EU und Energy

Tasks

The study will be conducted within a framework agreement with the Chamber of Commerce and Industry for Munich and Upper Bavaria. This is a major, ongoing project involving independent, scientifically based economic advisory work. Details

European emissions trading (EU ETS) is the central policy for implementing far-reaching decarbonization of electricity generation, industrial processes, air traffic and shipping. Through volume control, a CO₂-Preis price is formed, which can be seen as a signal to invest in clean technol- ogies. At the same time, electricity generation through the electrification of industrial pro- cesses, the electrification of sectors not (yet) regulated in the EU ETS (transport, heating/build- ings, agriculture/mining) and general electrification trends (cooling, digitalization) are becom- ing the focus of European decarbonization strategies. The electricity price in particular is under pressure from the increased demand for electricity (due to electrification and economic growth) and the decarbonization trend. A low electricity price is therefore necessary for a successful energy transition.

This short study examines how such a low electricity price can be achieved and how it depends on the mechanisms of the EU ETS. Particular emphasis is placed on:

• progressive market integration in Europe with a focus on the market value of renewable energies and
• different assumptions about how the EU ETS works.