CAKE at the ECEMP 2023 conference
On the 5-th of October 2023 CAKE modelling expert, Jakub Boratyński CAKE was a speaker at the ECEMP 2023 conference in session: “Carbon Pricing and the EU ETS” greatly moderated by Severin Reissl.
Jakub presented the latest results of CAKE analysis regarding the economic impact of EU ETS extending to new sectors.
Below are some key takeaways from his presentation:
- In 2030, the RES will have the largest share in electricity generation. Unstable RES and hydropower is responsible for 80% generation of electricity in 2050.
- Green hydrogen will be an important to achieve climate neutrality. About 30% of hydrogen production is used by the power sector itself for electricity and district heat generation – as long-term energy storage.
- Nuclear energy is also competitive due to high prices of CO2 emissions. It is also important due to the need to stabilize the energy system which in 2050 based mostly on unstable renewable energy sources.
- The electricity generation mix in 2050 for each scenario is almost the same. This is because even in the scenario with the lowest price of CO2 emissions (in the Fitfor55 scenario) it is cost efective to introduce all available technologies to emission reduction in electricity generation sector.
- Inclusion of the transport sector into the ETS2 raises costs of used the combustion vehicles. Consequently, the share of zero emission vehicles increases over the time.