Market-Based Energy Efficiency Financing Dissertation Sample

Introduction Of Market-Based Energy Efficiency Financing Mechanisms: Deployment In Uzbekistan Context

As the world is rapidly leading towards global warming and climate change, there is a dire need for sustainable practices that include energy-efficient financing mechanisms. Energy efficiency is the process of reducing the emission of greenhouse gasses and contributing less to global climate change. Governments across the world are trying to implement energy efficiency to reduce the carbon footprint and this requires them to finance business models that use energy-efficient technologies. Uzbekistan is a rapidly developing country in Central Asia that is going through a huge transition in its energy sector and trying to implement energy-efficient financing mechanisms. This section is going to discuss the available literature on market-based energy-efficient financing mechanisms in the context of Uzbekistan.

Don't let assignment stress get the best of you! Trust New Assignment Help for all your academic needs. Our dedicated team offers exceptional assignment writing services in the UK, ensuring your success. Browse through our free assignment samples for valuable insights.

Purpose

The purpose of this paper is to study all the existing literature regarding forms of energy-efficient finance mechanisms and understand how energy efficiency can be infused with the policies and regulations regarding efficient energy usage in the context of Uzbekistan. The purpose of this literature review is to understand the literature available regarding the existing financing mechanisms in Uzbekistan and what the country is currently doing to implement more energy-efficient systems and business models.

Research Question

Q1: What are the financing mechanisms that can be used in the market-based energy efficiency for deployment in Uzbekistan?

Q2: How the identified financing mechanism works and can be implanted to market-based energy efficiency for deployment in Uzbekistan?

Q3: What are the challenges that can be faced in implementing financing mechanisms for market-based energy efficiency in the deployment in the Uzbekistan context?

Q4: What are the ways in which the challenges in implementing financing mechanisms for market-based energy efficiency in the deployment in the Uzbekistan context?

Literature review

Concept of financing mechanisms used in the market-based energy efficiency for deployment in Uzbekistan

Financing mechanisms are the processes through which a commercial body can finance its business activities. Due to the increasing need for energy-efficient production systems, there are several financing mechanisms and business models designed which help businessmen to invest in energy-efficient systems. There can be several risks involved in financing energy-efficient systems. The study conducted by Hill, (2019), revealed that investors namely faced five kinds of risks that included economic, behavioral, measurement, technological, and regulatory risks. The study suggests that third-party financing can be a suggested method of increasing investment in the Energy efficiency market. Moreover,t (Kaliakparova, 2020), contradicted that more research is needed to understand the role of institutional investors and develop a secondary market for investments in energy efficiency.

According to Abbasizade, (2020), new and innovative executive financing mechanisms have been developed in existing buildings to provide more sustainability in Asian countries like Iran. A cost-benefit analysis was applied to introduce energy-saving programs. The result of the study showed that an investment of $10 million in energy-saving programs can yield benefits of over 5.78 billion dollars. Sarkar and Gassol, (2022) stated that, in the case of developing countries, there is a lack of implementation of energy efficiency measures. Developed countries like USA, Canada, and Japan have implemented Energy Service Companies (ESCos) to promote energy efficiency measures. There can be different ways to integrate Energy Service Companies in developing Asian countries through strong policy regulation and better financial incentives to promote the implementation of these bodies ( Simsek and Urmee, 2020).

On the other hand, Le et al., (2023), stated that Armenia and Georgia have put their low carbon emission strategy into the practices which have been creating energy efficiency systems. Additionally, the result of the study also showed that the various energy-saving measures to cut down the carbon envision deity various energy savings methods. Apart from that, the Ministry of Energy in Uzbekistan is very much responsible for the policy of energy and also plays a very important role in the implementation of energy efficiency resources. Moreover, in Uzbekistan, energy production, and hydropower of solar energy generate the majority of the country's energy efficiency. Besides that, O'ktam Ovna (2023), opines that the estimation of the IEA program increased the potential energy inefficiency which is mainly sourced from solar power.

