European energy transition: Decomposing the performance of nuclear power

• Published in: Energy (Oxford) 2022-04, Vol.245, p.123244, Article 123244
• Main Authors: Marques, António Cardoso, Junqueira, Thibaut Manuel
• Format: Article
• Language: English
• Subjects: ARDL; Autoregressive models; Backups; Carbon dioxide; Carbon dioxide emissions; CO2 emissions; Electricity; Electricity pricing; Electricity system; Electrification; Emissions; Energy policy; Energy transition; Europe; Harmonised index of consumer prices; Nuclear electric power generation; Nuclear energy; Nuclear power; Nuclear reactors; Power consumption; Renewable electricity; System effectiveness
• ISSN: 0360-5442; 1873-6785
• DOI: 10.1016/j.energy.2022.123244

The quest for safe energy in the EU has increasingly led to a policy of zero nuclear power and a shift towards renewable sources. The phasing out of nuclear power is being carefully undertaken, so as not create negative externalities, even though not all countries are ready to make this move, and despite the valuable role nuclear energy can play in backing up intermittent renewables. This paper examines the transition towards carbon-free electrification through the interactions between the various electricity sources, using the Harmonised Index of Consumer Prices and carbon dioxide emissions in countries with nuclear power generation in the European Union and Switzerland. Monthly data, from January 2014 to December 2018 was analysed by means of an Autoregressive Distributed Lag model using the Driscoll and Kraay estimator with fixed effects. This approach allowed the electricity generation processes of the selected countries to be analysed, as well as the long- and short-run impacts. Our findings suggest that nuclear energy can be effective in accommodating renewable electricity into these systems, whereas using fossil generation to back up renewable sources leads to higher prices for consumers. •The dynamics of electricity sources transition in European nuclear power producing countries is analysed.•Focus on a panel of European nuclear power producing countries based on monthly data, from January 2014 to December 2018.•Distributed Lag model with the Driscoll and Kraay estimator, assessing the short and long-run effects, was carried out.•Nuclear power could be relevant to support the higher penetration of renewables; and.•Backing renewables by using fossil sources such as natural gas could compromise the zero emissions target.