Carbon-neutral future with sector-coupling; relative role of different mitigation options in energy sector

Behrang Shirizadeh

No 2020.19, Working Papers from FAERE - French Association of Environmental and Resource Economists

Abstract: Many studies have analyzed the energy mix at national and continental scales, suggesting different low-carbon mixes for future energy systems. While there is abundant literature on the energy mix for different sectors, fewer studies deal with achieving the goal of deep decarbonization using sector-coupling. Moreover, they suffer from limited representation of emerging low-carbon options and incomplete coverage of the main energy sectors. We develop an integrated optimization of dispatch and investment model for the whole energy sector, enabling full sector-coupling and applying this model to the French energy system we study the synergies of sector-coupling among different energy vectors, as well as the role of each low-carbon energy supply technology and the impact of the social cost of carbon in reaching an optimal carbon-neutral or negative CO2-emitting energy mix of France in 2050. Our results suggest that a social cost of carbon of 200 euros/tCO2 will achieve carbon-neutrality, and accounting for unfavorable future conditions, 300 euros/tCO2 can assure this target. In the presence of the social cost of carbon renewables become the main source of the primary energy supply (up to more than 80% of the primary energy supply). Exclusion of nuclear energy from the energy supply side has a minor impact on both emission reduction and cost-optimality. A fully electrified heat sector and a highly gas-dependent transport sector fueled with renewable gas help reaching carbon-neutrality at the lowest cost.

Keywords: Energy systems modelling; Social cost of carbon; Sector-coupling; Renewables; Large-scale renewable integration (search for similar items in EconPapers)
JEL-codes: C61 H23 Q41 Q47 Q48 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2020
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:fae:wpaper:2020.19

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