Besides that, Further, Amarjargal,( 2020) contradicted that, many of the central casein counties have a huge potential for developing energy efficiency consumptions systems by the use of the energy efficiency. Further, in Uzbekistan, energy efficiency is growing by their oil express and also decreases their dependence on other countries' energy sources. Apart from that, according to the author's suggestion, a developing nation, Uzbekistan is moving towards sustainable resources and the use of renewable resources to lessen carbon dioxide emissions and benefit the environment. Further, Energy efficiency and a green economy process included low-carbon transitions, which increase urban air quality, green finance, long-term decarbonization initiatives, and climate change assessments. (2022), World Bank), moreover, the world bank mainly treats their project as inviting more energy efficiency by which they mainly consume less amount of energy, moreover, this project was also implemented under the Ministry of Energy of Uzbekistan.

Apart from that, Uzbekistan mainly follows its energy effect measures. As a result, to follow these models and put their energy-saving methods into practice in Uzbekistan. Lombardozzi (2020), contradicts that, The Uzbek Ministry of Energy, in February 2018, is in charge of the nation's energy policies and is returning to the deployment of renewable energy sources. Besides that, natural gas is mainly used to fuel almost all of Uzbekistan's energy production. Furthermore, hydropower, rather than solar energy, is the energy efficiency that increased the majority of the country's energy efficiency in the world. The IEA (2022) estimates that Uzbekistan has an increased potential for energy efficiency, the majority of which can be increased by the use of solar energy. To increase energy efficiency, the nation must develop power for deploying solar power facilities.

The way of identifying financing mechanisms workings and their implementation to the market-based energy efficiency for deployment in Uzbekistan

According to Panwar et al., (2022), financing mechanisms mainly work to interact with the financial institution and other stakeholders for implementation of the market-based energy efficiency in Uzbekistan. According to the report of the “ green economy period of Uzbekistan", energy efficiency mainly supports building a green environment-friendly economy for attracting clean energy investments in Uzbekistan. On the other hand, in recent years energy efficiency is mainly measured by the institution's mechanisms for increasing the volume of the energy source. Shadrina, (2020) opines that, in Uzbekistan, some agencies mainly follow small and medium-sized enterprises for the deployment of market base energy efficiency.

On the other hand, through the Uzbekistan energy deployment policy, according to Panwar et al., (2022), some of the boiler houses mainly increased the energy efficiency resources by up to 85% for maintaining the capacity of solar energy. The research of the RES increased the crisis of sustainable energy resources and also provides the current trends for developing the economic growth and stability of energy efficiency resources.

On the other hand, according to the other Sarkar and Gassol, (2022) contradictions, Uzbekistan mainly follows the small and medium enterprise financing mechanisms to support the deployment of the market's base energy efficiency. Besides that, natural gas, cola, and crude are the main significant products of energy. on the other hand according to the author make sure that energy efficiency takes into account long-term managerial costs and also has negative environmental impacts as a result, the deployment of new sources of energy supply to increase the efficiency of energy sources in the global world. Apart from that, Lombardozzi (2020) contradicted that, in Uzbekistan, natural gas is one of the largest producers which have a capacity of 60 billion cubic meters to generate power for energy plants.

To generate the entity with the low carbon electricity, Uzbekistan wants to increase the alternative energy sources like solar, hydro, and wind. On the other hand, Uzbekistan also developed Central Asia's first nuclear power plant which may provide high-quality electricity on a large scale for developing the efficiency of the energy. Besides that, Shadrina, (2020) contradicted that, from the annual report of energy efficiency in Uzbekistan, the majority of the public buildings were constructed between the 1970s and 1980s with minimal consideration of the efficacy of energy. This public building does not have enough insulation based on the thermal comfort standards reports, as a result, the use of the boiler and water heating system increased the high energy efficiency.

Challenges faced in implementing the financial mechanism for market-based energy efficiency in the deployment in Uzbekistan context.

