AMOUNT OF COMPENSATION FOR HOUSEHOLD CONSUMERS OF ELECTRIC ENERGY IN THE CASE OF RENEWABLE ENERGY SOURCES PROMOTION

The promotion of the scenario which fully covers the electricity demand from renewable sources leads to an electricity price increase, mostly impacting poor population from the Republic Moldova. In order to decrease the Absolute Poverty Rate, the paper proposes a way to determine the appropria...

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Main Author: Ion COMENDANT
Format: Article
Language:English
Published: Academy of the Economic Studies of Moldova 2023-03-01
Series:Economica
Subjects:
Online Access:https://irek.ase.md/xmlui/bitstream/handle/123456789/2654/Comendant_ECONOMICA%201%20%202023.pdf?sequence=1&isAllowed=y
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author Ion COMENDANT
author_facet Ion COMENDANT
author_sort Ion COMENDANT
collection DOAJ
description The promotion of the scenario which fully covers the electricity demand from renewable sources leads to an electricity price increase, mostly impacting poor population from the Republic Moldova. In order to decrease the Absolute Poverty Rate, the paper proposes a way to determine the appropriate allowances. Achieving the objective is hampered by the fact that the existing Methodology for calculating the Absolute Poverty Threshold does not expressly contain the component related to the expenses for the electricity services provided. Such an algorithm is proposed in this regard using the structure of household consumption by categories of consumption, available at distribution companies. The calculations showed that the promotion of the concept of covering the power demand from renewable sources does not significantly harm the payment capacity of household consumers, in terms of the 2020-2021 years costs.
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spelling doaj.art-cadff624fccc49b588d26d7a2664af2a2023-05-22T10:32:50ZengAcademy of the Economic Studies of MoldovaEconomica1810-91362023-03-011123788810.53486/econ.2023.123.078AMOUNT OF COMPENSATION FOR HOUSEHOLD CONSUMERS OF ELECTRIC ENERGY IN THE CASE OF RENEWABLE ENERGY SOURCES PROMOTIONIon COMENDANT0https://orcid.org/0000-0001-5853-3609UTMThe promotion of the scenario which fully covers the electricity demand from renewable sources leads to an electricity price increase, mostly impacting poor population from the Republic Moldova. In order to decrease the Absolute Poverty Rate, the paper proposes a way to determine the appropriate allowances. Achieving the objective is hampered by the fact that the existing Methodology for calculating the Absolute Poverty Threshold does not expressly contain the component related to the expenses for the electricity services provided. Such an algorithm is proposed in this regard using the structure of household consumption by categories of consumption, available at distribution companies. The calculations showed that the promotion of the concept of covering the power demand from renewable sources does not significantly harm the payment capacity of household consumers, in terms of the 2020-2021 years costs.https://irek.ase.md/xmlui/bitstream/handle/123456789/2654/Comendant_ECONOMICA%201%20%202023.pdf?sequence=1&isAllowed=yrenewable energy sourcesallowanceselectricitypoverty rateability to pay
spellingShingle Ion COMENDANT
AMOUNT OF COMPENSATION FOR HOUSEHOLD CONSUMERS OF ELECTRIC ENERGY IN THE CASE OF RENEWABLE ENERGY SOURCES PROMOTION
Economica
renewable energy sources
allowances
electricity
poverty rate
ability to pay
title AMOUNT OF COMPENSATION FOR HOUSEHOLD CONSUMERS OF ELECTRIC ENERGY IN THE CASE OF RENEWABLE ENERGY SOURCES PROMOTION
title_full AMOUNT OF COMPENSATION FOR HOUSEHOLD CONSUMERS OF ELECTRIC ENERGY IN THE CASE OF RENEWABLE ENERGY SOURCES PROMOTION
title_fullStr AMOUNT OF COMPENSATION FOR HOUSEHOLD CONSUMERS OF ELECTRIC ENERGY IN THE CASE OF RENEWABLE ENERGY SOURCES PROMOTION
title_full_unstemmed AMOUNT OF COMPENSATION FOR HOUSEHOLD CONSUMERS OF ELECTRIC ENERGY IN THE CASE OF RENEWABLE ENERGY SOURCES PROMOTION
title_short AMOUNT OF COMPENSATION FOR HOUSEHOLD CONSUMERS OF ELECTRIC ENERGY IN THE CASE OF RENEWABLE ENERGY SOURCES PROMOTION
title_sort amount of compensation for household consumers of electric energy in the case of renewable energy sources promotion
topic renewable energy sources
allowances
electricity
poverty rate
ability to pay
url https://irek.ase.md/xmlui/bitstream/handle/123456789/2654/Comendant_ECONOMICA%201%20%202023.pdf?sequence=1&isAllowed=y
work_keys_str_mv AT ioncomendant amountofcompensationforhouseholdconsumersofelectricenergyinthecaseofrenewableenergysourcespromotion