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Article
Publication date: 15 April 2022

Tri Wahyu Adi

This study aims to explore the influence of fuel price, electricity price, fuel consumption (FC) on operating cost, generation and operating income (OI), and how to get the…

Abstract

Purpose

This study aims to explore the influence of fuel price, electricity price, fuel consumption (FC) on operating cost, generation and operating income (OI), and how to get the optimized electricity generation (EG) through the operation plants mix economically.

Design/methodology/approach

This study is the kind of explanatory research that describes the influence of dependent variable on the independent variable through hypothesis testing. The unit of analysis in this study is PT PLN (Persero) data, and the data is represented by the company’s statistical data from 2004 to 2019. The inferential statistical method is used to analyse the variance in this study-based or component-based with partial least square using the software of SmartPLS 3.2.9.

Findings

The fuel price of generation has a positive significant effect on the average electricity price in both models, a negative significant effect on the FC in model A and a positive significant effect in model B, a positive significant effect on the EG in the model A and negative significant effect in the model B, a positive significant effect on the operating cost of generation in both models, and a positive significant effect on OI in both models also.

Originality/value

To the best of the author’s knowledge, this paper is the first to study the influence of generation fuel price, electricity price, FC on operating cost, EG and OI of the power company and using a complex research design with partial least square.

Details

International Journal of Energy Sector Management, vol. 17 no. 2
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 14 August 2021

Carlos Francisco Alves and Pedro Diogo Pinto

The ex-post literature, which evaluates the real impact of renewable generation, is scarce. Most studies are simulations and therefore are not based on real data. This study aims…

Abstract

Purpose

The ex-post literature, which evaluates the real impact of renewable generation, is scarce. Most studies are simulations and therefore are not based on real data. This study aims to further this goal using a unique database of the Portuguese spot market, where there are powerful incentives for renewable electricity.

Design/methodology/approach

This paper analyses ex-post the impact of energy produced in special regime on the wholesale hourly spot market prices of Portuguese electricity during the period 2009–2016. This paper uses standard, two stage least squares and generalized method of moments multivariate regressions and other energy econometrics techniques.

Findings

It is found that special regime generation has a negative impact on the wholesale price. This impact is higher than that found in other markets. This paper also concludes that using special regime generation to supply the future growth of demand will decrease wholesale electricity spot prices more intensively than using other technologies.

Originality/value

This paper uses a unique database based on ex-post for the Portuguese spot market. The Portuguese case is particularly interesting, not only because of its strong incentives policy on renewable energy but also because its spot market is interconnected with the Spanish market. This paper contributes to the debate about the sustainability of current renewable electricity support schemes. The decreasing trend in electricity prices, with the introduction of new renewable capacity, can be incompatible with the required payments for non-renewable producers. This paper also shows that even if the price reduction on spot markets is transferred to final consumers, given that it is relatively small (8% spot price which represents 45% of the final price), compared with the cost of incentives (35% of the final price), consumers probably will not be able to support a new investment pipeline with a similar framework.

Article
Publication date: 11 April 2008

Diego Silva Herran and Toshihiko Nakata

This study aims to present preliminary results from an integrated evaluation of electricity supply systems for rural areas using renewable energy technologies by means of a…

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Abstract

Purpose

This study aims to present preliminary results from an integrated evaluation of electricity supply systems for rural areas using renewable energy technologies by means of a multi‐objective decision making method

Design/methodology/approach

Goal programming is applied to obtain the optimal system configuration meeting the electricity demand, based on the location's resource availability and taking diesel generation as the alternative of reference. The performance of the system is evaluated through four attributes: electricity generation costs, employment and two environmental impacts (CO2 emissions and land use). The model is designed for isolated rural area belonging to the non‐interconnected zones of Colombia.

Findings

Application of the method showed that biomass conversion technology has the highest potential and that renewable energy systems offer better performance than diesel generation. Reductions of more than 10 percent in unit electricity costs, land use rates and CO2 emissions can be achieved.

Research limitations/implications

Inclusion of additional attributes and sensitivity analysis are matters of future research.

Originality/value

The methodology used in this study is an alternative means to perform evaluation of electricity supply systems integrating several aspects of technology and which is flexible enough so as to enable the inclusion of a wider scope of interests towards energy access targets.

