Abstract:

The paper presents the most important issues related to environmental costs in a electricity production company under the current III period of the EU Emissions Trading Scheme. In the current stage of EU ETS a clear distinction has been made with respect to free allocation of CO2 allowances for electricity generation producers and other industries. In some countries it is possible to receive free EUAs by the energy sector, however, under strict exemption from the obligation to buy the EUA at auctions, under the so-called derogation. For the purposes of this article an example of the management of CO2 emissions in the modern power unit is discussed. As part of the discussions, the possibility of receiving a free allocation of CO2 allowances (EUAs) for the installation under derogation following investment under the National Investment Plans and management of the purchase of EUA for production was analyzed. Based on the mathematical model, the costs associated with the purchase of the EUA were calculated over the years, and then the sensitivity of the level of purchase of CO2 emissions to the cost of electricity production was analyzed.