In this section, From Panwar et al., (2022), mainly examines the difficulties of Uzbekistan encouraged when the deployment of energy efficiency is measured. On the other hand, the high cost of the production of energy and its limited generating capacity minimized the efficiency of energy production in Uzbekistan. As a result, the cost of electricity production is still high in developing countries. The lack of the lost cost of energy production which is negatively impacted the economy of Uzbekistan.

As a result the capacity of the energy also decreased. Besides that, according to the other Speer and Wu, (2021), no financial support mechanisms such as tariffs and taxes, create a barrier to the deployment of energy efficiency resources in Uzbekistan. Besides that, for minimizing the energy efficiency resources the 50 % corporate income tax rate has been fixed by the government rules and policy in Uzbekistan. The small and large enterprises and financing mechanics mainly follow Uzbekistan for increasing the efficacy of the energy resources based on the reduction of the huge amount of tax rate in energy production.

Besides that, Lombardozzi (2020), contradicted that, the modern control system, is based on progressive methodologies, but this system is not given the full potential for increasing the profitability of the energy efficiency deployments in Uzbekistan. On the other hand, lacking the technology sustainability and its proper application also create a barrier to redrafting the market base energy efficiency deployment in Uzbekistan. As a result, the high amount of the cost energy and its maintenance procedure is impacted very slowly. Moreover, their short-term energy system profitability also decreased very gradually.

Apart from that, Minnebo and Ardelean (2021) contradicted that, the high quality of the labor can increase the capacity of energy efficiency but their insufficient t knowledge and skills do not properly cope with the development of the market base energy effectively in the Uzbekistan market. As a result, it has also impacted the sustainable condition and the economy of energy efficiency resources. On the other hand, the high cost of the operation and maintenance process for energy production is also greatly impacted by the lack of knowledge of the local sat. As a result, the tax tale of each production cost is increased.

In Addition, Lombardozzi, (2020) opines that Uzbekistan also deals with noneconomic difficulties in producing energy efficiency in the global market. Apart from that, lack of information about the business performance of the local staff which is minis made the cost of the energy which gradually impacted the financial condition of the local staff. Besides the lack of sufficient knowledge about the production process of the energy by the different transportation systems which is also creating a barrier between the staff knowledge capability and their performance of the energy production, as a result, the energy efficiency credibility also minimized very gradually. Further, Amarjargal,( 2020) contradicted that, the locking of the knowledge capacity regarding the entire energy production system also detects the energy production process for making various projects as a result it has also impacted the cost of the various energy production processes.

Overcome the challenges of increasing the market-based energy efficiency in the deployment in Uzbekistan by the financing mechanisms

In Uzbekistan, the authority can take a plan for increasing market-based energy efficiency by the implantation of the low carbon energy strategy. This is an alternative energy source by which high-quality electricity can be generated on an industrial scale. Besides that, Speer and Wu ( 2021) opine that this low-carbon strategy was mainly published ten years ago for the development of energy efficiency in the Uzbekistan market. Besides that, by the strategy, the low carbon emission builds a nuclear power plant through which a huge amount of high-quality electricity increases the efficiency of the energy by the imposition of the small and large enterprises. On the other hand, Le et al., (2023), contradicted that, the low carbon energy strategy not only provided high-quality electricity to the power plant and also gave a high amount of greenhouse gas to the power plant to maintain the proximity of each of the power plants in Uzbekistan.

On the other hand, according to the financial statement report of energy efficiency, the imposition of high-power solar energy has given the huge capacity to minimize the effects of carbon emission in the various power plants of the energy production system. Besides that, Mori, (2021 ) opine that, for the comparison of the other countries with the different energy flannel generating capacity, Uzbekistan mainly generated a large number of energy panels which must increase the conventional energy resources. Moreover, by the application of the small and large enterprises, the revenue and the tax rate increased the capacity of the energy efficiency resources.

