Could electricity demand contribute to diversifying the mix and mitigating CO2 emissions? A fresh daily analysis of the French electricity system

Diogo Santos Pereira and António Marques ()

Energy Policy, 2020, vol. 142, issue C

Abstract: This paper introduces an innovative line of study to the current literature, by assessing the interactions, in France, between electricity sources, and periods with differing electricity consumption; namely morning off-peak, morning peak, middle off-peak, and night peak, using high-frequency data, specifically, daily data. This paper also analyses the impact of these interactions on both the diversification of the electricity mix, and on carbon dioxide emissions. Thus, this research could help identify the conditions needed, in both supply and demand, for a successful transition towards renewable energies. A Vector Autoregressive model has been employed to detect the presence of endogeneity, and to show the interactions between electricity supply and demand. Consumption in France has been problematic for the management of a portfolio containing rigid and intermittent base load sources. High peak consumption at night has increased the necessity to deploy a flexible electricity generating source, in other words, fossil fuels, and is one of the reasons for nuclear de-activation. In comparison, high morning peak consumption is rational and desirable. Indeed, morning peaks have been satisfied by a portfolio of renewable energies, decreasing the harmful impact of electricity on the environment, and keeping electricity costs low.

Keywords: Nuclear phase-out; Electricity supply and demand interactions; Carbon dioxide emissions; Electricity mix diversification; Energy transition (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:142:y:2020:i:c:s0301421520302251

DOI: 10.1016/j.enpol.2020.111475

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