Amit Kanudia, Raffaella Gerboni, Richard Loulou, Maurizio Gargiulo, Maryse Labriet, Evasio Lavagno, Rocco De Miglio, Laura Schranz and GianCarlo Tosato
This article is based on the REACCESS research project, sponsored by the European Commission, with the objectives of evaluating the technical, economic, and environmental aspects…
Abstract
Purpose
This article is based on the REACCESS research project, sponsored by the European Commission, with the objectives of evaluating the technical, economic, and environmental aspects of present and future energy corridors between the European countries (EU27) and their main energy suppliers. GCC countries have an important role to play given their role in EU energy supply and in greenhouse gas emissions. The paper aims to discuss these issues.
Design/methodology/approach
A single energy model was built by hard‐linking the TIMES integrated assessment model (TIAM‐World), the Pan European TIMES model (PET), and the RECOR model (REaccess CORridors), including more than 1,000 possible energy corridors supplying the European countries. Another major methodology advance was to create a hybrid objective function, combining the usual cost objective and a metric representing the supply risk incurred by EU27. The risk component was constructed via a novel approach that aggregates the elemental risk parameters of each corridor using a Min‐Max function. Four contrasted scenarios were assessed, based on security and climate objectives.
Findings
Among the many results, it appears that a large reduction of the supply risk may be achieved at a very modest increase of the total energy system cost for EU27. Cross‐effects of climate mitigation and security objectives are also observed. Due to the diversification requirement, the contribution of GCC countries to EU energy imports increases under risk scenario. Sensitivity analyses show that the European energy system seems unable to reduce the market shares of fossil fuels import from MENA countries, including GCC countries, much below the reference case, proving the strong dependency of EU27 energy system from these countries. However, total fossil fuels imports, as well as total energy consumed, are decreased under the risk adverse scenarios.
Originality/value
Methodological developments, as described above, result in an advanced tool to assess how to increase the “energy system security”, by reducing the concentration of supply countries, diversifying import sources but also reducing the energy dependence at the end‐use side.
Details
Keywords
Kevin Yessian, Pat DeLaquil, Bruno Merven, Maurizio Gargiulo and Gary Goldstein
An economic assessment was performed of the potential for clean energy options to contribute to the power and desalination needs in the State of Kuwait over the next 20 to 40…
Abstract
Purpose
An economic assessment was performed of the potential for clean energy options to contribute to the power and desalination needs in the State of Kuwait over the next 20 to 40 years. The paper aims to summarize two analyses that were performed for the Kuwait Institute for Scientific Research to develop a strategy promoting renewable energy and evaluating alternative technologies including nuclear energy.
Design/methodology/approach
The analyses were performed using a power and water model for Kuwait that was constructed using the International Energy Agency – Energy Technology Systems Analysis Programme (IEA‐ETSAP) TIMES modeling framework. Data provided by the Ministry of Electricity and Water (MEW) and the Kuwait Petroleum Company (KPC) characterizes the projected demand for power and water; the existing and planned power generation and water desalination plants, including the expected retirement of existing plants; and future fossil fuel prices and availability. New power generation options – including renewable energy (RE), nuclear, combined cycle gas turbines (CCGT) and reheat steam power plants (RHSPP) – were compared in this least‐cost optimization framework.
Findings
The model results indicate that by 2030 the cost‐effective RE share is 11 percent of electricity generation in the reference case and 8 percent in the case with the nuclear option. The RE technologies alone provide a 2030 net‐back value compared to the reference case of US$2.35 billion, while in the nuclear case they increase the 2030 net‐back value by an additional US$1.5 billion. Increasing the RE share, as a government policy, to 10 percent, 15 percent and 20 percent, decreases the 2030 netback benefit by US$1.0, $3.6 and $8.3 billion, respectively.
Research limitations/implications
Sensitivity runs based on scenarios that assume higher RE costs or lower availability, lower demand growth, lower oil and gas prices, higher nuclear plant investment costs, and RE capacity credit were analyzed.
Practical implications
The analysis provides a compelling economic basis for initiating a renewable energy program in the State of Kuwait. However, these forecasted benefits will only materialize to the extent the projected RE investments are achieved if they begin in earnest soon.
Originality/value
The analysis identifies a cost‐effective share of renewable energy use in Kuwait as about 11 percent of electricity generation in 2030. The investment in renewable energy provides the State of Kuwait with a net‐back value of US$2.35 billion, due to the fuel savings that are generated by using renewables.