An impact assessment of electricity and emission allowances pricing in optimised expansion planning of power sector portfolios

Tolis, AI; Rentizelas, AA

dc.contributor.author	Tolis, AI	en
dc.contributor.author	Rentizelas, AA	en
dc.date.accessioned	2014-03-01T01:35:11Z
dc.date.available	2014-03-01T01:35:11Z
dc.date.issued	2011	en
dc.identifier.issn	0306-2619	en
dc.identifier.uri	https://dspace.lib.ntua.gr/xmlui/handle/123456789/20979
dc.subject	Electricity prices	en
dc.subject	Emissions trading	en
dc.subject	Operational research	en
dc.subject	Optimisation	en
dc.subject	Power sector portfolio	en
dc.subject.classification	Energy & Fuels	en
dc.subject.classification	Engineering, Chemical	en
dc.subject.other	Electricity prices	en
dc.subject.other	Emissions trading	en
dc.subject.other	Operational research	en
dc.subject.other	Optimisations	en
dc.subject.other	Power sector	en
dc.subject.other	Carbon dioxide	en
dc.subject.other	Commerce	en
dc.subject.other	Costs	en
dc.subject.other	Deregulation	en
dc.subject.other	Economics	en
dc.subject.other	Investments	en
dc.subject.other	Optimization	en
dc.subject.other	Electricity	en
dc.subject.other	algorithm	en
dc.subject.other	carbon dioxide	en
dc.subject.other	carbon emission	en
dc.subject.other	economic analysis	en
dc.subject.other	electricity generation	en
dc.subject.other	emissions trading	en
dc.subject.other	energy market	en
dc.subject.other	energy policy	en
dc.subject.other	environmental economics	en
dc.subject.other	market system	en
dc.subject.other	numerical model	en
dc.subject.other	optimization	en
dc.subject.other	pollution tax	en
dc.subject.other	price dynamics	en
dc.subject.other	renewable resource	en
dc.subject.other	research work	en
dc.subject.other	stochasticity	en
dc.subject.other	subsidy system	en
dc.subject.other	sustainability	en
dc.title	An impact assessment of electricity and emission allowances pricing in optimised expansion planning of power sector portfolios	en
heal.type	journalArticle	en
heal.identifier.primary	10.1016/j.apenergy.2011.04.054	en
heal.identifier.secondary	http://dx.doi.org/10.1016/j.apenergy.2011.04.054	en
heal.language	English	en
heal.publicationDate	2011	en
heal.abstract	The present work concerns a systematic investigation of power sector portfolios through discrete scenarios of electricity and CO2 allowance prices. The analysis is performed for different prices, from regulated to completely deregulated markets, thus representing different electricity market policies. The modelling approach is based on a stochastic programming algorithm without recourse, used for the optimisation of power sector economics under multiple uncertainties. A sequential quadratic programming routine is applied for the entire investigation period whilst the time-dependent objective function is subject to various social and production constraints, usually confronted in power sectors. The analysis indicated the optimal capacity additions that should be annually ordered from each competitive technology in order to substantially improve both the economy and the sustainability of the system. It is confirmed that higher electricity prices lead to higher financial yields of power production, irrespective of the CO2 allowance price level. Moreover, by following the proposed licensing planning, a medium-term reduction of CO2 emissions per MW h by 30% might be possible. Interestingly, the combination of electricity prices subsidisation with high CO2 allowance prices may provide favourable conditions for investors willing to engage on renewable energy markets. (C) 2011 Elsevier Ltd. All rights reserved.	en
heal.publisher	ELSEVIER SCI LTD	en
heal.journalName	Applied Energy	en
dc.identifier.doi	10.1016/j.apenergy.2011.04.054	en
dc.identifier.isi	ISI:000293195500025	en
dc.identifier.volume	88	en
dc.identifier.issue	11	en
dc.identifier.spage	3791	en
dc.identifier.epage	3806	en