scholarly journals The impacts of introducing carbon prices in the electricity market under China’s carbon neutrality goal

2021 ◽  
Vol 252 ◽  
pp. 01012
Author(s):  
Runze Liu ◽  
Zhaoxia Jing
Keyword(s):  
Electricity Market ◽  
Clean Energy ◽  
Energy System ◽  
Carbon Price ◽  
Chinese Government ◽  
Low Carbon ◽  
Wholesale Market ◽  
Efficient Operation ◽  
The Impact ◽  
Carbon Prices

The world’s energy system is undergoing an evolution from high-carbon to low-carbon. The Chinese government has also proposed the carbon neutral plan. Foreign practical experience shows that there is an interaction between the carbon market and the electricity market, therefore, understanding the relationship between the two markets is essential to ensure the efficient operation of both markets. In the context of China's power market reform, this paper studies the impact of introducing carbon prices into the wholesale market, and conducts a case study based on the data of a certain area in GD province. The results show that after the carbon price is transmitted to the electricity price, the more low-carbon and environmentally friendly power generation technologies will gain greater advantages in the electricity market, which is conducive to the clean energy transformation of the power system. Finally, this paper puts forward feasible suggestions for the reform of the electricity market under China’s carbon emission reduction target.

scholarly journals Bottom-up Modeling of Local Energy Markets within a Pan-European Wholesale Electricity Market Model

2020 ◽  
Author(s):  
Carlo Schmitt ◽  
Kenneth Samaan ◽  
Henrik Schwaeppe ◽  
Albert Moser
Keyword(s):  
Electricity Market ◽  
Energy System ◽  
Energy Markets ◽  
Computational Effort ◽  
Market Model ◽  
Local Energy ◽  
Wholesale Market ◽  
Bottom Up ◽  
Local Markets ◽  
The Impact

The energy system decarbonization and decentralization<br>require coordination schemes for distributed generators<br>and flexibilities. One coordination approach is local energy markets for trading energy among local producers and consumers. The resulting local coordination leads to the questions of how the interaction between local and wholesale markets will be designed and of how the introduction of local energy markets influences the wholesale market system. Therefore, this paper proposes a bottom-up modeling method for local markets within a pan- European wholesale market model. Furthermore, an aggregation-disaggregation method for local markets is developed to reduce computational effort. A case study for local markets in Germany shows the computational advantages of the aggregation-disaggregation method. Preliminary results indicate the impact of different interaction designs between local and wholesale markets on the wholesale market and show the need for further research.

The Impact of Electricity Market and Environmental Regulation on Carbon Capture & Storage (CCS) Development in China

2011 ◽  
pp. 463-471
Author(s):  
Zhao Ang
Keyword(s):  
Environmental Regulation ◽  
Electricity Market ◽  
Carbon Capture ◽  
Power Plants ◽  
Carbon Price ◽  
Intellectual Property Right ◽  
Chinese Government ◽  
Coal Power Plants ◽  
Coal Power ◽  
The Impact

Carbon Capture & Storage (CCS) has been regarded as a significant mitigation strategy to tackle global warming although the uncertainties of carbon price and CCS technology exist. Given that China is the biggest coal consumer and around four fifths of its electricity comes from coal power plants, many think CCS has to plays a central role in cutting the carbon emission of China’s coal power fleet. Most existing researches on CCS development in China emphasize the importance of sufficient funding, technological access, and market readiness, but put little light on the role of environmental regulation and electricity market establishment. This chapter examines the impact of Chinese electricity market establishment and environmental regulatory institution on CCS. This chapter argues that Chinese government should protect Intellectual Property Right (IPR), liberalize electricity market, and enforce environmental regulation in order to harvest CCS benefits successfully.

scholarly journals Bottom-up Modeling of Local Energy Markets within a Pan-European Wholesale Electricity Market Model

2020 ◽  
Author(s):  
Carlo Schmitt ◽  
Kenneth Samaan ◽  
Henrik Schwaeppe ◽  
Albert Moser
Keyword(s):  
Electricity Market ◽  
Energy System ◽  
Energy Markets ◽  
Computational Effort ◽  
Market Model ◽  
Local Energy ◽  
Wholesale Market ◽  
Bottom Up ◽  
Local Markets ◽  
The Impact

