Strategic Approaches to Energy Management

Inhaltsverzeichnis

1. Frontmatter

2. Chapter 1. Identifying the Best Financing Sources for Renewable Energy Companies in Latin American Countries

   Hasan Dinçer, Anton Lisin, Gözde Gülseven Ubay, Çağatay Çağlayan

   Abstract

   The main purpose of this study is to identify the best financing source in order to start a new renewable energy project in Latin America countries. In this case, a large literature on related subject is reviewed. As the result of this analysis, the most-used ways to fund a renewable energy project are determined. By selecting 5 funding options among them, an analysis has been conducted by using Analytic Hierarchy Process (AHP) method in order to weight these criteria set. The findings indicate that government grants and subsidies play the most significant role in order to fund a renewable energy project. In addition to this situation, it is also concluded that using bank loans is another important way for this issue. On the other side, crowdfunding, angel investors and venture capital are on the last ranks in this regard. By taking account these results, it can be said that to increase renewable energy projects government should take actions, give some incentives and facilities government-backed funds for green investors. The biggest disadvantage of renewable energy investments is the high costs. In such investments, especially the initial setup costs are very high. In this context, the tax reduction to be provided by the government to renewable energy investors will contribute to these companies gaining a serious cost advantage. On the other hand, interest-free loans to be given to these investors by the state will also help to increase the efficiency in this process.

3. Chapter 2. Modern Directions in Bioenergy Production from Forest

   Artur Meynkhard, Uyeh Daniel Dooyum

   Abstract

   The article provides an overview of the production of bioenergy from forest sources on a global scale. The research paper reveals the main problems of bioenergy development and formulates the possible options for further expansion of the electric power industry. Innovative technological solutions are considered. The article uses inductive and deductive methods for analyzing statistical data on the basis of which the problems of sustainable development of bioenergy are assessed. The article proves that, despite the general tendency towards weakening of climatic changes, they can play a decisive role for heating subscribers. The results include the various processes that make it possible to obtain energy from forest biomass residues, as well as the potential that these residues have for the production of various types of bioenergy. The findings prove that the decision to choose a biofuel transition strategy depends on the type, properties and quantity of biomass available, usage requirements, as well as environmental standards and economic conditions.

4. Chapter 3. A Study on the Energy Problem in the Eastern Mediterranean: Text Mining and AHP-Based Strategy Recommendations

   Serhat Yüksel, Serkan Eti, Sergey Prosekov, Gülsüm Sena Uluer

   Abstract

   The American Geological Association has made some estimates for reserves in the Eastern Mediterranean region. According to these estimates, it is predicted that there are very high amounts of natural gas and oil resources in the deltas of Nile, Levant and Aphrodite. These figures are large enough to meet Europe’s 10-year natural gas need. On the other hand, another important point in this process is that these reserves are the amount determined in the studies conducted so far. In other words, there is a possibility that the actual reserve amount in this region is well above the estimated. Investigations in the relevant region are ongoing. As a result of these investigations, there is a possibility that new reserves will be identified. Because of this situation, there are many countries engaged in energy exploration in the Eastern Mediterranean. Firstly, the countries, which have a border to this region like Turkey, Israel, Egypt, the Turkish Republic of Northern Cyprus, Cyprus, Greece, Lebanon, Syria and Libya, are very active in this region. In addition, although there is no border to the region, countries such as the USA, Russia, England, France and Italy want to maintain their weight in the energy equation in the Eastern Mediterranean. It is obvious that the size of the energy reserves in the region lies at the heart of the energy struggle in the Eastern Mediterranean. This situation causes an increase in political tensions between some countries operating in the region. No country wants to give up this economic size. Therefore, some countries like Turkey-Greece and Libya-Egypt have problems with each other. The aim of this study is to develop strategies to reduce the political tension between countries due to energy reserves in the Eastern Mediterranean region. In this context, an analysis has been carried out by considering data mining and AHP methods in a hybrid way. The analysis process in question consists of 2 different stages. In the first process of the analysis, the most common words in academic studies are categorized using the LDA model. In this framework, 4 different categories are created. In the second phase of the analysis, more important factors are determined with the help of AHP method. The findings indicate that political relationship is the most significant factor to solve the conflict in Eastern Mediterranean region. Furthermore, transportation also plays a key role in this framework. Nevertheless, energy production and reserve amount have lower important roles to minimize this problem. Considering these results, ways of establishing positive relations between all countries in the region should be sought. Searching for a reconciliation with the energy companies making exploration, as well as with the countries, may contribute to solving the problems in the region.

