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Article
Publication date: 25 September 2009

Ion Plumb and Andreea‐Ileana Zamfir

The aim of this paper is to investigate how green certificates markets have developed in the European Union, with a view to producing consistent recommendations that could…

Abstract

Purpose

The aim of this paper is to investigate how green certificates markets have developed in the European Union, with a view to producing consistent recommendations that could be used in future environmental strategies and policies to improve existing schemes for renewable energy promotion and support.

Design/methodology/approach

The study was conducted by combining a wide variety of sources, such as regulations, position papers, road‐maps, as well as articles and research reports. European experiences in using green certificates to support renewable energies were compared from the point‐of‐view of the legislative framework and national support systems.

Findings

The findings reveal that improvements in three major areas (legislative framework, national support systems, and cost reduction) are needed in order to achieve a better support for renewable energy generation.

Practical implications

The conclusions justify the effort invested in developing green certificates markets and are relevant for policy makers in a very sensitive sector to accomplish sustainability goals – the use of renewable energy. The study may represent a starting‐point for further research into renewable energy support systems, environmental issues and economic implications.

Originality/value

The paper provides a rational and comparative approach for finding solutions to the problems of green certificates markets in the European Union. The methodology and the results reported in this research could be used for exploring green certificates markets opportunities in other European countries.

Details

Management of Environmental Quality: An International Journal, vol. 20 no. 6
Type: Research Article
ISSN: 1477-7835

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Article
Publication date: 4 April 2016

Åsa Grytli Tveten and Torjus Folsland Bolkesjø

The purpose of this study is to analyze the power market and greenhouse gas (GHG) emission effects of the joint Norwegian–Swedish tradable green certificates (TGCs…

Abstract

Purpose

The purpose of this study is to analyze the power market and greenhouse gas (GHG) emission effects of the joint Norwegian–Swedish tradable green certificates (TGCs) market, which is established to support investments according to a 26.4 TWh increased annual renewable electricity generation (REG) by 2020.

Design/methodology/approach

The study applies an energy system model with high granularity in time and space, and detailed power system data for the Nordic countries, Germany, The Netherlands and UK.

Findings

The results show that the TGC scheme will cause a 8.7-9.3 /MWh reduction in average electricity prices in the Nordic countries. The price decrease will to a limited extent pass through to Germany, The Netherlands and UK. When assuming a low carbon price level, the new REG will reduce annual GHG emissions by 10.9 Mtonnes in 2020, primarily through substitution of German natural gas power. A sensitivity analysis shows that the GHG emission effect of the TGCs is highly sensitive to changes in the carbon price. Investment levels up to a 90 TWh increased REG per year are found to cause increasing GHG emission reductions.

Originality/value

The study results signal the importance of taking the TGC policy into account in decision-making processes in the Northern European power system, in particular for market actors in the Nordic area. The authors conclude that the Nordic countries potentially can play a vital role in a future Northern European low carbon power system through export of green balancing power, substitution of thermal power and reduced GHG emissions from the Northern European power sector.

Details

International Journal of Energy Sector Management, vol. 10 no. 1
Type: Research Article
ISSN: 1750-6220

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Article
Publication date: 27 June 2008

Loreta Stankeviciute and Patrick Criqui

The purpose of this paper is to quantify the possible interactions among the three European objectives in the horizon of 2020: the reduction of 20 per cent of greenhouse…

Abstract

Purpose

The purpose of this paper is to quantify the possible interactions among the three European objectives in the horizon of 2020: the reduction of 20 per cent of greenhouse gas emissions (GHG); the saving of 20 per cent of the European energy consumption; and a share of 20 per cent of renewable energies in the overall energy consumption. Particular focus is, however, placed on the influence of the CO2 emission reduction targets and on their consequences on the carbon price in 2020.

Design/methodology/approach

In order to explore the interactions among the three European objectives and their induced effects, a number of scenarios are tested within a combination of two modeling tools: the POLES world energy model and ASPEN, an auxiliary model dedicated to the analysis of quota trading systems. With reasonable assumptions for the burden sharing among the member states, the energy efficiency objectives and the renewable energy targets are achieved using national quota systems in each European country (white and green certificate systems and their implicit prices), while the CO2 emission reduction is carried out within the European Emissions Trading Scheme (ETS) in line with the objective of 20 per cent emission reduction.

Findings

The paper shows, in particular, that the two quota policies (white certificates and green certificates) decrease significantly the European marginal emission reduction cost and consequently, the compliance costs for ETS participants. The high‐renewable target compliance cost could be reduced significantly if carbon price signal and energy saving policies are in place. The paper also shows that the sole carbon price signal has a limited influence for stimulating renewable energies and energy savings and thus concludes on the need for specific policies targeting these two areas.

