Carbon Price instead of Support Schemes
Wind Power Investments by the Electricity Market
Bibliographic Data
| ID | 19036945 |
|---|---|
| Authors | Marie Petitet (0000-0002-8808-387X, a RTE, Markets Department, Tour Initiale, 1 Terrase Bellini - TSA 41000, 92929 La Défense Cedex, France., corresponding author), Dominique Finon (a RTE, Markets Department, Tour Initiale, 1 Terrase Bellini - TSA 41000, 92929 La Défense Cedex, France.), Tanguy Janssen (a RTE, Markets Department, Tour Initiale, 1 Terrase Bellini - TSA 41000, 92929 La Défense Cedex, France.) |
| Year | 2016 |
| Volume | 37 |
| Issue | 4 |
| Pages | 109-140 |
| Publication date | 2016-02-08 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Energy Journal (JOURNAL) |
| Journal identifiers | ISSN: 0195-6574 • E-ISSN: 1944-9089 |
| Publisher | SAGE Publishing (PUBLISHER • US) |
| DOI | 10.5547/01956574.37.4.mpet |
| OpenAlex | W2257754966 |
| Language | EN |
| Citations received | 2 |
| References cited | 19 |
This paper studies wind power development within electricity markets with a significant carbon price as the sole incentive. Simulation of electricity market and investment decisions by System Dynamics modelling is used to trace the evolution of the electricity generation mix over a 20-year period from an initially thermal system. A range of carbon prices is tested to determine the value above which market-driven development of wind power becomes economically possible.This requires not only economic competitiveness in terms of cost-price, but also profitability versus traditional fossil-fuel technologies. Results stress that wind power is profitable for investors only if the carbon price is significantly higher than the price required for making wind power MWh’s cost-price competitive on the basis of levelized costs. In this context, the market-driven development of wind power seems only possible if there is a strong commitment to climate policy, reflected in a stable and high carbon price. Moreover, marketdriven development of wind power becomes more challenging if nuclear is part of investment options
Carbon price · Cost of electricity by source · Economics · Electricity · Electricity generation · Electricity market · Environmental economics · Greenhouse gas · Market price · Microeconomics · Natural resource economics · Offshore wind power · Profitability index · Wind power · Capital Investment and Risk Analysis · Climate Change Policy and Economics · Electric Power System Optimization · Finance
| Citations per year | 0.22 |
|---|---|
| Citation span | 2017 - 2017 (1) |
| Highly cited | No |