5. Chapter 4. Development Russian Financial Markets: Evidence from Energy Companies from 1990 to 2020

   Natalia Sokolinskaya, Mir Sayed Shah Danish

   Abstract

   The objective of this study was to investigate the level of development Russian financial market. The data array reflects volume of the financial market and macroeconomic indicators. The article offers a comprehensive approach for ensuring the competitiveness of financial institutions. In this article proved that now the share is growing inter-company agreement interactions. From the point of view of consumers, easy to get financial institutions services, increasing their expectations relative speed, quality and availability. In this one connection is growing demand for large company’s aggregators, the so-called financial institution-supermarkets, where is the consumer it has the following features by set parameters keywords find financial resources services and compare their attractiveness for myself. Results confirm the conclusion of the revitalization of the financial market development. Development modern financial market (and domestic, and global) due to power growth the consumer, click through economy to a new way of life, where significant part of gross internal product description service sector thanks to intensive scientific and technical progress.

6. Chapter 5. Determining Optimal State Support for the Development of Renewable Energy Investments by Entropy Method

   Hasan Dinçer, Hakan Kalkavan, Hüsne Karakuş, Leonid Ratkin

   Abstract

   Renewable energies contribute to the social and economic development of countries in many ways. Primarily, no carbon gas is released into the atmosphere as a result of the use of renewable energy. Thanks to the reduction of air pollution, the number of sick people in the country will decrease. This stated situation will both reduce health costs and minimize the loss of labor force in the country. In addition to the mentioned issue, countries will be able to produce their own energy thanks to the use of renewable energy. This will reduce countries’ dependence on foreign energy. This will reduce the economic fragility of the country. However, there are some disadvantages in using renewable energy. The biggest problem in this process is that the initial installation costs of renewable energy investments are very high. This problem reduces the motivation of investors to invest in this area. Therefore, the support that the state will provide to investors is of vital importance in increasing renewable energy investments. In this study, it is aimed to determine the most important government incentive that will contribute to the increase of renewable energy investments. In this framework, a detailed literature review has been made on the subject and 5 different state supports have been determined. Then, an analysis has been carried out with the Entropy method in order to determine which of these support types are more effective. In this process, the views of 3 different academicians who have detailed knowledge on the subject are consulted. The findings indicate that tax incentive is the most important state support to improve renewable energy investments. In addition to this issue, it is also concluded that location support and fixed-price application are other significant factors to reach this objective. Nevertheless, financial incentives and funding for research and development studies are on the last ranks. In this framework, the government should focus primarily on tax incentives in order to increase renewable energy investments. In this context, it would be appropriate to reduce the income tax from investors and the taxes on the wage income of workers employed in this sector. In this way, companies will gain a serious cost advantage, and this will contribute to the orientation of investors to this field.

7. Chapter 6. Energy Flow Analysis from Russia to South Korea

   Mafura Uandykova, Tomonobu Sengyu

   Abstract

   The objective of this study is devoted to energy flow analysis on the back of cooperation of South Korea and Russian Federation in the fuel and energy sector. An analysis of this topic and related prospects was done through the study of documents and projects that have direct relation to such cooperation as well as data regarding export and import of energy resources, concepts and theories of development in this field. The cooperation in the energy sector between South Korea and the Russian Federation is one of the most promising areas of development between two countries and today has a serious potential to expand and deepen, due to both economic and political factors. The document defines the main problems of the fuel and energy complex of the Russian Federation, goals and objectives of energy sector development, priorities of state energy policy, global trends in energy consumption and changes in energy markets, and international relations regarding energy sector.

