Determination of optimal CO2 allowance prices for stimulation of investments in CCS, RES and other carbon-clean technologies in Kazakhstan

Notable decrease of CO₂ emissions is an extremely hot topic on the agenda of the world community. Most of the UN countries, as a part of their effort, set policies that stimulate the use of technologies based on renewable energy sources (RES) that also contribute to a reduction of carbon emissions. This chapter proposes a study of the CO₂ allowance price and its impact on the penetration of carbon capture and storage (CCS) and RES technologies in Kazakhstan's energy sector. The RES are available at each node n with a maximum nodal capacity of 100 MW. Each node has the corresponding coefficient of RES availability. The study is conducted employing a modified standard supply chain model in a linear formulation, which primarily addresses the following issues: investment in CCS and RES, new coal and gas power plants, time of investment, satisfaction of demand constraints and higher accuracy modelling of network security through a DC load flow approach.