Charikleia Karakosta, Alexandros Flamos and Aikaterini Forouli
The purpose of this paper is to identify knowledge gaps on insinuations of possible directions of European Union (EU) and international climate policies.
Abstract
Purpose
The purpose of this paper is to identify knowledge gaps on insinuations of possible directions of European Union (EU) and international climate policies.
Design/methodology/approach
This study has used participatory approach of highly experienced stakeholders’ engagement, involved directly or indirectly in the process of policymaking. A range of priority issues has been initially identified through desk analysis and key stakeholders have been selected and invited to partake in the process. Preliminary results have been validated through interaction with stakeholders during a series of workshops.
Findings
The results show the identification of a series of sectors, where climate policy is expected to focus in the future and the definition of 11 specific topics upon which knowledge gaps are expected to appear. Results on the identified knowledge needs are analysed and categorized by each prioritized main topic and compared with literature findings. Emphasis is identified to be placed on the topics of renewable energy, EU climate policy and international climate negotiations, which are the most popular ones, followed by energy policy and energy efficiency.
Originality/value
A key element of the approach is the consideration of key experts’ feedback on their specific area of expertise, instead of general public engagement, therefore leading to accurate results. Despite the fact that our approach was applied to a specific problem, the overall analysis could provide a framework for supporting applications in various problems in the field of priorities’ identification and even expanding to decision-making problems.
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S. Papadelis, A. Flamos and S. Androulaki
The purpose of this paper is to present the Business Strategy Assessment Model (BSAM) approach, in an attempt to explore the principle dynamics of an energy‐economic system with…
Abstract
Purpose
The purpose of this paper is to present the Business Strategy Assessment Model (BSAM) approach, in an attempt to explore the principle dynamics of an energy‐economic system with emphasis on the private actors' point of view and the impact different policy instruments may have on the decisions of private actors with different characteristics.
Design/methodology/approach
In the BSAM model, investment decisions under consideration depend on their perceived financial value. Basis for the financial valuation of an investment option is formed by simulating market dynamics with alternative price scenarios. The outputs include: investment strategies, derived as a function of the (uncertain) state vector of future market conditions and risk premium, calculated by contrasting the expected net present value for the optimal timing of the investment and the expected net present value of an immediate investment generation module of the BSAM, while both of these outputs are estimated for each available technology option.
Findings
Different models make different assumptions shedding light upon different aspects of the socio‐economic systems they attempt to analyze and hitherto, no such model succeeds in incorporating all the perceptions that are driving the integration of energy policies. BSAM is based on the notion that a convergence between policy evaluation and business strategy assessment models could be truly beneficial for regulators that aim to derive effective energy policies. Both the algorithm adopted and the structure of the modules of BSAM facilitate the analysis of complex interactions in a firm's decision making process, and even more the what‐if analyses needed for alternative policy measure evaluation.
Originality/value
Setting the framework for a modelling approach that incorporates the role of risk‐return perceptions of private actor's with diverse features, portfolio effects, path dependence and agent competition, into appraising energy and climate policies, and suggest that the heterogeneous world of investors requires reflexive assessment techniques. Above and beyond, understanding the drivers and triggers of firm's investment strategies will allow improving the effectiveness of energy policies.
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The purpose of this article is to explore an energy strategy for the European Union (EU) that could integrate the tensions between geopolitics and the market in a coherent and…
Abstract
Purpose
The purpose of this article is to explore an energy strategy for the European Union (EU) that could integrate the tensions between geopolitics and the market in a coherent and consistent external EU energy policy.
Design/methodology/approach
The approach consists of combining the theoretical framework of international political economy and Europeanization to European energy corridors.
Findings
The article finds that most qualitative energy security scenarios can be conceived as applications of international political economy paradigms. Its main result is to conceptually develop a geo‐economic strategy consisting on the Europeanization of EU's external energy corridors along its own energy regulations and standards.
Research limitations/implications
The article explores a distinct hybrid scenario, the Europeanization of energy corridors, which could be instrumental in overcoming the apparent dilemma between EU's market and geopolitical‐based scenarios.
