Policy Brief

Carbon prices are increasing - Will this accerelate energy transition?

Published: 7 of November, 2018

The aim of the paper is to analyse the effects of the new ETS regulation on the carbon price and the wholesale electricity prices. The policy brief summarizes the main characteristics of the ETS regulation accepted in 2018 spring, and the effects on the EUA prices in the future. The increasing EUA price affects the electricity markets as well. REKK simulation shows how much wholesale electricity price increase is caused by 1 EUR increase in EUA price, and at which EUA price level the profitability of the Hungarian lignite-based power plant will be endangered.

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