Public preferences for alternative electricity mixes in post-Fukushima Japan

Using representative household survey data from Japan after the Fukushima accident, we estimate peoples' willingness-to-pay (WTP) for renewable, nuclear, and fossil fuels in electricity generation. We rely on random parameter econometric techniques to capture various degrees of heterogeneity between the respondents, and use detailed regional information to assess how WTP varies with the distance to both the nearest nuclear power plant and to Fukushima. Compared to fossil fuels, we find a positive WTP for renewable and a negative WTP for nuclear fuels. These effects, in absolute terms, increase with the proximity to Fukushima.     

Energy security vs. climate change: Theoretical framework development and experience in selected EU electricity markets

Electricity generation in different countries is based on a variety of fuel mixes compromising solid fossil fuels, oil, natural gas, nuclear and renewable energy sources. While in the past, national energy agendas have directed the optimal utilisation of domestic resources as a means to achieve supply security, today's environmental debates are influencing the electricity fuel mix in new directions. In this paper we examine the electricity sectors of Germany, Greece, Poland and the UK in an attempt to identify the policy and technology choices implemented in each country. The country selection is deliberately made to facilitate an extended overview of national agendas, varying domestic energy resources and industrialisation levels but still within the common EU framework. The focus is placed on policies related to two objectives, climate change mitigation and improving electricity supply security. The theoretical framework developed provides the possibility to assess the electricity sector independence at a national level using a multi-parametric analysis of the fuel mix data. Through a comparative assessment of the knowledge gained in different countries the authors provide insights and suggestions that allow for an improved understanding of the trade-offs and synergies that various policy options may introduce.     

An Analytical Network Process (ANP) evaluation of alternative fuels for electricity generation in Turkey

In this paper, we present an Analytical Network Process (ANP) model to determine the best fuel mix for electricity generation in Turkey from a sustainable development perspective. The proposed model is implemented in two alternative scenarios. These scenarios are structured along the lines of classification between weak and strong sustainability, and therefore reflect two basic dimensions of sustainability of energy production—environmental protection and sustainable supply of energy resources. The results of the study indicate the gap between goals of sustainable development and energy policies of Turkey in terms of energy security and environmental degradation. Under all alternative scenarios of our model, the highest value alternative is hydropower—domestic, renewable source—while the Turkish electricity sector mainly relies on imported natural gas. The share of nuclear energy is in the range of 8.12–10.21% in our model results, although nuclear energy is not available yet. The calculated percentages of renewable fuels (biomass, geothermal, wind, solar) are 35.7% and 28.9% for Scenario 1 and Scenario 2, respectively, while the total percentage of these fuels is 0.18% of the installed capacity of Turkey. The results of our model suggest that the share of renewable fuels in installed capacity should be increased to achieve sustainable development.     

Technical and economic analysis of electricity generation from forest, fossil, and wood-waste fuels in a Finnish heating plant

The Finnish energy industry is subject to policy decisions regarding renewable energy production and energy efficiency. Conventional electricity generation has environmental side-effects that may cause global warming. Renewable fuels are superior because they offer near-zero net emissions.In this study, I investigated a heating mill’s ability to generate electricity from forest fuels in southern Finland on a 1-year strategic decision-making horizon. I solved the electricity generation problem using optimization of the energy products and fuel mixtures based on energy efficiency and forest technology. The decision environment was complicated by the sequence-dependent procurement chains for forest fuels. The optimal product and fuel mixtures were selected by minimizing procurement costs, maximizing production revenues, and minimizing energy losses.The combinatorial complexity of the problem required the use of adaptive techniques to solve a multiple-objective linear programming system with industrial relevance. I discuss the properties of the decision-support system and methodology and illustrate pricing of electricity generation based on real industrial data. The electricity-generation, -purchase, and -sales decisions are made based on a comprehensive technical and economic analysis that accounts for procurement of local forest fuels in a holistic supply chain model.     