8. Chapter 7. Factors Causing Delay in the Installation of Nuclear Power Plants

   Serhat Yüksel, Alexey Mikhaylov, Gözde Gülseven Ubay

   Abstract

   Nuclear energy is a type of energy that has many advantages. Generating uninterrupted energy, not releasing carbon gas to the atmosphere and obtaining high amounts of electrical energy are examples to be given to this issue. These factors have increased the demands of countries for nuclear power plants. However, there is also a group against nuclear energy due to certain factors. Issues such as the explosion risk of the nuclear power plant and how to destroy radioactive wastes are accepted as the main reasons for this idea. On the other hand, in order for nuclear power plants to operate effectively, the country must have the necessary technological infrastructure and qualified personnel. These factors cause countries not to give priority to nuclear power plants. This study focuses on the factors that delay the establishment of nuclear power plants. In this context, first of all, a detailed literature review has been carried out on the subject. As a result of this study, 5 basic factors that will delay the establishment of nuclear power plants were determined. After that, an analysis has been conducted with the fuzzy DEMATEL method in order to determine which of the relevant factors are more important. The findings indicate that the energy reserve amount of the countries has been determined as the most important factor in opening nuclear power plants. Additionally, the expertise level and public acceptance are other significant issue in this regard. On the other hand, policy changes and technological infrastructure have lower importance for this situation. This result shows that countries resort to nuclear energy in order to reduce their dependence on foreign energy.

9. Chapter 8. A New Approach of Energy Financing: The Yields of Green Bonds in Emerging Economies

   Musa Gün, Melih Kutlu

   Abstract

   This study focuses on a relatively new financial asset, namely the green bond which is particularly used to finance environmentally friendly and climate stimulating projects. From a point of business view, the financial performance of assets naturally affects the investment decisions of actors including policymakers, governments and investors. Focusing on this angle, this study aims at analyzing and comparing the yields of green bonds and equivalent conventional peers in emerging economies including Brazil, China, Czech Republic, Korea, Malaysia and Taiwan. In this context, firstly, green financing and green bonds introduced. Afterwards, based on the literature review, we employ a matching method to test the yield differences among the bonds. The analyses have resulted in mixed findings. The descriptive statistics show that on average green bonds offer a higher yield than conventional bonds in China, Czech Republic and Malaysia, whereas they provide lower yields in Brazil, Korea and Taiwan. However, considering the findings as a whole, the differences between the yields are not statistically significant.

10. Chapter 9. Modelling the Volatility Spillovers Among Energy Stock Returns in Developed, Developing and Fragile Economies Using EGARCH Analysis

    Merter Akıncı, Gönül Yüce Akıncı

    Abstract

    The main motivation of the paper is to examine the volatility and spillover dynamics of the stock returns of energy companies operating in the oil and gas sectors in stock markets of American, European, Asian and fragile countries using EGARCH analysis for the period from 10.15.2015 to 01.29.2021. The results reveal that the current term conditional variance of the energy stock returns are affected by the past term economic shocks, and the effects of the volatility persistence of the previous terms on the current term conditional variance continue in the long run. Besides, it is found that the negative shocks affect more strongly the return volatilities of energy stocks in comparison with positive shocks, suggesting the existence of leverage impact. In addition, the results also point out the presence of the spillover impacts of the return volatilities from the energy stocks of developed and developing countries to those of fragile countries.

11. Chapter 10. Increasing Efficiency of Energy Saving Policies in the Future: Corporate Social Responsibility Projects

    Başak Gezmen

    Abstract

    Creating awareness and consciousness about energy saving, which are the most important topic of our era, rank among ultimate duties of media. Technological developments and new areas of the digital worlds provide advantages about awareness of consumers and taken actions of them. It has become possible to get information and be aware of every subject through the media. In this sense, the media can mobilize the masses by providing correct flow of information, forming public opinion, engaging in activities that contribute to education and performing other operations. Corporate social responsibility (CSR) projects for mass of children are more effective about creating awareness. It will have provided an achievement for limited energy correct usage of next generations in the future by teaching and gaining efficient energy consumption, saving awareness, other precautions, and correct behavior models from little ages. In this point, CSR projects draw attention. In this study, awareness aimed for mass of children and rewarded energy saving projects made by three different corporates in Turkey will be evaluated. Within these projects’ scope, it will be discussed how responsibility campaigns realized by corporates on energy efficiency are effective for efficiency and creating awareness about savings.

12. Chapter 11. Business Intelligence Application in the Natural Gas Industry: A Company Case

    Kevser Şahinbaş, Bünyamin Yılmaz

    Abstract

    Recently, information technology tools have been extensively used to accelerate the flow of data, and huge amounts of data have been generated. Therefore, the advantages of having a large amount of data are quite high, however, the increasing masses of data have caused it more complicated for businesses to make new decisions in the intense competitive environment. One of the most important stages of making strategic decisions is to process the existing raw data correctly and to produce new and meaningful information and opportunities, and to use the produced in a way to meet the needs of the market and the sector. To achieve success in a dynamic and hyper-competitive business environment, organizations need effective and timely business information to maintain their continuity. In this regard, organizations need to integrate the necessary technologies into their business processes. Thanks to a well-designed information system, organizations gain advantages in order to achieve the desired goals. Business intelligence systems provide many benefits to the organizations that use them as a type of information system. The aim of this study is to demonstrate the stages of business intelligence and information technology approaches in the natural gas sector and to evaluate and analyze their applicability. Business intelligence systems assist the organization in corporate performance management, optimizing customer relations and supporting decision making. In addition to these, it provides great convenience to decision-making mechanisms with the reports it presents to the management.

13. Chapter 12. Environmental Impact of Economic Globalization and Renewable Energy Consumption in the OPEC Countries

    Ibrahim Nandom Yakubu, Ayhan Kapusuzoglu, Nildag Basak Ceylan

    Abstract

    This study seeks to investigate the effect of economic globalization and renewable energy consumption on environmental quality in the Organization of the Petroleum Exporting Countries (OPEC) over the period 1990–2017. In doing so, we disentangle the economic globalization index into de facto and de jure components to examine their impact on environmental quality. Applying the Pooled Mean Group (PMG) estimator, the long-run estimates show that economic globalization in its overall, de facto, and de jure forms reduce environmental quality. Renewable energy consumption is documented to have a favourable effect on the quality of the environment. The study further finds an inverted U-shaped relationship between real per capita income and environmental pollution, confirming the Environmental Kuznets Curve (EKC) hypothesis in the OPEC bloc. Given these findings, it is crucial for policymakers in the OPEC member countries to review and implement policies to mitigate the negative environmental consequences of economic globalization. Also, environmental sustainability can be achieved by adequately investing in renewable energy.

14. Chapter 13. Energy Policy Recommendations for ASEAN Countries: Empirical Evidence from the Bootstrap Panel Granger Causality Analysis

    Zafer ADALI, Özge KORKMAZ, Orkun ÇELİK

    Abstract

    In social sciences, especially in the economic literature, energy has been one of the most important topics. Energy seems to be dominant on the political and economic agendas because of nearly all economic activities linked to energy. Hence, all economies have endeavored to detect and implement policies to increase their efficiency and mitigate energy’s detrimental effects on the earth. This study’s principal mission is to check the connection between economic growth, non-renewable and renewable energy consumption in ASEAN-5 countries over 1990–2014 to recommend energy-saving policies. Within this view, bootstrap panel Granger causality test is applied. The model results indicate that economic growth causes renewable energy consumption in the Philippines and economic growth induces non-renewable energy consumption in Indonesia and Malaysia. A unidirectional causality relationship operating from renewable energy consumption to economic growth is approved for Brunei Darussalam. Finally, a unidirectional causality relationship working from renewable energy consumption to Brunei Darussalam’s economic growth is confirmed.

