Market position simulation of an independent power producer on the South East Europe electricity market

The aim of this paper is to evaluate market position of an independent power producer (IPP) on fossil fuel situated in the South East Europe Regional Market (SEE REM). The IPP in SEE REM has to choose between purchasing emission unit allowances (EUA) through European Union Emission Trading Scheme (EU ETS) or to install carbon dioxide capture and storage system (CCS). To perform more accurate market evaluation the baseline market scenario and broader range of sensitivity scenario analysis have been made in this paper. Results show that investment in the CCS in the SEE REM is not profitable unless the EUA is significantly higher than today´s price of 5 €/tCO₂ [1].