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Quantitative Assessment of the Impact of the Strategic Energy Technology Plan on the European Power Sector

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Abstract

The goal of this analysis is to capture the effect of increasing research, development and demonstration (RD&D) efforts for a set of low-carbon power technologies on the development of the European energy sector. The report finds that an increase in research efforts on a global level, that for the EU are in line with the RD&D investments proposed in the context of the European Strategic Energy Technology Plan, will contribute to reducing the costs of currently less mature low-carbon technologies, and therefore accelerate their market entry. Following from the lower technology investment costs, the economic rate of return of the additional SET-Plan investments in the EU would be positive, reaching around 15% for a time horizon between 2010 and 2030. The cumulative (discounted) benefit of the RD&D investments would be negative in early years before turning positive around the year 2020 and remaining so thereafter.

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  • Tobias Wiesnethal & Arnaud Mercier & Burkhard Schade & H. Petric & Lazlo Szabo, 2010. "Quantitative Assessment of the Impact of the Strategic Energy Technology Plan on the European Power Sector," JRC Research Reports JRC61065, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc61065
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    More about this item

    Keywords

    Quantitative assessment; SET Plan; RD&D; low-carbon power; Climate Policy; climate change; greenhouse gas emission (GHG); POLES; GEM-E3; scenario;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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