European Electricity Research Articles

Environmental evaluation of polyhydroxyalkanoates from animal slaughtering waste using Material Input Per Service Unit

The massive production and extensive use of fossil-based non-biodegradable plastics are leading to their environmental accumulation and ultimately cause health threats to animals, humans, and the biosphere in general. The problem can be overcome by developing eco-friendly ways for producing plastics-like biopolymers from waste residues such as of agricultural origin. This will solve two currently prevailing social issues: waste management and the efficient production of a biopolymer that is environmentally benign, polyhydroxyalkanoates (PHA). The current study assesses the environmental impact of biopolymer (PHA) manufacturing, starting from slaughterhouse waste as raw material. The Material Input Per Service Unit methodology (MIPS) is used to examine the sustainability of the PHA production process. In addition, the impact of shifting from business-as-usual energy provision (i.e., electricity from distribution grid network and heat provision from natural gas) to alternative renewable energy sources is also evaluated. As a major outcome, it is shown that the abiotic material contribution for PHA production process is almost double for using hard coal as an energy source than the petro-plastic low-density-poly(ethene) (LPDE), which PHA shall ultimately replace. Likewise, abiotic material contribution is 43 % and 7 % higher when using the electricity from the European electricity mix (EU-27 mix) and biogas, respectively, than in the case of LDPE production. However, PHA production based on wind power for energy provision has 12 % lower abiotic material input than LDPE. Furthermore, the water input decreases when moving from the EU-27 mix to wind power. The reduction in water consumption for various electricity provision resources amounts to 20 % for the EU-27 mix, 25 % for hard coal, 71 % for wind, and 70 % for biogas. As the main conclusion, it is demonstrated that using wind farm electricity to generate PHA is the most environmentally friendly choice. Biogas is the second-best choice, although it requires additional abiotic material input.

Valorization of biogas from the anaerobic co-treatment of sewage sludge and organic waste: Life cycle assessment and life cycle costing of different recovery strategies

Nowadays, biogas produced from the anaerobic digestion of biowaste is considered a valuable renewable energy source to implement the transition to a climate-neutral society. Recently, biogas upgrading to biomethane, instead of the usual co-generation of heat and electricity (CHP), has been an attractive option, as biomethane can be used for different purposes. This study performed the life cycle assessment (LCA) and life cycle costing (LCC) of different scenarios for the valorization of the biogas produced from the anaerobic co-digestion (AcoD) of secondary sewage sludge (SS) and organic fraction of municipal solid waste (OFMSW), pre-treated by an anaerobic dark co-fermentation (DF) process. Four configurations were compared, exploring the recovery of one or more of the following: heat, electricity and biomethane. Furthermore, two sensitivity analyses were performed on LCA analysis, considering the use of the produced biomethane as a fuel for transport and the European electricity mix expected by 2050, respectively. The use of biogas for CHP was the most environmentally friendly solutions in 8 out of 11 impact categories provided by the CML-IA baseline method; however, biogas upgrading-based scenarios showed less impacts in relevant categories, such as global warming potential (up to −1.14E+05 kg CO2 eq. y−1) and ozone layer depletion potential (up to −4.73E-01 kg CFC-11 eq. y−1). Sensitivity analyses confirmed that the biogas upgrading processes should have generally a lower impact on climate change than CHP systems. Furthermore, the use of biomethane to replace petrol resulted to be the best option in terms of global warming potential (up to −5.67E+05 kg CO2 eq. y−1). All the proposed configurations represented economically sustainable projects, as they reported positive net present values (NPV) in 20 years (up to 10,518,291 €). Biogas upgrading-based scenarios showed the highest NPVs; nevertheless, the combined production of heat, electricity and biomethane was the most cost-effective option, thanks to biomethane revenues and electricity sales, despite the latter being modest. In conclusion, contrary to most of the previous studies in the literature, we found that CHP should not be neglected, as the optimal configuration may lie in the combined recovery of biomethane, electricity and heat.