15. Chapter 14. Strategic and Management Thinking: An Examining of Sustainable Energy Management

    Zafer Adiguzel

    Abstract

    In general, energy management has emerged as a vital concept to not only address the increasingly serious energy problems but to reduce the consumption, cost, and environmental impact of scarce and valuable energy resources. Because energy is a cost element for both states and companies, the importance of energy management stems from the global need for energy savings at all scales. Among the objectives of energy management are to conserve resources and cost savings while reducing environmental impacts and providing uninterrupted access for energy users. However, with the adoption of a strategically sustainable management approach, together with energy management, future-oriented investments are needed. In the study, energy, strategy and sustainability concepts are examined.

16. Chapter 15. Urbanization, Fossil Fuel Consumption and Carbon Dioxide Emission in Ghana: The STIRPAT Model Approach

    Ibrahim Nandom Yakubu, Ayhan Kapusuzoglu, Nildag Basak Ceylan

    Abstract

    Relying on the Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) model, this chapter examines the effect of urbanization and fossil fuel consumption on CO₂ emission in Ghana. The study applies the autoregressive distributed lag (ARDL) estimator to investigate the short- and long-run influence of the variables of interest on CO₂ emission with data spanning from 1971 to 2017. The findings indicate that urbanization exerts a negative significant influence on CO₂ emission in both long- and short-term periods, thus confirming the validity of the compact city theory in Ghana. While affluence significantly reduces CO₂ emission in the short-term, technology contributes to environmental pollution regardless of the period. The results further reveal that although fossil fuel consumption triggers pollution in the short-run, it impedes CO₂ emission in the long-run. The findings suggest the need to espouse policies that will assist in urban development. Besides, adopting environmentally friendly technologies and increasing the dependence on renewable energy sources are imperative to enhancing environmental quality in Ghana.

17. Chapter 16. RPA in Energy and Utilities

    Özge Doğuç

    Abstract

    Robotic Process Automation (RPA) is an effective technology that uses software robots that typically mimic an employee to automate everyday tasks. These tasks are often related to the business processes of the E&U companies such as billing, payments, check-in and check-out and other office tasks. While RPA is gaining increasing popularity in different industries, the E&U sector lags behind others in terms of maturity. Energy and utilities (E&U) is a customer-centered industry where each individual is dependent on the provided services for their daily needs. The likelihood of human error in the sector is high, given the large number of transactions happening every day, so RPA becomes essential to help companies manage transactions efficiently and improve the customer experience which is often missed by the companies. This chapter discusses how RPA can positively impact both internal processes of E&U companies and their customer-facing operations.

18. Chapter 17. Energy Oriented Management Approach as a Market Activity Tool in Achieving Competitive Advantage

    Fulya Almaz

    Abstract

    Today, all for-profit or non-profit businesses carry out many activities in order to provide a competitive advantage and to make it sustainable. These businesses that want to achieve success in competition and being sustainable have to manage energy, which is an important input, correctly. With energy management, which has been on the agenda in all world markets since the 1970s, they integrate practices that include both sustainable competitive advantage and environmental issues into the strategies of their businesses. In this study, in order to contribute to the relevant literature, energy-oriented management approach as a market efficiency tool in gaining competitive advantage is conceptually examined. In this context, a deep literature review has been made. As a result, it has been seen that a fully integrated energy management process from top management to the lowest level should be developed in order for a successful energy management approach to take root in enterprises. It has been determined that the energy management, which will be applied successfully, has an effect on the competitive advantage of the enterprises.

