1. Fuel choice in West European power generation since the 1960s.
- Author
-
Soderholm, Patrik
- Subjects
FUEL ,ELECTRICITY ,ECONOMIC demand ,ECONOMIC conditions in Europe ,ELECTRIC power - Abstract
The purpose of the paper is to analyse the economic and political factors that have shaped West European fuel-use in power generation since the 1960s. The historical analysis concludes that political and institutional constraints have had a huge impact on fuel choice, especially on the construction of new plants. The influence of politics has, however, changed over time -- away from direct intervention towards regulation of decentralised markets. Further, the prospects for reactivating large-scale projects have become limited, and, as a result, the refurbishing and increased utilisation of existing plants, as well as conversions of plants to new fuels, soared in the 1980s and the early 1990s. Uncertainty about future fuel prices, few technical improvements in new plants, siting problems and stringent environmental regulations for new plants explain this development. Finally, the short-run flexibility of the West European power sector has improved since the 1970s, something which has important implications for the electricity sectors and fuel markets. [ABSTRACT FROM AUTHOR]
- Published
- 1999