Abstract

The European Union is committed to cut Greenhouse Gas emissions (GHGs) by 30% of 1990 levels by 2020; other countries are committed to make similar reductions under a global agreement. Some technical options are available on the supply side, to reduce GHG and other harmful emissions by the power sector. Therefore, it is important to analyze what type of power generation technologies will be chosen by companies under different CO₂ mitigation targets. Several models look into Generation Expansion Planning in oligopolistic markets; however, they do not consider the impact of CO₂ reduction targets and the transmission constraints together. This study presents a Generation Expansion planning model with transmission constraints for analyzing the implications of CO₂ emission mitigation constraints for investment decisions in oligopolistic electricity markets. The results of the model are presented with reference to the Italian power sector, responsible for 32% of national CO₂ emissions.

Keywords:

CO₂ capture and storage, cournot model, generation expansion planning, GHG mitigation, oligopolistic market,

References

Competing interests

The authors have no competing interests.

Open Access Policy

This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.

Copyright

The authors have no competing interests.