Incorporating life cycle external cost in optimization of the electricity generation mix

A. Rentizelas, D. Georgakellos

Research output: Contribution to journalArticle

26 Citations (Scopus)

Abstract

The present work aims to examine the strategic decision of future electricity generation mix considering, together with all other factors, the effect of the external cost associated with the available power generation technology options, not only during their operation but also during their whole life cycle. The analysis has been performed by integrating the Life Cycle Assessment concept into a linear programming model for the yearly decisions on which option should be used to minimize the electricity generation cost. The model has been applied for the case of Greece for the years 2012-2050 and has led to several interesting results. Firstly, most of the new generating capacity should be renewable (mostly biomass and wind), while natural gas is usually the only conventional fuel technology chosen. If externalities are considered, wind energy increases its share and hydro-power replaces significant amounts of biomass-generated energy. Furthermore, a sensitivity analysis has been performed. One of the most important findings is that natural gas increases its contribution when externalities are increased. Summing-up, external cost has been found to be a significant percentage of the total electricity generation cost for some energy sources, therefore significantly changing the ranking order of cost-competitiveness for the energy sources examined.
LanguageEnglish
Pages134-149
Number of pages16
JournalEnergy Policy
Volume65
Early online date28 Oct 2013
DOIs
Publication statusPublished - Feb 2014

Fingerprint

electricity generation
Life cycle
life cycle
Electricity
natural gas
cost
Costs
biomass
linear programing
Natural gas
power generation
Biomass
competitiveness
ranking
sensitivity analysis
energy
Linear programming
Wind power
Sensitivity analysis
Power generation

Keywords

  • life cycle
  • external cost
  • optimization
  • electricity generation mix
  • life cycle assessment
  • externalities

Cite this

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Incorporating life cycle external cost in optimization of the electricity generation mix. / Rentizelas, A.; Georgakellos, D.

In: Energy Policy, Vol. 65, 02.2014, p. 134-149.

Research output: Contribution to journalArticle

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