Energy market impacts of nuclear power phase-out policies

  • Solveig Glomsrød
  • Taoyuan Wei
  • Torben Mideksa
  • Bjørn H. Samset
Original Article

Abstract

Since the Fukushima disaster in Japan in March 2011, safety concerns have escalated and policies toward nuclear power are being reconsidered in several countries. This article presents a study of the upward pressure on regional electricity prices from nuclear power phase out in four scenarios with various levels of ambition to scale down the nuclear power industry. We use a global general equilibrium model to calculate regional electricity prices that are matching demand with the constrained power supply after the nuclear power phase out. Nuclear power exit in Germany and Switzerland might increase electricity prices in Europe moderately by 2–3 % early on to 4–5 % by 2035 if transmission capacity within the region is sufficient. In a gradual and comprehensive phase out of plants built before 2011, North America, Europe, and Japan face an upward pressure on electricity prices in the range of 23–28 % towards 2035, representing the incentives for further investments in any kind of electricity.

Keywords

Nuclear power Fukushima disaster Electricity market General equilibrium Carbon emissions 

Notes

Acknowledgments

We are grateful for constructive comments by two anonymous reviewers. This study has been carried out as part of activities of the center for “Strategic Challenges in International Climate and Energy Policy” (CICEP) at the Center for International Climate and Environmental Research - Oslo (CICERO). The CICEP center is mainly financed by the Research Council of Norway (No. 209701).

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Copyright information

© Springer Science+Business Media Dordrecht 2014

Authors and Affiliations

  • Solveig Glomsrød
    • 1
  • Taoyuan Wei
    • 1
  • Torben Mideksa
    • 1
  • Bjørn H. Samset
    • 1
  1. 1.Center for International Climate and Environmental Research - Oslo (CICERO)OsloNorway

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