The Role of Efficient Pricing in Enabling a Low-Carbon Electricity Sector

While it is widely acknowledged that carbon pricing plays an important role in driving the transition towards a low-carbon energy system, its interaction with complementary instruments is discussed controversially. The analysis of combining carbon pricing with complementary policies has been mostly focused on the electricity sector, while the role of carbon pricing in the buildings sector has received only minor interest. In view of the newly introduced carbon pricing scheme for the buildings and transport sector in Germany, we analyze the interactions between the carbon pricing scheme with the existing policy instruments and assess the consistency of the policy mix for decarbonizing the buildings sector. Our analysis finds that the introduction of carbon pricing has a reinforcing effect on the instrument mix and adds to the consistency of the policy mix. The results highlight the importance of complementary policies in order to achieve deep decarbonization in the buildings sector. We conclude that carbon pricing, preferably implemented as a tax with a predictable and increasing price level, needs to be supplemented with a powerful mix of complementary measures.

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California's approach to decarbonizing the electricity sector and the role of dispatchable, low-carbon technologies

International Journal of Greenhouse Gas Control ◽

10.1016/j.ijggc.2021.103527 ◽

2022 ◽

Vol 113 ◽

pp. 103527

Author(s):

Ejeong Baik ◽

Kais Siala ◽

Thomas Hamacher ◽

Sally M. Benson

Keyword(s):

Electricity Sector ◽

Low Carbon ◽

Low Carbon Technologies

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The key role of historic path-dependency and competitor imitation on the electricity sector low-carbon transition

Energy Strategy Reviews ◽

10.1016/j.esr.2020.100588 ◽

2021 ◽

Vol 33 ◽

pp. 100588

Author(s):

Elsa Barazza ◽

Neil Strachan

Keyword(s):

Path Dependency ◽

Electricity Sector ◽

Low Carbon

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Towards a Political Economy Framework for Wind Power

10.1093/oso/9780198802242.003.0013 ◽

2017 ◽

Cited By ~ 2

Author(s):

Michael R. Davidson ◽

Fredrich Kahrl ◽

Valerie J. Karplus

Keyword(s):

Political Economy ◽

Wind Power ◽

Energy Transition ◽

Electricity Sector ◽

Policy Support ◽

Low Carbon ◽

Power Development ◽

Low Carbon Energy ◽

Wind Power Development

The authors propose a general taxonomy of the political economy challenges to wind power development and integration, highlighting the implications in terms of actors, interests, and risks. Applying this framework to three functions in China’s electricity sector—planning and project approval, generator cost recovery, and balancing area coordination—the authors find evidence of challenges common across countries with significant wind investments, despite institutional and industry characteristics that are unique to China. The authors argue that resolving these political economy challenges is as important to facilitating the role of wind and other renewable energies in a low-carbon energy transition as providing dedicated technical and energy policy support. China is no exception.

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System Dynamics Modelling of the Power Sector in Mauritius

Environmental and Climate Technologies ◽

10.1515/rtuect-2015-0010 ◽

2015 ◽

Vol 16 (1) ◽

pp. 20-35 ◽

Cited By ~ 4

Author(s):

Prakash N. K. Deenapanray ◽

Andrea M. Bassi

Keyword(s):

System Dynamics ◽

Electricity Sector ◽

Low Carbon ◽

Environmental Aspects ◽

Power Sector ◽

Historical Trends ◽

Development Indicators ◽

Utility Company ◽

Complex Interactions

Abstract A system dynamics model has been developed for the power sector of Mauritius, which captures a range of complex interactions between the economic, social and environmental aspects of the national economy, with deeper emphasis on the role of energy in these interactions. The model has been validated by replicating the historical trends of key development indicators, and its results were compared to the projections of the national utility company. The validation process shows that the model provides a faithful representation of the actual electricity sector of Mauritius, and can be easily adapted to the use of different assumptions. This paper describes the main characteristics of the model and its results as compared to electricity demand projections carried out by the Central Electricity Board to 2022. The results suggest that further analysis could be done to test alternative low carbon investment scenarios.

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Energy transitions and uncertainty: Creating low carbon investment opportunities in the UK electricity sector

Environment and Planning C Government and Policy ◽

10.1177/0263774x15619628 ◽

2016 ◽

Vol 34 (8) ◽

pp. 1387-1403 ◽

Cited By ~ 23

Author(s):

Ronan Bolton ◽

Timothy J Foxon ◽

Stephen Hall

Keyword(s):

Electricity Markets ◽

Electricity Market ◽

Capital Intensity ◽

Electricity Sector ◽

Low Carbon ◽

The Face ◽

Incumbent Regime ◽

The Uk ◽

Low Carbon Technologies

This paper examines how actors in the UK electricity sector are attempting to deliver investment in low carbon generation. Low carbon technologies, because of their relative immaturity, capital intensity and low operational costs, do not readily fit with existing electricity markets and investment templates which were designed for fossil fuel based energy. We analyse key electricity market and infrastructure policies in the UK and highlight how these are aimed at making low carbon technologies ‘investable’ by reducing uncertainty, managing investment risks and repositioning actors within the electricity socio-technical ‘regime’. We argue that our study can inform contemporary debates on the politics and governance of sustainability transitions by empirically investigating the agency of incumbent regime actors in the face of uncertainty and by offering critical insights on the role of markets and finance in shaping socio-technical change.

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