19. Chapter 18. The Core of Business: Is It Energy Management or Management Energy?

    Ercan Karakeçe

    Abstract

    This study focuses on the significance of energy by considering it as a strategic element in competitive environments. Contrary to what thought, when discussing energy, it will try to highlight not only physical description but also other issues to be addressed in various other contexts. For this purpose, while emphasizing energy as both a necessity and a power in production, it is interpreted from a business perspective at the same time. This study expresses how energy notion may be evaluated from the perspective of managerial and entrepreneurial actions. Thus, this inquiry evaluates the concept of energy from a different perspective by bringing together engineering and management inspirations.

20. Chapter 19. Renewable Energy and Environment in the Context of Sustainability

    Halil İbrahim Uzun

    Abstract

    The demand for energy in the world is increasing every year. For this reason, future energy demands should be planned within the framework of efficiency and trust principles. In addition to the environment and natural resources, sustainability of development and justice in economic prosperity are also necessary for all societies. The priority in sustainable development is undoubtedly the issue of energy production and consumption. It is not possible to meet the increasing energy demand with economic growth and population growth with traditional energy production systems that have destroyed the environment so far. For this reason, renewable energy systems, which are the most important alternative, should be considered from the perspective of sustainable development. In this study, the development processes of the concepts of sustainability, sustainable development and the basic foundations of today were put forward and the current situation in energy production was analyzed. Finally, the relationship and interaction between renewable energy sources and sustainable development were discussed.

21. Chapter 20. Determining Optimal Islamic Financing Methods for Small-Scale Sustainable Energy Investments Regarding Socio-Economic Welfare

    Hakan Kalkavan, Serkan Eti

    Abstract

    The aim of this study is to determine appropriate Islamic financing methods (IFMs) for sustainable energy investments to reach a wider community. Since energy investments are costly projects, their financing should be carried out in the most efficient way. Likewise, the provision of environmentally friendly energy resources is essential for a sustainable human-society-nature balance. As a human duty to prevent climate change, everyone should be aware of personal consumption according to ecologically friendly. In this context, the use of Islamic financing instruments can help spread sustainable energy investments, particularly across Muslim countries. In terms of small-scale investments, it would be significant for the sustainable energy investments to reach people with religious sensitivity, as Islamic financial institutions have a closer business relationship with both SMEs and end-users. To put it briefly, it is vital to make the most appropriate decision regarding sustainable energy investments, considering the economic limitations of countries and people. According to the analysis result of the MCDM based AHP method; Murabaha financing comes to the fore in small-scale energy investments. Accordingly, Murabaha (cost-plus) financing can be a good alternative to interest-bearing credits with a variable interest rate. Respectively, the second-best weighted IFM is found as Mudarabah which is a special type of partnership where one party is a financier, and the other is an entrepreneur. In reverse, the least suitable method has been found as Ijarah. Thus, the Islamic banking system should develop various business models for energy investments through these two most appropriate IFMs. So much so that, thanks to small-scale sustainable energy investments, both environmentally friendly carbon emissions will be reduced, and the country’s external energy imports will be reduced via the production of extra energy. As a result, shifting from anthropocentric to ecocentric lifestyle that is self-sufficient in terms of energy and compatible with the environment can be generated for the sake of sustainability.

22. Chapter 21. The Impact of Energy Investments on Employment: A Study on the OECD

    Halim Baş, İrfan Ersin

    Abstract

    The energy sector is among the vital sectors in the economies of the country. The share of this sector in employment is also important. The aim of this study is to examine the impact of energy investments on employment in the OECD region, which has an important place in the world economy. In the study, in which VAR analysis was used as a method, the period 1990–2019 was analyzed annually. According to the analysis results, no concrete impact of energy investments on employment could be determined. Considering that the energy sector has an important share in the world economy, it is thought that energy investments should be planned in a way that increases employment.