Assessment of competitiveness of power generating companies through a riskbased approach: a case study of developing economies

The global financial crisis has shown that power companies are highly exposed to market risks. Market volatility creates competitive tension in the industry because the lack of the necessary methodological tools does not allow power companies to timely identify and measure the severity of emerging threats. Given the current situation, one of the major challenges in the industry is the creation of tools able to assist in the development of a strategy for improving the competitiveness of power companies. The article presents the authors’ risk-based approach to the assessment of industrial risks in the power sector. It assumes a certain level of long-term financial stability, investment attractiveness and, as a result, the competitiveness of the company. The aspects of practical application of the authors’ approach to the assessment of industrial risks are shown in examples of power companies

Terahertz Induced Photoconductivity of 2D Electron System in HEMT at Low Magnetic Field

A few results of our study of two-dimensional electron system (2DES) in low magnetic fields in GaAs/GaAlAs heterostructures by cyclotron resonance (CR) and photoconductivity techniques are presented. We have first discovered "CR-vanishing effect"in 2DES as well-defined crevasse on CR line in low magnetic fields, when Hall resistance is not quantized. "CR-vanishing effect" indicates vanishing longitudinal resistance & conductivity in these magnetic fields. Observed "CR-vanishing effect" demonstrates new correlated state of electrons in 2DES.Comment: Presented at ICPS-27 (H5.177

Mediating new individual-environment relations through experimentation on ambience

This article presents an exploration of two previously overlooked aspects of atmosphere. First, that atmosphere lies at the intersection of the natural, built and social environments. Second, that architectural design can bring an existing atmosphere to users’ attention. We present the hypothesis that, by bringing an existing atmosphere to users’ attention, architects can stimulate explorative behavior and the formation of new relations between individual and environment. This hypothesis is based on the ecological theory of perception, examples of contemporary experimental architecture and the ethics of ambiance. We explore our hypothesis with two experimentations on ambiance. The first experimentation follows the method of narrative inquiry and presents a reconceptualization of ‘the primitive hut’ by Marc-Antoine Laugier. Results from the experimentation show how elements such as a gush of wind can be perceived as an architectural quality. The second experimentation follows the method of research by design and presents the theoretically-driven design process of the installation Urban Carpet. The first results show that the installation made users more aware of their body-in-space, and users started interacting with the site in a new way. The experimentations introduce new methods to ambiance research and shift the research focus to mediation of new individual-environment relations

Risk and profitability optimization of investments in the oil and gas industry

Finding an optimum ratio of return and risk of investment projects is the key problem in overcoming the unfavorable conditions of oil prices and the reduction of profitability of the oil and gas industry. Search for investment opportunities associated with the potential willingness of oil companies to raise funds in new projects, leading to the need for improved tools maximize the return of investment activity in the conditions of uncertainty and risk. In the article the authors propose an original approach which allows solving the problem of formation of a portfolio of investment projects that achieve the maximum return on the risks assumed. The approach includes a method for determining the credit quality of the investment project on the basis of probability of default. This method is based on a comprehensive multivariate analysis of the investment project. Factors model aimed at the country and regional analysis, identification of foreign exchange, operational, technological and financial risks of the project and obtaining the integral evaluation of the project credit. The approach also includes economic capital modeling based on the MV-model (Merton-Vasicek-model), allowing achievement of the target level of creditworthiness of an oil and gas company in the long run. The proposed method of estimating project profitability is based on RAROC (risk-adjusted return on capital) methodology which enables calculation of profitability of projects based on their riskiness. The results can be used by management of oil and gas companies, investors and analysts in making financial decisions.The work was supported by the Act 211 Government of the Russian Federation, contract № 02.A03.21.0006

Individualization of risks diagnostics in assessment of investment potential of sectoral companies in developing countries

Maintaining of the high level of investment potential of sectoral companies in developing countries, along with their sustainable development, constitutes an area of paramount importance of such companies' activity, particularly in the situation of global economic instability and mounting competitive pressure. In its turn, the development of the investment potential of a sectoral company aimed at improving its investment attractiveness necessitates the development of specific methodological tools allowing for a comprehensive approach to the issues of estimation of the existing uncertainty as well as unbiased diagnostics of risks affecting the operating efficiency of a company. The present paper describes an original method of individualized diagnostic approach to the risks of a sectoral company and assessment of the level of risks to investment potential. The practical aspects of risk assessment are discussed using a power-generating company as an example. The requirements for a modern risk management system of sectoral companies in developing countries were suggested as principles to be used in the course of the conducted study. © 2018 WIT Press.Russian Science Foundation, RSF: 17-78-10039The work was supported with a grant of the Russian science foundation (project no 17-78-10039)

Funktsionaalsed, kattuvad ja konkureerivad jurisdiktsioonid (FKKJ-id) võimaliku vahendina Venemaa omavalitsustevaheliseks koostööks kooliteenuste pakkumisel

