EconStor >
European Investment Bank (EIB), Luxembourg >
EIB Papers, European Investment Bank (EIB) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/44888
  
Title:Efficient electricity generating portfolios for Europe: Maximising energy security and climate change mitigation PDF Logo
Authors:Awerbuch, Shimon
Yang, Spencer
Issue Date:2007
Citation:[Journal:] EIB Papers [ISSN:] 0257-7755 [Volume:] 12 [Year:] 2007 [Issue:] 2 [Pages:] 8-37
Abstract:This paper applies portfolio-theory optimisation concepts from the field of finance to produce an expository evaluation of the 2020 projected EU-BAU (business-as-usual) electricity generating mix. We locate optimal generating portfolios that reduce cost and market risk as well as CO2 emissions relative to the BAU mix. Optimal generating portfolios generally include greater shares of wind, nuclear, and other nonfossil technologies that often cost more on a standalone engineering basis, but overall costs and risks are reduced because of the portfolio diversification effect. They also enhance energy security. The benefit streams created by these optimal mixes warrant current investments of about €250 - €500 billion. The analysis further suggests that the optimal 2020 generating mix is constrained by shortages of wind, especially offshore, and possibly nuclear power, so that even small incremental additions of these two technologies will provide sizeable cost and risk reductions.
Document Type:Article
Appears in Collections:EIB Papers, European Investment Bank (EIB)

Files in This Item:
File Description SizeFormat
539673919.pdf5.28 MBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/44888

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.