Impacts of new rules under EU emission trading system on the fuel and technology mix of the Polish power sector

The paper presents the impacts of new rules of the EU ETS on the fuel and technology mix of the Polish power sector. Those new rules were introduced in the third phase of ETS from 2013 to 2020. The most important one is introduction of full auctioning of CO₂ allowances for electricity generators. For this study the technical - economic model of the Polish power sector has been developed with the use of the TIMES platform. The results show that coal will still remain the main fuel used for power generation in Poland. However, the greater is the numbers of CO₂ allowances to be bought the more RES technologies are proposed. According to the authors, the new rules implemented in the third phase of the EU ETS should lead to revision of the RES support schemes as part of external costs is now internalized in the activity costs of power plants.