Search Results (128)

Hydrogen is increasingly recognized as a key element of the transition to a low-carbon energy system, leading to a growing interest in accurate and sustainable assessment of its economic viability. Levelized Cost of Hydrogen (LCOH) is one of the most widely used metrics for comparing hydrogen production technologies and informing investment decisions. However, traditional LCOH calculation methods apply a single discount rate to all cash flows without distinguishing between the risks associated with outflows and inflows. This approach may yield a systematic overestimation of costs, especially in capital-intensive projects. In this study, we adapt a binary cash flow discounting model, previously proposed in the finance literature, for hydrogen energy systems. The model employs two distinct discount rates, one for costs and one for revenues, with a rate structure based on the required return and the risk-free rate, thereby ensuring that arbitrage conditions are not present. Our approach allows the range of possible LCOH values to be determined, eliminating the methodological errors inherent in traditional formulas. A numerical analysis is performed to assess the impact of a change in the general rate of return on the final LCOH value. The method is tested on five typical hydrogen production technologies with fixed productivity and cost parameters. The results show that the traditional approach consistently overestimates costs, whereas the binary model provides a more balanced and risk-adjusted representation of costs, particularly for projects with high capital expenditures. These findings may be useful for investors, policymakers, and researchers developing tools to support and evaluate hydrogen energy projects. Full article

Precise evaluation of risk and reliability is crucial for decision making and predicting the outcome of investment in a photovoltaic power system (PVPS) due to its intermittent source. This paper explores different methodologies for risk evaluation and reliability assessment, which can be categorized into qualitative, quantitative, and hybrid qualitative and quantitative (HQQ) approaches. Qualitative methods include failure mode analysis, graphical analysis, and hazard analysis, while quantitative methods include analytical methods, stochastic methods, Bayes’ theorem, reliability optimization, multi-criteria analysis, and data utilization. HQQ methodology combines table-based and visual analysis methods. Currently, reliability assessment techniques such as mean time between failures (MTBF), system average interruption frequency index (SAIFI), and system average interruption duration index (SAIDI) are commonly used to predict PVPS performance. However, alternative methods such as economical metrics like the levelized cost of energy (LCOE) and net present value (NPV) can also be used. Therefore, a risk and reliability approach should be applied together to improve the accuracy of predicting significant aspects in the photovoltaic industry. Full article

This study conducts a comparative assessment of the environmental, social, and governance (ESG) integration strategies of three leading companies in Hong Kong—H&M Group, China Gas Company Limited (Towngas), and MTR Corporation Limited (MTR)—each operating in distinct sectors with unique sustainability challenges and opportunities. The analysis adopts the Challenge–Evaluation–Planning–Action–Review (CEPAR^®) framework developed by the International Chamber of Sustainable Development to examine how these companies identify and evaluate ESG-related risks, formulate action plans, implement sustainability initiatives, and refine their strategies. The findings reveal H&M’s strong emphasis on sustainable fashion, with a target of using 100% sustainable materials by 2030 and reducing greenhouse gas emissions by 56%. Towngas faces the complex challenge of transitioning from fossil fuels to cleaner energy and is investing in zero-carbon technologies to meet regulatory standards and stakeholder expectations. MTR focuses on sustainable urban development and efficient mass transit, prioritizing community engagement and reducing environmental impact. This study underscores the importance of sector-specific ESG approaches tailored to a company’s operational context. It also demonstrates how ESG integration is enhanced by proactive planning, transparent reporting, and alignment with long-term corporate values. By showcasing both successful practices and areas requiring further attention, this research contributes to the broader discourse on sustainable business practices in Hong Kong. Moreover, it provides actionable policy implications for government agencies and regulatory bodies. The insights gained can inform strategic decision-making across sectors and support the development of a more sustainable, resilient, and inclusive economy aligned with Hong Kong’s long-term climate and governance goals. Full article