Besides that, Minnebo and Ardelean (2022) contradicted that, the implementation of public awareness may increase the knowledge capacity of the local staff for minimizing the negative impact of carbon dioxide which is impacting the green economy of Uzbekistan. Further, the author also suggests that the implementation of the green certification is mainly used for developing energy efficiency resources and a green environment-friendly ecosystem for developing the huge energy in the deployments in Uzbekistan by the financing mechanisms.

On the other hand, according to Macro Mantovanelli, World Bank Country Manager, in Uzbekistan, the new world bank foundation project will invest their money in the energy efficiency of the public building and also reduce the energy consumptions and gas emissions which negatively impacted the different energy flannel due the climate change. Lombardozzi (2020), also contradicted that, this world bank foundation project also assisted Uzbekistan in making the transitions to increase the sustainable growth of energy.

This project will also develop the ability of the ELFs to carry out energy efficiency investments across the various range of the Uzbekistan sectors. Additionally, this project will also support establishing the national building energy efficiency programme to raise the awareness about the energy efficiency between the staff and the agencies. Further, Kronenberg, (2022 ) opine that, for the improvement of the enenctticiyes ememgy efficiency ,the Uzbekistan's economy has been expected to save 3.4 billion KW /h of power in the course of the two years. Further , with this guideline,Uzbekistan, a;so reduces the reps booty of the economic sectors of the fuel and energy production improving the energy efficiency of the economy of Uzbekistan.

Literature gap

According to Komilova et al. (2019), some of the gaps still exist in the study. Basically, the low carbon energy strategy, not only the energy production procedure, also developed the capacity of the energy in Uzbekistan. On the other hand, the new technology used in the manufacturer of the greenhouse gas , which given large amount of the eco friendly environment for production of the energy in Uzbekistan. Moreover, O'ktamovna (2023), stated that the implementation of the environment friendly economy gave significant advantages to increased the efficiency of energy in a significant way. Moreover, the wind and biomass products also create a gap between the production of energy and their organic process as the efficiency of the energy is gradually minimized. Further , some of the specific support of the financing mechanisms such as huge taxes and tariffs also create a barrier in between the energy efficiency resources and their impact in Uzbekistan. So, minimizing the gaps between energy efficiency and their production process, the author suggested that,greny technology is given the support to Uzbekistan , for producing the better energy efficiency resources.

Further, Speer et al. (2021) stated that Uzbekistan increased their primary energy consumption through the implementation of the new energy resources that can develop the high amount of solar energy. Moreover, According to Watson et al., (2021) Uzbekistan mainly supports its solar energy for spreading their variety of industrial facilities for better managing its energy resources. Additionally, there are some restrictions and contradictions that also create gaps in understanding the difficulties which are faced by the Uzbekistan agencies.

On the other hand,In addition, the banking system is primarily to follow Uzbekistan, Amarjargal et al. (2020) contradicted that, in order to generate the enormous amount of energy profit through the implementation of the enormous tax rate ,which minimizes the gaps of the energy production rate in Uzbekistan. Moreover, Watson et al., (2021) suggested that Uzbekistan mainly supports the greenhouse gas energy production by developing their wide range of industrial facilities. Filany, huge limitations and controversy of the various researchers ,which create gaps in the projects as a result , the relevant information is not given proper justification to mitigate these gaps.

Conclusion

Based on the relevant evidence about this topic, the study concluded by the implementation of the green certificate , tax initiatives which increased the efficiency of the energy for deployment in Uzbekistan. Moreover, for implantation of the green technology and some of the creative awareness programme increase energy production systems capacity with an innovative way. Additionally , the imitation of the low carbon strategy also increased by a nuclear power plant by which a huge amount of high quality electricity increases the efficiency of the energy through the imposition of the financing mechanisms like the small and large enterprises in Uzbekistan. Apart from that, the implementation of the green certification is mainly used for increasing the energy efficiency resources and also to increase the green environment friendly ecosystem for expanding market based energy for deployments in Uzbekistan by its financing mechanisms.

