Managing the Development of Alternative Energy in the Far East Regions

This article addresses the critical challenge of selecting an electricity development strategy amidst power shortages and increasingly stringent global carbon regulation, necessitating effective public governance solutions. The urgency stems from electricity deficits in the Far East and the need to choose a generation development path balancing economic efficiency with environmental imperatives (including risks from carbon taxes like Carbon Border Adjustment Mechanism – European Commission (CBAM EU). The research objective is to identify optimal approaches for public regulation in developing new generation capacity, ensuring a balance between economic costs, supply reliability, and carbon footprint reduction. The research aim is to develop scientifically grounded criteria and mechanisms for public authorities to manage investments in new generation facilities in the Far East. The methodology employs comparative scenario analysis (hybrid, traditional, renewable scenarios), utilizing levelised cost of electricity (LCOE) calculations over project lifecycles and assessing environmental-economic consequences, including potential payments under carbon mechanisms. Results demonstrate that the hybrid scenario (combining traditional sources, nuclear power, and renewables) offers the best combination of economic efficiency (15% more cost-effective than a purely renewable scenario) and reduced environmental risks compared to traditional coal-based generation. The scenario relying predominantly on renewable energy sources to cover the deficit proved the most capital-intensive. The findings and the developed methodology hold practical value for federal and regional authorities in: scientifically substantiating investment decisions and developing regional energy development programs; formulating effective state support mechanisms to attract private investment in new generation capacity modernisation; developing preemptive measures to minimize economic risks associated with cross-border carbon regulation.

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