Selecting the optimal clean energy projects for emerging economies

Abstract

In this study, it is aimed to determine the most accurate renewable energy investment alternative for developing economies. In this context, firstly, a very large-scale literature analysis was made. As a result, four different issues were identified that could have an impact on this decision. Financial analysis contributes to the determination of the efficiency of investments. Another factor to be considered in the selection of the optimal clean energy investment is customer satisfaction. Customer expectations should be taken into consideration when making investment decisions. Technological investments are also very important in this process because renewable energy investments involve complex engineering steps. Additional factor to consider in the selection of the most suitable renewable energy investment is personnel quality. By considering these four different factors, a decision-making model is created to identify the most optimal renewable energy alternative. For this ranking, the MAIRCA method based on expert opinion was preferred. The most optimal renewable energy alternative has been determined as geothermal energy. Secondly, biomass was determined as the most suitable renewable energy type. Geothermal energy and biomass energy types were followed by wind, solar and hydroelectricity energy types, respectively. It has been determined that hydroelectricity energy type is the most unsuitable renewable energy type. Considering the results obtained, it would be appropriate for developing countries to prioritize their geothermal energy investments. In this context, the types of risks encountered in this process should be determined. In addition, actions specific to these risk types need to be taken. This will allow the risks to be managed effectively. In this way, it will be possible to increase the performance of geothermal energy investments. One of the most important risks in geothermal energy investments is the damage of water resources. Otherwise, there will be significant reductions in water resources. This situation will cause some problems especially in agricultural production. Insufficient water resources will lead to a decrease in the production of agricultural products. Therefore, it would be appropriate to pay attention to this issue in geothermal energy investments.