Decarbonizing the industry sector and its effect on electricity transmission grid operation—Implications from a model based analysis for Germany

Integrating large amounts of electrolyzer capacities poses particular challenges for grid operators along the entire hydrogen value chain. This research examines how hydrogen production capacities that support the decarbonization of German industrial sectors impact the electricity transmission grid. The operation of electrolyzer capacities and the production of green hydrogen result in increased electricity demand that stresses the power grids beyond conventional electricity load levels. The question arises to what extent electrolyzer capacities cause additional grid congestion and how flexible operation of electrolyzers can contribute to efficient management of future power grids. A scenario framework is created, differing in the decarbonizing strategy of industry sectors, operation mode of electrolyzers, and penetration levels of electrolyzer installations for a market projection of the future European electricity system. Model-based research is performed by applying a fundamental electricity market and congestion management optimization model of the European electricity systems for the set of scenarios. Results of the model-based investigation highlight the importance of integrating electrolyzer capacities into congestion management practices, primarily if corresponding decarbonized industries feature a more distributed allocation throughout Germany, such as the chemical, paper and printing industries. The findings of this work provide policymakers, system operators, and regulators with meaningful insights for designing future congestion management frameworks.

Intraday markets, wind integration and uplift payments in a regional U.S. power system

U.S. electricity markets adopt a two-settlement structure with day-ahead and real-time markets. Wind power integration poses a challenge for this market structure because day-ahead wind production forecasts are uncertain and significant rescheduling costs may occur in real time, increasing the need for out-of-market uplift payments. We investigate whether a multi-settlement structure with four intraday stages taking place 18 to 3 h before electricity generation reduces uplift payments and system costs, relative to a two-settlement structure. We develop unit commitment and dispatch models that account for intertemporal constraints and solve them on a 36-node test system using historical wind forecasts provided by a Regional Transmission Organization, as well as synthetic wind forecasts reproducing the observed correlation in the historical data. Combining historical and simulated forecasts allows us to account for wind uncertainty and draw more robust conclusions about the relative merits of each market structure. Finally, we compare the performance of market designs under varying levels of wind penetration. Under any level of wind penetration, the proposed multi-settlement market design is more likely to yield higher uplift than the two-settlement market design. Wind forecast accuracy and structural differences between the U.S. and European electricity markets are key drivers of our results.

Integrated Power and Economic Analysis of Austria’s Renewable Electricity Transformation

Austria has set the goal to transform its electricity sector to 100% renewable energy sources by 2030. The transition to highly renewable power systems is not only a technical challenge but also has economic implications due to high investment needs. Furthermore, electricity price and demand are interlaced and influence each other, which requires both technical and economic analyses. In order to provide these comprehensive integrated analyses, we present a novel approach of linking the technical model of the continental European electricity system ATLANTIS with the macroeconomic model DYNK. This allows us, inter alia, to analyze the effects of increasing shares of renewables on wholesale electricity prices and demand, and to perform a sensitivity analysis with respect to CO2 prices. Our results show that increasing CO2 prices greatly affect coal-fired generation abroad, which in turn promotes the role of gas-fired generation, at least until 2030. For Austria, this results in increased national gas-fired generation and electricity exports. Therefore, gas-fired power plants still determine the Austrian market price for electricity in the merit order, which leads to higher electricity prices due to CO2 pricing. In turn, however, higher electricity prices only cause a marginal reduction in the electricity demand in Austria.

Interactions between land and grid development in the transition to a decarbonized European power system

The decarbonization of the European electricity system by 2050 will involve replacing fossil fuels with low-carbon energies, in particular variable renewable energies, coupled with the development of the transmission network to ensure their integration at European scale. As these production modes have a lower energy density, their development will imply an increase in the amount of land dedicated to electricity production. This study investigates the links between an optimal decarbonization of the electricity system, land requirements, and the development strategy of interconnections. We study these interactions using eTIMES-EU, an energy system optimization model, by endogenously taking into account a land variable and testing two interconnection development plans. Our results show that it is possible to limit the land use of the network to its 2020 value for roughly a one percent higher total discounted cost, and that the development of interconnections changes the technologies to be installed on a European scale, but that it requires efficient and ambitious planning. Moreover, our results highlight disparities across countries in terms of space and investment that may constitute barriers to implementing this type of centralized development policy.

