Published December 2009 | Version v1
Journal article Metadata-only

Income risk of EU coal-fired power plants after Kyoto

Creators

  • 1. Bilbao Bizkaia Kutxa, Gran Via, 30, 48009 Bilbao (Spain)
  • 2. University of the Basque Country, Departamento de Fundamentos del Analisis Economico I, Av. Lehendakari Aguirre, 83, 48015 Bilbao (Spain)

Description

Coal-fired power plants enjoy a significant advantage relative to gas plants in terms of cheaper fuel cost. This advantage may erode (or turn into disadvantage) depending on CO2 emission allowance price. Financial risks are further reinforced when the price of electricity is determined by natural gas-fired plants' marginal costs. We aim to empirically assess the risks in EU coal plants' margins up to the year 2020. Parameter values are derived from actual market data. Monte Carlo simulation allows compute the expected value and risk profile of coal plants' earnings. Future allowance prices may spell significant risks on utilities' balance sheets. (author)

Availability note (English)

Available from Available from: http://dx.doi.org/10.1016/j.enpol.2009.07.053

Additional details

Identifiers

DOI
10.1016/j.enpol.2009.07.053;

Publishing Information

Journal Title
Energy Policy
Journal Volume
37
Journal Issue
12
Journal Page Range
p. 5304-5316
ISSN
0301-4215
CODEN
ENPYAC

INIS

Country of Publication
United Kingdom
Country of Input or Organization
United Kingdom
INIS RN
41000683
Subject category
S01: COAL, LIGNITE, AND PEAT;
Descriptors DEI
CARBON DIOXIDE; COAL; COMPUTERIZED SIMULATION; COST; EMISSION; FOSSIL-FUEL POWER PLANTS; INCOME; KYOTO PROTOCOL; MARKET; MONTE CARLO METHOD; PRICES
Descriptors DEC
AGREEMENTS; CALCULATION METHODS; CARBON COMPOUNDS; CARBON OXIDES; CARBONACEOUS MATERIALS; CHALCOGENIDES; ENERGY SOURCES; FOSSIL FUELS; FUELS; INTERNATIONAL AGREEMENTS; MATERIALS; MULTILATERAL AGREEMENTS; OXIDES; OXYGEN COMPOUNDS; POWER PLANTS; SIMULATION; THERMAL POWER PLANTS

Optional Information

Notes
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