Risk Reduction Methods for Managing the Development of Regional Electric Power Industry

Mikhail Kozhevnikov, Lazar Gitelman, Elena Magaril, Romen Magaril and Alexandra Aristova
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Lazar Gitelman: Department of Management Systems for Energy and Industrial Enterprises, Ural Federal University, Mira str., 19, 620002 Ekaterinburg, Russia
Romen Magaril: Department of Oil and Gas Processing, Tyumen Industrial University, Volodarskogo str., 38, 625000 Tyumen, Russia
Alexandra Aristova: Department of Environmental Economics, Ural Federal University, Mira str., 19, 620002 Ekaterinburg, Russia

Sustainability, 2017, vol. 9, issue 12, 1-14

Abstract: The development of the regional electric power industry has come to the forefront due to the changing scale, quality, and configuration of electric power infrastructure, and the spread of distributed generation. This gives rise to more stringent requirements regarding the reliability, safety, and environmental impact of electric power supply. This article aims to justify a package of methods that make it possible to identify and minimize investment, production, financial, and environmental risks in order to ensure sustainable development of the regional electric power industry that performs anti-crisis functions, and of individual energy companies. The key method to be employed is integrated resource planning (IRP). As a part of the method, energy conservation, renewable energy sources, and combined heat and power production are considered as equally valid ways of meeting future demand. The authors have designed a methodology for taking into account uncertainty and risk when implementing IRP. The methodology includes analysis of scenarios and decision making processes by calculating past and projected values of profit indicators. When conducting the environmental and economic assessment of an investment project in the electric power industry, the authors suggest using an aggregate indicator of environmental and economic effectiveness that is calculated on the basis of a combination of locally significant positive and negative environmental and economic impacts of the project. The authors formulate conceptual provisions that serve as the foundation for a promising model of the regional electric power industry and which contain recommendations for managing the development of the industry while minimizing organizational, market, and technological risks.

Keywords: regional electric power industry; energy policy; integrated resource planning; risk management; environmental and economic assessment; technology modernization (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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