Uniform purchasing price approach for Vietnam wholesale electricity market: modeling and discussing

In Vietnam, the reform of the electricity sector is an urgent need, unbundled and striking to begin a Competitive Electricity Market. The Vietnam electricity day-ahead market model is implemented based on the gross pool model with specific market rules and network constraints. Today, the Vietnam electricity market is operating at the Vietnam Wholesale Electricity Market step but is not yet completed. Due to the long shape of Vietnam territory, an implicit cross-compensation mechanism is applied to create a balance between customers leading to an obstruction to allowing multi-buyers in the electricity market. Therefore, the main aim of this paper is based on the official documents to propose the current mathematical model of the Vietnam electricity day-ahead market using a Mixed Integer Linear Problem, called the Single Buyer Day-Ahead Market model. Then, the Multi Buyer Day-Ahead Market model is implemented to allow multi-buyers to trade in the market. The idea of purchasing uniform prices for multi-buyers using in Italy could be also introduced in the Integrated European Electricity Market in case of large price variations between countries as a mechanism to uniformize the price of energy in Europe for consumers. In this paper, purchasing uniform prices is proposed to provide an explicit cross-compensation mechanism for Vietnam. Eventually, the proposed models are evaluated with four scenarios in two years representing typical days in Vietnam. The results confirm that, on one hand, the proposed market-clearing models can be applied in a real application for any expansion of the market, i.e. the number of suppliers, demands, and bidding areas; on the other hand, the purchasing uniform prices provide an explicit cross-compensation between bidding areas helping to enhance the fairness and the transparency of the market.

Opportunities and challenges for small-scale flexibility in European electricity markets

Opportunities and challenges for small-scale flexibility in European electricity markets

Did wind cause the price rise in European electricity market in 2021? - an econometric analysis using multi regression model of spot market prices

The recent price rise in European electricity markets was not begin from the Russia's invasion of Ukraine but has gradually arisen during 2021. In the autumn of 2021, many media argued as if the cause of the price rise were low wind. This paper evaluates these arguments are appropriate or not by an economic empirical analysis. Since a simple linear combination model in MRA (Multiple Regression Analysis) is not necessarily infer causality between explanatory variables and an explained variable, ERM (Extended Regression Model) in STATA is employed in this study. Also, using a counterfactual method, a quantitative evaluation of DOI (Degree of Influence) are performed to several European market including Denmark, Germany, France and Spain. The results revealed that no scientific evidence could be found to prove the argument that low wind caused the price rise in electricity spot market.

Improving Wind Speed Uncertainty Forecasts Using Recurrent Neural Networks

For integration of growing amounts of volatile renewable energy in the European electricity system, reliable weather prognosis gains importance. But, depending on weather conditions, forecast reliability of wind speed for predicting wind power can vary drastically with time. Thus, relevance of risk-aware system operation strategies is increasing based on wind speed uncertainty a measure of which is provided by the standard deviations of ensemble forecasts of the German Weather Service. However, lacking validity of this measure is known as a long-standing problem.Therefore, this work investigates how machine learning based on a suitably selected set of physical quantities of weather ensemble data as well as historic wind data allows for a more realistic uncertainty quantification. A recurrent neural network (RNN) based sequence-to-sequence architecture is implemented and probabilistic wind speed forecasts are generated for a region in northern Germany.The results are evaluated and compared with the forecasts of the German Weather Service thereby revealing improved validity of such deep-learning based uncertainty measures.

The effect of flow-based market coupling on cross-border exchange volumes and price convergence in Central Western European electricity markets

Since 2015 available cross-border transmission capacity is determined using flow-based market coupling (FBMC) in the day-ahead electricity markets of Central Western Europe. This paper empirically estimates the effect of introducing FBMC on day-ahead electricity price convergence and cross-border exchange volumes. In the month following the introduction of FBMC, hourly cross-border exchange volumes increased by 1,700 MWh/h, while prices between countries converged by 10.4 €/MWh. Since then, observed cross-border exchange volumes decreased to 400 MWh/h below their levels before the introduction of FBMC by the end of 2017. However, when controlling for changing market conditions in the years following the introduction of FBMC, we find that FBMC still has a persistent positive effect of around 1,150 MWh/h on hourly cross-border exchange volumes and of 2 €/MWh on price convergence. Finally, we provide suggestive evidence that decreased commercial transmission capacity on critical branches might have contributed to the decline of the benefits over time. This paper is useful for policymakers, regulators, TSOs, and other stakeholders in light of the extension of FBMC to other regions as it is the target methodology for coupling market zones in the European single electricity market.

