IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i22p5714-d1521554.html
   My bibliography  Save this article

The Impact of Financial Support Mechanisms and Geopolitical Factors on the Profitability of Investments in Solar Power Plants in Slovenia

Author

Listed:
  • Iztok Gornjak

    (Borzen, Power Market Operator, Dunajska Cesta 156, 1000 Ljubljana, Slovenia)

  • Filip Kokalj

    (Faculty of Mechanical Engineering, University of Maribor, Smetanova Ulica 17, 2000 Maribor, Slovenia)

  • Niko Samec

    (Faculty of Mechanical Engineering, University of Maribor, Smetanova Ulica 17, 2000 Maribor, Slovenia)

Abstract

This article examines the impact of financial support mechanisms and geopolitical factors on the profitability of investments in solar power plants within Slovenia. The European Union’s energy policy prioritizes increases in renewable energy sources, aiming to reduce dependency on unstable and volatile fossil fuel markets. Solar power plants play a vital role in this transition. The energy policy framework also includes mechanisms and support systems to operate such facilities. This article analyzes electricity price trends over the past decade and addresses which support type—guaranteed purchase or operational support—has proven more profitable for investments in solar power plants up to 50 kW in Slovenia, considering economic and geopolitical influences on the electricity market. Although the global energy market has been affected by various significant events in recent years, it was found that the COVID-19 pandemic had minimal impact on the electricity market. In contrast, the onset of the conflict in Ukraine has contributed to rising electricity prices and has influenced the support dynamics essential for the development and sustainability of renewable energy systems. Analyses from the past decade indicate a higher return on investment in solar power plants when operational support mechanisms are chosen over guaranteed purchase support.