Consumers' willingness to pay for green electricity: A meta-analysis of the literature

At present, electricity generated from power plants using renewable sources costs more than electricity generated from power plants using conventional fuels. Consumers bear these expenses directly or indirectly through higher prices for renewable energy or taxes. The number of studies published over the last few years focusing on people's preferences for renewables has increased steadily, making it more and more difficult to identify key explanatory factors that determine people's willingness-to-pay (WTP) for renewables. We present results of a meta-regression on valuation of consumer preferences for a larger share of renewable energy in their electricity mix. Our meta-regression results reveal a number of important factors that explain the differences in WTP values for renewable energy. Different valuation methods show widely different values, with choice experiments producing the highest estimates. Our results further indicate that consumers' WTP for green electricity differs by source, with hydropower being the least valued. Variables that are often omitted from primary valuation studies are important in explaining differences in values. These variables describe individual and household characteristics as well as information on the type of power plant that will be replaced by renewables. Further, the marginal effect of a survey conducted in the US is pronounced. We also assess the potential for using the results for out-of-sample value transfer and find a median error of 21%.     

Cost and benefit of renewable energy in the European Union

An assessment is made as to whether renewable energy use for electricity generation in the EU was beneficial throughout the cycle of high and low oil prices. Costs and benefits are calculated with the EU statistics for the period of low oil prices 1998–2002 and high oil prices 2003–2009. The share of renewable energy in electricity production was 21% of all energy resources in 2008, growing on average 5% a year during 2003–2008 compared to nil growth of the fossil fuels mix. Correlations show significant impacts of growing renewable energy use on changes in consumers' electricity prices during the high and rapidly increasing fossil fuel prices in the period 2005–2008. The growing use has contributed to price decrease in most countries that use more renewable energy and price increase in many countries that use little renewable energy. Costs and benefits are assessed through comparison between the observed consumers' electricity prices and simulated prices had they followed the costs of fossil fuel mix. A net benefit of 47 billion euro throughout the oil price cycle is attributable to the growing use of renewable energy, which is on average 8 billion euro a year. This net benefit is larger than the total public support for renewable energy. The net benefit would be larger had the EU anticipated high oil prices through more public support during low oil prices, as this would create productive capacity, but countries' interests increasingly differed. An anti-cyclic EU policy is recommended.     

Overcoming problems in Turkey's renewable energy policy: How can EU contribute?

Fossil fuels cover most of the energy demand in the world, and this creates significant social, economic and environmental problems. Many countries have taken measures to increase the share of renewable energy sources (RES), especially in electricity generation, and the review of literature shows that the success of a country in RES diffusion depends on a comprehensive renewable energy policy which combines political commitment with stable and long-term support measures that stimulate technological innovation. As the largest economy in the world, EU has also taken steps to increase RES usage in electricity generation in member states. Similar to other developing countries, Turkey is learning lessons from EU experiences regarding RES policies, and Turkey is also reforming its legal framework in line with acquis communautaire as a candidate country. As a result, EU has a multiway impact on Turkey's renewable energy policy. An overview of Turkey's renewable energy policy showed that EU has significantly contributed to Turkey in shaping its renewable energy policy, and Turkey should increase cooperation with EU in order to utilize its renewable energy potential.     

China’s renewable energy policy: Commitments and challenges

The passing of the Renewable Energy Law (REL) in 2005 demonstrated China’s commitment to renewable energy development. In the 3 years after the REL, China’s renewable electricity capacity grew rapidly. From 2006 to 2008, China’s wind capacity installation more than doubled every year for 3 years in a row. However, three facts prevent us from being optimistic about China’s renewable electricity future. First, considered as a share of total capacity, renewable electricity capacity is decreasing instead of increasing. This is due simply to the rapid growth of fossil fuel capacity. Second, a significant amount of renewable generation capacity is wasted because it is not connected to the electricity grid. Finally, renewable electricity plants are running at a low level of efficiency. Based on an in-depth analysis of China’s existing renewable energy policy, we suggest that these challenges should be dealt with by introducing a market-based mandatory renewable portfolio requirement coupled with strong regulatory monitoring of grid enterprises.     

Eliciting public preference for nuclear energy against the backdrop of global warming

One of the most important issues related to sustainability is to reduce the use of fossil fuels due to the reduction in greenhouse gases (GHG) emission. Nuclear power results in low carbon emissions and is thus important to mitigating the adverse effects of global warming and climate change. However, the downside of nuclear power cannot be overlooked, and consequently nuclear power is a controversial issue in many countries around the world. Thus an important question concerns how people should support nuclear power. Do the climate and energy security benefits of nuclear power outweigh its risks and costs? Therefore, we use a modified double-bounded contingent valuation model to explore the attitudes and the willingness to pay (WTP) of a country in order to demonstrate its implications for policy. We confirm that supporters and opponents of nuclear power are balanced both in terms of their numbers and in terms of their WTP. The policy implication is that people do not support any dramatic increase or reduction in nuclear power, and that nuclear power should still be an important means of generating electricity in Taiwan. The current share of nuclear power in electricity generation of 20% should be maintained in the near future.     

