Green investment efficiency in the Chinese energy sector: Overinvestment or underinvestment
Regarding specific sub-sectors, overinvestment is directed at the renewable energy industry, while the coal industry and the oil and gas industry are subject to underinvestment. Both models yield similar estimation results, suggesting that the results are stable and robust, and the specific determinants of green investment exert a limited
Pumped hydro projects declared high priority by NSW government
5 · Three pumped hydro projects that would deliver a combined 1,035 MW / 9,480 MWh of dispatchable capacity have been declared critical state significant infrastructure by the New South Wales government, potentially smoothing the way for their approval. July 3, 2024 David Carroll. Legal. Markets & Policy.
Do energy policies bring about corporate overinvestment?
The simulation results indicate that to achieve the goal of carbon peaking by 2030, the annual installed capacity of nonfossil energy must reach 112.29 gigawatts, and average annual coal
Overinvestment and macroeconomic uncertainty: Evidence from
Irawan and Okimoto (2021) examine cross-country energy firms and show that the level of overinvestment - namely, a positive deviation from optimal investment - is associated with the economy''s business cycle, but not geopolitical risks.
Do Short‐Term Objectives Lead to Under‐ or Overinvestment in Long‐Term Projects?
Prior research has argued that such an environment induces managers to underinvest in long-run projects. We show that short-term objectives and imperfect information may also lead to overinvestment, and we identify how the direction of the distortion depends upon the type of informational imperfection present.
PUMPED STORAGE PLANTS – ESSENTIAL FOR INDIA''S ENERGY
Ministry of Power has, in April 2023, notified the guidelines to promote pumped storage projects. The Report on "Pumped Storage Plants - essential for India''s Energy Transition" recommends measures to contribute to the development of pumped storage projects
Do public subsidies trigger firms'' overinvestment? Evidence from the Korean renewable energy
in more risky projects to create greater value (Jensen and Meckling 1976). The conict between managers and share-holders also leads to overinvestment. When information asymmetries exist, managers may have incentives to over-invest free cash ow in
An option game model applicable to multi-agent cooperation investment in energy storage projects
Developing renewable energy is a critical way to achieve carbon neutrality in China, whereas the intermittent and random nature of renewable energy brings new challenges for maintaining the safety and stability of the power system (Zhang et al., 2012; Notton et al., 2018).).
The Future of Energy Storage | MIT Energy Initiative
MITEI''s three-year Future of Energy Storage study explored the role that energy storage can play in fighting climate change and in the global adoption of clean energy grids.
Do public subsidies trigger firms'' overinvestment? Evidence from the Korean renewable energy
We empirically investigate whether government subsidies result in firms'' overinvestment using unbalanced panel data from 61 renewable energy technology firms in Korea between 1991 and 2018.
South Korea is building too many LNG import and storage terminals
29 November (IEEFA): A new report by the Institute for Energy Economics and Financial Analysis (IEEFA) finds that South Korea is rapidly developing liquefied natural gas (LNG) import and storage terminals, presenting a high risk of overinvestment and overcapacity. IEEFA estimates the country''s LNG industry is pouring ₩11.3 trillion (US$8.7 billion) into
Green investment efficiency in the Chinese energy sector:
Data for 113 Chinese listed enterprises in the energy sector for 2010–2018 are used for the empirical study. The efficiencies of green investments are calculated for
Do public subsidies trigger firms'' overinvestment? Evidence from the Korean renewable energy
We empirically investigate whether government subsidies result in firms'' overinvestment using unbalanced panel data from 61 renewable energy technology firms in Korea between 1991 and 2018. Considering the diagnostic test results, we build a panel vector autoregression model and test how overinvestment is influenced by research and
A review of power system planning and operational models for flexibility assessment in high solar energy penetration scenarios
However, the incorporation of energy storage devices can significantly alleviate this issue (EPRI, 2016). Volatility in the presence of a variable renewable energy supply is more relevant to shorter time-scale flexibility needs of
Do Short-Term Objectives Lead to Under
Abstract. The authors examine managerial investment decisions in the presence of imperfect information and short-term managerial objectives. Prior research has argued that such an environment induces managers to underinvest in long-run projects. The authors show that short-term objectives and imperfect information may also lead to
The role of political connection on overinvestment of Chinese energy
Projects Activities Prizes/Honours Student Theses Datasets Impact Press/Media The role of political connection on overinvestment of Chinese energy firms Research output: Journal Publications and Reviews (RGC: 21, 22, 62)
Firm performance: the moderation impact of debt and dividend policies on overinvestment
Overinvestment measured by investment demand function has the mean value of 0.35, ranging from 0 (without overinvestment) to 1 (with overinvestment). Debt is the variable with the highest number of observations (6,099), and
UK energy storage deployments grew by record 800MWh in 2022
The graphic above shows the submitted capacity of energy storage projects by project size and by quarter; the total pipeline has now reached 61.5GW across 1,310 sites. After seeing how successful some projects were in the Enhanced Frequency Response (EFR) auction in 2016, many developers were motivated to submit more
Energy storage
In July 2021 China announced plans to install over 30 GW of energy storage by 2025 (excluding pumped-storage hydropower), a more than three-fold increase on its installed capacity as of 2022. The United States'' Inflation Reduction Act, passed in August 2022, includes an investment tax credit for sta nd-alone storage, which is expected to boost the
Energy storage 2022: biggest projects, financing and offtake deals
Email. Crimson Energy Storage, the largest battery system to have been commissioned in 2022 at 1,400MWh. Image: Recurrent Energy. A roundup of the biggest projects, financing and offtake deals in the sector that Energy-Storage.news has reported on this year. It''s been another landmark year for energy storage, part exemplified by the
The role of political connection on overinvestment of Chinese energy
This paper explores the role of political connection on the overinvestment of Chinese energy firms. We argue that political connection can act as a "helping hand" that enables energy firms to obtain more government support to invest and a "gring hand" that forces politically connected energy firms to heavily overinvest for the promotion benefit of local
China''s Qinghai Has Ocean of Solar Power, but No Storage
China''s Qinghai Has Ocean of Solar Power, but No Storage. High on the Tibetan Plateau in western China''s Qinghai province, a sea of solar panels stretches out across 345 sq. kilometers, making it the world''s largest photovoltaic power park. With another nearly 265 sq. kilometers of new panels set to be installed, the state-owned solar
China''s role in scaling up energy storage investments
This study explores the challenges and opportunities of China''s domestic and international roles in scaling up energy storage investments. China aims to increase
Green investment efficiency in the Chinese energy sector: Overinvestment
Further, sample firms are divided into three sub-sectors: the renewable energy industry, the coal industry, and the oil and gas industry. This empirical study demonstrates that the Chinese energy sector as a whole receives an overall excessive level of green investment (overinvestment) compared with the estimated optimal investment level.
