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ECN publication
CATO-2 Deliverable WP 2.2-D 2.2 01, Screening of the impacts of large scale CCS on the electricity market
Published by: Publication date:
ECN Policy Studies 14-2-2011
ECN report number: Document type:
ECN-O--11-084 Other
Number of pages: Full text:
56 Download PDF  

This CATO2 report highlights the joint role of CCS and wind energy in reducing CO2 emissions. In addition it has looked into the issues of flexibility and reliability of the electricity system. These issues have been analysed in the context of scenarios up to 2030 with both large-scale penetration of CCS in the Dutch power sector and high shares of electricity production by wind energy. Electricity market simulations and analyses with ECN’s POWERS model for the Northwest European market (the Netherlands, Germany, Belgium, France, Norway, and United Kingdom) have been used to underpin the findings. The Netherlands has been analysed in more detail. The Dutch electricity market and system is embedded in an increasingly coupled and interconnected Northwest European market (NW EU). Electricity production and demand scenarios for these neighbouring countries in NW EU have been taken into account in the analysis. EU policies and a liberalized electricity market provide for the context for the domestic and European electricity producers and investors. From this preliminary analysis it follows that: 1. Flexibility or reliability considerations seem to impose no technical constraints on CCS in Dutch power generation. 2. Operational behaviour and merit order remain main drivers for power generation. 3. The expected construction of new coal-fired capacity, either with or without CCS, does not hamper high penetration of wind energy and vice versa in the Netherlands up to 2030. 4. For these coal-fired plants now being constructed in the Netherlands in the period 2009-2013, either without CCS, or eventually with CCS, the business cases remain sound in the context of the (macro-economic) scenarios outlined, even with high shares of renewable electricity production from wind energy. However for CCS, this will only be the case when the CO2 emission price is high enough. Based on the cost assumptions and scenario calculations, this would require more than 60 €/ton CO2 for CCS in power generation to be cost-effective. 5. Dedicated specific CCS policies are needed in the period after the first demonstrations (2020-2030), assuming that the CO2 price will be too low.

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