IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i9p3632-d1383585.html
   My bibliography  Save this article

Evaluating Partners for Renewable Energy Trading: A Multidimensional Framework and Tool

Author

Listed:
  • Kai Schulze

    (Institute of Political Science, Technical University of Darmstadt, Residenzschloss 1, 64283 Darmstadt, Germany)

  • Mile Mišić

    (Institute of Political Science, Technical University of Darmstadt, Residenzschloss 1, 64283 Darmstadt, Germany
    Institute of Political Science, University of Heidelberg, Bergheimer Straße 56, 69115 Heidelberg, Germany)

  • Nikola Radojičić

    (Institute of Political Science, Technical University of Darmstadt, Residenzschloss 1, 64283 Darmstadt, Germany
    Geschwister-Scholl-Institut of Political Science, University of Munich, Oettinenstraße 67, 80538 Munich, Germany)

  • Berkin Serin

    (Department of Health and Sport Sciences, Technical University of Munich, Connollystraße 32, 80809 Munich, Germany)

Abstract

The worsening climate crisis has increased the urgency of transitioning energy systems from fossil fuels to renewable sources. However, many industrialized countries are struggling to meet their growing demand for renewable energy (RE) through domestic production alone and, therefore, seek to import additional RE using carriers such as hydrogen, ammonia, or metals. The pressing question for RE importers is therefore how to select trading partners, i.e., RE exporting countries. Recent research has identified a plethora of different selection criteria, reflecting the complexity of energy systems and international cooperation. However, there is little guidance on how to reduce this complexity to more manageable levels as well as a lack of tools for effective partner evaluation. This article aims to fill these gaps. It proposes a new multidimensional framework for evaluating and comparing potential RE trading partners based on four dimensions: economy and technology, environment and development, regulation and governance, and innovation and cooperation. Focusing on Germany as an RE importer, an exploratory factor analysis is used to identify a consolidated set of composite selection criteria across these dimensions. The results suggest that Germany’s neighboring developed countries and current net energy exporters, such as Canada and Australia, are among the most attractive RE trading partners for Germany. A dashboard tool has been developed to provide the framework and composite criteria, including adjustable weights to reflect the varying preferences of decision-makers and stakeholders. The framework and the dashboard can provide helpful guidance and transparency for partner selection processes, facilitating the creation of RE trade networks that are essential for a successful energy transition.