Originality/value

This paper is a first attempt to comprehensively deal with the economic fundamentals of the 3D regulatory system proposed by the Commission for Energy and Climate and is of value in proposing a comprehensive approach of the economics of the “20/20/20” European policy.

Details

International Journal of Energy Sector Management, vol. 2 no. 2
Type: Research Article
ISSN: 1750-6220

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Article
Publication date: 13 September 2011

S.N. Singh, D. Saxena and Jacob Østergaard

Besides organizational changes in the electricity supply industry there are growing concerns about environmental issues derived from the Kyoto Protocol for the reduction…

Abstract

Purpose

Besides organizational changes in the electricity supply industry there are growing concerns about environmental issues derived from the Kyoto Protocol for the reduction of greenhouse gas emissions as well as promoting renewable energies. The purpose of this paper is to address the source side emission trading impact on electricity prices in the competitive power market.

Design/methodology/approach

Various schemes are suggested and are being implemented to achieve this objective. It is expected that electricity price will increase due to imposition of emission taxes. This paper analyzes the impact of electricity prices in the competitive electricity markets having a uniform market clearing price mechanism.

Findings

It is found that the electricity prices depend on the system loading, generation mix, etc. at a particular hour. Various emission trading instruments are discussed with a special emphasis on the European market.

Research limitations/implications

Block bidding of the suppliers is considered whereas the demand is assumed to be inelastic.

Originality/value

The emission trading impacts are analyzed on a simple example.

Details

International Journal of Energy Sector Management, vol. 5 no. 3
Type: Research Article
ISSN: 1750-6220

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Article
Publication date: 8 April 2014

Ramona Miron

The purpose of this paper is to investigate the expected economic and social effects of the “Local Energy Plan” – a programme of the local administration that aims to…

Abstract

Purpose

The purpose of this paper is to investigate the expected economic and social effects of the “Local Energy Plan” – a programme of the local administration that aims to transform the Romanian town Avrig until 2020 into an energy independent town relying exclusively on renewable energy resources.

Design/methodology/approach

The study uses a mixed-method approach to investigate the effects of a small town's transition to renewable energy. This approach consists of a series of in-depth interviews with the local authorities, investors, other representatives of the business sector and citizens of Avrig and economic modelling to determine the direct effects generated by the implementation of different renewable energy projects.

Findings

The results of this study show that transitioning to renewable energy could have a significant positive impact on the town's economy, however, improvements of the Local Energy Plan are needed especially regarding the planned capacities and the involvement of the local community.

Practical implications

While investigating, through in-depth interviews, the overall perceptions and attitudes of the different stakeholders regarding the transition of the town to renewable energy a communication gap has been observed. The study may represent a turning point for the local administrations strategy towards its energy goals.

Originality/value

Combining economic modelling and quantitative research methods this paper provides a holistic image of the socioeconomic impacts of the Local Energy Plan in the small town Avrig. The results and suggestions could contribute to the successful transition to renewable energy of Avrig.

Details

Management of Environmental Quality: An International Journal, vol. 25 no. 3
Type: Research Article
ISSN: 1477-7835

Keywords

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Abstract

Details

Changes in European Energy Markets
Type: Book
ISBN: 978-1-83909-110-0

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Article
Publication date: 13 September 2011

Ivana Kockar

The purpose of this paper is to illustrate how emission constraints imposed by the emission trading scheme (ETS) in the European Union, as well as transmissions capacity…

Abstract

Purpose

The purpose of this paper is to illustrate how emission constraints imposed by the emission trading scheme (ETS) in the European Union, as well as transmissions capacity, can affect the outcome of the generation scheduling. The aim is to demonstrate the application of the generation scheduling tool which includes both the ETS and transmission constraints, and helps evaluate their effect on emission reduction, costs, and generators' behavior and availability. It can also be used to help generators make strategic decisions regarding utilization and purchases of carbon allowances.

Design/methodology/approach

The paper extends the generation scheduling formulation to allow for additional constraints modeling. The formulation is based on the mixed integer programming approach with linearization of generation cost and emission functions, and the possibility to split the system into zones in order to investigate transmission congestion.

Findings

The paper presents six case studies that include unconstrained and constrained operation, both from the emission and transmission points of view. It also illustrates the effect of free allocations versus auctioning. The case studies look into the system with wind generation that can be constrained due to transmission limits, and their impact on emission reductions. This is often the case in systems where most of the wind generation is located in the area which does not have sufficiently strong links to the rest of the system where the majority of loads are.

Research limitations/implications

The extension of the work will be inclusion of stochastic nature of emission prices and wind availability. It will also be used for further studies on systems with high wind penetration and insufficient transmission capacity.

Originality/value

The generation scheduling tool and the results from the paper could be useful for generators when making decisions on how to use or purchase their emission allocations, as well as for evaluation of the adverse affect of transmission congestion on carbon emission reductions.

