Methodology for Investment Evaluation in Electricity Generation Modules according to the Requirements of the European Union

Abstract

Abstract For a country to be able to survive successfully, one of the criteria is a stable electric power supply that meets certain technical parameters. In the European Union, several countries are working synchronously to ensure the safety of electricity systems. In order to achieve such synchronous operation, the European Union has adopted Regulation No. 2016/631, which sets out the requirements for grid-connected generators. The present article develops a model to assess the compliance of generators with the requirements of the Regulation, as well as conducts economic analysis to assess which generators need investment and whether their use will provide economic benefits. In this way, the state can create a priority list, where generators are divided according to their socio-economic benefits. In 2025, the Baltic States plan to become integrated into the Energy Systems Association of Continental Europe and work synchronously with the other European Union countries, disconnected from the current BRELL energy systems. Therefore, the model developed in the article is applied to the case of Latvia to determine the necessary investments, as a result of which alternatives are considered for improving the current situation.