Energy Supply to Isolated Areas: Attracting Investment and Developing Regional Economy
The study analyses energy supply to isolated areas considering the development of priority areas of the regional economy and assessing the dependence between consumer finances and electricity costs. We examined energy supply problems in the example of the Tuva Republic, the Russian region with v...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Russian Academy of Sciences, Institute of Economics of the Ural Branch
2020-09-01
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| Series: | Экономика региона |
| Subjects: | |
| Online Access: | https://www.economyofregion.com/data/jarticles/3306.pdf |
| _version_ | 1797726438546210816 |
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| author | Anatoliy N. Asaul Maksim A. Asaul Yuri A. Levin Anatoliy M. Platonov |
| author_facet | Anatoliy N. Asaul Maksim A. Asaul Yuri A. Levin Anatoliy M. Platonov |
| author_sort | Anatoliy N. Asaul |
| collection | DOAJ |
| description | The study analyses energy supply to isolated areas considering the development of priority areas of the regional economy
and assessing the dependence between consumer finances and electricity costs. We examined energy supply problems in the
example of the Tuva Republic, the Russian region with vast isolated areas and high prices for energy. We explained the reasons
for the increase in electricity costs, including small-scale generation sources based on fossil fuels. The limitations of economically
substantiated energy transmission at light loads prevent the connection to a centralised energy supply systems in isolated
territories, leading to a decentralised energy supply. Thus, we proposed a methodological toolkit for solving the problem of
economic substantiation of the dependence between consumer finances and electricity costs, testing it on the example of the
gold mining industry. Our hypothesis relies on technological development opportunities in the field of renewable energy sources
to reduce the construction and operation costs of generation facilities. Since the economic feasibility of using renewable energy
sources for investors is determined by the dependence of consumer finances on energy generation costs, it is necessary to create
energy resource structures depending on different basic conditions. For that purpose, we showed the linear dependence of the
profitability of gold mining investment projects on electricity costs. The proposed criteria and methods allow determining the
threshold values of the economic efficienc y o f energ y service s provide d b y supplier s an d energ y produce d b y self-generating
facilities. Based on these results, further research can focus on analysing the impact of electricity costs on the financial parameters
of projects to apply innovative energy supply schemes and identifying thresholds of the response of profitability to energy costs
reduction for different energy consumption projects. |
| first_indexed | 2024-03-12T10:45:31Z |
| format | Article |
| id | doaj.art-52a1a3d406bd48998fa4734d15530a89 |
| institution | Directory Open Access Journal |
| issn | 2072-6414 2411-1406 |
| language | English |
| last_indexed | 2024-03-12T10:45:31Z |
| publishDate | 2020-09-01 |
| publisher | Russian Academy of Sciences, Institute of Economics of the Ural Branch |
| record_format | Article |
| series | Экономика региона |
| spelling | doaj.art-52a1a3d406bd48998fa4734d15530a892023-09-02T07:36:32ZengRussian Academy of Sciences, Institute of Economics of the Ural BranchЭкономика региона2072-64142411-14062020-09-01163884895https://doi.org/10.17059/ekon.reg.2020-3-16Energy Supply to Isolated Areas: Attracting Investment and Developing Regional EconomyAnatoliy N. Asaul0Maksim A. Asaul1Yuri A. Levin 2Anatoliy M. Platonov3Saint Petersburg State University of Architecture and Civil EngineeringMoscow Automobile and Road Construction State Technical UniversityMoscow State Institute of International RelationsUral Federal University The study analyses energy supply to isolated areas considering the development of priority areas of the regional economy and assessing the dependence between consumer finances and electricity costs. We examined energy supply problems in the example of the Tuva Republic, the Russian region with vast isolated areas and high prices for energy. We explained the reasons for the increase in electricity costs, including small-scale generation sources based on fossil fuels. The limitations of economically substantiated energy transmission at light loads prevent the connection to a centralised energy supply systems in isolated territories, leading to a decentralised energy supply. Thus, we proposed a methodological toolkit for solving the problem of economic substantiation of the dependence between consumer finances and electricity costs, testing it on the example of the gold mining industry. Our hypothesis relies on technological development opportunities in the field of renewable energy sources to reduce the construction and operation costs of generation facilities. Since the economic feasibility of using renewable energy sources for investors is determined by the dependence of consumer finances on energy generation costs, it is necessary to create energy resource structures depending on different basic conditions. For that purpose, we showed the linear dependence of the profitability of gold mining investment projects on electricity costs. The proposed criteria and methods allow determining the threshold values of the economic efficienc y o f energ y service s provide d b y supplier s an d energ y produce d b y self-generating facilities. Based on these results, further research can focus on analysing the impact of electricity costs on the financial parameters of projects to apply innovative energy supply schemes and identifying thresholds of the response of profitability to energy costs reduction for different energy consumption projects.https://www.economyofregion.com/data/jarticles/3306.pdfinvestment projectselectricity costsgeneration sourcesenergy densitydecentralised energy supplyrenewable energy sourcesfinancial parametersprofitability thresholdsregression functionsanalytical linear dependence |
| spellingShingle | Anatoliy N. Asaul Maksim A. Asaul Yuri A. Levin Anatoliy M. Platonov Energy Supply to Isolated Areas: Attracting Investment and Developing Regional Economy Экономика региона investment projects electricity costs generation sources energy density decentralised energy supply renewable energy sources financial parameters profitability thresholds regression functions analytical linear dependence |
| title | Energy Supply to Isolated Areas: Attracting Investment and Developing Regional Economy |
| title_full | Energy Supply to Isolated Areas: Attracting Investment and Developing Regional Economy |
| title_fullStr | Energy Supply to Isolated Areas: Attracting Investment and Developing Regional Economy |
| title_full_unstemmed | Energy Supply to Isolated Areas: Attracting Investment and Developing Regional Economy |
| title_short | Energy Supply to Isolated Areas: Attracting Investment and Developing Regional Economy |
| title_sort | energy supply to isolated areas attracting investment and developing regional economy |
| topic | investment projects electricity costs generation sources energy density decentralised energy supply renewable energy sources financial parameters profitability thresholds regression functions analytical linear dependence |
| url | https://www.economyofregion.com/data/jarticles/3306.pdf |
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