material reuse; and supply chain emissions reduction by enforcing sustainability standards and responsible sourcing practices. The analysis highlights the importance of integrating technological, organizational, and policy-driven solutions, such as rooftop photovoltaic systems, virtual power purchase agreements, waste management strategies, and supplier codes of conduct aligned with global sustainability benchmarks. The study concludes that construction companies can achieve significant emission reductions by adopting a structured, multi-pathway approach; emphasizing progress over perfection; and aligning their strategies with national and international climate targets. This research provides actionable insights for the construction sector to transition toward a net-zero future by 2050. Full article

Motivated by the projected solar and wind capacity additions around the world, we model the energy procurement decision of a load serving entity (LSE) faced with alternatives of solar power purchase agreements (PPAs), wind PPAs, non-renewable energy forward contracts, and spot energy purchases in a wholesale electricity market with uncertain prices. Using a pseudo-data sample of over one million observations, we estimate a translog cost function to find that the LSE’s own-price elasticity estimates range from −1.87 for nighttime spot MWh demands to −13.1 for forward MWh demands. MWh demands are influenced by solar and wind capacity factors, daytime and nighttime retail sales, and spot energy price forecasts. The LSE’s optimal procurement of solar capacity is roughly twice the wind capacity, corroborating the ratios of projected solar and wind capacity additions in regions around the world. If the LSE’s existing energy mix is nearly all renewable, it becomes carbon-free when solar and wind power purchase agreements have declining energy prices or when forward energy price and spot energy price forecasts increase over time. These results imply that piecemeal policy measures can have conflicting outcomes, calling for integrated resource planning under wholesale market competition and price uncertainty. Full article

As a global community our use of data is increasing exponentially with emerging technologies such as artificial intelligence (AI), leading to a vast increase in the energy demand for data centres worldwide. Delivering this increased energy demand is a global challenge, which the rapid growth of renewable generation deployment could solve. For many data centre giants such as Google, Amazon, and Microsoft this has been the solution to date via power purchase agreements (PPAs). However, insufficient investment in grid infrastructure globally has both renewable generation developers and data centre developers facing challenges to connect to the grid. This paper considers the costs and carbon emissions associated with stand-alone hybrid renewable and gas generation microgrids that could be deployed either before a grid connection is available, or to allow the data centre to operate entirely off-grid. WindPRO 4.0 software is used to find optimal configurations with wind and solar generation, backed up by battery storage and onsite gas generation. The results show that off-grid generation could provide lower cost and carbon emissions for each of Europe’s data centre hotspots in Frankfurt, London, Amsterdam, Paris, and Dublin. This paper compares each generation configuration to grid equivalent systems and an onsite gas-only generation solution. The results showed that each hybrid renewable generation configuration had a reduced levelized cost of energy (LCOE) and reduced CO₂eq emissions compared to that of its grid and gas-only equivalent. Previous literature does not consider the economic implications caused by a mismatch between generation and consumption. Therefore, this paper introduces a new metric to evaluate and compare the economic performance of each microgrid, the levelized cost of energy utilised (LCOEu) which gives the levelized cost of energy for a given microgrid considering only the energy which is consumed by the data centre. The LCOEu across all sites was found to be between 70 and 102 GBP/MWh with emissions between 0.021 and 0.074 tCO₂eq/MWh. Full article

