Article
Economics
Yiyi Bai, Samuel J. Okullo
Summary: Despite low and volatile allowance prices, power generators' responses within the EU Emission Trading System (ETS) were consistent with economic theory. This is evidenced by the qualitative response of allowance prices to fuel prices, the value of allowance banking for compliance costs, and the complete pass-through of allowance costs in major European markets. These findings suggest that the EU ETS was more functional than previously recognized.
Article
Energy & Fuels
Robert C. Pietzcker, Sebastian Osorio, Renato Rodrigues
Summary: This paper investigates the impact of tighter EU ETS targets on the power sector, finding that the transformation would accelerate with renewable energy leading the shift, coal phased out by 2030, and zero electricity generation emissions by 2040. Carbon prices within the EU ETS would triple, reducing power sector emissions by 54% compared to the current target, with only a 5% increase in total discounted power system costs. Various sensitivities were tested, showing that increased electricity demand and restrictions on transmission expansion could impact the transition.
Article
Economics
Georg Thomassen, Konstantinos Kavvadias, Juan Pablo Jimenez Navarro
Summary: The study indicates that heat electrification is an effective decarbonisation option that can significantly reduce energy-related emissions. Most national power systems can accommodate higher heat-electrification rates, while flexible electric demand plays a crucial role in achieving larger heat-electrification shares.
Article
Economics
Antonella Rita Ferrara, Ludovica Giua
Summary: This study evaluates the impact of EU ETS indirect cost compensation on the performance of aided firms using sectoral and country differences in regulation and a unique dataset on beneficiaries. The results show that receiving compensation for indirect costs does not significantly affect labor productivity, but there is evidence of negative performance in terms of turnover, value of total assets, and employment. However, the negative effects are less pronounced in sectors more vulnerable to carbon leakage risk, and higher compensation amounts improve performance.
Article
Environmental Sciences
Lingli Qi, Xinyue Lin, Xile Shi, Yongqiang Zhang, Haoran Pan, Basil Sharp
Summary: The thermal power industry in China is a major source of carbon emissions. To achieve its peak emission target by 2030, China has implemented a national carbon emissions trading scheme (ETS) and renewable energy incentive programs. However, the removal of central feed-in tariffs (FIT) for certain renewable energy projects since 2021 may jeopardize China's carbon reduction targets and economic development. Using a dynamic computable general equilibrium (CGE) model, this study explores the combined effects of the carbon ETS and FIT on China's electricity sector, carbon emission peak target, renewable energy, and economic development. The results suggest that FIT subsidies have a more positive overall impact compared to phasing-out FIT scenarios.
JOURNAL OF ENVIRONMENTAL MANAGEMENT
(2023)
Article
Environmental Sciences
Mohd Alsaleh, Abdul Samad Abdul-Rahim
Summary: This study aims to explore the impact of hydropower factors and economic growth on agriculture industry output in EU27 nations. The findings suggest that the use of hydropower factors can have a positive effect on agriculture industry growth, especially in emerging economies. Additionally, economic growth and institutional quality have a positive impact on agriculture growth, while population density has a negative impact. Increasing hydropower production can contribute to sustainable development in the agricultural industry of European nations.
ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH
(2023)
Article
Economics
Guohao Li, Miaomiao Niu, Jin Xiao, Jiaqian Wu, Jinkai Li
Summary: China mainly promotes economic decarbonization through the carbon trading scheme (ETS) at this stage. The power sector is the most critical in this process. ETS can promote decarbonization in the power sector, but due to the rebound effect, the actual decarbonization effect may not be as expected. This study systematically investigates the rebound effect of decarbonization in China's power sector under ETS using an almost ideal demand system (AIDS) model and simulation analysis method. The results show that the implementation of ETS had a partial rebound effect on decarbonization in China's power sector, with magnitudes ranging from 0.186 to 0.866. Furthermore, this study found a strong correlation between the rebound effect and carbon prices; specifically, the lower the carbon price, the greater the rebound effect. Finally, the rebound effect of decarbonization in China's power sector under ETS is dominated by the indirect rebound effect. These findings suggest that policymakers should consider the rebound effect when formulating or improving policies related to the decarbonization of China's power sector and assessing the effectiveness of the current ETS. Moreover, taking steps to increase carbon prices would help mitigate the rebound effect.
Article
Thermodynamics
Maria Cadaval, Rosa Ma Regueiro-Ferreira, Santiago Calvo
Summary: This paper evaluates the effectiveness of the Bono Social de Electricidad in reducing fuel poverty in Spain and finds that it has not been effective in alleviating fuel poverty, but rather identifies new types of energetically poor households.
Article
Engineering, Environmental
Shuting Yang, Sara Hastings-Simon, Arvind P. Ravikumar
Summary: The global coal-to-gas transition in the power sector is limited by pipeline availability constraints, with only a small percentage of coal capacity located within 14 km of a nearby pipeline. While coal-to-gas conversion has the potential for emissions reductions, most countries' coal fleets lack access to low-cost natural gas resources, making a global transition unlikely.
