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The Economics of Transition in the Power Sector

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  • William Blyth

    (Oxford Energy Associates)

Abstract

Power generation from fossil fuel is one of the largest sources of greenhouse gas emissions, representing 41% of global energy-related CO2 emissions. Combined with the fact that there are a number of low-carbon technologies available for generating electricity, the sector is therefore a key policy target for delivering near-term and long-term reductions in emissions. This report identifies the importance of these risk factors in the economics of transition by illustrating the case of investment in the power sector. To a great extent, the transition to a lowcarbon power sector means dealing with coal plants, which is the largest contributor, accounting for 73% of global power sector CO2 emissions, and particularly those from the United States, Europe and China, which contribute 17%, 9% and 24% respectively of global power sector CO2 emissions.

Suggested Citation

  • William Blyth, 2010. "The Economics of Transition in the Power Sector," IEA Energy Papers 2010/2, OECD Publishing.
    • Handle: RePEc:oec:ieaaaa:2010/2-en
    DOI: 10.1787/5kmh3njfk8vf-en
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    Cited by:

    1. Richard A. Bradley, 2012. "Energy and Climate Change Policy: Perspectives from the International Energy Agency," Chapters, in: Chin Hee Hahn & Sang-Hyop Lee & Kyoung-Soo Yoon (ed.), Responding to Climate Change, chapter 4, Edward Elgar Publishing.
    2. Pahle, Michael & Fan, Lin & Schill, Wolf-Peter, 2011. "How emission certificate allocations distort fossil investments: The German example," Energy Policy, Elsevier, vol. 39(4), pages 1975-1987, April.
    3. Colmenar-Santos, Antonio & Rosales-Asensio, Enrique & Borge-Diez, David & Collado-Fernández, Eduardo, 2016. "Evaluation of the cost of using power plant reject heat in low-temperature district heating and cooling networks," Applied Energy, Elsevier, vol. 162(C), pages 892-907.
    4. O'Shaughnessy, Eric & Heeter, Jenny & Shah, Chandra & Koebrich, Sam, 2021. "Corporate acceleration of the renewable energy transition and implications for electric grids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).

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