Techno-Economic Analysis of Fusion Energy in the European Electricity Market

Abstract

This study explores the potential of fusion energy in the decarbonization of the European Union its electricity market. The study simulates various scenarios by employing the GenX least-cost optimization model, factoring in different investment costs and emission caps. The research addresses how fusion energy could influence total system costs, electricity prices, and competitiveness against other technologies. Results indicate that if introduced at low investment costs, fusion can transform the electricity system, acting as a baseload power source and altering investment dynamics. Conversely, in scenarios where fusion investment costs are higher, the results predict a diversified electricity mix dominated by renewables like wind and solar, complemented by gas with Carbon Capture and Storage (CCS) and battery storage to manage intermittency and maintain grid stability.