The carbon component of the U.K. power price

The EU Emissions Trading Scheme (ETS) to regulate emissions of carbon dioxide started in January 2005. The first phase, 2005-2007, is designed to prepare the EU economy for its obligations under the Kyoto Protocol. The second phase, the Kyoto period, will run from 2008-2012, with further 5-year periods planned. ETS uses a cap-and-trade system where each EU state government sets an emissions cap for companies in different sectors. The EU allowances (EUAs) are tradable in 25 EU member states via a system of national registries. This paper examines the evolution of the power price in the UK by dividing the price into a fuel component, a carbon component introduced by emissions trading, and the remaining spread. It establishes when a carbon component was introduced and the extent to which it contributes to the total power price. The absorption of the price of EUAs by the power market is discussed with reference to the spark spread and dark spread. Energy contracts for the UK with delivery 1 year ahead are examined using historical data.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/0013936X
• Authors:
  • VOORSPOOLS, K
• Publication Date: 2006-8-1

Language

• English

Media Info

• Pagination: 4543-6
• Serial:
  • Environmental Science & Technology
  • Volume: 40
  • Issue Number: 15
  • Publisher: American Chemical Society
  • ISSN: 0013-936X
  • EISSN: 1520-5851
  • Serial URL: http://pubs.acs.org/journal/esthag

Subject/Index Terms

• TRT Terms: Carbon dioxide; Economics; Electricity; Environmental protection; Federal government; Pollutants
• Identifier Terms: European Union
• Subject Areas: Economics; Energy; Environment; I10: Economics and Administration; I15: Environment;

Filing Info

• Accession Number: 01040712
• Record Type: Publication
• Source Agency: TRL
• Files: ITRD
• Created Date: Jan 17 2007 8:41AM