Emissions accounting for use and supply of electricity in the Nordic market

In the deregulated Nordic electricity market, countries have varying kinds of power generation. In Norway, hydropower generation dominates, while the Swedish electricity production largely consists of equal shares of hydro and nuclear power production. There is a larger share of fossil fuel power generation in Finland and, especially, in Denmark. Cross-border trade between the countries is considerable. Increased use of electricity anywhere in the region may thus entail augmented emissions of greenhouse gases. The amount of increased emissions due to additional electricity usage will depend on the type of generation supplying the additional electricity. Similarly, a decrease in electricity usage may involve reduced greenhouse gas emissions. In this paper, we discuss some different ways to account for changes in greenhouse gas emissions because of a changed use or supply of electricity. A comprehensive accounting scheme should provide an accurate link between various types of energy measures and their related emissions in order to facilitate cost-effective carbon dioxide mitigation procedures.

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