Analysis of Financial Efficiency of Renewable Energy Projects Through a Value-Based Management Approach
Main Article Content
Maya Matofani
Sri Hartati
Devia Septyani
This study explores the application of the Value-Based Management (VBM) approach in analyzing the financial efficiency of renewable energy projects. As the global demand for clean and sustainable energy increases, renewable energy projects play a strategic role in the energy transition but are often faced with challenges of large initial investment, technological risks, and regulatory uncertainty. The results show that the application of VBM in evaluating renewable energy projects can improve the quality of investment decision making by considering both financial and non-financial aspects holistically. VBM encourages companies to be more selective and strategic in choosing projects that are not only economically feasible, but also socially and environmentally sustainable. In addition, this approach provides a strong framework for aligning managerial objectives with shareholder interests, improving corporate governance, and strengthening transparency in the process of evaluating and reporting project performance.
A Value-Based Modeling Framework for Solar Energy Utilization and Monitoring—ProQuest. (n.d.). Retrieved 7 May 2025, from https://www.proquest.com/openview/2f2a99f3cb91d5dfa41ba55b59392d72/1?cbl=18750&diss=y&pq-origsite=gscholar
Ahonen, E. (2025). Elevating project portfolio management: Key factors for effective project prioritization and value adding resource allocation. https://lutpub.lut.fi/handle/10024/169099
Burcă, V., Bogdan, O., Bunget, O.-C., & Dumitrescu, A.-C. (2024, September 1). Corporate Financial Performance vs. Corporate Sustainability Performance, between Earnings Management and Process Improvement. | EBSCOhost. https://doi.org/10.3390/su16177744
Computational Design of 2D Phosphorus Nanostructures for Renewable Energy Applications: A Review—Er—2024—Advanced Electronic Materials—Wiley Online Library. (n.d.). Retrieved 7 May 2025, from https://advanced.onlinelibrary.wiley.com/doi/full/10.1002/aelm.202300869
Dong, W., Zhao, G., Yüksel, S., Dinçer, H., & Ubay, G. G. (2022). A novel hybrid decision making approach for the strategic selection of wind energy projects. Renewable Energy, 185, 321–337. https://doi.org/10.1016/j.renene.2021.12.077
Dranka, G. G., Cunha, J., de Lima, J. D., & Ferreira, P. V. (2020). Economic evaluation methodologies for renewable energy projects. https://doi.org/10.3934/energy.2020.2.339
Exploring Learning Obstacle of Pre-Service Chemistry Student Towards Education for Sustainability on the Topic of Biodiesel: A Preliminary Study for Developing Didactic Design | Jurnal Penelitian Pendidikan IPA. (n.d.). Retrieved 7 May 2025, from https://jppipa.unram.ac.id/index.php/jppipa/article/view/8940
Fatima, N., Li, Y., Ahmad, M., Jabeen, G., & Li, X. (2021). Factors influencing renewable energy generation development: A way to environmental sustainability. Environmental Science and Pollution Research, 28(37), 51714–51732. https://doi.org/10.1007/s11356-021-14256-z
Frey, S., Heilmann, H. M., & Witzel, R. (2024). The Weighted Average Cost of Capital (Wacc): Unchanged Capital Costs Despite Decreasing Base Interest Rates? Causes and Implications (SSRN Scholarly Paper No. 4767330). Social Science Research Network. https://doi.org/10.2139/ssrn.4767330
Gaponenko, T., Dovbysh, V., Filin, N., & Bulatova, R. (2021). Building a value-based human resource management system. E3S Web of Conferences, 273, 08010. https://doi.org/10.1051/e3sconf/202127308010
Gawusu, S., Solahudeen Tando, M., Ahmed, A., Abdulai Jamatutu, S., Afriyie Mensah, R., Das, O., Mohammed, A.-L., Nandom Yakubu, I., & Ackah, I. (2024). Decentralized energy systems and blockchain technology: Implications for alleviating energy poverty. Sustainable Energy Technologies and Assessments, 65, 103795. https://doi.org/10.1016/j.seta.2024.103795