Free cash flows and overinvestment: Further evidence from Chinese energy firms
The percentage of cash flows in energy firms relative to all firms is well above 15% and reached around 25% in the period 2009–2012. In addition, the Chinese energy firms have been actively involved in exploration and development (E&D) activities and spent heavily on investments around the world. According to the Heritage
US Department of Energy to pump $100m into non-lithium battery storage projects
3 · The US government''s Department of Energy (DOE) is set to pump $100 million into projects looking at non-lithium batteries for long-term energy storage. It has issued a notice of intent offering to fund pilot-scale energy storage demonstration projects that focus on "non-lithium technologies, long-duration (10+ hour discharge) systems, and
Investment decisions and strategies of China''s energy storage
The development of energy storage technology is strategically crucial for building China''s clean energy system, improving energy structure and promoting low-carbon energy transition [3]. Over the last few years, China has made significant strides
Energy Storage Projects: a global overview of trends and
There are many issues to consider when developing and financing energy storage projects, whether on a standalone or integrated basis. We have highlighted some of key regulatory considerations and trends we believe utilities, developers and financiers should take into account in assessing energy storage projects.
A review at the role of storage in energy systems with a focus on Power to Gas and long-term storage
In Section 4, the ones looking at trade-offs and dynamics of the system are included, part of this is the optimization studies where the sensitivities usually allow developing understanding of how changes in the storage size can affect the rest of the system Section 5, the focus is on cost, therefore, mostly the ones looking at
South Korea''s LNG overbuild | IEEFA
IEEFA estimates that South Korea''s new LNG receiving terminals could cost about ₩11.3 trillion (US$8.7 billion). Overall, incumbents and new entrants in the country''s LNG market aim to complete 11 LNG terminal projects by 2031, many of which are either under construction or at earlier stages of development. These terminals account for
The role of political connection on overinvestment of Chinese energy
connected energy firms are more likely to be forced to invest heavily. All in all, we argue the role of political connection as the "helping and gring" hands, which result in serious overinvestment in the Chinese energy industry. By studying 107 Chinese energy
Energy storage resources management: Planning, operation, and
With the acceleration of supply-side renewable energy penetration rate and the increasingly diversified and complex demand-side loads, how to maintain the stable, reliable, and efficient operation of the power system has become a challenging issue requiring investigation. One of the feasible solutions is deploying the energy storage
China, struggling to make use of a boom in energy storage, calls
2 · Investment in grid-connected batteries in China surged 364% last year to 75 billion yuan ($11 billion), according to Carbon Brief, creating by far the world''s largest
Weekly data: the world is heading for massive LNG oversupply
The International Energy Agency warned in October 2023 that there is now a risk of global gas oversupply. The "unprecedented surge" in LNG projects coming online from 2025 is set to lead to more than 250 billion cubic metres (bcm) of extra LNG being produced each year by 2030, said the agency – a figure equivalent to around 45% of
Energy Storage Projects: a global overview of trends and
Expert commentators like Navigant Research estimate that energy storage will be a US$50 billion global industry by 2020 with an installed capacity of over 21 Gigawatts in 2024.
Capacity Investment in Renewable Energy Technology with Supply Intermittency
Capacity investment decisions of energy storage power stations supporting wind power projects 12 September 2023 | Industrial Management & Data Systems, Vol. 123, No. 11 Carbon emissions abatement with duopoly generators and eco-conscious consumers: Carbon tax vs carbon allowance
Battery-Based Energy Storage: Our Projects and Achievements
It will have a power rating of 25 MW and capacity of 75 MWh, thanks to the forty "Intensium Max High Energy" lithium-ion containers supplied by Saft. These two projects, which represent a global investment of nearly €70 million, will bring TotalEnergies'' storage capacity in Belgium to 50 MW / 150 MWh. TotalEnergies develops battery-based
Overinvestment and Corporate Governance in Energy Listed
Request PDF | On May 1, 2019, Min Shi published Overinvestment and Corporate Governance in Energy Listed Companies: Evidence from China | Find, read and cite all the
The Turning Tide of Energy Storage: A Global Opportunity and
Even with near-term headwinds, cumulative global energy storage installations are projected to be well in excess of 1 terawatt hour (TWh) by 2030. In this report, Morgan Lewis lawyers outline some important developments in recent years and trends that will help shape the 2024 energy storage market.
Do public subsidies trigger firms'' overinvestment? Evidence from the Korean renewable energy
Theoretical background While public subsidies play a vital role in promoting RET firms'' innovation (Plank and Doblinger 2018; Sung 2019) by helping overcome underinvestment in innovative activities due to uncertainties related to technology and markets (Gillingham and Sweendy 2010) and spillovers (Hoppmann 2018), they may