This study is devoted to a comprehensive technical and economic assessment of the prospects for the development of the oil and gas sector in the Republic of Mozambique in the context of the global energy transition. The analysis of key gas projects, including Coral South FLNG and Mozambique LNG, focused on their technological features, economic parameters and environmental impact. It is shown that the introduction of floating liquefaction technology reduces capital expenditures, increases operational flexibility, and minimizes infrastructure risks, especially in conditions of geopolitical instability. Based on a comparative analysis of the projects, it was found that the use of modular solutions and the integration of carbon capture and storage (CCS) systems contribute to improving sustainability and investment attractiveness. A patent analysis of technological innovations was carried out, which made it possible to substantiate the prospects for using nanotechnologies and advanced CO₂ capture systems for further development of the sector. The results of the study indicate the need to strengthen content localization, develop human capital, and create effective revenue management mechanisms to ensure sustainable growth. The developed strategic development concept is based on the principles of the sixth technological paradigm, which implies an emphasis on environmental standards and technological modernization, including on the basis of nanotechnology. Thus, it is established that the successful implementation of gas projects in Mozambique can become the basis for long-term socio-economic development of the country, provided that technological and institutional innovations are integrated. Full article

If new technologies can increase production efficiency and reduce the consumption of natural resources, they can also bring new environmental risks. This dynamic is particularly relevant for the automotive industry, since it is one of the sectors that invests most in R&D, but at the same time also contributes a significant portion of greenhouse gas emissions and consumes a large amount of energy. This article aims to analyze the feasibility of meeting the environmental targets in place within 32 European countries in light of the recent technological trajectory of the automotive industry, namely with regard to the adoption of the propulsion model’s alternative to oil and diesel. Using data disaggregated by countries from 2000 up until 2020, in this paper, the estimated regressions aimed to not only verify whether electrical vehicles had a positive impact on CO₂ emissions found in the European market, but to also assess whether they will meet the target set for the next 30 years, with attention to the economy recovery after 2025 and a more robust EV market penetration in replacement of traditional fossil fuels cars. Full article

The southern Baltic Sea is characterized by highly variable weather conditions, particularly in autumn and winter, when storms, strong westerly winds, and temporary sea ice formation disrupt maritime operations. This study presents a climatographic overview and evaluates key hydrometeorological factors that influence the safe and efficient use of liquefied natural gas (LNG) as bunkering fuel in the region. The analysis draws on long-term meteorological and hydrological datasets (1971–2020), including satellite observations and in situ measurements. It identifies operational constraints, such as wind speed, wave height, visibility, and ice cover, and assesses their impact on LNG logistics and terminal functionality. Thresholds for safe operations are evaluated in accordance with IMO and ISO safety standards. An ice severity forecast for 2011–2030 was developed using the ECHAM5 global climate model under the A1B emission scenario, indicating potential seasonal risks to LNG operations. While baseline safety criteria are generally met, environmental variability in the region may still cause temporary disruptions. Findings underscore the need for resilient port infrastructure, including anti-icing systems, heated transfer equipment, and real-time environmental monitoring, to ensure operational continuity. Integrating weather forecasting into LNG logistics supports uninterrupted deliveries and contributes to EU goals for energy diversification and emissions reduction. The study concludes that strategic investments in LNG infrastructure—tailored to regional climatic conditions—can enhance energy security in the southern Baltic, provided environmental risks are systematically accounted for in operational planning. Full article

This study conducts a techno-economic evaluation of an all-electric energy station in China. It assesses the system’s feasibility and sustainability. The all-electric energy station integrates multiple components: chillers, air-source heat pumps, electric boilers, water thermal storage, and gas boilers. These components work together to deliver comprehensive cooling and heating services. The research compares this system with an integrated electricity-gas system. It analyzes performance across three key areas: economic benefits, environmental impact, and energy utilization efficiency. The results show significant advantages for the all-electric energy station. Economic analysis reveals that the net present value (NPV) of the all-electric energy station is positive, the internal rate of return (IRR) is high, and the payback period is significantly shorter compared to traditional systems. Sensitivity analysis highlights that the discount rate and initial investment are the most influential factors affecting NPV, while cooling prices present substantial revenue optimization potential. The all-electric configuration exhibits greater sensitivity to parameter variations, underscoring the importance of strategic risk management. Additionally, the all-electric energy station excels in environmental protection. Carbon emissions are reduced by 11.5% compared to conventional systems. As renewable energy increases in the grid, indirect carbon emissions will decrease further. The all-electric energy station demonstrates strong economic feasibility. It plays a crucial role in achieving carbon neutrality and promoting green energy development. This study provides valuable insights for future regional integrated energy systems. Full article