The global rise in population and advancement in civilization have led to a substantial increase in energy demand, particularly in the industrial sector. This sector accounts for a considerable proportion of total energy consumption, with approximately three-quarters of its energy consumption being used for heat processes. To meet the Paris Agreement goals, countries are aligning policies with international agreements, and companies are setting net-zero targets. Upstream emissions of the Scope 3 category refer to activities in the company’s supply chain, being crucial for achieving its net-zero ambitions. This study analyzes heating solutions for the supply chain of certain globally operating companies, contributing to their 2030 carbon-neutral ambition. The objective is to identify current and emerging heating solutions from carbon dioxide equivalent (CO₂e) impact, economic, and technical perspectives, considering regional aspects. The methodology includes qualitative and quantitative surveys to identify heating solutions and gather regional CO₂e emission factors and energy prices. Calculations estimate the CO₂e emissions and energy costs for each technology or fuel, considering each solution’s efficiency. The study focuses on Europe, the United States, Brazil, China, and Saudi Arabia, regions or countries representative of companies’ global supply chain setups. Results indicate that heat pumps are the optimal solution for low temperatures, while biomass is the second most prevalent solution, except in Saudi Arabia where natural gas is more feasible. For medium and high temperatures, natural gas is viable in the short term for Saudi Arabia and China, while biomass and electrification are beneficial for other regions. The proportion of electricity in the energy mix is expected to increase, but achieving decarbonization targets requires cleaner energy mixes or competitive Power Purchase Agreement (PPA) projects. Brazil, with its high proportion of renewable energy sources, offers favorable conditions for using green electricity to reduce emissions. The utilization of biomethane is promising if costs and incentives align with those in the EU. Although not the objective of this study, a comprehensive analysis of CAPEX and lifecycle costs associated with equipment is necessary when migrating technologies. Policies and economic incentives can also make these solutions more or less favorable. Full article

Clean hydrogen (H₂) use (i.e., produced using either renewable or low-carbon energy sources) can help decarbonize energy-intensive industries, the transport sector, and the power sector. The European regulatory framework establishes that the production of green H₂ must be supported either by the electricity grid through a power purchase agreement (PPA) or by intermittent renewable energy source (RES) plants owned by the hydrogen producer. Although the issue of the optimization of hydrogen production costs has already been approached, constraints related to the current regulatory framework and the modeling of nonlinear electrolyzer efficiency still represent open problems. In this paper, a mixed-integer linear programming (MILP) problem, assuming as the objective function the overall cost minimization of the allowed energy mix for green H₂ production, is formulated. Two approaches are compared: in the first one, electrolyzers can only operate at 100% load, whereas the second one allows for more flexible electrolyzer scheduling, by enabling partial-load working operations. The simulation results of several scenarios considering different H₂ production targets, forecasted RES production, and cost for PPAs demonstrate the effectiveness of the proposed methodology. Full article

This study aims to assess the competitive position of EU candidate countries and Eastern Partnership countries in trading fruit and vegetables in the Single European Market in 2009 and 2023. This paper presents the amount and balance of bilateral trade in fruit and vegetables between the EU and the countries considered. It also estimates their comparative advantages in the EU internal market. A mapping tool based on the Widodo scheme was used for that purpose. This study proved that most EU candidate countries and Eastern Partnership members increased their trade values and improved their competitive position in the Single European Market (SEM) over the analyzed period. The boosters of trade included the demand in EU member markets (stimulated by the evolving consumption patterns and the widespread adoption of healthy diet patterns), the population’s purchasing power, and their willingness to buy diversified products. Turkey exported a considerable volume of fruit and vegetables to the EU and gained the strongest competitive position in the SEM. In this case, the growth of exports to the EU market was primarily driven by the production potential resulting from large agricultural land resources, climate conditions, and geographical proximity. It may be concluded that the comparative advantages gained by the analyzed countries provided a basis for a beneficial export specialization, which shows the continuous relevance of the classical theory in explaining the volume and structure of trade in agri-food products. When considering the factors determining competitiveness, it may also be stated that the neoclassical theory of factor endowment developed by Heckscher, Ohlin, and Samuelson supports the optimization of agri-food export specialization in the analyzed countries. It was also shown that bilateral trade policies and agreements are decisive in trade performance and the shaping of international competitive positions. Full article

