Untangling the web : integrating energy and environmental policy instruments by assessing their interactions along power systems

Abstract

In this dissertation the necessity and benefits of developing integrated policy approaches to the energy systems in general, and power systems in particular were assessed. The research work covers not only the integration of energy and environment policy objectives, but also the integration of different policy instruments along the power system. A two part methodology was developed:

1) a framework to map and qualitatively assess the most relevant interactions between the energy and environment policy instruments currently in place, and

2) a complementary methodology to quantify the effects of the most relevant interactions using an optimisation bottom-up energy system model (TIMES model).

It is concluded that there are relevant interactions between current energy and environment policies instruments along the power system. These are named co-effects and can be either synergetic or antagonistic. It was found that antagonistic co-effects affect effectiveness and cost-effectiveness of the policy instruments and can represent a significant cost for the overall energy system. For the case-study of Portugal used in this dissertation, antagonistic interactions between policies were estimated to representing roughly up to 2% of the 2010 Portuguese GDP