Title: CO2 abatement opportunity in the UK through fuel-switching under the EU ETS (2005-2008): evidence from the E-Simulate model

Authors: Emeric Lujan; Erik Delarue; Julien Chevallier; William D'haeseleer

Addresses: Energy Futures Lab, Imperial College London, London SW7 2AZ, UK. ' Division of Applied Mechanics and Energy Conversion, University of Leuven Energy Institute (K.U. Leuven), Celestijnenlaan 300A, 3001 Heverlee, Belgium. ' Place du Marechal de Lattre de Tassigny, Université Paris Dauphine (CGEMP/LEDa), 75775 Paris Cedex 16, France. ' Division of Applied Mechanics and Energy Conversion, University of Leuven Energy Institute (K.U. Leuven), Celestijnenlaan 300A, 3001 Heverlee, Belgium

Abstract: The creation of the EU ETS led to changes in the merit order of the different plants competing on the electricity grid, and in the fuel-switching opportunities in the UK. This country has the greatest potential for CO2 emissions reduction through fuel-switching within the EU, thanks to its suitable energy mix (39% of coal and 36% of natural gas in 2007). Through the modelling of the UK power system with the E-Simulate model, our central contribution documents that fuel-switching did occur in the UK as a consequence of the EU ETS: 20.1 Mton in 2005, 7.8 Mton in 2006, 0.52 Mton in 2007, and 14.3 Mton in 2008. We assess the relative contribution of different factors (carbon price, fuel prices and load in the power sector) to CO2 emissions abatement by disentangling the impacts coming from the EU ETS, relative fuel prices variation, and with a 'switching band' analysis.

Keywords: E-Simulate model; CO2 emissions abatement; switching band; carbon emissions; carbon dioxide; emissions trading; fuel switching; United Kingdom; UK; energy mix; modelling; fuel prices; price variation.

DOI: 10.1504/IJGEI.2011.045029

International Journal of Global Energy Issues, 2011 Vol.35 No.2/3/4, pp.178 - 214

Published online: 26 Mar 2015 *

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