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Book part
Publication date: 6 November 2013

Michael Noble and Patrick T. Hester

This chapter examines why U.S. offshore wind farms do not exist and identifies sites most suitable for development based on European offshore wind farms. A survey of…

Abstract

This chapter examines why U.S. offshore wind farms do not exist and identifies sites most suitable for development based on European offshore wind farms. A survey of current literature indicates that U.S. development is stalled due to a lack of government and financial support. The literature identifies common attributes associated with the successful deployment of European offshore farms and provides a basis for a multi-criteria decision analysis of potential U.S offshore wind farm sites. A review of European wind farms indicates that a small, 10–50 MW farm located in shallow waters of less than 20 m might be more successful than previous U.S. development efforts. The review also identifies common European attributes deemed critical for success. These attributes are modified, taking into account unique U.S. factors, and a set of nine critical attributes are derived for use in a multi-criteria decision analysis model of suitable U.S. locations. The nine critical attributes (wind quality, water depth, shore distance, state support, public support, industrial support, population density, weather, and energy costs), along with associated utility function values, are applied to 23 past and current proposed U.S. sites. The model identified three sites, in Galveston Island, TX, Port Isabel, TX, and Block Island, RI, as being most favorable for a small wind farm.

Details

Applications of Management Science
Type: Book
ISBN: 978-1-78190-956-0

Keywords

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Article
Publication date: 16 November 2012

S. Papadelis, A. Flamos and S. Androulaki

The purpose of this paper is to present the Business Strategy Assessment Model (BSAM) approach, in an attempt to explore the principle dynamics of an energy‐economic…

Abstract

Purpose

The purpose of this paper is to present the Business Strategy Assessment Model (BSAM) approach, in an attempt to explore the principle dynamics of an energy‐economic system with emphasis on the private actors' point of view and the impact different policy instruments may have on the decisions of private actors with different characteristics.

Design/methodology/approach

In the BSAM model, investment decisions under consideration depend on their perceived financial value. Basis for the financial valuation of an investment option is formed by simulating market dynamics with alternative price scenarios. The outputs include: investment strategies, derived as a function of the (uncertain) state vector of future market conditions and risk premium, calculated by contrasting the expected net present value for the optimal timing of the investment and the expected net present value of an immediate investment generation module of the BSAM, while both of these outputs are estimated for each available technology option.

Findings

Different models make different assumptions shedding light upon different aspects of the socio‐economic systems they attempt to analyze and hitherto, no such model succeeds in incorporating all the perceptions that are driving the integration of energy policies. BSAM is based on the notion that a convergence between policy evaluation and business strategy assessment models could be truly beneficial for regulators that aim to derive effective energy policies. Both the algorithm adopted and the structure of the modules of BSAM facilitate the analysis of complex interactions in a firm's decision making process, and even more the what‐if analyses needed for alternative policy measure evaluation.

Originality/value

Setting the framework for a modelling approach that incorporates the role of risk‐return perceptions of private actor's with diverse features, portfolio effects, path dependence and agent competition, into appraising energy and climate policies, and suggest that the heterogeneous world of investors requires reflexive assessment techniques. Above and beyond, understanding the drivers and triggers of firm's investment strategies will allow improving the effectiveness of energy policies.

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Article
Publication date: 13 April 2010

Tugrul U. Daim, Willy Schweinfort, Gulgun Kayakutlu and Noah Third

There has not been a technology assessment study conducted that can be found publicly that created the energy policies of France and Germany – which are two nations that…

Abstract

Purpose

There has not been a technology assessment study conducted that can be found publicly that created the energy policies of France and Germany – which are two nations that represent the vast extremes of national energy mix in Europe. This paper aims to use objective data to reverse generate the energy policy priorities that would yield the current portfolios.

Design/methodology/approach

A hierarchical decision model was developed and analyzed backward using the goal programming to identify the priorities of criteria in a variety of technology alternatives. The three levels of goals are combined in one discrepancy minimization. Goals are defined in a non‐linear way to determine the values in different levels. Although the goals are given the same priority, the proposed model is used to determine the weight of each criterion and then finds the weight of technical, political/social and economic influences. Discrepancies achieved after having run the goal‐programming model determines the unbalanced policies.

Findings

The paper results in key findings. First is that social/political factors have overwhelmingly low importance. It is also found that this is not completely reflecting the countries' portfolios, suggesting more research must be done to refine and extend the model. Also, experts need to be consulted and areas such as public opinion need to be quantified.

Originality/value

The paper presents a hybrid method to identify the true priorities that lead to the current energy portfolios of France and Germany. Although limited, this approach can be expanded to all Europe.

Details

International Journal of Energy Sector Management, vol. 4 no. 1
Type: Research Article
ISSN: 1750-6220

Keywords

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