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Impacts of green deal policies on the Nordic power market

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  • Nagel, Niels Oliver
  • Böhringer, Christoph
  • Rosendahl, Knut Einar
  • Bolkesjø, Torjus Folsland

Abstract

This study analyzes how the Green Deal affects the Nordic electricity and district heat market, considering carbon pricing alone and in combination with policy measures such as a coal phaseout, a renewable target, or an electrification strategy. Our findings show that the Green Deal targets significantly increase CO2 prices and power price variability. The Green Deal has a minor impact on Nordic electricity production, while a switch to increased power-to-heat is observed in the district heating sector. However, if the EU ETS is supplemented with other policies, generation mix, producer revenues, and CO2- and power prices are significantly impacted.

Suggested Citation

  • Nagel, Niels Oliver & Böhringer, Christoph & Rosendahl, Knut Einar & Bolkesjø, Torjus Folsland, 2023. "Impacts of green deal policies on the Nordic power market," Utilities Policy, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:juipol:v:80:y:2023:i:c:s0957178722001394
    DOI: 10.1016/j.jup.2022.101475
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