ENVIRONMENTAL SCIENCE & TECHNOLOGY
(2022)
Article
Economics
Dohyun Chun, Hoon Cho, Jihun Kim
Summary: This study analyzes the relationship between the price of carbon-intensive fuel and the stock prices of renewable energy companies by using wavelet methods to reconstruct time series. The results show a negative effect of coal prices on renewable energy stock prices, which can be explained by the negative relationship between coal and carbon prices, as well as the positive relationship between carbon prices and renewable energy stock prices.
Article
Environmental Studies
Nathalie Mueller, Jordi J. Teixido
Summary: The EU ETS rule 10c derogation did not incentivize investment in low carbon alternatives, instead subsidizing continued use of coal power and depriving affected governments of auction revenues that could have been used to ease decarbonization.
Article
Green & Sustainable Science & Technology
Constantinos S. Psomopoulos, Kyriaki Kiskira, Konstantinos Kalkanis, Helen C. Leligou, Nickolas J. Themelis
Summary: The European Union is promoting waste-to-energy initiatives to reduce waste and increase resource recovery. Member states are adopting environmentally friendly waste management options to meet the rising energy demands in the region.
IET RENEWABLE POWER GENERATION
(2022)
Article
Economics
Yan Zheng, Hua Yin, Min Zhou, Wenhua Liu, Fenghua Wen
Summary: The study demonstrates that oil supply and demand shocks have a positive effect on the returns of the European Union's carbon emission allowance (EUA), while oil risk shocks have a negative effect. Additionally, oil shocks tend to be stronger under bearish and normal market conditions.
Article
Multidisciplinary Sciences
Ashish Gulagi, Manish Ram, Dmitrii Bogdanov, Sandeep Sarin, Theophilus Nii Odai Mensah, Christian Breyer
Summary: This research examines the technical and economic feasibility of transitioning India's power sector to renewable energy sources. The findings suggest that a renewables-based power system by 2050 would be cost-effective, have zero greenhouse gas emissions, and provide reliable electricity to around 1.7 billion people. The study highlights the importance of transitioning to renewable energy in ensuring affordability, accessibility, and sustainability without compromising economic growth.
NATURE COMMUNICATIONS
(2022)
Article
Environmental Studies
Agustin Garcia, Maria Teresa Garcia-Alvarez, Blanca Moreno
Summary: This article investigates the long-term impact of EU carbon dioxide emission allowances on the European power sector, finding that EU allowance prices have a significant and positive long-term effect on the European power sector stock market in EU ETS Phase III.
ORGANIZATION & ENVIRONMENT
(2021)
Article
Engineering, Electrical & Electronic
Steffen Kaminski, Mihaly Dolanyi, Kenneth Bruninx, Erik Delarue
Summary: This research examines the impact of risk-averse behavior and strategic bidding on energy and capacity market outcomes. By introducing a comparative analysis framework, the study identifies situations where these two behaviors lead to the same outcomes. The implications of this work for regulators lie in their ability to differentiate risk-aversion from strategic behavior based on observed market outcomes.
ELECTRIC POWER SYSTEMS RESEARCH
(2022)
Article
Economics
Jelle Meus, Hanne Pittomvils, Stef Proost, Erik Delarue
Summary: The use of renewable energy cooperation mechanisms can reduce the policy cost for meeting renewable targets, but concerns about efficiency losses exist due to different national regulatory conditions and cross-border support instrument selection. This paper presents an analytical framework and a mathematical model to evaluate the impact of national grid cost allocation and cross-border feed-in premium implementation. The results suggest that EU-wide auctions for renewable electricity should not use sliding feed-in premiums and should ideally be discriminatory based on national regulatory conditions. Additionally, there may be distributional effects for Member States engaging in renewable cooperation.
Article
Engineering, Electrical & Electronic
Mihaly Dolanyi, Kenneth Bruninx, Jean-Francois Toubeau, Erik Delarue
Summary: This paper presents a time-series scenario-driven stochastic optimization model for the centralized optimal bidding and scheduling problem of an energy community, using real-life measurement data. The research extends existing models by implementing a worst-case conditional value at risk (WCVaR) constraint for storage system state-of-charge bounds. A numerical comparison shows that the proposed WCVaR based constraint provides better protection against extreme out-of-sample outcomes compared to the conditional value at risk based equivalent. Real-life measurement data is directly leveraged for uncertainty in the imbalance market and load forecast errors, using a shape-based clustering method to capture the temporal characteristics of input scenarios.
IEEE TRANSACTIONS ON SMART GRID
(2022)
Article
Economics
Athir Nouicer, Leonardo Meeus, Erik Delarue
Summary: To avoid unnecessary distribution network investments, it is expected that distribution tariffs will become more cost-reflective and Distribution System Operators (DSOs) will procure flexibility. The paper develops a long-term bi-level equilibrium model where the DSO optimizes social welfare and sets network tariffs while consumers maximize their own welfare. The study finds that implicit and explicit incentives for demand-side flexibility are complementary regulatory tools, but there are limits and difficulties in setting appropriate compensation levels due to prosumer reaction.