Originality/value
The original contribution of the article lies in the application of international political economy and Europeanization theories to energy security scenarios, and the inclusion of governments' preferences in the process of hedging market and geopolitical scenarios.
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Pernille Seljom and Eva Rosenberg
The aim of this paper is to provide a general overview of the global oil and natural gas resources, production, technology development, energy use, emissions and costs. The…
Abstract
Purpose
The aim of this paper is to provide a general overview of the global oil and natural gas resources, production, technology development, energy use, emissions and costs. The activity is based on the European project “Risk of Energy Availability: Common Corridors for Europe Supply Security” (REACCESS) and the data collected was used in this project as an input to evaluate the technical, economical and environmental characteristics of the energy corridors to European Union (EU).
Design/methodology/approach
The paper is based on literature reviews and data collection from national authorities, oil companies, international associations and international organisations.
Findings
The work provides a general overview of oil and natural gas resources, production rates, recent technology developments, costs, losses, energy consumption and emissions on a world regional level. Main issues related to the role of conventional oil and natural gas in the energy import framework are summarised in this paper.
Research limitations/implications
The present study provides information on conventional oil and natural gas resources and it is limited to primary production technologies.
Originality/value
An outline of oil and natural gas on a regional level is presented. The paper provides general introduction to the subject and it is a valuable input for modelling and analyses of conventional oil and natural gas in the present and in the future energy system.
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Amit Kanudia, Raffaella Gerboni, Richard Loulou, Maurizio Gargiulo, Maryse Labriet, Evasio Lavagno, Rocco De Miglio, Laura Schranz and GianCarlo Tosato
This article is based on the REACCESS research project, sponsored by the European Commission, with the objectives of evaluating the technical, economic, and environmental aspects…
Abstract
Purpose
This article is based on the REACCESS research project, sponsored by the European Commission, with the objectives of evaluating the technical, economic, and environmental aspects of present and future energy corridors between the European countries (EU27) and their main energy suppliers. GCC countries have an important role to play given their role in EU energy supply and in greenhouse gas emissions. The paper aims to discuss these issues.
Design/methodology/approach
A single energy model was built by hard‐linking the TIMES integrated assessment model (TIAM‐World), the Pan European TIMES model (PET), and the RECOR model (REaccess CORridors), including more than 1,000 possible energy corridors supplying the European countries. Another major methodology advance was to create a hybrid objective function, combining the usual cost objective and a metric representing the supply risk incurred by EU27. The risk component was constructed via a novel approach that aggregates the elemental risk parameters of each corridor using a Min‐Max function. Four contrasted scenarios were assessed, based on security and climate objectives.
Findings
Among the many results, it appears that a large reduction of the supply risk may be achieved at a very modest increase of the total energy system cost for EU27. Cross‐effects of climate mitigation and security objectives are also observed. Due to the diversification requirement, the contribution of GCC countries to EU energy imports increases under risk scenario. Sensitivity analyses show that the European energy system seems unable to reduce the market shares of fossil fuels import from MENA countries, including GCC countries, much below the reference case, proving the strong dependency of EU27 energy system from these countries. However, total fossil fuels imports, as well as total energy consumed, are decreased under the risk adverse scenarios.
Originality/value
Methodological developments, as described above, result in an advanced tool to assess how to increase the “energy system security”, by reducing the concentration of supply countries, diversifying import sources but also reducing the energy dependence at the end‐use side.
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José María Marín‐Quemada and Beatriz Muñoz‐Delgado
This paper aims to describe a new methodology for the analysis of international energy relations that enables the relationship between any given country and other countries or…
Abstract
Purpose
This paper aims to describe a new methodology for the analysis of international energy relations that enables the relationship between any given country and other countries or regions to be classified in terms of the competition (rivalry) and complementarities (affinity) between them.
Design/methodology/approach
The methodological approach taken rests on the composition of a new index, termed here the Energy Affinity Index, which has been defined as a function of countries' roles in international energy markets. This index therefore seeks to quantify energy rivalry or affinity between countries in terms of their energy import and export flows.
