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Feasibility Study of Renewable Energy Deployment Scenarios in Remote Arctic Communities

Author

Listed:
  • Yulia Alexandrovna Nazarova

    (Faculty of Economics and Business Universitas Budi Luhur, Jakarta, Indonesia.)

  • Natalya Yuryevna Sopilko

    (Faculty of Economics and Business Universitas Budi Luhur, Jakarta, Indonesia.)

  • Andrey Valentinovich Kulakov

    (Non - profit Partnership Renewable Energy Council 12, BLDG. 2, Office 104, Novaya Basmannaya Street, Moscow, Russia,)

  • Irina Ivanovna Shatalova

    (Faculty of Economics and Business Universitas Budi Luhur, Jakarta, Indonesia.)

  • Olga Yuryevna Myasnikova

    (Faculty of Economics and Business Universitas Budi Luhur, Jakarta, Indonesia.)

  • Nataliya Vital evna Bondarchuk

    (Russian State Social University, Vil gelma Picka Street, 4, Moscow, Russia.)

Abstract

The paper aims to analyze the economic efficiency of investments in renewable energy in remote areas of the Russian Arctic. Despite the proximity to oil and gas wells, the development of renewable energy sources (RES) is most promising in these locations. The paper presents a feasibility study of two investment options based on RES with a calculation of electricity costs which ensure an expected return to potential investors. The estimation is given in comparison to the existing electricity rates in some communities of the Russian Arctic. The investigation revealed that the investment in RES is feasible but requires a proper technical and financial estimation. The estimation of undiscounted future cash flows may not be sufficient in case of long-term investments; high initial capital investments in RES are not always covered by lower operating costs. As a conclusion, the investment option of the wind-power plant with the system of accumulation and use of energy in the form of hydrogen, bound in a liquid organic carrier is less financially attractive due to high capital investments in comparison with the variant of wind-diesel deployment. The given calculations can provide an economic feasibility approach in finding the best option for RES deployment in remote Arctic areas.

Suggested Citation

  • Yulia Alexandrovna Nazarova & Natalya Yuryevna Sopilko & Andrey Valentinovich Kulakov & Irina Ivanovna Shatalova & Olga Yuryevna Myasnikova & Nataliya Vital evna Bondarchuk, 2019. "Feasibility Study of Renewable Energy Deployment Scenarios in Remote Arctic Communities," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 330-335.
    • Handle: RePEc:eco:journ2:2019-01-42
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    References listed on IDEAS

    as
    1. Yulia Alexandrovna Nazarova & Natalya Yuryevna Sopilko & Rimma Shoidorzhievna Bolotova & Natalya Sergeevna Shcherbakova & Vladimir Borisovich Alexeenko, 2017. "Increase of Social Impact Due to the Development of the Renewable Energy Industry in Russia," International Journal of Energy Economics and Policy, Econjournals, vol. 7(5), pages 263-270.
    2. Boute, Anatole, 2016. "Off-grid renewable energy in remote Arctic areas: An analysis of the Russian Far East," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1029-1037.
    3. Söderholm, Kristina & Söderholm, Patrik & Helenius, Heidi & Pettersson, Maria & Viklund, Roine & Masloboev, Vladimir & Mingaleva, Tatiana & Petrov, Viktor, 2015. "Environmental regulation and competitiveness in the mining industry: Permitting processes with special focus on Finland, Sweden and Russia," Resources Policy, Elsevier, vol. 43(C), pages 130-142.
    4. Nong, Duy & Countryman, Amanda M. & Warziniack, Travis, 2018. "Potential impacts of expanded Arctic Alaska energy resource extraction on US energy sectors," Energy Policy, Elsevier, vol. 119(C), pages 574-584.
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    Cited by:

    1. Natalya Yuryevna Sopilko & Olga Yuryevna Myasnikova & Nataliya Vital evna Bondarchuk & Natalia Anatolyevna Navrotskaia & Tatyana Evgenyevna Migaleva, 2020. "Analysis and Prospects for the Development of Regional Energy Integration of the Eurasian Economic Union Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 13-20.
    2. Olga Y. Myasnikova & Svitlana M. Lysytska & Tatyana E. Migaleva & Nataliya V. Bondarchuk & Ekaterina A. Vetrova, 2019. "Ecological-and-economic Approach to the use of Recycled Biomaterials as an Energy Resource," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 234-241.
    3. Liya R. Artemkina & Natalya Y. Sopilko & Olga Y. Myasnikova & Irina U. Eremina & Nataliya V. Bondarchuk & Sergey V. Shamsheev, 2019. "The Model of Upstream Investment Portfolio in the Mature Regions," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 173-180.

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    More about this item

    Keywords

    Renewable energy; wind turbine; hydrogen energy carriers; diesel generation; the Russian Arctic.;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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