Article
Economics
Athir Nouicer, Leonardo Meeus, Erik Delarue
Summary: In this paper, two schemes for contracting demand-side flexibility by the Distribution System Operator (DSO) at the planning stage are investigated. The first scheme is a voluntary demand-side connection agreement where consumers offer their flexibility, while the second scheme is a mandatory demand-side connection agreement where the DSO sets the flexibility levels. Through modeling and analysis, it is found that mandatory demand-side connection agreements result in higher welfare gains compared to voluntary ones, but may face implementation issues and different curtailment levels among consumers.
Article
Energy & Fuels
Sebastian Gonzato, Kenneth Bruninx, Erik Delarue
Summary: The potential contribution of short-term storage technologies, such as batteries, to resource adequacy in power systems with high penetrations of Variable Renewable Energy Sources (VRES) is increasingly important. However, there are multiple ways in which storage may be operated to contribute to resource adequacy. This study investigates different storage operational strategies to determine their impact on the Loss of Load Expectation (LOLE) and Capacity Credits (CCs) and highlights the need for explicit and transparent assumptions in adequacy assessments and capacity credit calculations.
SUSTAINABLE ENERGY GRIDS & NETWORKS
(2023)
Article
Economics
Marten Ovaere, Michiel Kenis, Kenneth Van den Bergh, Kenneth Bruninx, Erik Delarue
Summary: The introduction of FBMC has positively affected day-ahead electricity price convergence and cross-border exchange volumes. However, these benefits have decreased over time, potentially due to decreased commercial transmission capacity on critical branches.
Article
Energy & Fuels
Zhenmin Tao, Jorge Andres Moncada, Erik Delarue
Summary: This study uses prospect theory, a Nobel-prize-winning theory, to assess the impact of bounded rationality on the transition of the electric power system. The findings indicate that bounded rational investment behavior leads to increased uncertainties and higher system costs. Moreover, the overlooked factor of reference dependence is found to dominate the system's evolution. Considering these results, it is important for energy policy evaluation to consider the perspectives and status of investors, among other factors.
Article
Energy & Fuels
Niels Govaerts, Kenneth Bruninx, Helene Le Cadre, Leonardo Meeus, Erik Delaru
Summary: The study finds that applying marginal cost pricing principles can enhance the economic efficiency of distribution network tariffs. By investigating the Long-Run Incremental Cost (LRIC) methodology implemented in Great Britain since 2012, the paper analytically derives the long-term social welfare achieved under three different tariff-setting methods. The study compares the resulting social welfare based on a range of system characteristics and discusses the underlying mechanisms, revealing that LRIC is more efficient than historical cost-based allocation.
Editorial Material
Chemistry, Physical
Michiel Keris, Luca Lanzilao, Kenneth Brunix, Johan Meyers, Erik Delarue
Correction
Energy & Fuels
David Schoenheit, Michiel Kenis, Lisa Lorenz, Dominik Moest, Erik Delarue, Kenneth Bruninx
ADVANCES IN APPLIED ENERGY
(2023)
Article
Energy & Fuels
K. Phillips, J. A. Moncada, H. Ergun, E. Delarue
Summary: In this paper, we analyze the impact of the spatial representation of intermittent renewable technologies on generation planning models. The study finds that the spatial resolution and aggregation method significantly influence system costs, especially at high spatial resolutions. The paper also compares basic spatial aggregation methods for processing high resolution input data.
Proceedings Paper
Green & Sustainable Science & Technology
Chiara Gorrasi, Arpan Koirala, Kenneth Bruninx, Erik Delarue, Dirk Van Hertem
Summary: Assessing the capability of distribution grids to integrate new solar PV installations has been extensively researched. Existing analysis methods fail to consider consumer preferences or economic feasibility. By using market-based optimal power flow and hosting capacity analysis, this study compares the economic and technical limits of solar PV integration in low voltage distribution systems. Findings indicate that relying solely on grid limits does not provide a complete understanding of solar PV integration potential, deterministic power flow is not foolproof for assessing network security, and the number of technically feasible installation sites surpasses the economically feasible ones.
2023 19TH INTERNATIONAL CONFERENCE ON THE EUROPEAN ENERGY MARKET, EEM
(2023)
Article
Engineering, Multidisciplinary
Mihaly Dolanyi, Kenneth Bruninx, Erik Delarue
Summary: Liberalized electricity markets offer cost-efficient operation and expansion of power systems but also create opportunities for strategic gaming by price-making agents. Regulators and policymakers face challenges in dealing with unconventional generation and consumption patterns and preventing strategic behavior.
OPTIMIZATION AND ENGINEERING
(2023)
Proceedings Paper
Computer Science, Theory & Methods
Michiel Kenis, Erik Delarue, Kenneth Bruninx, Fernando Dominguez
Summary: This study examines the market integration of hybrid off-shore projects and the impact of bidding zone definitions on welfare distribution. The study finds that off-shore bidding zones result in a transfer of welfare and have implications for the need for support instruments for off-shore wind farms.
2023 IEEE BELGRADE POWERTECH
(2023)
