Effects of Carbon Dioxide Capture and Storage in Germany on European Electricity Exchange and Welfare

The study finds that CCS deployment in Germany would lower spot market electricity prices and reduce imports from France, Belgium, and Poland, while increasing producer and consumer surpluses.

• The application of CCS in Germany induces a merit-order effect that lowers electricity prices on the spot market. In the CCS30 scenario (CO2 price of 30 Euro/t), the average electricity price is 3.7% lower than in the reference scenario, and in the CCS40 scenario (40 Euro/t), it is 6.4% lower.
• CCS deployment in Germany reduces the need for electricity imports from other European countries, specifically decreasing imports of nuclear power from France and Belgium and coal-fired power from Poland. This shift increases domestic electricity production in Germany by 1.8% in the CCS30 scenario.
• The use of CCS increases both producer and consumer surpluses in Germany. In the CCS30 scenario, the additional producer surplus is 1,934 million Euro and the increase in consumer surplus is 840 million Euro.
• The profitability of CCS investments depends heavily on CO2 allowance prices. With a CO2 price of 20 Euro/t, the payback period for additional investment costs can take up to 38 years, but this drops to approximately 10 years if the price is 40 Euro/t.
• Increasing renewable energy (REG) capacity can interact with CCS in different ways: adding wind and PV capacity without reducing fossil fuels lowers spot market prices and increases producer surplus, whereas adding REG while reducing coal capacity increases electricity prices and decreases production.

APA

Rübbelke, D., & Vögele, S. (2012). Effects of Carbon Dioxide Capture and Storage in Germany on European Electricity Exchange and Welfare. Basque Centre for Climate Change. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201206270151112063233692.pdf

Chicago

Rübbelke, Dirk, and Stefan Vögele. Effects of Carbon Dioxide Capture and Storage in Germany on European Electricity Exchange and Welfare. Basque Centre for Climate Change, 2012. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201206270151112063233692.pdf.

Wikipedia

{{cite report |last1=Rübbelke |first1=Dirk |last2=Vögele |first2=Stefan |title=Effects of Carbon Dioxide Capture and Storage in Germany on European Electricity Exchange and Welfare |publisher=Basque Centre for Climate Change |date=June 2012 |url=https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201206270151112063233692.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rbbelke2012effects, author = {Rübbelke, Dirk and Vögele, Stefan}, title = {{Effects of Carbon Dioxide Capture and Storage in Germany on European Electricity Exchange and Welfare}}, institution = {Basque Centre for Climate Change}, year = {2012}, month = jun, url = {https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201206270151112063233692.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }