Potential impact of emission trading schemes on the Australian National Electricity Market

Xun Zhou, Zhao Yang Dong, Ariel Liebman, Geoff James

Research output: Chapter in Book/Report/Conference proceedingConference PaperResearchpeer-review

Abstract

Power industry worldwide has been identified as a major source of greenhouse gas emissions. Consequently, many countries have started the implementation of emission trading schemes aimed at reducing greenhouse gas emissions by power stations. The Australian government aims to implement an emission trading schemes from 2010/2011. This scheme will greatly change the market perspective of the Australian National Electricity Market (NEM). A thorough understanding of the potential impact of emission trading is essential for market participants as well as energy market policy makers. In this paper, a targeted study of the NEM is presented to illustrate the impact on generation companies of different design choices regarding the free allocation of permits aspect of the proposed emission trading scheme. A recommendation is proposed to best promote reduction of emissions while minimizing the adverse impact on the electricity system, particularly on the generation companies.

Original languageEnglish
Title of host publicationIEEE Power and Energy Society 2008 General Meeting
Subtitle of host publicationConversion and Delivery of Electrical Energy in the 21st Century, PES
DOIs
Publication statusPublished - 2008
Externally publishedYes
EventIEEE Power and Energy Society General Meeting 2008: Conversion and Delivery of Electrical Energy in the 21st Century - Pittsburgh, United States of America
Duration: 20 Jul 200824 Jul 2008

Conference

ConferenceIEEE Power and Energy Society General Meeting 2008
Abbreviated titlePES-GM 2008
CountryUnited States of America
CityPittsburgh
Period20/07/0824/07/08

Keywords

  • Emission trading
  • Market simulation
  • Sustainable development

Cite this

Zhou, X., Dong, Z. Y., Liebman, A., & James, G. (2008). Potential impact of emission trading schemes on the Australian National Electricity Market. In IEEE Power and Energy Society 2008 General Meeting: Conversion and Delivery of Electrical Energy in the 21st Century, PES [4596567] https://doi.org/10.1109/PES.2008.4596567
Zhou, Xun ; Dong, Zhao Yang ; Liebman, Ariel ; James, Geoff. / Potential impact of emission trading schemes on the Australian National Electricity Market. IEEE Power and Energy Society 2008 General Meeting: Conversion and Delivery of Electrical Energy in the 21st Century, PES. 2008.
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Zhou, X, Dong, ZY, Liebman, A & James, G 2008, Potential impact of emission trading schemes on the Australian National Electricity Market. in IEEE Power and Energy Society 2008 General Meeting: Conversion and Delivery of Electrical Energy in the 21st Century, PES., 4596567, IEEE Power and Energy Society General Meeting 2008, Pittsburgh, United States of America, 20/07/08. https://doi.org/10.1109/PES.2008.4596567

Potential impact of emission trading schemes on the Australian National Electricity Market. / Zhou, Xun; Dong, Zhao Yang; Liebman, Ariel; James, Geoff.

IEEE Power and Energy Society 2008 General Meeting: Conversion and Delivery of Electrical Energy in the 21st Century, PES. 2008. 4596567.

Research output: Chapter in Book/Report/Conference proceedingConference PaperResearchpeer-review

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T1 - Potential impact of emission trading schemes on the Australian National Electricity Market

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AU - Dong, Zhao Yang

AU - Liebman, Ariel

AU - James, Geoff

PY - 2008

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N2 - Power industry worldwide has been identified as a major source of greenhouse gas emissions. Consequently, many countries have started the implementation of emission trading schemes aimed at reducing greenhouse gas emissions by power stations. The Australian government aims to implement an emission trading schemes from 2010/2011. This scheme will greatly change the market perspective of the Australian National Electricity Market (NEM). A thorough understanding of the potential impact of emission trading is essential for market participants as well as energy market policy makers. In this paper, a targeted study of the NEM is presented to illustrate the impact on generation companies of different design choices regarding the free allocation of permits aspect of the proposed emission trading scheme. A recommendation is proposed to best promote reduction of emissions while minimizing the adverse impact on the electricity system, particularly on the generation companies.

AB - Power industry worldwide has been identified as a major source of greenhouse gas emissions. Consequently, many countries have started the implementation of emission trading schemes aimed at reducing greenhouse gas emissions by power stations. The Australian government aims to implement an emission trading schemes from 2010/2011. This scheme will greatly change the market perspective of the Australian National Electricity Market (NEM). A thorough understanding of the potential impact of emission trading is essential for market participants as well as energy market policy makers. In this paper, a targeted study of the NEM is presented to illustrate the impact on generation companies of different design choices regarding the free allocation of permits aspect of the proposed emission trading scheme. A recommendation is proposed to best promote reduction of emissions while minimizing the adverse impact on the electricity system, particularly on the generation companies.

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Zhou X, Dong ZY, Liebman A, James G. Potential impact of emission trading schemes on the Australian National Electricity Market. In IEEE Power and Energy Society 2008 General Meeting: Conversion and Delivery of Electrical Energy in the 21st Century, PES. 2008. 4596567 https://doi.org/10.1109/PES.2008.4596567