Findings
The key finding of this paper is the recognition and systematic cataloguing of countries in terms of their relationship with the region under study, namely the European Union (EU). Thus, the degree of affinity, rivalry, and irrelevance in terms of energy between the EU and third countries is distinguished. In turn, the potential that can be explored by the EU and the need to bring specific strategies to bear in each case is examined in the light of the results of the Energy Affinity Index and the specific characteristics of each country.
Research limitations/implications
The main research implications derive from the concept of energy relations and their quantification. It opens up a new path in the study of energy security and competition. This is potentially of considerable interest given that energy security is a widespread concern, particularly among highly energy dependent and vulnerable countries, and in view of the current context of growing competition for resources, characterised by increasing energy demand and the exhaustion of fossil fuels.
Originality/value
The original contribution and the value of this study is the proposal of the Energy Affinity Index as a new concept and a metric to help understand and analyse international energy relations both quantitatively and qualitatively. As well as presenting and developing the methodology, the paper analyses the EU‐27's energy relations with third countries over the period 2000‐2008, thereby offering a new perspective on these relations.
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Andrea Carpignano, Chiara Nironi and Francesco Ganci
The research activity presented in this paper has the objective of developing models for the evaluation of technological risk and loss of production due to failures, which are…
Abstract
Purpose
The research activity presented in this paper has the objective of developing models for the evaluation of technological risk and loss of production due to failures, which are among the criterions that enable the choice of optimal scenarios for energy supply. This activity is based on the European Project “Risk of Energy Availability: Common Corridors for Europe Supply Security” (REACCESS), which aims to develop an analytical tool to analyse scenarios for future secure European Union (EU) energy supply.
Design/methodology/approach
The paper proposes an innovative approach, since nowadays a generalised analytic model for risk assessment in large‐scale energetic systems does not exist. In particular, the methodology adopted includes models to assess risk for people safety, risk for the environment and availability for corridors and the related infrastructures. As regards technological risk, accidents producing loss of lives in the population and environmental damage are taken into account; while for the loss of production primary attention is paid to technical failures and maintenance.
Findings
Since the analytic models developed perform a large‐scale assessment, they must be flexible and simplified to adapt to different situations and to be easily updated when different future scenarios are investigated. Details of the analysis depend on the precision of data collected and inserted in the models. The damage assessment is affected by deficiency and uncertainties related to territorial and statistical data. Nevertheless, the outcomes obtained for each energy commodity are reasonable and often comparable to literature data.
Originality/value
Based on this study output, technological risk can be considered, more systematically than in the past, in the selection of EU strategies for future energy supply. The corridors social cost is included in future strategies selection, in addition to purely economical and environmental evaluations.
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Charikleia Karakosta, Aikaterini Papapostolou, Phaedra Dede, Vangelis Marinakis and John Psarras
This paper aims to explore Turkey’s current energy status with a on renewable energy sources (RES) cooperation mechanisms, within the framework of RES Directive 2009/28/EC. The…
Abstract
Purpose
This paper aims to explore Turkey’s current energy status with a on renewable energy sources (RES) cooperation mechanisms, within the framework of RES Directive 2009/28/EC. The study uses the SWOT (strengths, weaknesses, opportunities, threats) analysis for drawing results about perspectives of RES cooperation between Turkey and European Union (EU) Member States. In particular, the SWOT analysis provides a clearer view of expanding RES in Turkey, as well as the level of utilization and potential of cooperation mechanisms and renewable energy in the country.
Design/methodology/approach
The approach followed incorporates desktop analysis, stakeholders’ mapping and involvement, key factors’ identification and results analysis and validation. The adopted approach is based on research conducted within the context of the “Bringing Europe and Third countries closer together through renewable Energies (BETTER)” (project number: IEE/11/845/SI2.616378) project, co-financed by the Intelligent Energy Europe Programme.
Findings
Based on the SWOT analysis conducted for Turkey, there are huge opportunities for RES deployment and cooperation in the country, because of its large unexploited RES potential. Turkey is a country with strategic importance, e.g. regarding energy security. Substantial savings can occur for the EU28 Member States through this cooperation, whereas Turkey will also benefit through income and investments, as well as technology transfers and further synergies associated with the cooperation. For the above potentials to be reached, nevertheless, national policies for RES development would have to be strengthened substantially, and non-economic barriers mitigated.
Originality/value
The potential of Turkey to utilise cooperation mechanisms provides opportunities for RES exporting between the country and EU countries. An analysis of these opportunities for cooperation will allow drawing clearer conclusions on cooperation potentials and business cases for Turkey.
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Anne-Mari Järvenpää, Jari Jussila and Iivari Kunttu
The circular economy (CE) model is seen as an alternative model to the linear economy models, which seem to be reaching their physical limits. The CE business model aims to reuse…
Abstract
The circular economy (CE) model is seen as an alternative model to the linear economy models, which seem to be reaching their physical limits. The CE business model aims to reuse materials and decrease the need for virgin materials. This requires the implementation of a reverse supply chain, close collaboration between actors, as well as well-organized logistics. For this reason, the CE companies have typically high demand for digitalized processes and the utilization of data on both operational and business development dimensions. Also the utilization of big data collected from the companies’ business environment can provide new opportunities for business development in CE. Despite the fact that utilization of data collected from the business environment and operations enables data-driven approaches for various decision-making functions in companies, many companies still struggle to figure out how to use analytics to take advantage of their data. In the small- and medium-sized enterprises (SMEs), in particular, the managers are facing difficulties with ever-increasing amounts of data and sophisticated analytics. Indeed, prior research identified several kinds of barriers to the effective utilization of data in SMEs. Still, research on data-driven decision-making remains scarce in CE context. This chapter presents a case study consisting of seven cases, all representing SMEs operating in the field of CE in Finland. In the case study, the barriers and practical challenges for data-driven decision-making in CE SMEs are investigated. Based on the case study results, this chapter proposes that utilization of data, lack of resources, lack of capabilities, and regulation are the main barriers to data-driven decision-making in CE SMEs.
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Thomas Pregger, Evasio Lavagno, Maryse Labriet, Pernille Seljom, Markus Biberacher, Markus Blesl, Franz Trieb, Marlene O'Sullivan, Raffaella Gerboni, Laura Schranz, Helena Cabal, Yolanda Lechón and Daniela Zocher
Two main activities of the EC FP7 Risk of Energy Availability: Common Corridors for Europe Supply Security (REACCESS) project applied a systematic approach to collect the main…
Abstract
Purpose
Two main activities of the EC FP7 Risk of Energy Availability: Common Corridors for Europe Supply Security (REACCESS) project applied a systematic approach to collect the main characteristics of energy supply corridors starting from mining activities in exporting regions up to the import infrastructures and capacities of EU27+countries. The aim of the present paper is to summarise identified information on import potentials and the possible corridors for the EU27+energy supply of the future. This information is used as new starting point for the energy system modelling in the REACCESS project.
Design/methodology/approach
Detailed information on existing, planned or potential developments derived from literature reviews and expert surveys, as well as from our own calculations, was compiled in a consistent database. By using suitable geographic information system (GIS) tools, all the identified energy supply routes were represented graphically and analysed with reference to their spatial characteristics.
Findings
The information collected was used to generate a comprehensive database of resources, production capacities and import routes. Together with further detailed information on technological and economic parameters (not shown in this paper), this database provides new complete and consistent input for the modelling of import corridors and associated risks regarding the energy systems in Europe.
Originality/value
The originality of the paper is the synthesis of a huge volume of information provided in the literature and own additional calculations in a consistent way. The resulting database provides the framework for the integration of security of supply aspects into energy scenario modelling, which is an important modelling challenge and one of the main tasks of REACCESS. The study considers oil, gas, coal and nuclear fuel as well as renewable imports of solar electricity and biomass, and also hydrogen as a possible new energy carrier.