Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/251353 
Year of Publication: 
2022
Series/Report no.: 
Working Paper Series in Production and Energy No. 64
Publisher: 
Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP), Karlsruhe
Abstract: 
France wants to become carbon-neutral by 2050. Renewable energies and nuclear power are expected to make the main contribution to this goal. However, the average age of nuclear power plants is approaching 37 years of operation in 2022, which is likely to lead to increased outages and expensive maintenance. In addition, newer nuclear power plants are flexible to operate and thus compatible with high volatile feed-in from renewables. Nevertheless, it is controversially discussed whether nuclear power plants can still be operated competitively and whether new investments will be made in this technology. Using an agent-based simulation model of the European electricity market, the market impacts of possible nuclear investments are investigated based on two scenarios: a scenario with state-based investments and a scenario with market-based investments. The results of this investigation show that under our assumptions, even with state-based investments, carbon neutrality would not be achieved with the estimated nuclear power plant capacity. Under purely market-based assumptions, large amounts of gas-fired power plants would be installed, which would lead to an increase in France's carbon emissions. State-based investments in nuclear power plants, however, would have a dampening effect on neighboring spot market prices of up to 4.5 % on average.
Subjects: 
France
nuclear
electricity market
capacity remuneration mechanism
cross-border effect
investment
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size





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