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Super-Grids and Concentrated Solar Power: A Scenario Analysis with the WITCH Model

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  • Emanuele Massetti

    (Fondazione Eni Enrico Mattei and Centro Euro-Mediterraneo per i Cambiamenti Climatici)

  • Elena Claire Ricci

    (Università degli Studi di Milano and Fondazione Eni Enrico Mattei)

Abstract

We extend the WITCH model to consider the possibility to produce and trade electricity generated by large scale concentrated solar power plants in highly productive areas that are connected to the demand centres through High Voltage Direct Current (HVDC) cables. We find that it becomes optimal to produce with this source only from 2040 and trade from 2050. In the second half of the century, CSP electricity shares become very significant especially when penetration limits are imposed on nuclear power and on carbon capture and storage operations (CCS). Climate policy costs can be reduced by large percentages, up to 66% with respect to corresponding scenarios without the CSP-powered Super-Grid option and with limits on nuclear power and CCS. We also show that MENA countries have the incentive to form a cartel to sell electricity to Europe at a price higher than the marginal cost. Therefore we advocate the institution of an international agency with the role to regulate a hypothetic Mediterranean electricity market.

Suggested Citation

  • Emanuele Massetti & Elena Claire Ricci, 2011. "Super-Grids and Concentrated Solar Power: A Scenario Analysis with the WITCH Model," Working Papers 2011.47, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2011.47
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    References listed on IDEAS

    as
    1. Carraro, Carlo & Bosetti, Valentina & Massetti, Emanuele & Tavoni, Massimo, 2007. "Optimal Energy Investment and R&D Strategies to Stabilise Greenhouse Gas Atmospheric Concentrations," CEPR Discussion Papers 6549, C.E.P.R. Discussion Papers.
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    More about this item

    Keywords

    Climate Policy; Integrated Assessment; Renewable Energy; Concentrated Solar Power; Power Grid; Electricity Trade;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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