Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/53395 
Year of Publication: 
2011
Series/Report no.: 
Nota di Lavoro No. 47.2011
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
We extend the WITCH model to consider the possibility to produce and trade electricity generated by large scale concentrated solar power plants in highly productive areas that are connected to the demand centres through High Voltage Direct Current (HVDC) cables. We find that it becomes optimal to produce with this source only from 2040 and trade from 2050. In the second half of the century, CSP electricity shares become very significant especially when penetration limits are imposed on nuclear power and on carbon capture and storage operations (CCS). Climate policy costs can be reduced by large percentages, up to 66% with respect to corresponding scenarios without the CSP-powered Super-Grid option and with limits on nuclear power and CCS. We also show that MENA countries have the incentive to form a cartel to sell electricity to Europe at a price higher than the marginal cost. Therefore we advocate the institution of an international agency with the role to regulate a hypothetic Mediterranean electricity market.
Subjects: 
Climate Policy
Integrated Assessment
Renewable Energy
Concentrated Solar Power
Power Grid
Electricity Trade
JEL: 
Q2
Q43
Q54
Document Type: 
Working Paper

Files in This Item:
File
Size
709.43 kB





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