Managing Costs of Renewable Energy Companies for Sustainable Business

Abstract

Analyzing the costs of renewable energy companies proved to be of high importance for the business sustainability and a long term economic feasibility. The paper gives an insight of relevant cost management methodologies with aspects of the future investment potential within this subfield of energy economics. Having in mind that fossil fuels have still a substantial impact on global warming potential of the energy sector, modern approach to cost analysis of renewable energy deployment is necessary. Several methodologies are emphasized, with special reference to changes in total costs for these companies. Methods that include intangible costs and specific market conditions are used, as it is noticed that these are often empirically neglected. The paper investigates how the control of costs and dynamics of the cost as main categories are significant for overall business sustainability. Results indicate that managing costs of renewable energy companies is a challenging process. However, if there is an appropriate method applied, results show that cost management is one of the most essential tools for a sustainable development of renewable energy companies.