Environmental dispatch of the portuguese power system for CO2 emissions reduction

The present paper uses the concept of the environmental dispatch minimizing the CO2 emissions associated with the thermal generation of a power system. The environmental dispatch is applied to the Portuguese system and the respective results are compared to the results of a classical economic dispatch. The environmental and economic dispatch results comparison assumes the reference emissions allowances price of 20 euro/ton CO2. However, in order to understand the influence of the CO2 emissions allowances prices on the economic dispatch results, a sensitivity analysis was performed, considering different emissions allowances prices.