The effects of different CCS technological scenarios on EU low-carbon generation mix
Carbon capture and storage technology (CCS), a technology to reduce the emissions in coal and gas power generation plants, will play an important role in the achievement of the European Union emissions reduction objective. In the European Union, energy policies are articulated around three different elements: measures to promote renewable energy technologies, the emissions certificates system and both energy-saving and energy-efficiency policies. The succession of directives and communications from the EU Commission on renewable technology generation share targets and the implementation of the European Emissions Market exemplify the serious EU commitment to a more environmentally friendly future. CCS technologies—together with RES technologies—are thus key to achieve the European emissions reduction target. Although the CCS commercial availability is not guaranteed—due to a slow technological development—some institutions, such as the Institute for Prospective Technological Studies, assume, for 2030 horizon, a quick development of this technology, growing until a maximum participation of an 18 % over the fossil fuels total generation. An eventual non-availability of these technologies in 2030 could increase the cost of this objective in a 70 %. Therefore, the achievement of pollutant emissions reduction targets depends on a correct design of the European generation technologies mix, which should include CCS technologies. Nevertheless, the uncertainty about the final costs and economic risk of these technologies makes a question about their future role to arise. This paper analyses the effects of different variations in the cost and risk of the CCS technologies (scenarios) over the European power technologies mix. The results confirm the need of the availability of these technologies in 2030, beyond the potential costs and risks of both options. The reason lies in the methodological approach of portfolio theory, which allows an analysis from an efficient portfolio point of view.