Potential of renewable energy in electrical energy production and sustainable energy development of Turkey: Performance and policies

Generating electricity, from renewable energy sources has become a high priority in the energy policy strategies at a national level as well as on a global scale. Although Turkey has many energy resources only coal and hydropower are significant at present, and as demand had risen, it has been necessary to import fuels to meet the total energy demand. The fossil resources, both indigenous and imported, have become expensive and also have undesirably high emissions. Turkey has an extensive shoreline and mountains and is rich in renewable energy potential. The share of renewables on total electricity generation is 35% while that of thermal power is 65% for the year 2010. Turkey is one of those countries that are considered rich and abundant in renewable energy resources.Turkey is facing serious challenges in satisfying its growing energy demand. To fuel a rapidly growing economy, the country’s electricity consumption is increasing by an average of 8–9% every year, and significant investments are needed in generation, transmission and distribution facilities to balance the power system’s supply and demand. With very limited oil and gas reserves, Turkey is increasingly turning to renewable energy sources as a means to improve its energy security and curb dependence on imported gas from Russia and Iran. This paper investigates the potential of renewable energy resources in Turkey at present and the magnitude of their present and future contributions to the national energy consumption. Energy politics are also considered.     

State renewable energy electricity policies: An empirical evaluation of effectiveness

Over the past decade, state governments have emerged as US energy policy leaders. Across the country, states are adopting policy instruments aimed at carbon mitigation and renewable energy deployment. One of the most prevalent and innovative policy instruments is a renewable portfolio standard (RPS), which seeks to increase the share of renewable energy electrification in the electricity market. This analysis evaluates the effectiveness of state energy programs with an empirical investigation of the linkage between state RPS policy implementation and the percentage of renewable energy electricity generation across states. We use a variant of a standard fixed effects model, referred to as a fixed effects vector decomposition, with state-level data from 1998 to 2006. Results indicate that RPS implementation is not a significant predictor of the percentage of renewable energy generation out of the total generation mix, yet for each additional year that a state has an RPS policy, they are found to increase the total amount of renewable energy generation. These findings reveal a potentially significant shortcoming of RPS policies. Political institutions, natural resource endowments, deregulation, gross state product per capita, electricity use per person, electricity price, and the presence of regional RPS policies are also found to be significantly related to renewable energy deployment.     

Renewable energy policy in Turkey with the new legal regulations

Since the energy crises in the 1970’s, public and private decision makers are considering how to achieve a sustainable transition from fossil fuel based energy to sustainable and clean energies - namely renewable energies. Combined with the improvement of energy efficiency and the rational use of energy, renewable energy can provide everything fossil fuels currently offer in terms of heating and cooling, electricity generation and transportation. Renewable energy technologies posses many long term benefits including energy security, job creation, business opportunities, sustainable development and prevention of global warming.Turkey’s population is growing at an annual rate of 1.04%. If Turkey uses only traditional energy sources, it simply will not have enough energy capacity for its population. Renewable energy sources have the potential to make a large contribution to Turkey’s sustainable and independent energy future.Turkey aims to utilize its energy potential, including from renewable sources in a cost-effective manner. Turkey targets the share of renewable resources in electricity generation to be at least 30% by 2023 has in its 2009 Electricity Market and Security of Supply Strategy. Positive achievements have been obtained in renewable energy development and manufacturing in Turkey over the past decade. The renewable energy related legislation has been intensified. To meet its 30% target, the current promotion mechanism for renewable sources of electricity relies on feed-in tariffs for different renewable energy sources. Large hydropower is already competitive to conventional fossil-based electricity, so feed-in tariffs in the new RE Law are set to facilitate expanding the deployment of other, less mature renewable energy technologies.     

Basic concepts for designing renewable electricity support aiming at a full-scale transition by 2050

Renewable electricity supply is a crucial factor in the realization of a low-carbon energy economy. The understanding is growing that a full turn-over of the electricity sectors by 2050 is an elementary condition for avoiding global average temperature increase beyond 2 °C. This article adopts such full transition as Europe's target when designing renewable energy policy. An immediate corollary is that phasing-in unprecedented energy efficiency and renewable generation must be paralleled by phasing-out non-sustainable fossil fuel and nuclear power technologies. The double phasing programme assigns novel meaning to nearby target settings for renewable power as share of total power consumption. It requires organizing in the medium term EU-wide markets for green power, a highly demanding task in the present context of poorly functional markets in brown power. The EU Commission's 2007/2008 proposals of expanding tradable certificates markets were not based on solid analysis of past experiences and future necessities. The keystone of sound policies on renewable electricity development is a detailed scientific differentiation and qualification of renewable electricity sources and technologies, for measuring the huge diversity in the field. We provide but structuring concepts about such qualification, because implementation requires extensive research resources.     

