World Energy Outlook 2006

A large proportion of the emissions reductions would occur later in the
projection period as the incremental capacity of renewables, nuclear and more
efficient fossil fuels-based power generation comes into service and current (less
efficient and higher emitting) electricity-generating plants are retired. The
improvement in the CO 2 -emissions intensity of electricity generation in 2030
is illustrated in Figure 10.4.
grammes of CO 2 per kWh
700
600
500
400
300
200
100
0
Figure 10.4: CO 2 Intensity of Electricity Generation
2004 2030
Reference
Scenario
2030
Alternative
Policy
Scenario
2030
BAPS Case
The policies required to achieve the BAPS reductions are clearly aggressive.
No single policy would suffice. In some cases, there would be synergies
between policies, for example a price on carbon will help incentivise CCS,
nuclear power and renewable energy. However, other policies may be more
divisive. R&D efforts need to be technology-specific and there would be
competition for a limited pot of money. Furthermore, there are many
companies and actors in the energy sector; policies that give advantage to
one part of that community may damage another. Thus, a requirement that
new coal plants install CCS technologies imposes a burden on power
companies and increases electricity prices, while bringing considerable
additional revenue to the CCS technology providers. Interventions by
policy-makers to allocate the costs and the benefits may be necessary to
maximise the effectiveness of the policies and, even, to make them
politically feasible.
Chapter 10 - Getting to and Going Beyond the Alternative Policy Scenario 261
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© OECD/IEA, 2007