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An energy system model to study the impact of combining renewable electricity and gas policies
Roach, Martin Meeus, Leonardo
Roach, Martin
Meeus, Leonardo
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Working paper
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Supervisor
Publication Year
2021
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Book
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Publication NUmber of pages
36
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Abstract
Energy system models are needed to help policy makers design renewable energy policies that combine support for renewable electricity with support for renewable gas. In this paper, we advance a stylized model that includes demand for electricity, heating, and hydrogen in industry that is supplied by competing technologies. We first show that the status quo in most countries, which is a combination of carbon pricing with support for renewable electricity, only supports green gases indirectly and in a limited way. When we then add direct support for renewable gas to the model, we have two main findings. First, a Renewable Energy Sources - Gas (RES-G) target is more effective in supporting biomethane than in supporting green hydrogen. Second, there are strong interaction effects between a RES-E target and a RES-G target that can be both complementary and substitutive.
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Keywords
Renewable Energy Policies, Renewable Gas, Policy Interaction Effects, Sector Coupling