Omavalitsuste arv väheneb Venemaal demograafiliste probleemide tõttu. Omavalitsuste liitmine näib olevat vältimatu ja avalike teenuste, näiteks koolihariduse osutamine liigub tsentraliseerimise suunas. Siiski ei ole kõik eksperdid nõus, et omavalitsuste laienemine on tingimata ainus ja parim lahendus kooliteenuste väheneva nõudluse lahendamiseks. Viimase idee toetuseks pakutakse käesolevas väitekirjas alternatiivse lähenemisena lahendada rahvastiku vähenemise tagajärjed Venemaal omavalitsustevahelise koostöö abil funktsionaalsete kattuvate ja konkureerivate jurisdiktsioonide (FKKJ-id) kujul. Lõputöö tähenduses on FKKJ-id majandusüksused, mis osutavad erinevaid avalikke teenuseid, kattuvad geograafiliselt, konkureerivad klientide ja liikmete (omavalitsuste) pärast ning omavad juriidilisi õigusi ja kohustusi. Doktoritöö tulemused täiendavad FKKJ-ide teooriat. Pakkudes välja aluse omavalitsuste, FKKJ-ide juhtkonna ja kõrgemate jurisdiktsioonide otsuste tegemiseks ning rakendades mänguteooria lähenemisviise majandusmudelite koostamisel. Töö autor on välja töötanud matemaatilised mudelid avaliku sektori üksuste otsuste tegemiseks monopoolse ja duopoolse juhtumi jaoks, eeldades erinevat tüüpi juhtimiskäitumist. Doktoritöös antakse soovitusi, kuidas omavalitsustevahelist koostööd FKKJ-ide vormis tuleks praktikas korraldada kooliteenuste osutamiseks, mis on väga oluline omavalitsustevahelise koostöö ja kooliharidusega seotud regionaalarengupoliitika kavandamisel. Dokumendianalüüsi ja Saksamaal ning Venemaal läbiviidud intervjuude (omavalitsuste ja piirkondade haridusosakondade ametnike, koolijuhtide ja lapsevanematega) põhjal esitatakse institutsionaalseid soovitused FKKJ-ide juriidilise kohaldatavuse kohta. Institutsioonilised soovitused puudutavad koolide FKKJ-i ühinguvormi (liitu) ning vajalikku memorandumit ja põhikirja, mis peaks reguleerima koolide FKKJ-i tegevust Venemaal ja teistes Ida-Euroopa riikides.The number of municipalities is decreasing in Russia as a consequence of demographic issues. Municipal amalgamation seems unavoidable and the provision of public services, such as for example, school education is moving towards centralization. However, not all the experts can agree that municipal enlargement is necessarily the only and the best solution for declining demand for school services. In support of the latter idea, the thesis suggests to resolve the consequences of depopulation in Russia by the means of inter-municipal cooperation in the form of Functional Overlapping and Competing Jurisdictions (FOCJs) as an alternative approach. In the thesis, FOCJs are economic units, which provide different public services, geographically overlap, compete for clients and members (municipalities) and possess juridical rights and obligations. The results of the PhD thesis contribute to the theory for FOCJs by suggesting a basis for the decision-making in municipalities, FOCJ management and higher rank jurisdictions and by applying game theoretical approaches to economic modelling. In particular, the author has developed mathematical models for public units’ decision-making in monopoly and duopoly, assuming different types of management behaviour. The thesis also provides recommendations on how inter-municipal cooperation in the form of FOCJs should be organised in practice for school services provision, which is very important for the planning of regional development policy related to inter-municipal cooperation and school education. Based on interviews conducted in Germany and Russia with public officials in education departments on municipal and regional levels, heads of schools and parents and document analysis, the author proposed institutional recommendations regarding applicability of FOCJs from the juridical point of view. Institutional recommendations concern the company form of association (union) for the FOCJs and required Memorandum and Statute, which should regulate activities of school FOCJs in Russia and other Eastern European countries.https://www.ester.ee/record=b545081

Risk-oriented approach to competition assessment in the global renewable energy sources market

The growing pace of renewable energy development favors a significant change in global energy market conditions. This is due to the crisis of traditional energy, the emergence of new energy sources and arrival of new market players. As a result, forecasting the state of the energy market and assessing the potential of individual regions in terms of the development of renewable energy sources (RES) is becoming quite a difficult task. The article presents a structural analysis of the global energy market in the aspect of studying the dynamics of new capacity and actual production of renewable energy by country and type of energy sources. As a result of the analysis, the author has grouped countries participating in the market on the basis of indicator values reached: front-runners, average performers and stragglers. The author presents an approach for assessing competition in the global renewable energy market – a “thermometer” of competition. Its features include assessment of aggregate specific risk that is unique for each energy market country-member. The final assessment of the “temperature” in the global energy market is based on taking into account the total aggregate risk in one of the three zones of the “thermometer” scale. The results of the study will be used for improving the presented approach, developing an integrated methodology for the ranking of regions in the energy market, and the practice-based assessment of competition in the global market of renewable energy, taking into account the potential of individual participants. © 2018 WIT Press.2 GLOBAL RENEWABLE ENERGY MARKET The study of the global renewable energy market is based on the assessment of maximum capacity and actual production in the energy market, including the regional aspect. Market research was conducted using statistical data published by the International Renewable Energy Agency [1], [2], Renewable Energy Policy Network for the 21st. Century [3], [4] and other sources [7], [8].6 ACKNOWLEDGMENT The work was supported with a grant of the Russian Science Foundation (project № 17-78-10039)

Research of default risk of renewable energy projects: Global and Russian practice

The author was tasked to investigate the dynamics of default level of renewable energy (RES) projects, to conduct a comparative assessment in the global and Russian markets and to study the causes of emerging trends. The article provides a detailed analysis of investments in the global RES market, the contribution of public and private capital to the sector development. Based on the findings of a comprehensive study of the market, the potential of RES development is described. A methodological approach to assessing the risk of RES projects was proposed that is based on logit-modeling and taking into account the sector specifics. Calculations were made on the example of Russian and foreign projects, taking into account the industry and regional specifics. The assessment showed that although the Russian market is characterized by a jump in default level, but by the end of the project, the indicator decreased; in the foreign market the risk gradually increased. This trend is due to the peculiarities of state support for these projects. The results will be used for studying the dynamics of risk for projects without state support, and for complementing an approach to the study of competition in the global market. © 2020 WITPress. All rights reserved.Government Council on Grants, Russian FederationThe work is supported by Act 211 of the Government of the Russian Federation, contract № 02.A03.21.0006 and by GSEM UrFU Development Fund