Fossil fuel flexibility in west European power generation and the impact of system load factors

摘要

This paper analyzes short-run interfuel substitution in west European power generation, and the impact of system load factors on fossil fuel choice. The problems are studied within a restricted translog cost share model. The paper concludes that interfuel sustitent existing power plants is substantial, especially that between oil and gas. This is consistent with the notion that short-run fuel substitution takes place in dual- or multi-fired plants, by switching load between different single-fired plants, and by some conversions of power plants to be able to burn alternate fuels.