This paper examines the costs associated with installing PIP (Pile-in-Pile) slip joints compared to traditional tubular joints, focusing on investment, installation processes, and long-term benefits. Previous studies have indicated that the structural performance of PIP slip joints is superior to that of traditional joints. By utilizing the frictional interfaces between conventional structural steel components and the simplest installation methods, PIP slip joints maximize structural integrity and ease of maintenance. As a result, they can lead to lower lifecycle costs, provided they are installed correctly. Quantitatively, the PIP slip joint achieved the highest internal rate of return (IRR) at 43.42%, the lowest Levelized Cost of Energy (LCOE) at 0.013589 EUR/kWh, and the shortest payback period at 2.92 years—outperforming grouted and bolted flange joints across all key financial metrics. The analysis also addresses logistical challenges and workforce requirements, highlighting that significant economic benefits can be realized when implemented appropriately. Furthermore, the PIP slip joint promotes sustainability goals by minimizing material usage, which ultimately leads to reduced carbon emissions through more efficient fabrication and installation, as well as enabling faster deployment. A comprehensive financial assessment of these joint systems in offshore wind monopiles reveals that PIP slip joints are the most cost-effective and financially advantageous option, outperforming key metrics like IRR, LCOE, and payback period due to lower initial investments and operational costs. As PIP slip joints yield a higher net present value (NPV), a shorter payback period, and a lower LCOE, they can enhance profitability and reduce financial risk, and are suitable for streamlined implementation. While grouted and bolted flange joints exhibit similar financial performance, PIP slip joints’ minimal expenditure and consistent superiority make them the optimal choice for sustainable and economically viable offshore wind projects. Full article

From the perspective of biogas plant (BGP) operators, it is highly challenging to make a profitable decision on optimal biomethane production and allocation across interconnected markets. The aim of this study is to analyze the dynamics of biomethane markets, develop the gas allocation portfolio (GAP) for BGPs, investigate the impact of GHG quota price on the market dynamics and substrate mix consumption, and evaluate the profitability of the biomethane market system under various demand-based scenarios. A two-step optimization approach based on linear programming is adopted. Firstly, the optimized substrate mix and corresponding GAP are determined for all BGPs. Secondly, by leveraging the options flexibility created by the interconnected nature of biomethane markets, the BGPs’ GAP is further developed. Through an in-depth sensitivity analysis, the effects of GHG quota price variations on the market dynamics are assessed. The results indicate that integrated production, obtained by implementing the improved GAP across all BGPs, maximizes the profitability of the system. At higher quota prices, the consumption of manure, residuals, and grass is encouraged, while the use of energy crops declines. Furthermore, higher quota prices lead to a substantial increase in biomethane price in the EEG market, highlighting the need for further governmental support for biomethane CHP units. The anticipated competition between hydrogen and biomethane to achieve a greater share in the heating sector could pose risks to long-term investments in biomethane. The system achieves its highest profitability, a total contribution margin of EUR 2254.8 million, under the Transport Biofuels Expansion scenario. Generally, policies and regulations that raise the quota price (e.g., the 36. BImSchV) or promote biomethane demand in the heating sector (e.g., the GEG) can provide both economic and ecological benefits to the system. Full article

