skip to main content

Evaluation of the Economic Profitability of Using Renewable Energy Sources in Agro-Industrial Companies

1Department of Economy and Foreign Economic Activity, North-Caucasus Federal University, Stavropol, Russian Federation

2Department of Operation of Road Transport and Car Service, Federal State Autonomous Institution of Higher Education North-Eastern Federal University named after MK Ammosov, Yakutsk, Russian Federation

3Department of Mechanization of Agricultural Production, Federal State Budgetary Institution of Higher Education Arctic State Agrotechnological University, Yakutsk, Russian Federation

4 Department of Power Engineering, Khanty-Mansiysk Branch of PJSC RussNeft, Khanty-Mansiysk, Russian Federation

5 Department of Integrated Water Management and Hydraulics, Russian State Agrarian University-Moscow Timiryazev Agricultural Academy, Moscow, Russian Federation

View all affiliations
Received: 19 Apr 2021; Revised: 16 Jun 2021; Accepted: 26 Jun 2021; Available online: 2 Jul 2021; Published: 1 Nov 2021.
Editor(s): Grigorios Kyriakopoulos
Open Access Copyright (c) 2021 The Authors. Published by Centre of Biomass and Renewable Energy (CBIORE)
Creative Commons License This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Citation Format:
Abstract
The study of the impact of the availability of renewable energy sources (RES) on the competitiveness and cost reduction opportunities is an actual objective for agro-industrial enterprises in the present time. The purpose of this paper was to develop a methodological approach based on a questionnaire survey, an integrated indicator of enterprise competitiveness, a model for assessing energy conservation costs, and regression analysis combined with a hierarchical synthesis of 20 Russian agro-industrial companies. The solution of the problem of nonlinear optimization of agro-industrial companies made it possible to determine the excess of the competitiveness criterion over the criterion of energy conservation cost reduction as a result of the use of RES. The conducted regression analysis showed a close relationship between the competitiveness of the companies under study and the availability of RES. Modeling and hierarchical synthesis of the study results confirmed that the use of RES in the activities of agro-industrial companies stimulates their competitive potential reflected by the competitiveness index and minimizes energy conservation costs. It was also found that there is an inverse regression relationship with a high degree of correlation between the provision of RES and the cost of energy-saving measures. Hence, it can be argued that a greater emphasis on the provision of Russian agro-industrial enterprises with RES can lead to their more sustainable and efficient development due to increased competitiveness and better cost reduction strategies.
Fulltext View|Download
Keywords: competitiveness; correlation; hierarchical synthesis; model; renewable sources; scenario

Article Metrics:

