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Green Innovation and Sustainable Energy Transition: Opportunities and Challenges

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A special issue of Energies (ISSN 1996-1073). This special issue belongs to the section "C: Energy Economics and Policy".

Deadline for manuscript submissions: 30 June 2026 | Viewed by 12297

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Special Issue Editor

Dr. Fabio Maria Montagnino

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Guest Editor

The Cyprus Institute, CY-1645 Nicosia, Cyprus
Interests: sustainable Innovation; green economy; renewable energy; system transformation and theory of change; art and innovation
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

The Special Issue presents a collection of studies that address the transition towards sustainable energy as the transformation of a key socio-technical system within the green innovation landscape.

The energy sector represents a determinant playground of the decabonization challenge, and mobilizes efforts in from varied fields, including engineering, digitalization, environmental science, behavioral and social sciences, policy, and economics. This collection aims to approach the topic from an innovation angle, offering a deeper understanding of the relevant opportunities arising from the transition in terms of the establishment of new industrial sectors, as well as socio-economic obstacles and resistance that impede the move away from traditional energy sources. We encourage the submission of applied empirical studies on specific innovative solutions or geographical contexts, as well as more theoretical work about the innovation dynamics in the energy sector and their relevance in achieving sustainability. We would appreciate manuscripts that address the role of innovation in addressing socio-ecological challenges in the field, such as energy poverty, lack of access to grids, market transparency, and environmental impacts of energy systems.

This cross-disciplinary Special Issue will represent a resource for scholars, practitioners, innovators, economists and policymakers who are engaged in the transformation of the energy model to achieve its systemic sustainability.

Topics covered:

Uptake of innovative green solutions in the energy sector
Key enabling technologies for sustainable energy
Approaches to green finance in the energy sector
New business models for energy
Innovation policies and their role in the energy transition
Regional and sectoral features of sustainable energy innovation
Innovation management in the sustainable energy transition: patents, startups, innovation programs
Innovation in the energy supply chains
Analysis of socio-economic barriers against the energy transition
Innovation and energy socio-ecological challenges

Dr. Fabio Maria Montagnino
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 250 words) can be sent to the Editorial Office for assessment.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Energies is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2600 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

sustainable energy
green innovation
green business models
socio-technical transition

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Published Papers (9 papers)

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Research

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20 pages, 4281 KB

Open AccessArticle

Sustainable Energy Transition Challenges: Limits to the Integration of Core Energy System Components—Reliability Perspective

by Wojciech Uchman, Michał Jurczyk, Jakub Ochmann and Leszek Remiorz

Energies 2026, 19(5), 1232; https://doi.org/10.3390/en19051232 - 1 Mar 2026

Cited by 1 | Viewed by 639

Abstract

The rapid expansion of non-dispatchable renewable energy sources (VRE) and energy storage technologies raises fundamental questions regarding the structural limits of their integration into power systems. This study aims to determine, from a structural reliability perspective, the adequate penetration limits of VRE in a synthetic power system and to assess how firm generation share, storage capacity, and wind–solar technology mix influence system reliability. A synthetic annual load profile reflecting current European conditions was developed from real-life data, along with a set of indicators enabling the consistent characterization and comparison of demand profiles. A deterministic system model was then applied to evaluate power and energy balance under parametrized configurations of firm generation, variable renewable capacity, and storage. Reliability performance was assessed using proposed indices (RIs) covering, among others, capacity margin, loss of load duration, frequency, etc. The results demonstrate the existence of structural penetration limits of non-dispatchable renewables that cannot be eliminated solely by increasing storage capacity, but only shifted. The technological composition of VRE is shown to be as important as total penetration: higher wind shares improve seasonal alignment and reduce reliability risks, whereas PV-dominated configurations increase curtailment and storage dependence. Moderate overcapacity, combined with a balanced wind–solar mix, provides the most favorable structural reliability conditions. These findings underscore the importance of incorporating reliability-based structural constraints into long-term energy transition planning, beyond purely economic optimization criteria. Full article

