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The Impact of Fuel and CO2 Prices on Electricity Power Plans

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  • Paula Fereira
  • Isabel Soares
  • Madalena Araujo
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    Abstract

    The increasing uncertainty surrounding the electricity generating sector has implications on the forecasting accuracy and makes sensitivity analysis an essential tool for electricity power planning. The fuel price volatility and the emissions trading schemes represent major sources of uncertainty, as the relative economic interest of thermo power plants and of renewable energy sources largely depends on these two factors. In this paper, an electricity planning model will be used to analyse both these aspects, identifying the relative importance and sensitiveness of the optimal electricity power plans to changes on these parameters.

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    File URL: http://www.ersj.eu/repec/ers/papers/12_SI_p2.pdf
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    Bibliographic Info

    Article provided by European Research Studies Journal in its journal European Research Studies Journal.

    Volume (Year): XV (2012)
    Issue (Month): Special Issue on Energy ()
    Pages: 31-46

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    Handle: RePEc:ers:journl:v:xv:y:2012:i:sie:p:31-46

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    Web page: http://www.ersj.eu/

    Related research

    Keywords: Electricity planning; Uncertainty; Sensitivity analysis;

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    1. Hobbs, Benjamin F., 1995. "Optimization methods for electric utility resource planning," European Journal of Operational Research, Elsevier, vol. 83(1), pages 1-20, May.
    2. Christian von Hirschhausen & Berit Meinhart & Ferdinand Pavel, 2005. "Transporting Russian Gas to Western Europe  A Simulation Analysis," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 49-68.
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