Suggested Citation

  • Iztok Gornjak & Filip Kokalj & Niko Samec, 2024. "The Impact of Financial Support Mechanisms and Geopolitical Factors on the Profitability of Investments in Solar Power Plants in Slovenia," Energies, MDPI, vol. 17(22), pages 1-13, November.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:22:p:5714-:d:1521554
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/22/5714/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/17/22/5714/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Elbert Dijkgraaf & Tom P. van Dorp & Emiel Maasland, 2018. "On the Effectiveness of Feed-in Tariffs in the Development of Solar Photovoltaics," The Energy Journal, , vol. 39(1), pages 81-100, January.
    2. Anatoli Chatzipanagi & Arnulf Jäger-Waldau, 2023. "The European Solar Communication—Will It Pave the Road to Achieve 1 TW of Photovoltaic System Capacity in the European Union by 2030?," Sustainability, MDPI, vol. 15(8), pages 1-10, April.
    3. Hegazy, Adel A, 2001. "Effect of dust accumulation on solar transmittance through glass covers of plate-type collectors," Renewable Energy, Elsevier, vol. 22(4), pages 525-540.
    4. Sebastijan Seme & Bojan Štumberger & Miralem Hadžiselimović & Klemen Sredenšek, 2020. "Solar Photovoltaic Tracking Systems for Electricity Generation: A Review," Energies, MDPI, vol. 13(16), pages 1-24, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arian Semedo & João Garcia & Moisés Brito, 2025. "Cryogenics in Renewable Energy Storage: A Review of Technologies," Energies, MDPI, vol. 18(6), pages 1-23, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. -, 2023. "Foreign Direct Investment in Latin America and the Caribbean 2023," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 48979 edited by Eclac, September.
    2. Kazemian, Arash & Khatibi, Meysam & Ma, Tao & Peng, Jinqing & Hongxing, Yang, 2023. "A thermal performance-enhancing strategy of photovoltaic thermal systems by applying surface area partially covered by solar cells," Applied Energy, Elsevier, vol. 329(C).
    3. Ma, Chao & Liu, Zhao, 2022. "Water-surface photovoltaics: Performance, utilization, and interactions with water eco-environment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    4. Guan, Yanling & Zhang, Hao & Xiao, Bin & Zhou, Zhi & Yan, Xuzhou, 2017. "In-situ investigation of the effect of dust deposition on the performance of polycrystalline silicon photovoltaic modules," Renewable Energy, Elsevier, vol. 101(C), pages 1273-1284.
    5. Fan, Siyuan & Wang, Yu & Cao, Shengxian & Zhao, Bo & Sun, Tianyi & Liu, Peng, 2022. "A deep residual neural network identification method for uneven dust accumulation on photovoltaic (PV) panels," Energy, Elsevier, vol. 239(PD).
    6. Fadl A. Essa & AbdelKader Abdullah & Hasan Sh. Majdi & Ali Basem & Hayder A. Dhahad & Zakaria M. Omara & Suha A. Mohammed & Wissam H. Alawee & Amged Al Ezzi & Talal Yusaf, 2022. "Parameters Affecting the Efficiency of Solar Stills—Recent Review," Sustainability, MDPI, vol. 14(17), pages 1-58, August.
    7. Conceição, Ricardo & González-Aguilar, José & Merrouni, Ahmed Alami & Romero, Manuel, 2022. "Soiling effect in solar energy conversion systems: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    8. Charabi, Yassine & Gastli, Adel, 2012. "Spatio-temporal assessment of dust risk maps for solar energy systems using proxy data," Renewable Energy, Elsevier, vol. 44(C), pages 23-31.
    9. Barroco, Jose & Herrera, Maria, 2019. "Clearing barriers to project finance for renewable energy in developing countries: A Philippines case study," Energy Policy, Elsevier, vol. 135(C).
    10. Erdenedavaa, Purevdalai & Akisawa, Atsushi & Adiyabat, Amarbayar & Otgonjanchiv, Erdenesuvd, 2019. "Observation and modeling of dust deposition on glass tube of evacuated solar thermal collectors in Mongolia," Renewable Energy, Elsevier, vol. 130(C), pages 613-621.
    11. Gherboudj, Imen & Ghedira, Hosni, 2016. "Assessment of solar energy potential over the United Arab Emirates using remote sensing and weather forecast data," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 1210-1224.
    12. Poponi, Daniele & Basosi, Riccardo & Kurdgelashvili, Lado, 2021. "Subsidisation cost analysis of renewable energy deployment: A case study on the Italian feed-in tariff programme for photovoltaics," Energy Policy, Elsevier, vol. 154(C).
    13. Muftah, Ali. F. & Alghoul, M.A. & Fudholi, Ahmad & Abdul-Majeed, M.M. & Sopian, K., 2014. "Factors affecting basin type solar still productivity: A detailed review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 430-447.
    14. Ivan Hajdukovic, 2022. "The impact of international trade on the price of solar photovoltaic modules: empirical evidence," EconomiA, Emerald Group Publishing Limited, vol. 23(1), pages 88-104, July.
    15. Marcos A. Ponce-Jara & Ivan Pazmino & Ángelo Moreira-Espinoza & Alfonso Gunsha-Morales & Catalina Rus-Casas, 2024. "Assessment of Single-Axis Solar Tracking System Efficiency in Equatorial Regions: A Case Study of Manta, Ecuador," Energies, MDPI, vol. 17(16), pages 1-19, August.
    16. Chiteka, Kudzanayi & Arora, Rajesh & Sridhara, S.N. & Enweremadu, C.C., 2021. "Optimizing wind barrier and photovoltaic array configuration in soiling mitigation," Renewable Energy, Elsevier, vol. 163(C), pages 225-236.
    17. Duberney Murillo-Yarce & José Alarcón-Alarcón & Marco Rivera & Carlos Restrepo & Javier Muñoz & Carlos Baier & Patrick Wheeler, 2020. "A Review of Control Techniques in Photovoltaic Systems," Sustainability, MDPI, vol. 12(24), pages 1-21, December.
    18. Pirayawaraporn, Alongkorn & Sappaniran, Sahapol & Nooraksa, Sarawin & Prommai, Chanon & Chindakham, Nachaya & Jamroen, Chaowanan, 2023. "Innovative sensorless dual-axis solar tracking system using particle filter," Applied Energy, Elsevier, vol. 338(C).
    19. Inhoffen, Justus & Siemroth, Christoph & Zahn, Philipp, 2019. "Minimum prices and social interactions: Evidence from the German renewable energy program," Energy Economics, Elsevier, vol. 78(C), pages 350-364.
    20. Thomas Lauf & Kristina Ek & Erik Gawel & Paul Lehmann & Patrik Söderholm, 2020. "The regional heterogeneity of wind power deployment: an empirical investigation of land-use policies in Germany and Sweden," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 63(4), pages 751-778, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:17:y:2024:i:22:p:5714-:d:1521554. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.