CROATIA AND ELECTRICITY TRADING IN CENTRAL EUROPE

This article will discuss electricity trading in Central Europe, with particular emphasis on Croatia. Croatia is a terminal and also a transit hub: a unique combination on the Central European electricity market. It will be explained how cross-border capacity auctions influence prices on the Central European electricity market, followed by a discussion about the most important factors that are significant for Croatia’s electricity trading strategy. Finally, the article will describe the current HEP electricity tendering process and make some recommendations for possible improvements in the future.

THE TECHNIQUES OF EXERCISING FUTURES AND FORWARDS BY THE HEDGING METHOD

Supply and demand are always supposed to be balanced due to certain limitations relating to electricity. Electricity prices fluctuate constantly and cannot be determined with complete certainty. The spot market price of electricity is a reflection of the continuous equilibrium among the production and supply of electricity. Due to uncontrolled exposure to the risk of the continual fluctuations of the spot market prices, market participants can incur financial losses. For this purpose, future and forwards have been introduced on the market. Owing to them, market risk can be hedged by employing the hedging method. Two types of such contracts exist: futures traded on electricity exchanges and forwards traded on over-thecounter markets. In this article, the descriptions, differences and application of these contracts are presented. A description of the hedging method and its application to futures is provided. At the end of the article, an application of a futures contract on the largest Middle European electricity exchange, EEX, is presented.

KNOWLEDGE MANAGEMENT AND SUSTAINABLE DEVELOPMENT OF HEP GROUP

On the basis of the main aspects of modern economic development (globalisation, deregulation, exponential increase in technological changes), the article presents the position of HEP considering the local requirements for and joining the EU with regard to the directives on setting up common rules for the European electricity and gas market. The connection between the vision and the mission of the company and the strategy of development with the help of knowledge management is explained. Experience of European electric companies in knowledge management are presented and the necessity to build a single European system of information about energy research and technological development is commented on. The article also presents the basic aspects of HEP’s knowledge management strategy that is to enable its further transformation into a strong market-oriented company, promoting improvement and innovation in achieving the maximum quality on a profitable basis.

THE ROLE OF RENEWABLE ENERGY SOURCES IN FUTURE ELECTRICITY SUPPLY

This article deals with the role of renewable energy sources in the electricity supply industry. The original reason for their introduction and development was to help offset the rise in the production of greenhouse gases due to electricity generation from fossil fuels. The EU represents the best example of federally delegated policy and regulation interpreted differently by national regulators and governments. The laws in the area of energy and the environment enacted by the Republic of Croatia have been approximated to the European legislation in order for the Republic of Croatia to be integrated in the internal European electricity market and EU.

State or market: Investments in new nuclear power plants in France and their domestic and cross-border effects

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.

Climate change impacts of e-fuels for aviation in Europe under present-day conditions and future policy scenarios

‘E-fuels’ or ‘synthetic fuels’ are hydrocarbon fuels synthesized from hydrogen (H2) and carbon dioxide (CO2), where H2 can be produced via electrolysis of water or steam reforming of natural gas, and CO2 is captured from the combustion of a fossil or biogenic source or directly from the atmosphere. E-fuels are drop-in substitutes for fossil fuels, but their climate change mitigation benefits are largely unclear. This study evaluates the climate change impacts of e-fuels for aviation by combining different sources of CO2 and H2 up to 2050 under two contrasting policy scenarios. The analysis includes different climate metrics and the effects of near-term climate forcers, which are particularly relevant for the aviation sector. Results are produced for European average conditions and for Poland and Norway, two countries with high and low emission intensity from their electricity production mix. E-fuels can either have higher or lower climate change impacts than fossil fuels, depending on multiple factors such as, in order of importance, the electricity mix, the origin of CO2, the technology for H2 production, and the electrolyzer efficiency. The climate benefits are generally higher for e-fuels produced from CO2 of biogenic origin, while e-fuels produced from CO2 from direct air capture or fossil fuel combustion require countries with clean electricity to outperform fossil fuels. Synthetic fuels produced from H2 derived from natural gas have higher impacts than fossil fuels even when coupled with carbon capture and storage, if CO2 is sourced from fossil fuels or the atmosphere. Climate change impacts of e-fuels improve in the future, and they can all achieve considerable climate change mitigation in 2050relative to fossil jet fuel, provided that strict climate policy measures are implemented to decarbonize the electricity sector. Under reduced policy efforts, future climate impacts in 2050 of e-fuels from atmospheric or fossil CO2 are still higher than those of fossil jet fuels with an average European electricity mix. This study shows the conditions to maximize the climate change mitigation benefits of e-fuels, which essentially depend on progressive decarbonization of the electricity sector and on reduced use of CO2 sourced from fossil fuels.