Suggested Citation

  • Kai Schulze & Mile Mišić & Nikola Radojičić & Berkin Serin, 2024. "Evaluating Partners for Renewable Energy Trading: A Multidimensional Framework and Tool," Sustainability, MDPI, vol. 16(9), pages 1-22, April.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:9:p:3632-:d:1383585
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/9/3632/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/9/3632/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Torvik, Ragnar, 2002. "Natural resources, rent seeking and welfare," Journal of Development Economics, Elsevier, vol. 67(2), pages 455-470, April.
    2. Jon Hovi & Detlef F Sprinz & Håkon Sælen & Arild Underdal, 2016. "Climate change mitigation: a role for climate clubs?," Palgrave Communications, Palgrave Macmillan, vol. 2(1), pages 1-9, December.
    3. Brändle, Gregor & Schönfisch, Max & Schulte, Simon, 2021. "Estimating long-term global supply costs for low-carbon hydrogen," Applied Energy, Elsevier, vol. 302(C).
    4. Stamm, Andreas & Altenburg, Tilman & Strohmaier, Rita & Oyan, Ece & Thoms, Katharina, 2023. "Green hydrogen: Implications for international cooperation. With special reference to South Africa," IDOS Discussion Papers 9/2023, German Institute of Development and Sustainability (IDOS).
    5. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    6. Lee, Cheuk Wing & Zhong, Jin, 2014. "Top down strategy for renewable energy investment: Conceptual framework and implementation," Renewable Energy, Elsevier, vol. 68(C), pages 761-773.
    7. Huenteler, Joern & Schmidt, Tobias S. & Ossenbrink, Jan & Hoffmann, Volker H., 2016. "Technology life-cycles in the energy sector — Technological characteristics and the role of deployment for innovation," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 102-121.
    8. David Popp, 2012. "The Role of Technological Change in Green Growth," NBER Working Papers 18506, National Bureau of Economic Research, Inc.
    9. Fasihi, Mahdi & Weiss, Robert & Savolainen, Jouni & Breyer, Christian, 2021. "Global potential of green ammonia based on hybrid PV-wind power plants," Applied Energy, Elsevier, vol. 294(C).
    10. Zhang, Zhenhua & Zhang, Yunpeng & Zhao, Mingcheng & Muttarak, Raya & Feng, Yanchao, 2023. "What is the global causality among renewable energy consumption, financial development, and public health? New perspective of mineral energy substitution," Resources Policy, Elsevier, vol. 85(PA).
    11. Popp, David, 2012. "The role of technological change in green growth," Policy Research Working Paper Series 6239, The World Bank.
    12. Brändle, Gregor & Schönfisch, Max & Schulte, Simon, 2020. "Estimating Long-Term Global Supply Costs for Low-Carbon Hydrogen," EWI Working Papers 2020-4, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI), revised 10 Aug 2021.
    13. Joanna I. Lewis, 2014. "The Rise of Renewable Energy Protectionism: Emerging Trade Conflicts and Implications for Low Carbon Development," Global Environmental Politics, MIT Press, vol. 14(4), pages 10-35, November.
    14. Gillessen, B. & Heinrichs, H. & Hake, J.-F. & Allelein, H.-J., 2019. "Natural gas as a bridge to sustainability: Infrastructure expansion regarding energy security and system transition," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    15. Janicka, J. & Debiagi, P. & Scholtissek, A. & Dreizler, A. & Epple, B. & Pawellek, R. & Maltsev, A. & Hasse, C., 2023. "The potential of retrofitting existing coal power plants: A case study for operation with green iron," Applied Energy, Elsevier, vol. 339(C).
    16. repec:pal:palcom:v:2016:y:2016:i:palcomms201620:p:16020- is not listed on IDEAS
    17. Ikonnikova, Svetlana A. & Scanlon, Bridget R. & Berdysheva, Sofia A., 2023. "A global energy system perspective on hydrogen Trade: A framework for the market color and the size analysis," Applied Energy, Elsevier, vol. 330(PA).
    18. Bernard Hoekman & Beata Smarzynska Javorcik, 2006. "Global Integration and Technology Transfer," World Bank Publications - Books, The World Bank Group, number 6962.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Galimova, Tansu & Satymov, Rasul & Keiner, Dominik & Breyer, Christian, 2024. "Sustainable energy transition of Greenland and its prospects as a potential Arctic e-fuel and e-chemical export hub for Europe and East Asia," Energy, Elsevier, vol. 286(C).
    2. ElSayed, Mai & Aghahosseini, Arman & Caldera, Upeksha & Breyer, Christian, 2023. "Analysing the techno-economic impact of e-fuels and e-chemicals production for exports and carbon dioxide removal on the energy system of sunbelt countries – Case of Egypt," Applied Energy, Elsevier, vol. 343(C).
