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An impact analysis of the generation fuel-mix policy on the level of CO2 emission and electricity price

No.:EP0214

Author:

Price:Out of print

Publication:2006.11

Abstract:

After two oil crises, developed countries started to promote nuclear energy for power generation. Taiwan had also established three nuclear plants since 1970s. In order to maintain energy security for the country’s economic development the fourth Nuclear Power Plant was to be constructed in Taiwan. However, as the inauguration of new President of Taiwan government in 2000 with its anti-nuclear policy, the fourth Nuclear Power Plant was destined to abolish and would be substituted by generation from natural gas and various other energy sources. The advantages of nuclear generation lie in its zero air pollution effects during the generation process compared to the other traditional source of fossil fuels. However, the radioactive nuclear wastes generated are a serious environmental hazard. How to strike a balance among environment, energy and economy of various generation patterns and to work out a promising alternative generation expansion path is an important issue for new government and public to concern. The purpose of this study is to analyze the impact of various generation fuel-mix policies on energy, CO2 emission and electricity price. In order to achieve this objective, a power expansion model was constructed to evaluate the impacts and to select the feasible policies for mitigating CO2. Various set of scenarios were designed for the simulations of CO2 mitigation strategies for the power sector. Finally, policy recommendations and suggestions for the consideration of adopting appropriate strategies of mitigating CO2 were drawn from the results of this project.
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