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Nuclear Energy and Renewables - System Effects in Low-Carbon Electricity Systems

Author

Listed:
  • Marco Cometto

    (OCDE - parent)

  • Jan Horst Keppler

    (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique)

Abstract

This report addresses the increasingly important interactions of variable renewables and dispatchable energy technologies, such as nuclear power, in terms of their effects on electricity systems. These effects add costs to the production of electricity, which are not usually transparent. The report recommends that decision-makers should take into account such system costs and internalise them according to a "generator pays" principle, which is currently not the case. Analysing data from six OECD/NEA countries, the study finds that including the system costs of variable renewables at the level of the electricity grid increases the total costs of electricity supply by up to one-third, depending on technology, country and penetration levels. In addition, it concludes that, unless the current market subsidies for renewables are altered, dispatchable technologies will increasingly not be replaced as they reach their end of life and consequently security of supply will suffer. This implies that significant changes in management and cost allocation will be needed to generate the flexibility required for an economically viable coexistence of nuclear energy and renewables in increasingly decarbonised electricity systems.

Suggested Citation

  • Marco Cometto & Jan Horst Keppler, 2012. "Nuclear Energy and Renewables - System Effects in Low-Carbon Electricity Systems," Working Papers hal-01609471, HAL.
  • Handle: RePEc:hal:wpaper:hal-01609471
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01609471
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    Cited by:

    1. repec:eee:appene:v:222:y:2018:i:c:p:872-884 is not listed on IDEAS
    2. repec:eee:enepol:v:113:y:2018:i:c:p:673-687 is not listed on IDEAS
    3. repec:eee:energy:v:151:y:2018:i:c:p:289-296 is not listed on IDEAS
    4. Sascha Samadi, 2017. "The Social Costs of Electricity Generation—Categorising Different Types of Costs and Evaluating Their Respective Relevance," Energies, MDPI, Open Access Journal, vol. 10(3), pages 1-37, March.
    5. repec:eee:energy:v:150:y:2018:i:c:p:544-555 is not listed on IDEAS
    6. repec:eee:rensus:v:98:y:2018:i:c:p:346-360 is not listed on IDEAS
    7. Dominique Finon & Fabien Roques, 2013. "European Electricity Market Reforms: The "Visible Hand" of Public Coordination," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).

    More about this item

    Keywords

    Electricity Markets; Nuclear Energy;

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