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The impact of carbon capture and storage on a decarbonized German power market

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  • Spiecker, S.
  • Eickholt, V.
  • Weber, C.

Abstract

The European energy policy is substantially driven by the target to reduce the CO2-emissions significantly and to mitigate climate change. Nevertheless European power generation is still widely based on fossil fuels. The carbon capture and storage technology (CCS) could be part of an approach to achieve ambitious CO2 reduction targets without large scale transformations of the existing energy system. In this context the paper investigates on how far the CCS-technology could play a role in the European and most notably in the German electricity generation sector. To account for all the interdependencies with the European neighboring countries, the embedding of the German electricity system is modeled using a stochastic European electricity market model (E2M2s). After modeling the European side constraints, the German electricity system is considered in detail with the stochastic German Electricity market model (GEM2s). The focus is thereby on the location of CCS plant sites, the structure of the CO2-pipeline network and the regional distribution of storage sites. Results for three different European energy market scenarios are presented up to the year 2050. Additionally, the use of CCS with use of onshore and offshore sites is investigated.

Suggested Citation

  • Spiecker, S. & Eickholt, V. & Weber, C., 2014. "The impact of carbon capture and storage on a decarbonized German power market," Energy Economics, Elsevier, vol. 43(C), pages 166-177.
    • Handle: RePEc:eee:eneeco:v:43:y:2014:i:c:p:166-177
    DOI: 10.1016/j.eneco.2014.02.020
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    3. Massol, Olivier & Tchung-Ming, Stéphane & Banal-Estañol, Albert, 2015. "Joining the CCS club! The economics of CO2 pipeline projects," European Journal of Operational Research, Elsevier, vol. 247(1), pages 259-275.
    4. Shi Chen & Wolfgang Karl Hardle & Brenda L'opez Cabrera, 2020. "Regularization Approach for Network Modeling of German Power Derivative Market," Papers 2009.09739, arXiv.org.
    5. Valentina Kashintseva & Wadim Strielkowski & Justas Streimikis & Tatiana Veynbender, 2018. "Consumer Attitudes towards Industrial CO 2 Capture and Storage Products and Technologies," Energies, MDPI, vol. 11(10), pages 1-14, October.
    6. Alami, Abdul Hai & Hawili, Abdullah Abu & Hassan, Rita & Al-Hemyari, Mohammed & Aokal, Kamilia, 2019. "Experimental study of carbon dioxide as working fluid in a closed-loop compressed gas energy storage system," Renewable Energy, Elsevier, vol. 134(C), pages 603-611.
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    More about this item

    Keywords

    Stochastic optimization; Carbon capture and storage; Power system economics;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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