In the quest for a sustainable energy landscape, renewable energy sources are positioned to lead. Among these, power purchase agreements (PPAs) have emerged as indispensable tools, particularly when combined with energy storage solutions, in supporting grid stability and ensuring the reliability of energy provision. The aim of this study is to undertake a rigorous systematic literature review to delve into the pivotal role that community engagement and stakeholder involvement play in shaping the contours of hybrid PPAs, which amalgamate renewable energy with storage technologies. Through a comprehensive synthesis of the previous literature, this research elucidates the nuanced dimensions and consequential benefits inherent in cultivating robust agreements. The objectives include examining the tangible benefits of prioritizing community empowerment, such as securing local acceptance and support, alleviating opposition, and tailoring project designs to harmonize with specific community requirements and preferences. Moreover, this study underscores the critical role of stakeholder engagement in ensuring compliance with regulatory mandates, thereby addressing sustainability outcomes while fostering the enduring success and feasibility of renewable energy projects. Full article

The production and use of hydrogen are encouraged by the European Union through Delegated Acts, especially in sectors that are difficult to decarbonize, such as the industrial and transport sectors. This study analyzes the possibility of partial decarbonization of the existing plant in the petrochemical industry, with a partial transition from natural gas to renewable hydrogen, as a precursor to the adoption of the hydrogen economy by 2050. This study was based on the example of a plant from the petrochemical industry, namely an existing fertilizer plant. Namely, in the petrochemical industry, hydrogen is produced by steam-reforming natural gas, which is needed in the process of producing ammonia, one of the basic raw materials for mineral fertilizers. By building an electrolyzer at the location of the existing fertilizer plant, it is possible to obtain renewable hydrogen, which enters the ammonia production process as a raw material. The electricity from which hydrogen is produced in the electrolyzer is provided through Power Purchase Agreement contracts concluded with electricity producers from 12 wind power plants. The results of this study show that the production of renewable hydrogen at the location of the analyzed plant is not profitable, but due to the specificity of the process of such an industry, the high consumption of natural gas, and large savings in CO₂ emissions which can be achieved by the production of renewable hydrogen, investment is needed. With a 370 MW electrolyzer, about 31,000 tons of renewable hydrogen is produced, which represents about 50% of the hydrogen needs of the analyzed plant. By producing renewable hydrogen for part of the needs of the analyzed plant, a saving of about 300,000 tons of CO₂ emissions is achieved in relation to the production of gray hydrogen, which contributes to the partial decarbonization of the analyzed plant. The authors are aware that the current market opportunities do not allow the profitability of the investment without subsidies, but with the advancement of technology and a different price ratio of electricity, natural gas, and CO₂ emissions, they believe that such investments will be profitable even without subsidies. Full article

This study examines the adoption of Power Purchase Agreements (PPAs) and Renewable Energy Certificates (RECs) as strategic tools for decarbonization in the oil and gas sector. Focusing on the 21 largest oil and gas companies across Europe, North America, and South America, the analysis reveals varied adoption rates and strategic emphases between regions. European companies exhibit robust integration of PPAs and RECs to expand renewable energy capacities and reduce emissions, aligning closely with aggressive EU climate policies. In contrast, American companies show a cautious approach, focusing more on emission reduction from existing operations than on renewable expansions. The study’s findings indicate that, while both regions are advancing in their decarbonization efforts, European companies are leading with more defined renewable energy targets and comprehensive low-carbon strategies. This research contributes to understanding how different regulatory environments and market conditions influence corporate strategies towards sustainable energy transitions in traditionally hard-to-abate industries. Full article

With the rise of environmental policies and advanced technologies, power systems are transitioning from centralized to decentralized systems, incorporating more distributed energy resources (DERs). This shift has increased interest in the operational functions of microgrids (MGs). The “Renewable Energy 100%” (RE100) campaign is pushing companies to adopt renewable energy. In South Korea, industrial complex microgrids (ICMGs) aim to achieve RE100 through corporate power purchase agreements (PPAs) with renewable energy providers. ICMGs need to operate in both grid-connected and islanded modes, facing challenges in power transactions due to different operating agents. This study proposes a decentralized optimal power flow (OPF) method using the separable augmented Lagrangian relaxation (SALR) algorithm to solve these power transaction problems without disclosing internal information. The proposed method decomposes the centralized OPF problem into subproblems for each ICMG and solves them in a distributed manner, sharing only transaction prices and amounts. Numerical results from the case study validate the effectiveness of the proposed method. Full article