(This article belongs to the Special Issue Green Innovation and Sustainable Energy Transition: Opportunities and Challenges)

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25 pages, 4769 KB

Open AccessArticle

Policy and Financial Implications of Net Energy Metering in Arctic Power Systems: A Case Study of Alaska’s Railbelt

by Maren Peterson, Magnus de Witt, Ewa Lazarczyk Carlson and Hlynur Stefánsson

Energies 2026, 19(3), 787; https://doi.org/10.3390/en19030787 - 2 Feb 2026

Viewed by 535

Abstract

The transition toward sustainable energy in Arctic and subarctic regions requires innovative approaches that account for both the unique geographical conditions and the economic and policy challenges associated with isolated power systems. This study examines how net energy metering (NEM) and net billing schemes influence distributed solar photovoltaic (PV) adoption and financial performance among utilities in Alaska’s Railbelt. The Railbelt, which supplies power to three-quarters of the state’s population, remains heavily reliant on natural gas and exhibits limited renewable penetration compared to other arctic regions. Using a stochastic risk-based modeling framework with Monte Carlo simulations and the Bass diffusion model, the analysis estimates the 15-year financial impacts of different NEM adoption scenarios on utilities. Results show that while NEM drives PV adoption through higher compensation for exported generation, it also increases potential revenue losses for utilities compared to net billing. Policy innovations like those introduced in Alaska’s House Bill 164 (HB 164), which establishes a reimbursement fund to mitigate utility revenue losses, indicate that regulatory work is being designed to balance distributed generation incentives with economic sustainability. This work provides a baseline for understanding how a policy framework influences both utility and consumer economics in terms of NEM and solar PV adoption in Arctic and subarctic systems. Full article

(This article belongs to the Special Issue Green Innovation and Sustainable Energy Transition: Opportunities and Challenges)

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30 pages, 756 KB

Open AccessArticle

Perception of Energy Transition by Residents of Silesian Mining Cities: Mine Closures and Local Authorities’ Preparedness for Regional Restructuring

by Izabela Jonek-Kowalska

Energies 2026, 19(3), 686; https://doi.org/10.3390/en19030686 - 28 Jan 2026

Viewed by 455

Abstract

Energy transition, including the transition away from fossil fuels, is a difficult and complex process, particularly in emerging and developing economies. One of the key factors determining its effectiveness is the acceptance of its course and consequences by local communities. Taking into account these circumstances, as well as the ongoing period of profound energy sector transformation in Poland, the main objective of this article is to diagnose the perception of energy transition and assess the preparedness of local authorities for its consequences from the perspective of a representative sample of 1863 residents from 19 cities with county rights located in the Upper Silesian Coal Basin. The research was conducted in the second quarter of 2025. In analyzing the survey results, descriptive statistics, identification of interdependencies, and non-parametric statistical tests (Mann–Whitney U, Kruskal–Wallis, and Wilcoxon) were employed. The obtained results indicate relative acceptance of decarbonization; however, there is significantly lower support for closing hard-coal mines. Respondents rate the preparedness of local authorities for the consequences of hard-coal mining liquidation in the region as low. Moreover, they believe that the local labor market is better prepared for restructuring changes than the local governments of Silesian cities. The respondents’ answers differ primarily according to gender and education, although the identified relationships are neither obvious nor linear. Furthermore, the age of respondents only influences the perception of the necessity of closing hard-coal mines and the assessment of city authorities’ preparedness for the consequences of this process. The results of the conducted research contribute to the analysis of socio-economic processes accompanying energy transition and may be useful in conducting social consultations and communication and information activities, as well as in developing regional restructuring strategies. Full article

(This article belongs to the Special Issue Green Innovation and Sustainable Energy Transition: Opportunities and Challenges)

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30 pages, 7291 KB

Open AccessEditor’s ChoiceArticle

Energy Criteria in Adaptive Reuse Decision-Making: A Hybrid DEMATEL-ANP Model for Selecting New Uses of a Historic Building in Poland

by Elżbieta Radziszewska-Zielina, Grzegorz Śladowski, Bartłomiej Szewczyk, Małgorzata Fedorczak-Cisak, Alicja Kowalska-Koczwara, Tadeusz Tatara and Krzysztof Barnaś

