Are battery-based storage systems a good investment for Azerbaijan's energy system?

Economic benefits and fossil fuel reduction Battery-based storage solutions, Lyubomirova noted, are already widely adopted worldwide and offer economic benefits for Azerbaijan’s energy system. These systems help reduce reliance on fossil fuels like oil and gas, enabling more effective integration of wind and solar power.

Should government subsidy be introduced in cases 1 and 2?

It shows that compared to Case 0 without the government subsidy, introducing government subsidy in Cases 1 and 2 can expand the investment scale of shore power facilities, lower the actual price that the ships paid for shore power and attract ships to get charged by shore power.

Does government subsidy design affect the cost of shore power?

Effects of government subsidy design on the investment scale and the price of shore power for the port, demand for shore power, and emission cost are analytically examined. Decisions of the government and the port operator and the system performance of these two subsidy strategies are compared.

How to determine the optimal amount of subsidy given to a port?

Accordingly, once a subsidy strategy is chosen, the optimal amount of subsidy given to the port can then be determined by using the method developed in Sections 2 Stackelberg game models with different subsidy strategies of private port operation scheme, 2.3 Case 2: government subsidies on the price of shore power for a privately-owned port.4.

What is the optimal amount of government subsidy per unit shore power?

The optimal proportion that the government shares with the port for the facility investment in Case 1 is 0.61 and the optimal amount of subsidy per unit shore power in Case 2 is 0.76 RMB/kWh, which leads to the same minimum government costs of RMB142.35 million per year for both cases.

Why does a port need a government subsidy?

Due to the absence of government subsidy, the game between the government and the port does not exist in this case. Therefore, the port can independently determine the investment scale of shore power facilities and the price of shore power service to maximize its own net profit.