This paper analyses Poland’s participation in implementing European climate policy within the framework of the National Energy and Climate Plan (NECP), looking toward 2040. It assesses the feasibility of Poland’s commitments to the European Union’s decarbonisation targets, particularly with regard to transitioning from fossil fuels to renewable energy sources and nuclear power. The study highlights the challenges related to the speed of the energy transition, the security of electricity supply, and the competitiveness of the national economy. The study also assesses the energy mix scenarios proposed in the NECP, taking into account historical energy consumption data, economic and demographic projections, and expert analyses of energy security. It also critically examines the risks of delayed investment in nuclear and offshore wind, the potential shortfall in renewable energy infrastructure, and the need for transitional solutions, including coal and gas generation. An alternative scenario is proposed to mitigate potential energy supply shortfalls between 2035 and 2040, highlighting the role of energy storage, strategic reserves, and the maintenance of certain fossil fuel capacities. Poland’s energy policy should prioritize flexibility and synchronization with EU objectives, while ensuring economic stability and technological feasibility. The analysis underlines that the sustainable development of the national energy system requires not only alignment with European climate goals, but also a long-term balance between environmental responsibility, energy affordability, and security. Strengthening the sustainability dimension in energy policy decisions—by integrating resilience, renewability, and social acceptance—is essential to ensure a just and enduring energy transition. Full article

This study provides a comparative analysis of the environmental and economic performance of Oman, Egypt, and Morocco, focusing on the critical interplay between their economic structures, governance frameworks, and energy policies. Morocco stands out as a regional leader in renewable energy, driven by significant investments in solar, wind, and hydroelectric projects, positioning itself as a model for clean energy transition. Egypt, despite its rapid industrialization and urbanization, faces mounting environmental pressures that challenge its economic diversification efforts. Oman, heavily dependent on hydrocarbons, confronts significant sustainability risks due to its reliance on fossil fuels, despite the political stability that could support renewable integration. The research underscores that while these nations share common challenges, including regulatory weaknesses and energy policy inconsistencies, their distinct economic contexts demand tailored approaches. Morocco’s path to energy leadership must focus on integrating renewables across all sectors, enhancing grid infrastructure, and expanding green technology innovations to maintain momentum. Egypt should prioritize scaling up renewable infrastructure, reducing dependency on fossil fuels, and investing in clean technology to address its carbon footprint. For Oman, the strategic diversification of its economy, combined with aggressive renewable energy integration, is critical to reducing CO₂ emissions and mitigating climate impacts. This study contributes novel insights by highlighting the role of political stability, institutional quality, and policy coherence as critical enablers of long-term sustainability. It also identifies the importance of regional cooperation and knowledge sharing to overcome shared challenges like data limitations, geopolitical complexities, and methodological gaps in sustainability assessments. The findings advocate for a multi-method approach, integrating economic modeling, life-cycle analysis, and policy evaluation, to guide future sustainability efforts and foster resilient, low-carbon economies in the MENA region. Full article

Renewable energy systems (RES) are strongly affected by many sources of uncertainty and variability. Nevertheless, traditional technical and economic evaluation methods often neglect uncertainty by deterministically assuming average nominal values, using simple sensitivity analysis to explore effects of changing conditions, or limiting to a few sources of uncertainty. Furthermore, long-term variability and changing scenarios during the life of the system are not considered. This leads to inaccurate estimation of inherent investment risk. To address this gap, this work proposes a framework for the economic evaluation of offshore wind farms, considering the effects of both epistemic and aleatory uncertainty. Uncertainty of correlations used to model the system, the variability of resources and energy prices, as well as the use of a financial hedging tool to cope with market risk, the impact of failures and disruptive events, the changing of long-term scenarios during the system’s life, and the wake effect due to wind direction variability are all considered. As demonstrated through an example of an application, this methodology will be useful to practitioners and academics to achieve a more realistic assessment of the profitability of the investment based on a more comprehensive propagation of uncertainty. Full article