References

• Khaydarov, R.R., 2020. Assessing the Financial Mechanisms for Innovation Support in the Republic of Uzbekistan: A Comparative Analysis of Enablers and Constraints to Innovation Across Two Industries.https://arrow.tudublin.ie/cgi/viewcontent.cgi?article=1050&context=
• Komilova, N.K., Hudayberganova, R.T., Murtazaev, I.B., Nazarova, H.O.A. and Madaminov, Z.H., 2019. Economic and geographic problems of improvement of industrial sectors and local structure of Uzbekistan. Journal of Advanced Research in Law and Economics, 10(6 (44)), pp.1916-1928.
• Kronenberg, R.,2022. Asia's landlocked developing countries–developmental challenges, financing needs, and the potential contribution of capital markets.https://www.unescap.org/sites/default/d8files/event-documents/LLDC%20
• Le Houérou, P. and Lankes, H.P., 2023. Mustering the private sector for development and climate in the Global South–Is it realistic?. Development, 323.https://repository.unescap.org/bitstream/handle/20.500.12870/3549
• Lombardozzi, L., 2020. Patterns of accumulation and social differentiation through a slow?paced agrarian market transition in post?Soviet Uzbekistan. Journal of Agrarian Change, 20(4), pp.637-658.https://www.carecinstitute.org/wp-content/uploads/2020/09/VFP-20
• Minnebo, P. and Ardelean, M., 2021. Sustainable Power Sector Development in Uzbekistan and Tajikistan.file:///C:/Users/91896/Downloads/JRC127306_01.pdf
• Mori, A., 2021. 2 Struggles for energy transition in the electricity system in Asian countries. China's Carbon-Energy Policy and Asia's Energy Transition, p.23.file:///C:/Users/91896/Downloads/9781000518191.pdf
• O'ktam Ovna, M.G., 2023. DESIGNING ENERGY-EFFICIENT BUILDINGS IN UZBEKISTAN. Horizon: Journal of Humanity and Artificial Intelligence, 2(5), pp.171-175.file:///C:/Users/91896/Downloads/171-175.pdf
• Panwar, V., Nijhar, I., Borodyna, O., Opitz-Stapleton, S. and Nadin, R., 2022. Opportunities and co-benefits of transitioning to a net-zero economy in Kyrgyzstan, Tajikistan and Uzbekistan.https://cdn.odi.org/media/documents/ODI_Opportunities_net-
• Sarkar, A. and Gassol, M.R.D.L.R., 2022. Unlocking Financing for Scaling up Demand-Side Energy Efficiency. CLEAN ENERGY IN DEVELOPING ASIA, p.96.https://www.adb.org/sites/default/files/publication/822906/financin
• Shadrina, E., 2020. Non-hydropower renewable energy in central Asia: Assessment of deployment status and analysis of underlying factors. Energies, 13(11), p.2963. https://www.zbw.eu/econis-archiv/bitstream/11159/7975/1/1756968764_0.pdf
• Speer, B. and Wu, K., 2021. ASSESSMENT OF OPPORTUNITIES FOR USAID TO DEEPEN CLIMATE FINANCE SUPPORT FOR RENEWABLE ENERGY AND ENERGY EFFICIENCY IN DEVELOPING COUNTRIES.https://www.climatelinks.org/sites/default/files/asset/document/202
• Tsevegjav, B.,2021. Regional Cooperation in Promoting Low-Carbon Energy Development in CAREC: Challenges and Opportunities.https://www.ceeol.com/search/article-detail?id=910507
• Worldbank.org. Uzbekistan to Invest in Improving Energy Efficiency of Public Buildings, with World Bank Support, About us, Available on: https://www.worldbank.org/en/news/press-release/2022/06/24/uzbekistan-to-invest-in-improving-energy-efficiency-of-public-buildings-with-world-bank-support [Accessed on 23.05.2023}