Energies 2025, 18(18), 5020; https://doi.org/10.3390/en18185020 - 21 Sep 2025

Cited by 1 | Viewed by 1153

Abstract

Historic buildings make up a significant proportion of the existing building stock. Most are characterised by poor technical condition and high energy demand. In Poland, many historic buildings are still in use today, but it is also common to find these buildings subjected to adaptive reuse. Adaptive reuse, often combined with modernisation, is problematic, especially in terms of finding a use that is optimal in the light of use-specific decision criteria. In previous studies, the authors used and developed the potential for the modelling and structural analysis of decision-making problems for the selection of new uses for historic buildings. In this paper, we present a test of this methodology on a Polish historic building. To further the application of our approach in sustainability-focused contexts, we performed the analysis using criteria focused on environmental and energy performance, in addition to other established criteria. In our study, the highest ranking use was a kindergarten, which scored 18% higher than the second-ranked alternative and over 90% higher than the lowest-ranked alternative. Full article

(This article belongs to the Special Issue Green Innovation and Sustainable Energy Transition: Opportunities and Challenges)

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23 pages, 863 KB

Open AccessFeature PaperArticle

Assessment of Sustainable Energy Development in European Union—Correspondence Analysis

by Janina Jędrzejczak-Gas, Joanna Wyrwa and Anetta Barska

Energies 2025, 18(18), 4886; https://doi.org/10.3390/en18184886 - 14 Sep 2025

Cited by 2 | Viewed by 1207

Abstract

The energy transition has now been recognised by European Union (EU) member states as a necessary condition for their long-term development. The process of energy transformation is predicated on the simultaneous implementation of the Sustainable Development Goals, which present a considerable challenge for modern economies and impose significant restrictions on their functioning. The objective of this article is to evaluate the transformation of EU member states in the field of sustainable energy development and to categorise them based on their alignment with Sustainable Development Goal No. 7 of the United Nations Agenda 2030, concerning affordable and clean energy, in 2015 and 2023. The monitoring of the progress of the energy transition, as well as the examination of its temporal trends and spatial characteristics, can provide a fundamental analysis framework for the strategic development of energy policy in the EU at national and regional levels. An important approach for this endeavour is the indicator-based assessment of trends. The correspondence analysis proposed in this study and the hierarchical classification, which was intended to help link categories in a two-dimensional space, have the potential to facilitate a more comprehensive assessment of the degree to which EU member states are developing sustainable energy. The study results confirmed significant heterogeneity among the EU-27 countries in terms of energy sustainability. In both 2015 and 2023, the groups of EU countries that achieved a certain level of energy sustainability were identified. However, it should be noted that the composition of each group changed in 2023 compared to 2015. Moreover, no group of EU countries was without its own particular strengths and weaknesses. The results provide opportunities for their interpretation, both in terms of analysing changes in individual indicators and in terms of the global assessment of sustainable development in individual countries. The adoption of an original research approach, divergent from previous studies, for the new timeframe contributes to the resolution of the research gap in empirical studies concerning the classification of EU member states in terms of SDG7 implementation. Full article

(This article belongs to the Special Issue Green Innovation and Sustainable Energy Transition: Opportunities and Challenges)

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21 pages, 1718 KB

Open AccessFeature PaperArticle

Green Innovation in Energy Storage for Isolated Microgrids: A Monte Carlo Approach