Gough, J. M. (2022). Corporate Improvement in Project Management: A Design Thinking Approach Investigating an Adaptable Model [Text, University of Southern Queensland]. https://doi.org/10.26192/wq860
Luthfiani, N. (2024). Energy Security: The Irena Role in Supporting Net Zero Emissions Program of Indonesia. Proceedings of Sunan Ampel International Conference of Political and Social Sciences, 2, 92–104. https://doi.org/10.15642/saicopss.2024.2..92-104
Malmi, T., & Ikäheimo, S. (2003). Value Based Management practices—Some evidence from the field. Management Accounting Research, 14(3), 235–254. https://doi.org/10.1016/S1044-5005(03)00047-7
Mavropulo, O., Rapp, M. S., & Udoieva, I. A. (2021). Value-based management control systems and the dynamics of working capital: Empirical evidence. Management Accounting Research, 52, 100740. https://doi.org/10.1016/j.mar.2021.100740
Mukhtarov, S., Yüksel, S., & Dinçer, H. (2022). The impact of financial development on renewable energy consumption: Evidence from Turkey. Renewable Energy, 187, 169–176. https://doi.org/10.1016/j.renene.2022.01.061
Nejatyan, E., Sarvari, H., Hosseini, S. A., & Javanshir, H. (2023). Determining the Factors Influencing Construction Project Management Performance Improvement through Earned Value-Based Value Engineering Strategy: A Delphi-Based Survey. Buildings, 13(8), Article 8. https://doi.org/10.3390/buildings13081964
Nowotny, S., Hirsch, B., & Nitzl, C. (2022). The influence of organizational structure on value-based management sophistication. Management Accounting Research, 56, 100797. https://doi.org/10.1016/j.mar.2022.100797
Pirozzi, M., Quagliarini, A., Apponi, F., Brusciotti, F., Buzzi, C., Mendicino, A., Milani, C., & Raguso, D. (2023). Sustainable Project Management: A multidimensional value-based approach.
Rahmadina, A. A. (2024). Energy Policy and Climate Crisis: An Evaluation of the Adequacy of Energy Laws in Supporting the Transition to Clean and Sustainable Energy. Protection: Journal Of Land And Environmental Law, 2(3), Article 3. https://doi.org/10.38142/pjlel.v2i3.1221
Rasoulinezhad, E., & Taghizadeh-Hesary, F. (2022). Role of green finance in improving energy efficiency and renewable energy development. Energy Efficiency, 15(2), 14. https://doi.org/10.1007/s12053-022-10021-4
Setyowati, A. B. (2021). Mitigating inequality with emissions? Exploring energy justice and financing transitions to low carbon energy in Indonesia. Energy Research & Social Science, 71, 101817. https://doi.org/10.1016/j.erss.2020.101817
Uvarova, S., Andryunina, Y., Smorodina, E., Ovsyannikov, A., & Chugunov, A. (2023). Increasing the attractiveness of green construction objects from the perspective of a value-based approach. AIP Conference Proceedings, 2560(1), 040025. https://doi.org/10.1063/5.0129529
VALUE-BASED MANAGEMENT: A CASE STUDY OF VISEGRAD FOUR COUNTRIES. (2021). Ekonomicko-Manazerske Spektrum, 15(2), 87–98.
Value-Creation Efficiency as a Decision-Making Basis and Its Assessment in the Financial Management of Energy Companies: Evidence from the Polish Capital Market. (n.d.). Retrieved 7 May 2025, from https://www.mdpi.com/2071-1050/15/2/1622
Wobst, J., Tanikulova, P., & Lueg, R. (2023). Value-based management: A review of its conceptualizations and a research agenda toward sustainable governance. Journal of Accounting Literature, 47(1), 150–200. https://doi.org/10.1108/JAL-11-2022-0123
Ye, Z., Kapogiannis, G., Tang, S., Zhang, Z., Jimenez-Bescos, C., & Yang, T. (2023). Influence of an integrated value-based asset condition assessment in built asset management. Construction Innovation, 25(2), 248–269. https://doi.org/10.1108/CI-11-2021-0216
Zhang, L., Berk Saydaliev, H., & Ma, X. (2022). Does green finance investment and technological innovation improve renewable energy efficiency and sustainable development goals. Renewable Energy, 193, 991–1000. https://doi.org/10.1016/j.renene.2022.04.161