The energy system decarbonization and decentralization<br>require coordination schemes for distributed generators<br>and flexibilities. One coordination approach is local energy markets for trading energy among local producers and consumers. The resulting local coordination leads to the questions of how the interaction between local and wholesale markets will be designed and of how the introduction of local energy markets influences the wholesale market system. Therefore, this paper proposes a bottom-up modeling method for local markets within a pan- European wholesale market model. Furthermore, an aggregation-disaggregation method for local markets is developed to reduce computational effort. A case study for local markets in Germany shows the computational advantages of the aggregation-disaggregation method. Preliminary results indicate the impact of different interaction designs between local and wholesale markets on the wholesale market and show the need for further research.

scholarly journals Impact of Internal Carbon Prices on the Energy System of an Organisation’s Facilities in Germany, Japan and the United Kingdom Compared to Potential External Carbon Prices

Energies ◽  
2021 ◽  
Vol 14 (14) ◽  
pp. 4094
Author(s):  
Oliver Gregor Gorbach ◽  
Noha Saad Hussein ◽  
Jessica Thomsen
Keyword(s):  
United Kingdom ◽  
Carbon Capture And Storage ◽  
Energy System ◽  
Carbon Price ◽  
Total System ◽  
System Cost ◽  
Cost Increase ◽  
The United Kingdom ◽  
The Impact ◽  
Carbon Prices

Organisations attempt to contribute their share towards fighting the climate crisis by trying to reduce their emission of greenhouse gases effectively towards net zero. An instrument to guide their reduction efforts is internal carbon pricing. Next to choosing the right pricing tool, defining the exact value of an internal carbon price, especially against the background of potential regulatory external carbon prices, and assessing its impact on business units’ energy systems poses a challenge for organisations. The academic literature has so far not examined the impact differences of an internal carbon price across different countries, which this paper addresses by using an optimisation model. First, it analyses the energy system cost increase of a real-world facility based on an internal carbon price compared to a potential regulatory carbon price within a country. Second, we evaluate the energy system cost increase based on an internal carbon price across different countries. The results show that with regard to internal carbon prices the additional total system cost compared to potential external carbon prices stays within 9%, 15%, and 59% for Germany, Japan, and the United Kingdom, respectively. The increase in the energy system cost in each country varies between 3% and 93%. For all countries, the cost differences can be reduced by allowing the installation of renewables. The integration of renewables via energy storage and power-to-heat technologies depends on the renewable potentials and the availability of carbon capture and storage. If organisations do not account for these differences, it might raise the disapproval of internal carbon prices within the organisation.

IEA perspectives on the global energy landscape

2019 ◽  
Vol 59 (3) ◽  
Author(s):  
Paul Simons
Keyword(s):  
Nuclear Power ◽  
Oil And Gas ◽  
Energy Landscape ◽  
Clean Energy ◽  
Energy System ◽  
Low Carbon ◽  
Global Energy ◽  
World Energy ◽  
World Energy Outlook ◽  
The Impact

The global energy landscape continues to be in a state of flux and understanding the ongoing shifts in markets, technology and policy—and the impact of this interplay on the energy sector—has never been more critical. Each year, the IEA’s World Energy Outlook provides updated and comprehensive quantitative modelling and analysis on the evolution of the global energy system, incorporating the latest data and market developments. Amb Paul Simons will outline the key findings of the most recent edition of the World Energy Outlook, including the outlook for global oil and gas markets, and explain their implications for energy security, sustainability and growth. He will also cover recent developments and future prospects for a range of low-carbon technologies, including renewables, nuclear power, hydrogen and CCUS, that will be needed to speed up global clean energy transitions. To view the video, click the link on the right.

scholarly journals A Hybrid Energy System Workflow for Energy Portfolio Optimization