by Jake Elliot, Les Bowtell and Jason Brown

Energies 2025, 18(17), 4732; https://doi.org/10.3390/en18174732 - 5 Sep 2025

Viewed by 2680

Abstract

Thursday Island, a remote administrative hub in Australia’s Torres Strait, exemplifies the socio-technical challenges of transitioning to sustainable energy amid diesel dependence and the intermittency of renewables. As Australia pursues Net Zero by 2050, innovative storage solutions are pivotal for enabling green innovation in isolated microgrids. This study evaluates Vanadium Redox Flow Batteries (VRFBs) and Lithium-Ion batteries as key enabling technologies, using a stochastic Monte Carlo simulation to assess their economic viability through Levelized Cost of Storage (LCOS), incorporating uncertainties in capital costs, operations, and performance over 20 years. Employing a stochastic Monte Carlo simulation with 10,000 iterations, this study provides a probabilistic assessment of LCOS, incorporating uncertainties in key parameters such as CAPEX, OPEX, efficiency, and discount rates, offering a novel, data-driven framework for evaluating storage viability in remote microgrids. Results indicate VRFBs’ superiority with a mean LCOS of 168.30 AUD/MWh versus 173.50 AUD/MWh for Lithium-Ion, driven by scalability, durability, and safety—attributes that address socio-economic barriers like high operational costs and environmental risks in tropical, off-grid settings. By framing VRFBs as an innovative green solution, this analysis highlights opportunities for new business models in remote energy sectors, such as reduced fossil fuel reliance (3.6 million litres diesel annually) and enhanced community resilience against energy poverty. It also underscores challenges, including capital uncertainties and policy needs for innovation uptake. This empirical case study contributes to the sustainable energy transition discourse, offering insights for policymakers on overcoming resistance to decarbonization in geographically constrained contexts, aligning with green innovation goals for systemic sustainability. Full article

(This article belongs to the Special Issue Green Innovation and Sustainable Energy Transition: Opportunities and Challenges)

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26 pages, 973 KB

Open AccessFeature PaperArticle

Technological Readiness and Implementation Pathways for Electrifying Greek Coastal Ferry Operations: Insights from Norway’s Zero-Emission Ferry Transition

by Georgios Remoundos, Maria Lekakou, Georgios Stergiopoulos, Dimitris Gavalas, Ioannis Katsounis, Sofia Peppa, Dimitrios-Nikolaos Pagonis and Knut Vaagsaether

Energies 2025, 18(17), 4582; https://doi.org/10.3390/en18174582 - 29 Aug 2025

Cited by 3 | Viewed by 2466

Abstract

The decarbonization of short sea shipping is emerging as a critical priority for Mediterranean countries. This paper presents key findings from the ELECTRA-GR project, funded by the EEA Financial Mechanism (MIS 5202231), which aimed to evaluate the feasibility, technical readiness, and legislative requirements for the electrification of coastal ferry services in Greece. The study focused on two pilot routes—Salamis–Perama and Chios–Oinousses— representative of the high-frequency, short-distance ferry operations characteristic of the Greek archipelago. A comprehensive assessment was conducted combining technical fleet profiling, stakeholder consultations, legislative analysis, cost–benefit evaluations, and international benchmarking with Norway. For the base scenario of the high-traffic Salamis–Perama route, full electrification yields an annual reduction of approximately 900 tons of CO₂ compared to diesel operation and achieves a Net Present Value (NPV) of €1.6 million over a 15-year period. In contrast, the Chios–Oinousses route, characterized by lower traffic volume, achieves a reduction of 85 tons of CO₂ annually through hybrid conversion, but results in an NPV of €−1.69 million, underscoring the need for financial support mechanisms or targeted subsidies to ensure economic feasibility. The results indicate that electrification of short ferry routes in Greece is technically feasible and environmentally advantageous but faces significant challenges, including inadequate port infrastructure, regulatory gaps, and limited industrial readiness. The study proposes a structured roadmap toward electrification, emphasizing the modernization of shipyards, tailored policy instruments, and public–private cooperation. The findings contribute to the formulation of a scalable strategy for clean maritime transport in peripheral and island regions of Greece. Full article

(This article belongs to the Special Issue Green Innovation and Sustainable Energy Transition: Opportunities and Challenges)

