Determining the Optimal Directions of Investment in Regional Renewable Energy Development

Iryna Sotnyk, Tetiana Kurbatova, Yaroslavna Romaniuk, Olha Prokopenko, Viktoriya Gonchar, Yuriy Sayenko, Gunnar Prause and Aleksander Sapiński
Additional contact information
Iryna Sotnyk: Department of Economics, Entrepreneurship and Business Administration, Sumy State University, 40007 Sumy, Ukraine
Tetiana Kurbatova: International Economic Relations Department, Sumy State University, 40007 Sumy, Ukraine
Yaroslavna Romaniuk: International Economic Relations Department, Sumy State University, 40007 Sumy, Ukraine
Olha Prokopenko: Estonian Entrepreneurship University of Applied Sciences, 11415 Tallinn, Estonia
Viktoriya Gonchar: Department of Marketing and Business Administration, Pryazovskyi State Technical University, 87555 Mariupol, Ukraine
Yuriy Sayenko: Department of Electric Power Complexes and Systems, Pryazovskyi State Technical University, 87555 Mariupol, Ukraine
Gunnar Prause: Wismar Business School, Wismar University, 23966 Wismar, Germany
Aleksander Sapiński: Department of Law and Social Science, Bielsko-Biała School of Finances and Law, 43-300 Bielsko-Biala, Poland

Energies, 2022, vol. 15, issue 10, 1-26

Abstract: The growth of renewable energy facilities worldwide creates new challenges for sustainable regional development. Unregulated investment flows in the green energy sector cause disparities in the deployment of various renewable energy technologies, worsen the ability to balance national energy systems, etc. This article is the first comprehensive study that offers a methodology for multifactor modeling of investment flows in regional green energy deployment considering the priorities of national, regional, and local authorities within the sustainable development concept. The proposed methodological approaches help (1) determine the types of renewable energy technologies for priority development in the region, (2) select specific green energy projects to receive budgetary support on territories, and (3) form the optimal mechanism for budget financing distribution on regional development of renewable energy technologies. The modeling factors include natural conditions and resource base of a territory; its economically feasible renewable energy potential; the territory’s energy needs; installed capacity and electricity generation of new green energy facilities; power plants’ life cycle duration, the investment amount, etc. The model approbation on the example of household solar and wind power plants in the Sumy region, Ukraine, has shown the need to significantly increase financial support for renewable energy projects, primarily due to the region’s energy deficit. Calculations revealed that the interest-free loan share for both technologies should be 2.843 and 2.844 times higher than the basic share of lending (20%). For the 30-kW solar power plant project, the indicator should be 64.67% instead of the basic one of 56.86% for home solar energy facilities. Thus, the methodological approaches presented in the article are new tools that allow territorial authorities to purposefully shape and manage investment flows in the renewable energy sector to ensure sustainable energy development of regions worldwide.

Keywords: region; investment; renewable energy; optimization; preferential financing; sustainable development; household (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://www.mdpi.com/1996-1073/15/10/3646/pdf (application/pdf)
https://www.mdpi.com/1996-1073/15/10/3646/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:15:y:2022:i:10:p:3646-:d:816928

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().