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Is there a future for the gas network in a low carbon energy system?

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  • Hickey, Conor
  • Deane, Paul
  • McInerney, Celine
  • Ó Gallachóir, Brian

Abstract

This paper evaluates the potential low carbon opportunities for and challenges to the utilisation and financial performance of Ireland's gas distribution network within a series of low carbon scenarios. There has been a limited amount of academic literature published on the future implications of gas demand on gas networks. This paper takes the unique perspective of assessing the stranded asset risk to a utility operating a gas network in the context of a low carbon energy system. Building on established emissions reduction scenarios, a financial model is developed from an integrated energy system model to understand the financial risks associated with continued investment in gas networks. We find that higher network tariffs are required for consumers in the future to cover network costs, even though gas consumption grows relative to current consumption levels in low carbon scenarios with carbon capture and storage.

Suggested Citation

  • Hickey, Conor & Deane, Paul & McInerney, Celine & Ó Gallachóir, Brian, 2019. "Is there a future for the gas network in a low carbon energy system?," Energy Policy, Elsevier, vol. 126(C), pages 480-493.
    • Handle: RePEc:eee:enepol:v:126:y:2019:i:c:p:480-493
    DOI: 10.1016/j.enpol.2018.11.024
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    2. Löffler, Konstantin & Burandt, Thorsten & Hainsch, Karlo & Oei, Pao-Yu, 2019. "Modeling the low-carbon transition of the European energy system - A quantitative assessment of the stranded assets problem," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 26, pages 1-15.
    3. Daniel Then & Christian Spalthoff & Johannes Bauer & Tanja M. Kneiske & Martin Braun, 2020. "Impact of Natural Gas Distribution Network Structure and Operator Strategies on Grid Economy in Face of Decreasing Demand," Energies, MDPI, vol. 13(3), pages 1-33, February.
    4. Daniel Then & Patrick Hein & Tanja M. Kneiske & Martin Braun, 2020. "Analysis of Dependencies between Gas and Electricity Distribution Grid Planning and Building Energy Retrofit Decisions," Sustainability, MDPI, vol. 12(13), pages 1-42, July.
    5. D'Adamo, Idiano & Falcone, Pasquale Marcello & Gastaldi, Massimo & Morone, Piergiuseppe, 2020. "RES-T trajectories and an integrated SWOT-AHP analysis for biomethane. Policy implications to support a green revolution in European transport," Energy Policy, Elsevier, vol. 138(C).

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