POLICY ASSESSMENT FOR LOW CARBON ELECTRICITY MARKETS

摘要

Results indicate that if the aim of policy is to reduce emissions, then the carbon tax scenario presents interesting options, as this affects the capacity of fossil fuel technologies, with high GHGs emissions. The feed-in tariff policy focuses on expanding the capacity of clean technologies without affecting fossil fuel technologies as much. When both carbon tax policy and the incentives policy are applied simultaneously, they have a greater impact on both emission reductions and the diffusion of clean technologies, and yet they do not necessarily bring high electricity prices. The reason is that a significant portion of renewable energy (not including hydroelectricity) replaces fossil-fuelled technologies, and in the long-term electricity price decreases, given that generation costs of renewable technologies are then lower, and also as a result of the effects of progress along their learning curves.Policies for the demand side reduce sussesfully electricity demand. The reduction of electricity demand decreases market share of fossil fuels technologies.