During recent years power markets have been liberalized in the EU countries. Competition between power producers has increased, and investments in new power production facilities must be initiated on a more commercial basis.At the same time environmental issues have been the focus of attention. This especially applies to the fulfilment of the Kyoto targets in 2008-2012 regarding CO2 and in relation to the implementation of the large combustion plant directive (LCPD) which concerns emissions of SO2 and NOx.
Power system analysis is an important tool for evaluating the future development and needed investments in the electricity sector.COWI can assist power companies, national authorities and decision makers prepare analyses of large and complex power systems.The power sector analyses can be used to evaluate the consequences of making psychical changes in power systems. This may, for instance, have to do with the closure of existing power plants, the establishment of new power plants or increased transmission capacity between regions or countries.The analyses can also be used to evaluate the consequences for power systems of different regulations, e.g. the introduction of environmental taxes or quotas - or the introduction of a market for CO2-emission permits.
COWI’s quantative technical and economic analyses normally focus on future production patterns in one or more countries, development in fuel consumption, emissions and market prices and the resulting welfare-economic consequences for power producers, consumers and society. The quantitative analyses are carried out by the help of modelling tools. COWI has specific experience of using and modifying the Balmorel model, which covers the Nordic and Baltic power systems.
Other types of power sector analyses can be of a more qualitative and non-technical nature. This type of analysis may, for instance, focus on the functioning of the electricity market.