    3. Antweiler, Werner & Schlund, David, 2024. "The emerging international trade in hydrogen: Environmental policies, innovation, and trade dynamics," Journal of Environmental Economics and Management, Elsevier, vol. 127(C).
    4. Ronghui Xie & Shengjie Zhang, 2024. "Re†examining the impact of global foreign direct investment (FDI) inflows on haze pollution—considering the moderating mechanism of environmental regulation," Energy & Environment, , vol. 35(6), pages 3186-3209, September.
    5. De-León Almaraz, Sofía & Rácz, Viktor & Azzaro-Pantel, Catherine & Szántó, Zoltán Oszkár, 2022. "Multiobjective and social cost-benefit optimisation for a sustainable hydrogen supply chain: Application to Hungary," Applied Energy, Elsevier, vol. 325(C).
    6. Kuo Zhou & Baicheng Zhou & Mengmeng Yu, 2020. "The impacts of fiscal decentralization on environmental innovation in China," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1690-1710, December.
    7. Xu, Le & Yang, Lili & Li, Ding & Shao, Shuai, 2023. "Asymmetric effects of heterogeneous environmental standards on green technology innovation: Evidence from China," Energy Economics, Elsevier, vol. 117(C).
    8. Li, Zezheng & Yu, Pengwei & Xian, Yujiao & Fan, Jing-Li, 2024. "Investment benefit analysis of coal-to-hydrogen coupled CCS technology in China based on real option approach," Energy, Elsevier, vol. 294(C).
    9. Zheming Yan & Rui Shi & Zhiming Yang, 2018. "ICT Development and Sustainable Energy Consumption: A Perspective of Energy Productivity," Sustainability, MDPI, vol. 10(7), pages 1-15, July.
    10. Huaide Wen & Jun Dai, 2021. "Green Technological Progress and the Backwardness Advantage of Green Development: Taking the Sustainable Development Strategy of Central and Western China as an Example," Sustainability, MDPI, vol. 13(14), pages 1-17, July.
    11. Ephraim Bonah Agyekum & Jeffrey Dankwa Ampah & Solomon Eghosa Uhunamure & Karabo Shale & Ifeoma Prisca Onyenegecha & Vladimir Ivanovich Velkin, 2023. "Can Africa Serve Europe with Hydrogen Energy from Its Renewables?—Assessing the Economics of Shipping Hydrogen and Hydrogen Carriers to Europe from Different Parts of the Continent," Sustainability, MDPI, vol. 15(8), pages 1-14, April.
    12. Bae, Dasol & Kim, Yikyeom & Ko, Eun Hee & Ju Han, Seung & Lee, Jae W. & Kim, Minkyu & Kang, Dohyung, 2023. "Methane pyrolysis and carbon formation mechanisms in molten manganese chloride mixtures," Applied Energy, Elsevier, vol. 336(C).
    13. Schlund, David & Theile, Philipp, 2022. "Simultaneity of green energy and hydrogen production: Analysing the dispatch of a grid-connected electrolyser," Energy Policy, Elsevier, vol. 166(C).
    14. Li Liu & Zhe Wang & Zhao Song & Zaisheng Zhang, 2023. "Evolutionary game analysis on behavioral strategies of four participants in green technology innovation system," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 960-977, March.
    15. Shahid, Rabia & Shahid, Humera & Shijie, Li & Jian, Gao, 2024. "Developing nexus between economic opening-up, environmental regulations, rent of natural resources, green innovation, and environmental upgrading of China - empirical analysis using ARDL bound-testing," Innovation and Green Development, Elsevier, vol. 3(1).
    16. César Berna-Escriche & Carlos Vargas-Salgado & David Alfonso-Solar & Alberto Escrivá-Castells, 2022. "Hydrogen Production from Surplus Electricity Generated by an Autonomous Renewable System: Scenario 2040 on Grand Canary Island, Spain," Sustainability, MDPI, vol. 14(19), pages 1-29, September.
    17. Scharf, Hendrik & Möst, Dominik, 2024. "Gas power — How much is needed on the road to carbon neutrality?," Energy Policy, Elsevier, vol. 187(C).
    18. Ding, Hongbing & Dong, Yuanyuan & Zhang, Yu & Wen, Chuang & Yang, Yan, 2024. "Exergy performance analysis of hydrogen recirculation ejectors exhibiting phase change behaviour in PEMFC applications," Energy, Elsevier, vol. 300(C).
    19. Lifeng Du & Yanmei Yang & Luli Zhou & Min Liu, 2024. "Greenhouse Gas Reduction Potential and Economics of Green Hydrogen via Water Electrolysis: A Systematic Review of Value-Chain-Wide Decarbonization," Sustainability, MDPI, vol. 16(11), pages 1-37, May.
    20. Yan, Zheming & Du, Keru & Yang, Zhiming & Deng, Min, 2017. "Convergence or divergence? Understanding the global development trend of low-carbon technologies," Energy Policy, Elsevier, vol. 109(C), pages 499-509.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:9:p:3632-:d:1383585. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.