Abstract
In recent years, numerous countries have introduced or considered capacity markets as remuneration mechanisms for long-term capacity adequacy. Since adequacy is frequently linked with thermal power generation, there is an ongoing debate as to whether this instrument could impact decarbonisation. In this context, the paper presents a quantitative assessment of the consequences of introducing a capacity market on decarbonisation pathways. The Polish power system is taken as an example due to its heavy dependence on fossil fuels. To this end, a computable model of the Polish power system is developed and applied to the study of two research scenarios. The first scenario presents the power system without introducing a capacity market, while the latter considers the system with a capacity market in place. The analysis shows that the introduction of a capacity market delays the decarbonisation of the power system and has a negative impact on carbon neutrality. Even though coal-fired units are phased out, they are mainly replaced by natural gas. The method and model developed within this study can be applied to countries where a capacity market is being discussed, and fossil fuels continue to play a dominant role.
Highlights
Decarbonisation of power systems is one of the solutions to the problem of climate change [1]
The results show that the existing model of the capacity market does not specially target low-emission technologies but can be modified to fulfil the goals of power system decarbonisation
Since the Polish power system is heavily dependent on fossil fuel-based generation from hard coal and lignite, the changes related to these fuels are mainly discussed in the following subsections
Summary
Decarbonisation of power systems is one of the solutions to the problem of climate change [1]. The phasing-out of conventional power plants and their replacement with renewable generation sources results in a significant decrease in greenhouse gas (GHG). The environmental impact of decarbonisation is noticeable, the energy transition in systems with high penetration of fossil fuels has to consider other factors. The policymakers, transmission system operators, and regulatory bodies are required to ensure energy security [2]. The decarbonisation processes are different in different countries [3]. [4,5] the authors indicate that fulfilling the requirements for zero-carbon electricity is possible by 2050, there is a need to investigate the potential in individual countries In Refs. [4,5] the authors indicate that fulfilling the requirements for zero-carbon electricity is possible by 2050, there is a need to investigate the potential in individual countries
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