  1. Bastos, R. R. C., da Luz Corrêa, A. P., da Luz, P. T. S., da Rocha Filho, G. N., Zamian, J. R., & da Conceição, L. R. V. (2020). Optimization of biodiesel production using sulfonated carbon-based catalyst from an amazon agro-industrial waste. Energy Conversion and Management, 205, 112457. https://doi.org/10.1016/j.enconman.2019.112457
  2. Boichenko, K. S., Shvydanenko, G. A., Besarab, S. A., Shvydka, O. P., & Kyryliuk, O. V. (2020). Marketing innovations management in the context of integrated enterprise development. International Journal of Management, 11(5), 126-137
  3. Bolatbek, B., Salimbayeva, R., Satbaeva, G., Saparaliyeva, K., & Ussubaliyeva, S. (2018). Prospects for the development of green business in the agro-industrial complex. Journal of Environmental Management & Tourism, 9(6.30), 1327-1334. https://doi.org/10.14505//jemt.v9.(30).22
  4. Butturi, M. A., Lolli, F., Sellitto, M. A., Balugani, E., Gamberini, R., & Rimini, B. (2019). Renewable energy in eco-industrial parks and urban-industrial symbiosis: A literature review and a conceptual synthesis. Applied Energy, 255, 113825. https://doi.org/10.1016/j.apenergy.2019.113825
  5. Cagno, E., Trianni, A., Spallina, G., & Marchesani, F. (2017). Drivers for energy efficiency and their effect on barriers: Empirical evidence from Italian manufacturing enterprises. Energy Efficiency, 10(4), 855-869. https://doi.org/10.1007/s12053-016-9488-x
  6. Carlini, M., Mosconi, E. M., Castellucci, S., Villarini, M., & Colantoni, A. (2017). An economical evaluation of anaerobic digestion plants fed with organic agro-industrial waste. Energies, 10(8), 1165. https://doi.org/10.3390/en10081165
  7. Carrillo-Nieves, D., Alanís, M. J. R., de la Cruz Quiroz, R., Ruiz, H. A., Iqbal, H. M., & Parra-Saldívar, R. (2019). Current status and future trends of bioethanol production from agro-industrial wastes in Mexico. Renewable and Sustainable Energy Reviews, 102, 63-74. https://doi.org/10.1016/j.rser.2018.11.031
  8. Cucui, G., Ionescu, C. A., Goldbach, I. R., Coman, M. D., & Marin, E. L. M. (2018). Quantifying the economic effects of biogas installations for organic waste from agro-industrial sector. Sustainability, 10(7), 2582. https://doi.org/10.3390/su10072582
  9. Day, C., & Day, G. (2017). Climate change, fossil fuel prices and depletion: The rationale for a falling export tax. Economic Modelling, 63, 153-160. https://doi.org/10.1016/j.econmod.2017.01.006
  10. Dudin, M. N., Lyasnikov, N. V., Zasko, V. N., Veselovsky, M. Y., Leonteva, L. S., & Vysotskaya, N. V. (2019). Innovative approaches to energy resource saving and use of renewable energy sources to reduce the cost of agro-industrial enterprises. Amazonia Investiga, 8(19), 149-158
  11. Dudin, M. N., Zasko, V. N., Dontsova, O. I., Osokina, I. V., & Berman, A. M. (2018). Renewable energy sources as an instrument to support the competitiveness of agro-industrial enterprises and reduce their costs. International Journal of Energy Economics and Policy, 8(2), 162-167
  12. Egea, F. J., Torrente, R. G., & Aguilar, A. (2018). An efficient agro-industrial complex in Almería (Spain): Towards an integrated and sustainable bioeconomy model. Newbiotechnology, 40, 103-112. https://doi.org/10.1016/j.nbt.2017.06.009
  13. Fabrizio, E., Branciforti, V., Costantino, A., Filippi, M., Barbero, S., Tecco, G., Mollo, P., & Molino, A. (2017). Monitoring and managing of a micro-smart grid for renewable sources exploitation in an agro-industrial site. Sustainable Cities and Society, 28, 88-100. https://doi.org/10.1016/j.scs.2016.08.026
  14. Faqih, A., Roosganda, E., & Azahari, D. H. (2020). The increasing of competitiveness of agro-industry products through institutional empowerment to support the achievement of sustainable agricultural development. International Journal of Energy Economics and Policy, 10(5), 663-671. https://doi.org/10.32479/ijeep.10376
  15. Fontes, C. H. D. O., & Freires, F. G. M. (2018). Sustainable and renewable energy supply chain: A system dynamics overview. Renewable and Sustainable Energy Reviews, 82, 247-259. https://doi.org/10.1016/j.rser.2017.09.033
  16. Fytili, D., & Zabaniotou, A. (2018). Circular economy synergistic opportunities of decentralized thermochemical systems for bioenergy and biochar production fueled with agro-industrial wastes with environmental sustainability and social acceptance: A review. Current Sustainable/Renewable Energy Reports, 5(2), 150-155. https://doi.org/10.1007/s40518-018-0109-5
  17. Gitelman, L., Magaril, E., Kozhevnikov, M., & Rada, E. C. (2019). Rational behavior of an enterprise in the energy market in a circular economy. Resources, 8(2), 2019, 73. https://doi.org/10.3390/resources8020073
  18. Gorb, O., Rębilas, R., Aranchiy, V., Yasnolob, I., Boiko, S., & Padalka, V. (2020). Strengthening competitiveness of the national economy by inhancing energy efficiency and diversifying energy supply sources in rural areas. Journal of Environmental Management & Tourism, 11(5), 1114-1123. https://doi.org/10.14505//jemt.v11.5(45).09
  19. Grubler, A., Wilson, C., Bento, N., Boza-Kiss, B., Krey, V., McCollum, D. L., Rao, N. D., Riahi, K., Rogelj, J., De Stercke, S., Cullen, J., Frank, S., Fricko, O., Guo, F., Gidden, M., Havlík, P., Huppmann, D., Kiesewetter, G., Rafaj, P., Schoepp, W., & Valin, H. (2018). A low energy demand scenario for meeting the 1.5 C target and sustainable development goals without negative emission technologies, Natureenergy, 3(6), 515-527. https://doi.org/10.1038/s41560-018-0172-6
  20. He, L., Zhang, L., Zhong, Z., Wang, D., & Wang, F. (2019). Green credit, renewable energy investment and green economy development: Empirical analysis based on 150 listed companies of China. Journal of Cleaner Production, 208, 363-372. https://doi.org/10.1016/j.jclepro.2018.10.119
