Financial Models in the Energy Sector: Contemporary Aspects
Financial Models in the Energy Sector: Contemporary Aspects

Author(s): Ivelina Shtereva
Subject(s): Economy, Business Economy / Management, Energy and Environmental Studies, Green Transformation
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: financial models; green energy transition; green finances
Summary/Abstract: Over the past decade, the energy sector has undergone profound transformation, particularly regarding the transition in primary energy sources. There is a rapidly accelerating shift from fossil fuels (oil, coal) toward renewable sources such as solar and wind energy. This transformation is largely driven by the prioritization of decarbonization and the deployment of climate-neutral energy sources, especially within Europe and the European Union. Following these changes in energy policy priorities, it is essential that financial models in the energy sector are adapted to new economic and social challenges. The growing importance of such „new financial models” lies in their central role in planning, analysing, and managing the financial sustainability of energy projects (at the micro level) and energy policies (at the macro level). These models are crucial for decision-making processes – from large-scale investment in energy infrastructure to strategic planning for the transition toward renewables. This paper presents key financial methods applied in managing the transition toward a climate neutral and circular economy. Based on this analysis, conclusions are drawn regarding the applicability of these models in Bulgaria.

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