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1. Introduction - Firenze University Press

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Table 5. Key data for the four energy market scenarios used for 2030.<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] 35 109 35 109<br />

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

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

Electricity 68 90 74 98<br />

DME 57 77 88 109<br />

Bark/by-products/wood chips b 27 52 30 56<br />

Heavy fuel oil (incl. CO2) 45 67 67 89<br />

District heating 19 49 27 56<br />

Biofuel policy instrument 46 67 20 41<br />

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

Electricity<br />

679 129 679 129<br />

marginal production of electricity<br />

CP CP CCS CP CP CCS<br />

Biomass<br />

227 244 227 244<br />

marginal user of biomass<br />

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

District heating production<br />

242 468 242 468<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: 74 USD/barrel, High: 126 USD/barrel.<br />

b<br />

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

4.3. Sensitivity analysis<br />

Table 6 presents the parameters included in the sensitivity analysis.<br />

Table 6. Parameters included in the sensitivity analysis.<br />

Parameter Denotation Cases<br />

District heating<br />

production<br />

278<br />

CCHP/GB<br />

273<br />

Diesel<br />

CCHP/GB<br />

273<br />

Diesel<br />

a <strong>1.</strong> The amount of district heating possible to deliver is<br />

increased by 100%, to between 20-100 MW<br />

depending on season.<br />

2. No possibility to deliver district heat.<br />

Capital recovery factor b The capital recovery factor is changed from 0.2 to 0.<strong>1.</strong><br />

Investment costs for<br />

non-commercial<br />

technologies<br />

Green electricity<br />

policy instrument<br />

support level<br />

Biofuel policy<br />

instrument support<br />

level<br />

Recovery boiler<br />

upgrade cost<br />

c The investment costs for the non-commercial<br />

technologies, i.e. BLG, lignin extraction and CO2<br />

capture and storage, are increased by 25%.<br />

d <strong>1.</strong> The support is increased by 50%.<br />

2. The support is decreased by 50%.<br />

3. No support is considered.<br />

e <strong>1.</strong> The support is decreased by 50%.<br />

2. No support is considered.<br />

f The investment cost for upgrading the recovery boiler<br />

is lowered from 35.4 to 27.4 M€.

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