  21. Hilorme, T., Shurpenkova, R., Kundrya-Vysotska, O., Sarakhman, O., & Lyzunova, O. (2019). Model of energy saving forecasting in entrepreneurship. Journal of Entrepreneurship Education, 22, 1-8
  22. Hinson, R., Lensink, R., & Mueller, A. (2019). Transforming agribusiness in developing countries: SDGs and the role of FinTech. Current Opinion in Environmental Sustainability, 41, 1-9. https://doi.org/10.1016/j.cosust.2019.07.002
  23. Kern, M. J. (2019). From agricultural research to agribusiness by factor Cn: Capability, capacity, courage, competence, and c… vision 2025-2050/52. In Emerging technologies towards agriculture, food and environment (pp. 1-31). Agrobios Int
  24. Liu, R., He, L., Liang, X., Yang, X., & Xia, Y. (2020). Is there any difference in the impact of economic policy uncertainty on the investment of traditional and renewable energy enterprises?-A comparative study based on regulatory effects. Journal of Cleaner Production, 255, 120102. https://doi.org/10.1016/j.jclepro.2020.120102
  25. Liu, W., Zhang, X., & Feng, S. (2019). Does renewable energy policy work? Evidence from a panel data analysis. Renewable Energy, 135, 635-642. https://doi.org/10.1016/j.renene.2018.12.037
  26. Liubachyna, A., Secco, L., & Pettenella, D. (2017). Reporting practices of state forest enterprises in Europe. Forest Policy and Economics, 78, 162-172. https://doi.org/10.1016/j.forpol.2017.01.019
  27. Mendonça, H. L., & Fonseca, M. V. D. A. (2018). Working towards a framework based on mission-oriented practices for assessing renewable energy innovation policies. Journal of Cleaner Production, 193, 709-719. https://doi.org/10.1016/j.jclepro.2018.05.064
  28. Mohamed, Q., Lazurenko, A., Miroshnyk, A., Dudnikov, S., Savchenko, A., & Trunova, I. (2020). Analysis of the energy balance of the local energy supply system based on the bioenergy complex. In 2020 IEEE 7th International Conference on Energy Smart Systems (ESS) (pp. 134-138). IEEE. https://doi.org/10.1109/ESS50319.2020.9160050
  29. Nurmatovna, S. D., Azatbekovna, A. N., Sagdiyevna, D. S., & Abdirozzokovich, M. S. (2020). Methods and criteria for measuring competitiveness of agricultural sector. PalArch's Journal of Archaeology of Egypt/Egyptology, 17(6), 3392-3398
  30. Olabi, A. G. (2017). Renewable energy and energy storage systems. Energy, 136, 1-6. https://doi.org/10.1016/j.energy.2017.07.054
  31. Paiva, T., Ribeiro, M., & Coutinho, P. (2020). R&D collaboration, competitiveness development, and open innovation in R&D. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 116. https://doi.org/10.3390/joitmc6040116
  32. Pereira Ribeiro, M. C., Paglia Nadal, C., da Rocha Junior, W. F., de Sousa Fragoso, R. M., & Lindino, C. A. (2020). Institutional and legal framework of the Brazilian energy market: Biomass as a sustainable alternative for Brazilian agribusiness. Sustainability, 12(4), 1554. https://doi.org/10.3390/su12041554
  33. Pizengolts, V., Savelyeva, I., & Korobeynikova, E. M. (2018). Assessment of financial performance of agro-industrial cluster. Academy of Strategic Management Journal, 17(3), 1-9
  34. Proskuryakova, L. N., & Ermolenko, G. V. (2019). The future of Russia's renewable energy sector: Trends, scenarios and policies. Renewable Energy, 143, 1670-1686. https://doi.org/10.1016/j.renene.2019.05.096
  35. Rahimpour, T., Roostaei, S., & Nakhostinrouhi, M. (2018). Landslide Hazard Zonation using analytical hierarchy process and gis a case study of SardoolChay Basin, Ardabil Province. Hydrogeomorphology, 4(13), 1-20
  36. Rodríguez-Monroy, C., Mármol-Acitores, G., & Nilsson-Cifuentes, G. (2018). Electricity generation in Chile using non-conventional renewable energy sources-A focus on biomass. Renewable and Sustainable Energy Reviews, 81, 937-945. https://doi.org/10.1016/j.rser.2017.08.059
  37. Søndergaard, N. (2020). Food regime transformations and structural rebounding: Brazilian state-agribusiness relations. Territory, Politics, Governance, in press. https://doi.org/10.1080/21622671.2020.1786447
  38. Tien, N. H., Phuc, N. T., Thoi, B. V., Duc, L. D. M., & Thuc, T. D. (2020). Green economy as an opportunity for Vietnamese business in renewable energy sector. International Journal of Research in Finance and Management, 3(1), 26-32
  39. Valverde, J. C., Arias, D., Campos, R., Jiménez, M. F., & Brenes, L. (2020). Forest and agro-industrial residues and bioeconomy: Perception of use in the energy market in Costa Rica. Energy, Ecology and Environment, 6, 232-243. https://doi.org/10.1007/s40974-020-00172-4
  40. Yang, X., He, L., Xia, Y., & Chen, Y. (2019). Effect of government subsidies on renewable energy investments: The threshold effect. Energy Policy, 132, 156-166. https://doi.org/10.1016/j.enpol.2019.05.039
  41. Yang, Z., Shao, S., Yang, L., & Liu, J. (2017). Differentiated effects of diversified technological sources on energy-saving technological progress: Empirical evidence from China's industrial sectors. Renewable and Sustainable Energy Reviews, 72, 1379-1388. https://doi.org/10.1016/j.rser.2016.11.072
  42. Zakharchenko, O. V., Eremina, A. R., Ushakov, D. S., Odintsov, M., & Mylnichenko, S. M. (2021). Management of reputation risks at the agricultural enterprises of Eastern Europe as a component of increasing their competitiveness. Journal of Reviews on Global Economics, 8, 859-872. https://doi.org/10.6000/1929-7092.2019.08.74
  43. Zeug, W., Bezama, A., Moesenfechtel, U., Jähkel, A., & Thrän, D. (2019). Stakeholders' interests and perceptions of bioeconomy monitoring using a sustainable development goal framework. Sustainability, 11(6), 1511. https://doi.org/10.3390/su11061511
  44. Zocca, R., Gaspar, P. D., Silva, P. D., Santos, F. C., Andrade, L. P., & Nunes, J. (2019). Decision-making computationally aided in the management of energy sources used in agrifood industries. Energy Procedia, 161, 100-107. https://doi.org/10.1016/j.egypro.2019.02.063

