Abstract
The paper measures the variation of the electricity price in Italy within the next 10 years due to the recent investment flow in combined cycle gas turbine (CCGT) power plants. It starts by investigating the possibility of decoupling gas and oil prices on the basis of hypotheses about the amount of existing resources and plausible technical substitutability assumptions of the latter with the former. In particular, it is supposed that, in the Italian market, natural gas will play a crucial role which oil has had in power generation. The price of electricity stemming from natural gas is then calculated taking into account the role of the power mix restructuring that derives from the CCGT power plants investments. Under reasonable assumptions, it is shown that a net reduction of at least 17% on the electric price is likely to be expected.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
