Photovoltaic solar power plant investment optimization model for economic external balance: Model of Turkey

Abstract

Through using a linear optimization model that interprets solar energy and current deficit parameters, investment plans were performed for countries which have current deficit problem of energy source. The specifics of the study are due to the linear optimization model, which reveals the current deficit and solar energy together for the investment strategy. While the model is constituted, without affecting the existed current account, some parameters based on such as profit transfers for foreign investments, payments of interest for domestic investments, import rates for photovoltaic solar panels, solar energy electricity production values, electricity demand projection for the future and import resource rates for electricity production. In the framework of these constraints of the model, the effects of solar systems on domestic investment and foreign direct investments on current account balance are analyzed for the period of 2017–2030 in Turkey. In the application of the model in Turkey to reduce the current deficit, this is concluded that the solar energy is a significant opportunity. In addition, the linear optimization model is considered as a reference for countries facing energy-related current deficit problems.

Optimum Renewable Energy Investment Planning in Terms of Current Deficit: Turkey Model

“…It was demonstrated that 1 GW investment of PV solar energy provides a current deficit reduction annually ranging between 120-210 million dollars, on average 170 million dollars [39]. In line with the same calculation, the wind energy provides a reduction in imported energy annually costing between 188-328 million dollars which is, on average, 270 million dollars.…”

“…As the conclusion of the model, it was demonstrated that technological learning, electricity market incentives, and liberalization of energy market are important factors. Alagöz et al [39] developed their 2017-2030 PV solar energy investment plan through LP model for the reduction of current deficit in Turkey. The objective of the developed optimization model was to maximize the reduction of energy-based fossil import, and as per the constraints, they created the optimization model considering constraints such as electricity demand of the next period, capital for the investments, the cost of imported RES system due to technological insufficiency, current account balance, total solar energy potential, and solar energy installed power objective.…”

“…This fact demonstrated that the FDI investments were the required variables of the objective function of the model. Considering the data of the previous periods in Turkey, it was calculated that the FDI profit transfers were, annually, 7% of the total investments [39]. Another important point was that the contribution of the wind energy investments to the reduction of current deficit was higher compared to that of the PV solar energy.…”

“…Making agreements with a purchase guarantee in the electricity investments of the private sector, Turkey binds the investments to be made by the FDIs and DIs to the contracts of concession within the context of Public Private Partnership (PPP). It was reported that the energy investments within the context of PPP are contracts with an electricity purchasing guarantee in foreign currency, and in this regard, credits were used in foreign currency for the 75% of the project cost with an annual average of 6% interest [39] (p. 875). While calculating the annual interest and principal repayment, the parameters for 10 years, 6% interest rate, and the credit for the 75% of the total cost were taken into consideration.…”

Characterization of the Consumption Habits of Household Products That Protect the Environment

“…The excessive use of energy represents a negative and irreversible climate acceleration for the planet and the economy, as indicated Alagöz et al [10]. Where they reveal that high economic growth in developing countries requires a certain level of energy, this leads to greater demands on the use of electricity, since living standards rise with the increase in GDP and GDP per capita, thus being one of the most important parameters.…”