Challenges to Integrate CCS into Low Carbon Electricity Markets

Abstract

Published by Elsevier Ltd. This paper discusses challenges for integration of CCS into competitive electricity markets by using the European electricity supply system as an example. The work is based on techno-economic modelling of the European electricity generation sector up to Year 2050, assuming a tightening cap on CO2 emissions down to almost no emissions by 2050. It is concluded that natural gas fired conventional power plants is likely to be a serious competitor to coal CCS in the short to medium term providing large emission reduction by fuel shifting from existing coal power plants to new high efficiency gas fired plants. This can be a barrier for early deployment of CCS without additional support. It is also concluded that for regions with large amount of intermittent electricity generation, short term balance in generation will impose challenges to handle CCS plants in relation to load following requirements. Yet, there are regions with good availability of coal combined with unfavorable conditions for wind power, for which CCS can operate in typical base load.