Heat or power: How to increase the use of energy wood at the lowest cost?

We show that the scenario with the highest carbon price and the lowest number of nuclear plants is the least expensive from a budgetary perspective. Indeed, when associated with a high carbon price, co-firing may increase FW-E demand with a lower subsidy level, which makes it possible to reduce the cost of reaching the target. However, in this case, FW-E crowds out part of FW-H, which may cause political and economic issues. From a carbon balance perspective, an FW-H-only scenario performs better than any other scenario that combines FW-H and FW-E due to the relatively low emissions factors of alternative technologies for electricity generation and, in particular, nuclear energy.