Exploring the link between the EU emissions trading system and net-zero emission neighbourhoods

Climate policy is transforming the energy system and the building sector. Since these sectors overlap, we need to understand how the short-term operational link between them impact their long-term development subject to overlapping climate policies. This paper investigates how the integrated development of the European heat and electricity system is influenced by net-zero emission neighbourhoods that compensate own carbon emissions with local renewable energy. The study is made in the context of EUs emission trading system. In our approach, we soft-link two mathematical programming models to couple energy transition policies at the European level with the neighbourhood scale. Results suggest that zero emission neighbourhoods make European decarbonisation more cost-efficient. When low carbon energy technologies in neighbourhoods become competitive, investments in large-scale technologies are reduced on the European level, including nuclear and fossil gas power and heating. Thus, early policy support to neighbourhood technologies could prevent stranded assets later in the transition. Further, results imply that more stringent emission caps earlier could help avoiding CO2 allowance price spikes later.

Life cycle assessment on calcium zincate production methods for rechargeable batteries

The world's energy transition from fossil to renewable energy is unthinkable without further research in energy storage. Decreasing the environmental impacts from the production of energy storage technologies is essential for achieving a green energy transition. Calcium Zincate (CAZN) is used as active material in rechargeable zinc-based batteries (and other products, such as heterogeneous catalysts for biodiesel or antifungal products). They present a low-cost, safer, alternative to Lithium based batteries and are targeted as replacement solutions for lead-acid batteries.We propose a novelty in the synthesis of CAZN, the hydro-micro-mechanical process (HMMS). The residence time of this new route is about 20 times lower than the traditional processes, so its production needs less infrastructure and can deliver quicker at an industrial scale. In addition, laboratory tests indicate that HMMS CAZN has more reaction surface area and the activation of the battery is 1.77 times faster.Using the life cycle assessment (LCA) method, we compare this new process with the current best option, hydro-thermal synthesis (HTS). The cradle-to-gate results per kg of CAZN already indicates that HMMS is an environmentally better alternative for all indicators; especially when considering the normalization of the results with the residence time and the surface area, HMMS delivers better results, with improvements of 97 % in global warming, for instance. With this, we demonstrate that, outside of the cradle-to-gate, variables that make the final products better service units or give more function should be considered as valuable additional information when deciding among alternatives. This also highlights the importance of life cycle thinking when working with chemical processes and substances.In the sensitivity analysis, we developed 7 scenarios related to the energy demand of the processes, and we incorporated the projection in the European electricity mix for 2030 and 2050.

Heat pumps for space heating and domestic hot water production in residential buildings, an environmental comparison in a present and future scenario

The hydrogen vector stands as a potentially important tool to achieve the decarbonization of the energy sector. It represents an option to store the periodic excesses of energy generation from renewable electrical sources to be used as it is as a substitute for fossil fuels in some applications or reconverted into electricity when needed. In this context, hydrogen can significantly decarbonize the building sector as an alternative fuel for gas-driven devices. Along with hydrogen, the European strategic vision indicates the electrification of heat among the main energy transition pathways. The potential environmental benefits achievable from renewable hydrogen in thermally-driven appliances and the electrification of residential heat through electric heat pumps were evaluated and compared in this work. The novelty of the research consists of a consequential comparative life cycle assessment (16 impact categories) evaluation for three buildings (old, old retrofitted, and new) supplied by three different appliances (condensing boiler, gas absorption heat pump, and electric heat pump), never investigated before. The energy transition was evaluated for 2020 and 2030 scenarios, considering the impact of gaseous fuels (natural gas and European green hydrogen) and electricity based on the pathway of the European electricity grid (27 European member states plus the United Kingdom). The results allowed to compare the environmental profile in deterministic and stochastic approaches and confirm if the increase of renewables reduces the impact in the operational phase of the appliances. The results demonstrate that despite the increased renewable share, the use phase remains the most significant for both temporal scenarios, contributing to 91% of the environmental profile. Despite the higher footprint in 2020 compared to the electric heat pump (198–200 vs. 170–196 gCO2eq/kWhth), the gas absorption heat pump offered a lower environmental profile than the others in all the scenarios analyzed.