16.06.2013 Views

1. Introduction - Firenze University Press

1. Introduction - Firenze University Press

1. Introduction - Firenze University Press

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

4.2. Energy market scenarios<br />

The future economic performance, as well as the global emissions of CO2, associated with the<br />

different cases studied is dependent on the development of the energy market. Consequently,<br />

to identify robust investment options, their performance should be evaluated for varying<br />

future energy market conditions. Here, energy market scenarios are used to reflect a variety of<br />

possible future energy market conditions. To achieve reliable results from an evaluation using<br />

energy market scenarios, the energy market parameters within a given scenario must be<br />

consistent, i.e. the energy prices must be related to each other (i.e. accounting for energy<br />

conversion technology characteristics and applying suitable substitution principles).<br />

Consequently, a systematic approach for constructing such consistent scenarios is facilitated<br />

by the use of a suitable calculation tool. In this work the Energy Price and Carbon Balance<br />

Scenarios tool (the ENPAC tool) developed by Axelsson and Harvey [26] was used. The<br />

scenarios reflect different future energy market conditions for the “average” years 2020 and<br />

2030 and are based on two fossil fuel price levels (low and high) and two CO2 emission<br />

charge levels (low and high).The big difference between the two time periods is that for the<br />

period with 2020 as its average year, it is assumed that infrastructure for CCS is not<br />

established, and therefore the options for CCS are excluded. Tables 4 and 5 present scenario<br />

data used. A further description of the ENPAC tool and the scenarios used in this work can be<br />

found in Jönsson et al. [18].<br />

Table 4. Key data for the four energy market scenarios used for 2020.<br />

Scenario input data 1 2 3 4<br />

Fossil fuel price level a Low Low High High<br />

CO2 charge level Low High Low High<br />

CO2 charge [€/tonne CO2] 26 67 26 67<br />

Green electricity policy instrument [€/MWh] 26 26 26 26<br />

Resulting prices and values of policy instruments [€/MWh]<br />

Electricity 63 85 66 95<br />

DME 47 58 70 81<br />

Bark/by-products/wood chips b 22 37 23 38<br />

Heavy fuel oil (incl. CO2) 37 49 53 65<br />

District heating 15 28 18 28<br />

Biofuel policy instrument 49 61 28 41<br />

Resulting marginal/alternative technologies and their CO2 emissions [kg/MWh]<br />

Electricity<br />

722 345 722 722<br />

marginal production of electricity<br />

CP NGCC CP CP<br />

Biomass<br />

225 237 225 225<br />

marginal user of biomass<br />

CP/DME CP/DME CP/DME CP/DME<br />

District heating production<br />

224 380 224 224<br />

alternative heat supply technology CCHP/GB CCHP/GB<br />

Transportation<br />

273 273<br />

alternative transportation technology Diesel Diesel<br />

a<br />

Oil prices: Low: 62 USD/barrel, High: 100 USD/barrel.<br />

b<br />

In the past years the prices of wood by-products and chips have been very similar.<br />

277<br />

CCHP/GB<br />

273<br />

Diesel<br />

CCHP/GB<br />

273<br />

Diesel

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!