Details

International Journal of Energy Sector Management, vol. 2 no. 1
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 1 July 1999

Roger Lawrey

The recent interconnection and trade of electricity between NSW and Victoria is likely to exacerbate any misallocation of resources due to inefficient pricing. The aim of this…

1524

Abstract

The recent interconnection and trade of electricity between NSW and Victoria is likely to exacerbate any misallocation of resources due to inefficient pricing. The aim of this article is to investigate the likely divergence between electricity generation costs using current market prices of coal and natural gas, and those when coal and natural gas are priced efficiently. To do so, the paper applies the concept of full social cost pricing to five different generation technologies in the two states. It concludes that the current movement to privatisation and interconnection in the electricity sector, while it may promote pricing closer to marginal private costs, will not result in efficient outcomes in the presence of external costs and the different tax regimes which currently apply to each generation fuel and in each state.

Details

International Journal of Social Economics, vol. 26 no. 7/8/9
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 4 June 2018

Binita Shah and Seema Unnikrishnan

India is a developing economy along with an increasing population estimated to be the largest populated country in about seven years. Simultaneously, its power consumption is…

Abstract

Purpose

India is a developing economy along with an increasing population estimated to be the largest populated country in about seven years. Simultaneously, its power consumption is projected to increase more than double by 2020. Currently, the dependence on coal is relatively high, making it the largest global greenhouse gas emitting sector which is a matter of great concern. The purpose of this paper is to evaluate the environmental impacts of the natural gas electricity generation in India and propose a model using a life cycle assessment (LCA) approach.

Design/methodology/approach

LCA is used as a tool to evaluate the environmental impact of the natural gas combined cycle (NGCC) power plant, as it adopts a holistic approach towards the whole process. The LCA methodology used in this study follows the ISO 14040 and 14044 standards (ISO 14040: 2009; ISO 14044: 2009). A questionnaire was designed for data collection and validated by expert review primary data for the annual environmental emission was collected by personally visiting the power plant. The study follows a cradle to gate assessment using the CML (2001) methodology.

Findings

The analysis reveals that the main impacts were during the process of combustion. The Global warming potential is approximately 0.50 kg CO2 equivalents per kWh of electricity generation from this gas-based power plant. These results can be used by stakeholders, experts and members who are authorised to probe positive initiative for the reduction of environmental impacts from the power generation sector.

Practical implications

Considering the pace of growth of economic development of India, it is the need of the hour to emphasise on the patterns of sustainable energy generation which is an important subject to be addressed considering India’s ratification to the Paris Climate Change Agreement. This paper analyzes the environmental impacts of gas-based electricity generation.

Originality/value

Presenting this case study is an opportunity to get a glimpse of the challenges associated with gas-based electricity generation in India. It gives a direction and helps us to better understand the right spot which require efforts for the improvement of sustainable energy generation processes, by taking appropriate measures for emission reduction. This paper also proposes a model for gas-based electricity generation in India. It has been developed following an LCA approach. As far as we aware, this is the first study which proposes an LCA model for gas-based electricity generation in India. The model is developed in line with the LCA methodology and focusses on the impact categories specific for gas-based electricity generation.

Details

Management of Environmental Quality: An International Journal, vol. 29 no. 5
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 12 April 2024

Romi Bhakti Hartarto, Mohammed Shameem P., Dyah Titis Kusuma Wardani and Muhammad Luqman Iskandar

This study aims to explore the diverse sources of electricity generation (coal, natural gas, oil and hydroelectricity) and their respective associations with economic growth and…

Abstract

Purpose

This study aims to explore the diverse sources of electricity generation (coal, natural gas, oil and hydroelectricity) and their respective associations with economic growth and environmental quality.

Design/methodology/approach

This study uses static panel data analysis with a random effects model for six selected ASEAN countries (Indonesia, Malaysia, Filipina, Thailand, Vietnam and Myanmar) from 1994 to 2014.

Findings

This study reveals that economic growth in six selected ASEAN countries is enhanced by electricity generation from all sources, while the contribution of electricity production from hydroelectricity remains the largest and strongest. There is no environmental impact of electricity production from hydroelectric, whereas fossil fuel-based electricity production emits carbon dioxide, with coal sources being the largest contributor, followed by natural gas and oil.