Assessment of Korean customers’ willingness to pay with RPS

To increase the use of renewable energy, the Korean government will introduce the Renewable Portfolio Standard (RPS) in 2012. The RPS places responsibility for extra renewable energy costs on the consumers and allows price competition among different renewable sources. Accordingly, this study analyzes through the contingent valuation (CV) the willingness of Korean households to pay more for electricity generated by wind, photovoltaic (PV), and hydropower. Our empirical results show that, although the willingness to pay (or WTP) was highest for wind power and lowest for hydropower, the differences in WTP among the renewable sources were statistically insignificant. This suggests that Korean consumers prefer a renewable portfolio that minimizes power supply costs.The average WTP for all three energy types was KRW 1562.7 (USD 1.350) per month per household, which was approximately 3.7% of the average monthly electricity bill in 2010. This amount represents only 58.2% of what the Korean government allocated in its budget to the new and renewable energy dissemination program in 2010. Thus, our results imply that the promotion of the new and renewable energy dissemination program may be difficult only with the WTP for electricity generated from renewable sources. Specifically, the mean WTP will not support the set-aside dissemination capacity for PV after 2014.     

Co-benefit analysis of incentives for energy generation and storage systems; a multi-stakeholder perspective

In this work, we are analyzing the advantages of energy incentives for all the stakeholders in an energy system. The stakeholders include the government, the energy hub operator, and the energy consumer. Two streams of energy incentives were compared in this work: incentives for renewable energy generation technologies and incentives for energy storage technologies. The first type aims increasing the share of renewable energies in the electricity system while the second type aims development of systems which use clean electricity to replace fossil fuels in other sectors of an energy system such as the transportation, residential and industrial sector. In this work, we are analyzing the advantages of energy incentives for all the stakeholders in an energy system. The stakeholders include the government, the energy hub operator, and the energy consumer. Two streams of energy incentives were compared in this work: incentives for renewable energy generation technologies and incentives for energy storage technologies. The first type aims to increase the share of renewable energies in the electricity system while the second type aims the development of systems which use clean electricity to replace fossil fuels in other sectors of an energy system such as the transportation, residential and industrial sector. The results of the analysis showed that replacing fossil fuel-based electricity generation with wind and solar power is a less expensive way for the energy consumer to reduce GHG emissions (60 and 92 CAD/ tonne CO_2e for wind and solar, respectively) compared to investing on energy storage technologies (225 and 317 CAD/ tonne CO_2e for Power-to-Gas and battery powered forklifts, respectively). However, considering the current Ontario's electricity mix, incentives for the Power-to-Gas and battery powered technologies are less expensive ways to reduce emissions compared to replacing the grid with wind and solar power technologies (1479 and 2418 CAD/ tonne CO_2e for wind and solar, respectively). Our analysis also shows that battery storage and hydrogen storage are complementary technologies for reducing GHG emissions in Ontario.     

Progress and recent trends in biofuels

In this paper, the modern biomass-based transportation fuels such as fuels from Fischer–Tropsch synthesis, bioethanol, fatty acid (m)ethylester, biomethanol, and biohydrogen are briefly reviewed. Here, the term biofuel is referred to as liquid or gaseous fuels for the transport sector that are predominantly produced from biomass. There are several reasons for bio-fuels to be considered as relevant technologies by both developing and industrialized countries. They include energy security reasons, environmental concerns, foreign exchange savings, and socioeconomic issues related to the rural sector. The term modern biomass is generally used to describe the traditional biomass use through the efficient and clean combustion technologies and sustained supply of biomass resources, environmentally sound and competitive fuels, heat and electricity using modern conversion technologies. Modern biomass can be used for the generation of electricity and heat. Bioethanol and biodiesel as well as diesel produced from biomass by Fischer–Tropsch synthesis are the most modern biomass-based transportation fuels. Bio-ethanol is a petrol additive/substitute. It is possible that wood, straw and even household wastes may be economically converted to bio-ethanol. Bio-ethanol is derived from alcoholic fermentation of sucrose or simple sugars, which are produced from biomass by hydrolysis process. Currently crops generating starch, sugar or oil are the basis for transport fuel production. There has been renewed interest in the use of vegetable oils for making biodiesel due to its less polluting and renewable nature as against the conventional petroleum diesel fuel. Biodiesel is a renewable replacement to petroleum-based diesel. Biomass energy conversion facilities are important for obtaining bio-oil. Pyrolysis is the most important process among the thermal conversion processes of biomass. Brief summaries of the basic concepts involved in the thermochemical conversions of biomass fuels are presented. The percentage share of biomass was 62.1% of the total renewable energy sources in 1995. The reduction of greenhouse gases pollution is the main advantage of utilizing biomass energy.     

