The Energy Market Impact of Climate Change on Electricity Generation in Europe

Abstract

In this paper, the policy trend in Europe towards the emission reduction target in the energy sector, as planned from the Paris Agreement, is analyzed. Although renewable energy sources are improving their share, the large use of coal as primary fuel and the uncertainty about nuclear production makes the transition hard. It's well known that future emission patterns from energy generation influence the climate change trend, but as shown in the following, there is also a reverse interrelation, due to the different environmental conditions caused by climate change affecting all generation technologies. Furthermore, energy prices, which derive from this changed framework likewise will influence the generation output in the future. The combination of all these factors may indicate new electricity flows and a verification of the Ten Years Network Development Plan from TSOs, as well as future expansion plans in European transmission grid, should be accordingly carried out