Switch Level / Switch Range

The higher the EUA price, the more profitable gas-fired power plants are compared to coal-fired power plants. The switch level states the price of EUA at which the running costs of gas-fired power plants and coal-fired power plants are equal. If the EUA price is higher than the switch level, then producing power in gas-fired plants is less expensive than in coal-fired plants. The running costs mainly include fuel and CO2 costs. As for the calculation of the switch levels, various assumptions concerning the efficiency of power plants are made, so there is no fixed price from which gas-fired power plants start running. Therefore it is more reasonable to talk about a switch range.

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