Energies ◽  
2021 ◽  
Vol 14 (15) ◽  
pp. 4392
Author(s):  
Jia Zhou ◽  
Hany Abdel-Khalik ◽  
Paul Talbot ◽  
Cristian Rabiti
Keyword(s):  
Time Series ◽  
Gaussian Process ◽  
Electricity Market ◽  
Process Model ◽  
Net Present Value ◽  
Historical Data ◽  
Energy System ◽  
Initial Guess ◽  
Reduced Order ◽  
The Impact

This manuscript develops a workflow, driven by data analytics algorithms, to support the optimization of the economic performance of an Integrated Energy System. The goal is to determine the optimum mix of capacities from a set of different energy producers (e.g., nuclear, gas, wind and solar). A stochastic-based optimizer is employed, based on Gaussian Process Modeling, which requires numerous samples for its training. Each sample represents a time series describing the demand, load, or other operational and economic profiles for various types of energy producers. These samples are synthetically generated using a reduced order modeling algorithm that reads a limited set of historical data, such as demand and load data from past years. Numerous data analysis methods are employed to construct the reduced order models, including, for example, the Auto Regressive Moving Average, Fourier series decomposition, and the peak detection algorithm. All these algorithms are designed to detrend the data and extract features that can be employed to generate synthetic time histories that preserve the statistical properties of the original limited historical data. The optimization cost function is based on an economic model that assesses the effective cost of energy based on two figures of merit: the specific cash flow stream for each energy producer and the total Net Present Value. An initial guess for the optimal capacities is obtained using the screening curve method. The results of the Gaussian Process model-based optimization are assessed using an exhaustive Monte Carlo search, with the results indicating reasonable optimization results. The workflow has been implemented inside the Idaho National Laboratory’s Risk Analysis and Virtual Environment (RAVEN) framework. The main contribution of this study addresses several challenges in the current optimization methods of the energy portfolios in IES: First, the feasibility of generating the synthetic time series of the periodic peak data; Second, the computational burden of the conventional stochastic optimization of the energy portfolio, associated with the need for repeated executions of system models; Third, the inadequacies of previous studies in terms of the comparisons of the impact of the economic parameters. The proposed workflow can provide a scientifically defendable strategy to support decision-making in the electricity market and to help energy distributors develop a better understanding of the performance of integrated energy systems.

ALTERNATIVE FUELS IN TRANSPORT AS ENERGY SECURITY FACTOR IN EUROPEAN UNION

2017 ◽  
Vol 72 (0) ◽  
pp. 65-84 ◽  
Author(s):  
Barbara Pawłowska
Keyword(s):  
Energy Consumption ◽  
Alternative Fuels ◽  
Clean Energy ◽  
Energy System ◽  
Low Carbon ◽  
Total Energy Consumption ◽  
Low Carbon Economy ◽  
Energy Union ◽  
Energy And Climate Policy

The Energy Union is aimed at providing secure, sustainable, competitive energy to the EU population at affordable prices. A thorough transformation of the European energy system is required to accomplish this goal. The Energy Union is an important project which is supposed to set a new direction and a clear long-term vision for the European energy and climate policy. Transport is one of the key sectors in terms of energy consumption. In 2015, 94% of the energy used transport originated from crude oil and the sector’s share in the total energy consumption was 34% (Eurostat, 2016). The aim of the article is to show the activities in respect of the implementation of the “Clean Energy for Transport” package and its importance for the implementation of the Energy Union objectives. The development of an alternative fuel market should reduce the dependence on oil and contribute to increased security of the energy supply for Europe, promote economic growth and reduce greenhouse gas emissions in transport. Tools aimed at supporting the transition to low-carbon economy will be analyzed in the article. The scope of popularization of alternative fuels is determined to a large extent by market conditions and the extent to which an adequate infrastructure is developed. Hence, particular emphasis will be placed on the priorities for the development of technology and research, technical integration of solutions and financial support for alternative fuels.

