ABSTRACT
This paper investigates the consequences of future increased transmission capacity between the hydro-based power production system in Scandinavia and the thermal-based power production system in Europe with main focus on impacts on market prices and exchanges between the two systems. One important consequence is a significant reduction of the spot price volatility of power in Scandinavia. Reduced volatility, and thus stable prices, is beneficial to both investors and consumers.
In addition to this, the paper deals with reduction of CO2 emissions from the integrated hydro-thermal production system with presentation of two alternative reduction strategies. The paper is based on model simulations with the EMPS model.