Analytical assessments on the potential of harnessing tidal currents for electricity generation in Malaysia

Malaysia is heavily dependent on fossil fuel for electricity generation. With the rapidly diminishing of its fuel reserve and the increasingly negative effects of fossil fuels to the environment, the government has begun to utilise bio-fuel and solar radiation for electricity generation. However, the potential of harnessing other renewable sources, particular ocean energy, in Malaysia has not been fully realised. Therefore, studies were carried out to identify the potential of harnessing ocean energy for electricity generation. The Princeton Ocean Model was used to create a three-dimensional numerical ocean model for Malaysia which was calibrated against measurement by a means of adjoint data assimilation approach. A set of reliable tidal speed and tidal elevation data was therefore generated to determine the types of tides available in Malaysia, the potential areas of installing marine current turbines (MCTs), the total amount of electricity to be generated by MCT, the economical viability and the environmental benefits of using MCT in Malaysia. This paper presents the findings on the studies, encompassing the technical, economical and environmental aspects of installing MCT in Malaysia. The results are critical to policy makers and the potential investors on tidal energy in Malaysia for decision making. It may also help the neighboring countries to realize the possible potential of their ocean energy for electricity generation.     

Impact of electric vehicles on a future renewable energy‐based power system in Europe with a focus on Germany

Electric mobility is expected to play a key role in the decarbonisation of the energy system. Continued development of battery electric vehicles is fundamental to achieving major reductions in the consumption of fossil fuels and of CO₂ emissions in the transport sector. Hydrogen can become an important complementary synthetic fuel providing electric vehicles with longer ranges. However, the environmental benefit of electric vehicles is significant only if their additional electricity consumption is covered by power production from renewable energy sources. Analysing the implications of different scenarios of electric vehicles and renewable power generation considering their spatial and temporal characteristics, we investigate possible effects of electric mobility on the future power system in Germany and Europe. The time horizon of the scenario study is 2050. The approach is based on power system modelling that includes interchange of electricity between European regions, which allows assessing long‐term structural effects in energy systems with over 80% of renewable power generation. The study exhibits strong potential of controlled charging and flexible hydrogen production infrastructure to avoid peak demand increases and to reduce the curtailment of renewable power resulting in reduced system operation, generation, and network expansion costs. A charging strategy that is optimised from a systems perspective avoids in our scenarios 3.5 to 4.5 GW of the residual peak load in Germany and leads to efficiency gains of 10% of the electricity demand of plug‐in electric vehicles compared with uncontrolled loading.     

Energy,environmental and economic effects of Renewable Portfolio Standards (RPS) in a Developing Country

This paper analyses the potential of renewable energy for power generation and its energy, environmental and economic implications in Pakistan, using a bottom up type of long term energy system based on the MARKAL framework. The results show that under a highly optimistic renewable portfolio standard (RPS) of 80%, fossil fuel consumption in 2050 would be reduced from 4660 PJ to 306 PJ, and the GHG emissions would decrease from 489 million tons to 27 million tons. Nevertheless, price of the electricity generation will increase significantly from US$ 47/MWh under current circumstances (in the base case) to US$ 86/MWh under RPS80. However the effects on import dependency, energy-mix diversity, per unit price of electricity generation and cost of imported fuels indicate that, it may not be desirable to go beyond RPS50. Under RPS50 in 2050, fuel consumption of the power sector would reduce from 21% under the base case to 9% of total fossil fuels supplied to the country. It will decrease not only GHG emission to 170 million tons but also will reduce import dependency from 73% under the base case to 21% and improve energy diversity mix with small increase in price of electricity generation (from US$ 47/MWh under the base case to US$ 59/MWh under RPS 50).