Optimisation of electricity energy markets and assessment of CO2 trading on their structure: a stochastic analysis of the greek power sector

Athanasios I. Tolis, Athanasios A. Rentizelas, Ilias P. Tatsiopoulos

Research output: Contribution to journalLiterature review

4 Citations (Scopus)

Abstract

Power production was traditionally dominated by monopolies. After a long period of research and organisational advances in international level, electricity markets have been deregulated allowing customers to choose their provider and new producers to compete the former Public Power Companies. Vast changes have been made in the European legal framework but still, the experience gathered is not sufficient to derive safe conclusions regarding the efficiency and reliability of deregulation. Furthermore, emissions' trading progressively becomes a reality in many respects, compliance with Kyoto protocol's targets is a necessity, and stability of the national grid's operation is a constraint of vital importance. Consequently, the production of electricity should not rely solely in conventional energy sources neither in renewable ones but on a mixed structure. Finding this optimal mix is the primary objective of the study. A computational tool has been created, that simulates and optimises the future electricity generation structure based on existing as well as on emerging technologies. The results focus on the Greek Power Sector and indicate a gradual decreasing of anticipated CO2 emissions while the socioeconomic constraints and reliability requirements of the system are met. Policy interventions are pointed out based on the numerical results of the model. (C) 2010 Elsevier Ltd. All rights reserved.

LanguageEnglish
Pages2529-2546
Number of pages18
JournalRenewable and Sustainable Energy Reviews
Volume14
Issue number9
DOIs
Publication statusPublished - Dec 2010

Fingerprint

Stochastic Analysis
Electricity
Sector
Electricity Market
Deregulation
Optimization
Energy
Compliance
Customers
Choose
Optimise
Sufficient
Grid
Numerical Results
Target
Requirements
Industry
Market
Power markets
Co2

Keywords

  • real options
  • emissions trading
  • power sector
  • stochastic forecast
  • uncertainty
  • optimisation

Cite this

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Optimisation of electricity energy markets and assessment of CO2 trading on their structure : a stochastic analysis of the greek power sector. / Tolis, Athanasios I.; Rentizelas, Athanasios A.; Tatsiopoulos, Ilias P.

In: Renewable and Sustainable Energy Reviews , Vol. 14, No. 9, 12.2010, p. 2529-2546.

Research output: Contribution to journalLiterature review

TY - JOUR

T1 - Optimisation of electricity energy markets and assessment of CO2 trading on their structure

T2 - Renewable and Sustainable Energy Reviews

AU - Tolis, Athanasios I.

AU - Rentizelas, Athanasios A.

AU - Tatsiopoulos, Ilias P.

PY - 2010/12

Y1 - 2010/12

N2 - Power production was traditionally dominated by monopolies. After a long period of research and organisational advances in international level, electricity markets have been deregulated allowing customers to choose their provider and new producers to compete the former Public Power Companies. Vast changes have been made in the European legal framework but still, the experience gathered is not sufficient to derive safe conclusions regarding the efficiency and reliability of deregulation. Furthermore, emissions' trading progressively becomes a reality in many respects, compliance with Kyoto protocol's targets is a necessity, and stability of the national grid's operation is a constraint of vital importance. Consequently, the production of electricity should not rely solely in conventional energy sources neither in renewable ones but on a mixed structure. Finding this optimal mix is the primary objective of the study. A computational tool has been created, that simulates and optimises the future electricity generation structure based on existing as well as on emerging technologies. The results focus on the Greek Power Sector and indicate a gradual decreasing of anticipated CO2 emissions while the socioeconomic constraints and reliability requirements of the system are met. Policy interventions are pointed out based on the numerical results of the model. (C) 2010 Elsevier Ltd. All rights reserved.

AB - Power production was traditionally dominated by monopolies. After a long period of research and organisational advances in international level, electricity markets have been deregulated allowing customers to choose their provider and new producers to compete the former Public Power Companies. Vast changes have been made in the European legal framework but still, the experience gathered is not sufficient to derive safe conclusions regarding the efficiency and reliability of deregulation. Furthermore, emissions' trading progressively becomes a reality in many respects, compliance with Kyoto protocol's targets is a necessity, and stability of the national grid's operation is a constraint of vital importance. Consequently, the production of electricity should not rely solely in conventional energy sources neither in renewable ones but on a mixed structure. Finding this optimal mix is the primary objective of the study. A computational tool has been created, that simulates and optimises the future electricity generation structure based on existing as well as on emerging technologies. The results focus on the Greek Power Sector and indicate a gradual decreasing of anticipated CO2 emissions while the socioeconomic constraints and reliability requirements of the system are met. Policy interventions are pointed out based on the numerical results of the model. (C) 2010 Elsevier Ltd. All rights reserved.

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KW - uncertainty

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