Carbon capture and storage technologies in the European power market
AbstractWe examine the potential of Carbon Capture and Storage (CCS) technologies in the European electricity markets, assessing whether CCS technologies will reduce carbon emissions substantially in the absence of investment subsidies, and how the availability of CCS technologies may affect electricity prices and the amount of renewable electricity. To this end we augment a multi-market equilibrium model of the European energy markets with CCS electricity technologies. The CCS technologies are characterized by costs and technical efficiencies synthesized from a number of recent cost estimates and CCS technology reviews. Our simulations indicate that with realistic values for carbon prices, new CCS coal power plants become profitable, totally replacing non-CCS coal power investments and to a large extent replacing new wind power. New CCS gas power also becomes profitable, but does not replace non-CCS gas power fully. Substantially lower CCS costs, through subsidies on technological development or deployment, would be necessary to make CCS modification of old coal and gas power plants profitable.
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Bibliographic InfoPaper provided by Research Department of Statistics Norway in its series Discussion Papers with number 603.
Date of creation: Dec 2009
Date of revision:
Carbon capture and storage; fossil fuels; energy; carbon emissions; abatement.;
Other versions of this item:
- Rolf Golombek & Mads Greaker & Sverre A.C. Kittelsen & Ole Røgeberg & Finn Roar Aune, 2011. "Carbon Capture and Storage Technologies in the European Power Market," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 209-238.
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-23 (All new papers)
- NEP-EEC-2010-01-23 (European Economics)
- NEP-ENE-2010-01-23 (Energy Economics)
- NEP-ENV-2010-01-23 (Environmental Economics)
- NEP-RES-2010-01-23 (Resource Economics)
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