Last update:

  1. Study on properties of reinforced concrete structures in seismic regions

    Ke Li. Ain Shams Engineering Journal, 15 (9), 2024. doi: 10.1016/j.asej.2024.102927
  2. Modelling the Optimal Electricity Mix for Togo by 2050 Using OSeMOSYS

    Esso-Wazam Honoré Tchandao, Akim Adekunlé Salami, Koffi Mawugno Kodjo, Amy Nabiliou, Seydou Ouedraogo. International Journal of Renewable Energy Development, 12 (2), 2023. doi: 10.14710/ijred.2023.50104
  3. Case study for optimum techno-economic integration of PV and anaerobic digestion for sustainable agri-business

    Motaz Amer, Mohamed Mito, Ahmed Essam, Seif Bayoumi. Energy Reports, 8 , 2022. doi: 10.1016/j.egyr.2022.06.088
  4. Improving a solar collector's efficiency by selecting the composition of the working fluid used

    Bader Alshuraiaan. International Journal of Low-Carbon Technologies, 18 , 2023. doi: 10.1093/ijlct/ctad027
  5. Supply and Demand Characteristics of Palm Kernel Shell as a Renewable Energy Source for Industries

    Handaya Handaya, Herry Susanto, Dikky Indrawan, Marimin Marimin. International Journal of Renewable Energy Development, 11 (2), 2022. doi: 10.14710/ijred.2022.41971
  6. Key Aspects of Palm Kernel Shell Supply Chain for Industrial Renewable Energy Applications

    Handaya Handaya, Herry Susanto, Dikky Indrawan, Marimin Marimin. International Journal of Renewable Energy Development, 11 (2), 2022. doi: 10.14710/ijred.2022.41971

Last update: 2024-10-13 16:30:40

No citation recorded.