Practical implications

Based on the results, these six ASEAN countries should invest more in hydropower projects, reduce the coal mix in power generation and promote clean coal technology to improve economic efficiency and environmental sustainability.

Originality/value

To the best of the authors’ knowledge, no research has examined the relationship between electricity production, environmental quality and economic growth in Southeast Asian nations. Therefore, the outcome of this study is expected to provide insightful results to supplement the framing and implementation of national and collective regional strategies for sustainable electricity generation in ASEAN countries.

Details

International Journal of Energy Sector Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 7 April 2022

Andrii Skrypnyk, Nataliia Klymenko, Semen Voloshyn, Olha Holiachuk and Oleksandr Sabishchenko

The purpose of this paper is to develop a methodology for assessing the effects of global and regional externalities that create traditional power generation industries and to…

Abstract

Purpose

The purpose of this paper is to develop a methodology for assessing the effects of global and regional externalities that create traditional power generation industries and to propose a transition to a tariff strategy taking into account these consequences. The main purpose of the research is to analyze the current wholesale electricity tariffs in the energy market of Ukraine and propose their assessment taking into account external effects for other sectors of the economy.

Design/methodology/approach

At the first stage, according to observations for 2004–2019 on the amount of pollution and the cost of agricultural products in some regions of Ukraine, which is provided in 2010 prices, the impact of hazardous emissions on the cost of agricultural products was analyzed in each region. The use of panel regression allowed to combine spatial and temporal studies (12 separate areas and time interval 2004–2019). To assess the external effects of heat generation, panel regression was used, which made it possible to combine spatial and temporal data on the impact of pollution on the efficiency of agricultural production and add regional losses of agricultural business to the cost of heat generation. This paper uses optimization models to maximize the function of public utility of electricity generation, making allowances for externalities.

Findings

This research assesses the negative externalities of Ukraine's energy and confirms the need for a global transition to a low-carbon economy primarily through climate finance. The analysis revealed the presence of various influences of the factor of regional air pollution and time. The hypothesis of the existence of a negative impact of local air pollution on agricultural production has been confirmed. An increase in emissions by 1,000 tons leads to an average decrease in regional agricultural production by UAH 84 million (at the prices of 2010).

Originality/value

The optimization problem of the ratio of different types of generation is set on the basis of maximizing the function of social utility of electricity generation, taking into account external effects. The authors presented an optimization model of electricity generation, which corresponded to the state of the energy market for 2019, provides an opportunity to assess the contribution of the inverse external effects of each electricity sector and to estimate external tariffs for each electricity generation sector.

Details

International Journal of Energy Sector Management, vol. 17 no. 1
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 8 February 2022

Javed Hussain, Amin Karimu, Samuel Salia and Robyn Owen

Energy and environment has gained traction within the field of entrepreneurship literature, but a comprehensive empirical study that examines the relationship between the cost of…

Abstract

Purpose

Energy and environment has gained traction within the field of entrepreneurship literature, but a comprehensive empirical study that examines the relationship between the cost of energy and small- and medium-sized enterprise (SME) innovation is an omission. Therefore, this novel study aims to examine the relationship between the cost of energy and SMEs innovation in Sub-Saharan Africa (SSA) by first examining the differential impact of the various generation sources on the price of electric energy. This research has enabled us to investigate and understand the transmission mechanism of increasing/decreasing electricity price on innovation decisions and activities of SMEs in SSA.

Design/methodology/approach

Using quantitative approach, with the data from the World Bank Enterprise and Innovation Follow-up Surveys, the study utilises a Tobit model to test whether the generation mix (renewable and non-renewable generation sources) increases or decreases electricity prices and examine the impact of the cost of electric energy on SMEs innovation in SSA.

Findings

The findings of this study shows that the cost of electricity affects negatively on SMEs innovation decision and activities of SMEs in SSA. The impact of renewables on the price of electricity has a larger magnitude relative to that of non-renewables. This finding has implications for policy makers promoting renewable energy without a policy design to tackle the unintended price effect of promoting renewable energy.

