Summary: | Several Contracting Parties to the Treaty establishing the Energy Community
of the South East Europe, currently in energy transition, have electricity
production dominantly based on lignite which contrasts their new reality.
Planning approach to designing a new feasible energy policy is presented in
this paper. This novel approach in using EnergyPLAN tool stems from analysis
of market operation of lignite thermal power plants on hourly basis, and
quantification of the feasibility of the energy policy and its alignment with
EU vision, and is presented in few scenarios. It was found out that the
Serbian energy system is highly sensitive to the electricity market and CO2
tax increase, because the marginal costs for lignite generation will increase
to more than 50€/MWh. Shifting in the merit order will be observed even at
lower CO2 tax levels, because of the intensity of the emission of the
electricity sector (calculated to be higher than 700gCO2/kWhel, according to
current energy policy). Based on the increased use of renewable energy
sources and more efficient energy conversion technologies, socio-economic and
energy policy feasibility would be increased, while long-term marginal costs
would be improved by 2€/MWh and emission intensity by 258 gCO2/kWhel,
compared to the current energy policy. These contributions, shown in the
Serbian case, are of general importance for other lignite dominated
Contracting Parties to Treaty establishing the Energy Community. [Projekat
Ministartsva nauke Republike Srbije, br. 42009]
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