The Renewable Energy Strategy from the Perspective of Public Welfare

Abstract

The main global tendencies in both the traditional and the renewable energy are displayed. By means of the generally accepted standard indicators, the article compares the cost of generating a unit of energy using both the traditional and the renewable sources. Monetary estimates of the environmental impact of the traditional energy are presented. A brief analysis of the status of traditional energy in Ukraine and the prospects for the development of the separated renewable energy sectors are provided. In this, the authors show that as a result of the current status of the traditional energy industry (nuclear, thermal, hydropower) the path of development of renewable energy is the only practical way out of the most difficult situation. The life of nuclear power, taking into account the extension, ends by 2030. Thermal energy is characterized by an extremely low efficiency factor and the highest concentration of hazardous substances in the atmosphere among European countries. A comparison of the prospects for solar and bioenergy has shown that the positive impact of bioenergy on the environment should be taken into account when estimating the efficiency of generation. Should this be not taken into account, it turns out that bioenergy has significantly worse economic efficiency indicators relative to solar and wind power generation. Based on the construction of the optimization model of the solar power generation station (SPGS), it is proved that the efficiency of investments in solar energy is improving along with the growth of installed power. Estimates of the payback period at different amounts of annual electricity consumption by the household, depending on the amount of installed capacity, have been made. Estimates of the discount profit of the project for a guaranteed life of operation have been made. It is shown that investing in SPGSs can be used by the population as an efficient financial instrument.

Keywords

• renewable energy
• green tariff
• solar power plants
• bioenergy
• household
• payback period