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Review

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41 pages, 9257 KB

Open AccessReview

Recent Advancements in Design and Energy Performance of Vapour Compression Systems for Air Conditioning in Buildings: A Review

by Hussein A. Al Khiro and Rabah Boukhanouf

Energies 2026, 19(5), 1166; https://doi.org/10.3390/en19051166 - 26 Feb 2026

Cited by 2 | Viewed by 1218

Abstract

Rapid urbanisation and rising thermal comfort expectations are propelling global energy demand for space cooling and heating in buildings, cementing vapour compression air conditioning as the dominant technology due to its proven simplicity and efficiency. However, conventional mechanical configurations remain constrained by intrinsic thermodynamic irreversibilities and by international protocols mandating the phase-out of high global warming potential refrigerants. While a growing body of research proposes performance-enhancement measures, these advances remain fragmented across technologies and application contexts. This paper critically reviews recent vapour compression cycle developments, structuring the literature around five interrelated thematic pathways: refrigerant-centric strategies, thermodynamic cycle modifications, hybrid system integration, heat exchanger innovations, and control-centric optimisations. The analysis reveals that no single technology can universally optimise vapour compression cycle performance; instead, effective system improvements emerge from context-specific combinations of refrigerant innovation, heat-transfer enhancement, cycle modification, and hybridisation, with the most successful strategies closely aligned to required temperature lifts and regional climatic conditions. This review introduces a simplified constraint–strategy–technology framework in which dominant system constraints (regulatory and proprietary, thermodynamic and climatic conditions, and demand-related) are first identified. Then corresponding technological improvement strategies (cycle modification, hybridisation, material selection, and control optimisation) are mapped out while enabling technologies are evaluated for suitability, scalability, and maturity. Therefore, this framework provides a system-level synthesis that links performance gains to context-specific operating constraints. Full article

(This article belongs to the Special Issue Green Innovation and Sustainable Energy Transition: Opportunities and Challenges)

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25 pages, 1756 KB

Open AccessReview

Open Innovation for Green Transition in Energy Sector: A Literature Review

by Izabela Jonek-Kowalska, Sara Rupacz and Aneta Michalak

Energies 2025, 18(24), 6451; https://doi.org/10.3390/en18246451 - 10 Dec 2025

Viewed by 789

Abstract

The main objective of this article is to conduct a literature review on the use of open innovation (OI) for green transition to identify tools and methods that can make green transition more effective, efficient, and socially acceptable. This review is accompanied by an attempt to answer the following research questions: R1. How can open innovation be used in the economy and by individual entities to achieve the goals of the green transition? R2. How can individual stakeholders be activated and motivated to participate in the process of creating open innovation for the green transition? and R3. What are the real effects of using open innovation on a macroeconomic, social, and individual scale? The results allow concluding that OI is used by enterprises, cities, regions, and entire economies. Among the methods of activating and motivating individual stakeholders to engage in the process of creating OI for green transition, the following can be selected: (1) internal resources and competencies (knowledge management, internal programs, open leadership, trust, complementarity of resources); (2) partnership characteristics (modern business models, involvement of partnership intermediaries, strengthening relationships with suppliers and customers, involvement of prosumers, cooperation with universities and research institutions); (3) external legal and regulatory conditions (protection of intellectual property rights, pro-innovation and pro-environmental education systems, creation of a legal framework for cooperation between science and business); and (4) external technical and organizational solutions (online platforms, social media, Living Labs, external sources of knowledge). The most frequently mentioned individual effects of open innovation in the energy sector include: improved efficiency, effectiveness and competitiveness in environmental management and the implementation of sustainable development, as well as the use of modern technologies. At the economic level, OI supports investment and economic growth. It can also have a positive impact on reducing energy poverty and developing renewable energy sources, including in emerging economies. This form of innovation also promotes social integration and the creation of social values. The findings of this review can be utilized by scholars to identify current and future research directions. They may also prove valuable for practitioners as both an incentive to engage in open innovation and guidance for its design and implementation. Furthermore, the results can contribute to disseminating knowledge about open innovation and its role in the green transformation. Full article

(This article belongs to the Special Issue Green Innovation and Sustainable Energy Transition: Opportunities and Challenges)

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