determinants of fuel switching eu ets and the polish and … · 2020-06-25 · determinants of fuel...

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Building Competence. Crossing Borders. Jan Abrell, Regina Betz, Mirjam Kosch [email protected], [email protected], [email protected], 23.06.2020 Determinants of fuel switching EU ETS and the Polish and German Electricity Sector

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Page 1: Determinants of fuel switching EU ETS and the Polish and … · 2020-06-25 · Determinants of Fuel Switch: Carbon Prices and Generation Cost Sources: Fuel price: Worldbank. Lignite

Building Competence. Crossing Borders.

Jan Abrell, Regina Betz, Mirjam Kosch

[email protected], [email protected], [email protected], 23.06.2020

Determinants of fuel switching

EU ETS and the Polish and German Electricity Sector

Page 2: Determinants of fuel switching EU ETS and the Polish and … · 2020-06-25 · Determinants of Fuel Switch: Carbon Prices and Generation Cost Sources: Fuel price: Worldbank. Lignite

Determinants of fuel switching

Determinants of

fuel switch potential

Installed capacities

Residual demand

Other (out-of-merit order dispatching)

fuel switch

Carbon price

Fuel prices

Fuel switching

Switching from a high to a low carbon-intensive

production facility

Short-term carbon abatement in electricity

markets

Carbon price: 𝑝𝐶𝑂2

Page 3: Determinants of fuel switching EU ETS and the Polish and … · 2020-06-25 · Determinants of Fuel Switch: Carbon Prices and Generation Cost Sources: Fuel price: Worldbank. Lignite

Determinants of Fuel Switch Potential: Installed Capacities

Sources: BMWi, PSE; shown are end-of-year capacities.

Page 4: Determinants of fuel switching EU ETS and the Polish and … · 2020-06-25 · Determinants of Fuel Switch: Carbon Prices and Generation Cost Sources: Fuel price: Worldbank. Lignite

Determinants of Fuel Switch Potential: Residual Demand

Sources: BMWi, PSE

Page 5: Determinants of fuel switching EU ETS and the Polish and … · 2020-06-25 · Determinants of Fuel Switch: Carbon Prices and Generation Cost Sources: Fuel price: Worldbank. Lignite

Determinants of Fuel Switch: Carbon Prices and Generation Cost

Sources: Fuel price: Worldbank. Lignite assumed to be constant at 1.5 €/MWhth (UBA, 2017). EUA: ICE daily forward prices. Carbon content of fuels UBA (2018): Lignite (Coal, Gas) 0.388 (0.337, 0.201) tCO2/MWhth. Average heat efficiency of plants UBA (2018): Lignite (Coal, Gas) 34 (40, 53) %.

Page 6: Determinants of fuel switching EU ETS and the Polish and … · 2020-06-25 · Determinants of Fuel Switch: Carbon Prices and Generation Cost Sources: Fuel price: Worldbank. Lignite

Generation Development: 2008-2018

Sources: BMWi, PSE

Page 7: Determinants of fuel switching EU ETS and the Polish and … · 2020-06-25 · Determinants of Fuel Switch: Carbon Prices and Generation Cost Sources: Fuel price: Worldbank. Lignite

What happened in 2019?

Sources: Fuel price: Worldbank. Lignite assumed to be constant at 1.5 €/MWhth (UBA, 2017). EUA: ICE daily forward prices. Carbon content of fuels UBA (2018): Lignite (Coal, Gas) 0.388 (0.337, 0.201) tCO2/MWhth. Average heat efficiency of plants UBA (2018): Lignite (Coal, Gas) 34 (40, 53) %.

Page 8: Determinants of fuel switching EU ETS and the Polish and … · 2020-06-25 · Determinants of Fuel Switch: Carbon Prices and Generation Cost Sources: Fuel price: Worldbank. Lignite

Management and Law  zhaw

School of

Thank you.Thank you.