Originality/value

This is the first study to introduce cost of energy into an innovation model and to empirically examine the role of cost of energy for innovation activities of SMEs in SSA. Further, it examines the sources of generation on electricity price in SSA. The study contributes towards the empirical literature, and the findings also have implication for policy makers regarding the unintended consequences of promoting the transition to low-carbon electricity generation sources on SMEs via the cost of doing business implication.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 2
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 17 March 2022

Geraldo Jose Ferraresi de Araujo, Adhemar Ronquim Filho, Luciana Oranges Cezarino and Lara Bartocci Liboni

Renewables such as sugar-energy biomass can contribute to national electrical security, job creation and mitigation of greenhouse gas emissions. However, after the auction of…

Abstract

Purpose

Renewables such as sugar-energy biomass can contribute to national electrical security, job creation and mitigation of greenhouse gas emissions. However, after the auction of reserve energy, in 2008, exclusive biomass, in the regulated contracting environment (RCE), the authors observe that this energy environment has lost competitiveness in the auctions. Thus, a study on the present theme is justified, based on the problem: What are the reasons for the lack of competitiveness of sugar-energy bioelectricity in the Auctions of the RCE of the National Electric Energy Agency? The purpose of this study is to understand the situation of sugar-energy bioelectricity in the Brazilian market.

Design/methodology/approach

Literature review was conducted through the Scientific Electronic Library Online database, as well as the survey of primary documents at Sugarcane Industry Union and Electric Energy Trading Chamber.

Findings

The reasons for lack of competitiveness in RCE electricity auctions are: distant location of transmission lines; difficulties in obtaining licensing; delay in responses from environmental agencies; difficulties in securing financing for electricity generation projects for distilleries; non-pricing of positive environmental externalities as adequate disposal of waste; and the non-recovery of the cost of retrofit of the plants. The present situation may create economic, social and ecological circumstances adverse for Brazilian development, such as a lack of employment and income generation, loss of international currencies from imports of technologies not developed and produced in the country and more significant inefficiency greenhouse gas mitigation.

Originality/value

The originality of this study is in the contribution to the scarce literature on the understanding of the reasons for the lack of competitiveness of the Brazilian sugarcane sector in auctions of the regulated energy environment, based on SWOT analysis and, based on this understanding, to propose solutions for the expansion of this important matrix energy.

Details

International Journal of Energy Sector Management, vol. 17 no. 1
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 7 September 2015

Mika Goto and Toshiyuki Sueyoshi

The purpose of this study is to review the current status and related issues on the market reform of Japanese electric power industry after Fukushima Daiichi nuclear plant…

Abstract

Purpose

The purpose of this study is to review the current status and related issues on the market reform of Japanese electric power industry after Fukushima Daiichi nuclear plant disaster. We also discuss the future policy direction for the market reform.

Design/methodology/approach

This research compares the reform process of Japanese electric power industry with that of European Union (EU) nations. Then, this study discusses policy issues on the Japanese market reform based upon our comparative analysis.

Findings

Japan may learn many things from the market liberalization process and institution of EU nations. In the learning process, it is necessary to pay attention to industrial differences between Japan and the EU nations. Each country has its own unique features on fuel mix, business environment as well as supply and demand relationship. Such differences may influence a desirable policy direction for each nation’s market reform. The international comparison discussed in this study indicates the importance of a step-by-step approach in which Japan can gradually incorporate European experiences into the Japanese market reform.

Research limitations/implications

Since this study focuses upon the Japanese market reform, the empirical findings may have limited policy implications. The implications obtained from Japanese experience need additional thought in shifting them to other nations. Such an extension will be an important future task of this study.

Originality/value

This study discusses the current policy issues and future direction on the Japanese electricity market reform. This study also suggests its future direction. Previous research has never discussed the Japanese experience. Policy makers, corporate leaders, and individuals in the world, who are involved in the energy industry, have been paying attention to the Japanese future energy direction after Fukushima Daiichi nuclear plant disaster. This study provides such a future energy direction on Japanese market reform from European experience.

Details

International Journal of Energy Sector Management, vol. 9 no. 3
Type: Research Article
ISSN: 1750-6220

Keywords

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