Analysis of Smart Grid Affecting Electricity Market in China Based on Smart Materials

2011 ◽  
Vol 63-64 ◽  
pp. 493-496
Author(s):  
Hong Ze Li ◽  
Sen Guo ◽  
Bao Wang
Keyword(s):  
Smart Grid ◽  
Power Quality ◽  
Electricity Market ◽  
Smart Materials ◽  
Green Energy ◽  
Market Reform ◽  
Demand Side ◽  
Low Carbon ◽  
Interconnected Power System ◽  
The Impact

China’s electricity market reform has been on almost 10 years, and the proposition of constructing "Strong Smart Grid” in China has aroused widespread concerns, and also made an impact on electricity market. To assess the impact on electricity market, considering the current situation of China's electricity market, based on smart materials, analyze the risks of electricity market from constructing smart grid in terms of low-carbon power accessing grid, wide-area interconnected power system and large-capacity batch of green energy accessing grid, and also propose some requirements for electricity market from the perspective of power quality, demand side management and trading platform. Developing smart grid will promote China’s electricity market reform.

scholarly journals The Impact of Socio-Economic Inertia and Restrictions on Net-Negative Emissions on Cost-Effective Carbon Price Pathways

2021 ◽  
Vol 3 ◽  
Author(s):  
Andries F. Hof ◽  
Kaj-Ivar van der Wijst ◽  
Detlef P. van Vuuren
Keyword(s):  
Cost Effective ◽  
Carbon Price ◽  
Learning By Doing ◽  
Optimal Price ◽  
Initial Carbon ◽  
Negative Emissions ◽  
The Interest Rate ◽  
The Impact ◽  
Carbon Prices

Many countries have indicated to plan or consider the use of carbon pricing. Model-based scenarios are used to inform policymakers about emissions pathways and cost-effective carbon prices. Many of these scenarios are based on the Hotelling rule, assuming that a carbon price path increasing with the interest rate leads to a cost-effective strategy. We test the robustness of this rule by using experiments with plausible assumptions for learning by doing, inertia in reducing emissions, and restrictions on net-negative emissions. Analytically, we show that if mitigation technologies become cheaper if their capacities are increased, Hotelling does not always apply anymore. Moreover, the initial carbon price is heavily influenced by restrictions on net-negative emissions and the pathway by both restrictions on net-negative emissions and socio-economic inertia. This means that Hotelling pathways are not necessarily optimal: in fact, combining learning by doing and the above restrictions leads to initial carbon prices that are more than twice as high as a Hotelling pathway and thus to much earlier emission reductions. The optimal price path also increases less strongly and may even decline later in the century, leading to higher initial abatement costs but much lower long-term costs.

scholarly journals A Review and Comparative Analysis on Energy Transition in China’s Three Emerging Urban Agglomerations

2021 ◽  
Vol 228 ◽  
pp. 01004
Author(s):  
Jianchao Hou ◽  
Jinhua Jian ◽  
Pingkuo Liu
Keyword(s):  
Energy Transition ◽  
Clean Energy ◽  
Energy System ◽  
Development Planning ◽  
Yangtze River Delta ◽  
River Delta ◽  
Low Carbon ◽  
Energy Investment ◽  
Urban Agglomerations ◽  
The Pearl River

With the aggravation of environmental pollution and the overuse of fossil energy, a sustainable transition to using the low-carbon and clean energy is perceived to be an inevitable trend. The Beijing-Tianjin-Hebei, the Yangtze River Delta and the Pearl River Delta are the three most important economic circles in China. One purpose of energy transition in those Three Urban Agglomerations is to enable the energy system to have a higher share of clean energy. This paper introduces the current situation in terms of energy endowment, production and consumption in the three urban agglomerations, discusses the policy environment from the aspects of development planning, supporting mechanism and policy tools. We further analyse the barriers of the energy transition in the three urban agglomerations by using Institution-Economy-Technology-Behaviour (IETB) conceptual model. Through this research, we know that reducing the carbon emissions is a priority in energy transition and increasing the utilization of renewable energy has become the consensus in the three urban agglomerations. In addition, reasonable energy development policies can impel the energy investment and the technology innovation to accelerate energy transition. Moreover, in the designated “highly polluting” industry sectors, energy supply enterprises and energy-consuming enterprises establish green-development incentive mechanisms and adopt technological innovation in order to promote energy transition.

Sign in / Sign up

Export Citation Format

Share Document