This study evaluates the economic viability of the South Pasopati Coal Project in Indonesia, addressing market volatility, carbon pricing policies, and the country’s energy transition towards Net Zero Emissions (NZE). Given Indonesia’s reliance on coal and the increasing global shift toward renewable energy, traditional valuation methods such as Discounted Cash Flow (DCF) may not adequately capture uncertainty and strategic flexibility. The study applies Real Options Valuation (ROV), integrating Monte Carlo Simulation (MCS) and Binomial Lattice Modeling, to assess project feasibility under various scenarios. The research compares three valuation scenarios: the base scenario (eastern route), an alternative scenario (western route), and a carbon pricing scenario. Results indicate that while the DCF method estimates a positive Net Present Value (NPV) for the base scenario, it fails to incorporate price volatility risks. The ROV method, however, captures managerial flexibility and provides a more robust valuation, showing an Expanded NPV (ENPV) that better reflects market uncertainties. Findings suggest that implementing ROV improves decision-making, particularly in volatile markets. The study underscores the necessity for Indonesia to adopt more flexible valuation frameworks to enhance investment decisions in the coal sector while aligning with international environmental standards. Full article

Energy storage technology is a critical component in supporting the construction of new power systems and promoting the low-carbon transformation of the energy system. Currently, new energy storage in China is in a pivotal transition phase from research and demonstration to the initial stage of commercialization. However, it still faces numerous challenges, including incomplete business models, inadequate institutional policies, and unclear cost and revenue recovery mechanisms, particularly on the generation and grid sides. Therefore, this paper focuses on grid-side new energy storage technologies, selecting typical operational scenarios to analyze and compare their business models. Based on the lifecycle assessment method and techno-economic theories, the costs and benefits of various new energy storage technologies are compared and analyzed. This study aims to provide rational suggestions and incentive policies to enhance the technological maturity and economic feasibility of grid-side energy storage, improve cost recovery mechanisms, and promote the sustainable development of power grids. The results indicate that grid-side energy storage business models are becoming increasingly diversified, with typical models including shared leasing, spot market arbitrage, capacity price compensation, unilateral dispatch, and bilateral trading. From the perspectives of economic efficiency and technological maturity, lithium-ion batteries exhibit significant advantages in enhancing renewable energy consumption due to their low initial investment, high returns, and fast response. Compressed air and vanadium redox flow batteries excel in long-duration storage and cycle life. While molten salt and hydrogen storage face higher financial risks, they show prominent potential in cross-seasonal storage and low-carbon transformation. The sensitivity analysis indicates that the peak–valley electricity price differential and the unit investment cost of installed capacity are the key variables influencing the economic viability of grid-side energy storage. The charge–discharge efficiency and storage lifespan affect long-term returns, while technological advancements and market optimization are expected to further enhance the economic performance of energy storage systems, promoting their commercial application in electricity markets. Full article

To address the challenges of assessing information security risks in smart energy systems, this study proposes a multi-attribute decision support method based on interval type-2 fuzzy numbers (IT2TrFN). First, expert questionnaires were designed to gather insights from eight specialists in the fields of smart energy and safety engineering. Linguistic terms associated with IT2TrFN were employed to evaluate indicators, converting expert judgments into fuzzy numerical values while ensuring data reliability through consistency measurements. Subsequently, a decision hierarchy structure and an expert weight allocation model were developed. By utilizing the score and accuracy functions of IT2TrFN, the study determined positive and negative ideal solutions to rank and prioritize the evaluation criteria. Key influencing factors identified include the rate of excessive initial investment, regulatory stringency, information security standards, environmental pollution pressure, and incident response timeliness. The overall risk index was calculated as 0.5839, indicating a moderate level of information security risk in the evaluated region. To validate the robustness of the model, sensitivity analyses were conducted by varying IT2FWA (Weighted aggregated operator) and IT2FGA (Weighted geometric operator) operator selections and adjusting weight coefficients. The results reveal that key indicators exhibit high risk under different scenarios. This method provides an innovative tool for the scientific evaluation of information security risks in smart energy systems, laying a solid theoretical foundation for broader regional applications and the expansion of assessment criteria. Full article