Economic emission dispatch: a case study of Myanmar

Economic load dispatch (ELD), used as part of the modern energy management system basically minimizes the total generation fuel cost of thermal plants while satisfying various system constraints. However, ELD alone is not sufficient to reduce the pollutant emissions caused by fossil fuel burning for power generation. Thus, it becomes necessary to implement economic emission dispatch (EED) model, which aims to minimize both generation fuel cost and emissions simultaneously. Myanmar Power System is used as a case study in this model. The types of emissions considered in the study are carbon dioxide (CO₂) and nitrogen oxides (NO_x). A practical ramp‐rate of turbine generator units is also formulated and studied in the model. Total emission constraint on the whole system is further implemented to investigate the effect of emission limit on the variation of generation schedule among generating plants. It is found that whenever minimum cost of operation is taken as sole objective in the model, the corresponding emission level increases. Similarly, minimum emission dispatch results in higher operating cost. Therefore, both objectives are conflicting in nature and some weights must be assigned to obtain a non‐inferior solution. The case where the ramp‐rate is considered in problem formulation incurs higher cost than that without it. Several trade‐off curves obtained can be taken as guidelines to fix the desired level of cost and emission together by the operators. Copyright © 1999 John Wiley & Sons, Ltd.     

Upstream vs. downstream CO2 trading: A comparison for the electricity context

In electricity, “downstream” CO₂ regulation requires retail suppliers to buy energy from a mix of sources so that their weighted emissions satisfy a standard. It has been argued that such “load-based” regulation would solve emissions leakage, cost consumers less, and provide more incentive for energy efficiency than traditional source-based cap-and-trade programs. Because pure load-based trading complicates spot power markets, variants (GEAC and CO₂RC) that separate emissions attributes from energy have been proposed. When all generators and consumers come under such a system, these load-based programs are equivalent to source-based trading in which emissions allowances are allocated by various rules, and have no necessary cost advantage. The GEAC and CO₂RC systems are equivalent to giving allowances free to generators, and requiring consumers either to subsidize generation or buy back excess allowances, respectively. As avoided energy costs under source-based and pure load-based trading are equal, the latter provides no additional incentive for energy efficiency. The speculative benefits of load-based systems are unjustified in light of their additional administrative complexity and cost, the threat that they pose to the competitiveness and efficiency of electricity spot markets, and the complications that would arise when transition to a federal cap-and-trade system occurs.     

Power and cogeneration technology environomic performance typification in the context of CO2 abatement part I: Power generation

In this series of two articles, the concepts and approaches of environomic (thermodynamic, economic and environmental) performance ‘Typification’ of power generation technologies (Part I) and of combined heat and power (CHP) cogeneration technologies (Part II) in the context of CO₂ abatement are introduced. A methodology is then proposed for a flexible and fast project based power or CHP cogeneration system design evaluation though post-optimization integration of the operating and capital costs. This allows to effectively deal with the uncertainty of the project specific design and operation conditions (fuel, electricity and heat selling prices, project financial conditions such as investment amortization periods, annual operating hours, etc). Furthermore, the uncertainties linked to the external cost such as the CO₂ tax level under a tax scheme or the CO₂ permit price in the emission trading market can be assessed.     

Power and cogeneration technology environomic performance typification in the context of CO2 abatement part II: Combined heat and power cogeneration

This is the second of a series of two articles, dealing with a new approach of environomic (thermodynamic, economic and environmental) performance ‘Typification’ and optimization of power generation technologies. This part treats specifically of combined heat and power (CHP) cogeneration technologies in the context of CO₂ abatement and provides a methodology for a flexible and fast project based CHP system design evaluation. One of the aspect of the approach is the post-optimization integration of the operating and capital costs, in order to effectively deal with the uncertainty of the project specific design and operation conditions (fuel, electricity and heat selling prices, project financial conditions such as investment amortization periods, annual operating hours, etc). In addition the approach also allows to efficiently evaluate the influence of the external cost such as the CO₂ tax level under a tax scheme or the CO₂ permit price in the emission trading market.     

Potential cost savings from internal/external CO2 emissions trading in the Korean electric power industry

Korea plans to introduce an emissions trading scheme for the controlling greenhouse gas emissions in 2015. Using Shephard's (1970) output distance function, we first estimate the shadow price of CO₂ for power generators in the Korean fossil-fueled electric generation industry. Then, by assuming that each power generator is required to reduce CO₂ emissions by one ton, we compute the potential cost savings from internal trading among generators within the same plant and from external trading across plants at prevailing market prices. The results indicate that, on average, the generators paid $14.63 to abate one ton of CO₂ emissions in 2007. Plants realized additional gains through external trading. In particular, cost savings from trades between different fuel-fired plants were substantial.     

Preliminary exploration on low-carbon technology roadmap of China’s power sector

Climate change poses huge challenges to the sustainable development of human society. As a major CO₂ emission source, decarbonization of power sector is fundamental for CO₂ emission abatement. Therefore, considering the “carbon lock-in” effects, it’s critical to formulate an appropriate roadmap for low-carbon generation technologies. In this paper, key low-carbon technology solutions are firstly identified according to their developing prospects and the fundamental realities of China’s power sector. Then, costs, reduction effects and potentials for the key technology options are evaluated. On this basis, typical scenarios are selected and a scenario set is established which identifies and incorporates the key low carbon factors, and a multi-scenario analysis is implemented to China’s power sector based on a comprehensive power mix planning model. Then, contributions of CO₂ reduction among the key technology solutions are revealed. Prospect for CO₂ emission reduction is discussed, which informs the possible emission trajectories towards 2030. Finally, low-carbon technology roadmaps under specific scenarios are elaborated, which implies corresponding optimal evolution of power generation mix.     

Evolution of China’s power dispatch principle and the new energy saving power dispatch policy

With social economic reform in the past decades, the power industry of China is gradually evolving from a highly integrated one toward an electricity market, which can be characterized based on the transition of the power dispatch principle. To attract investment in the power generating industry, China introduced non-state-owned power plants to the original system of a highly vertically integrated power industry with annual power generation quota guarantees, which makes the traditional economic dispatch principle not applicable. The newly debuted energy saving power dispatch (ESPD) is an attempt to fully exploit the maximum energy savings and was implemented by an administrative code. Starting in August 2007, the pilot operation of the ESPD was implemented in five provinces, but after two years, it is still not widely applied all over the country. This paper details the transition of China’s power dispatch principle with particular attention to its origin and content. Moreover, the factors that influence the ESPD’s actual energy saving effect are discussed, as well as the sustainability of the policy.     

A comparative analysis of energy and CO2 taxes on the primary energy mix for electricity generation

In many countries, economies are moving towards internalization of external costs of greenhouse‐gas (GHG) emissions. This can best be achieved by either imposing additional taxes or by using an emission‐permit‐trading scheme. The electricity sector is under scrutiny in the allocation of emission‐reduction objectives, not only because it is a large homogeneous target, but also because of the obvious emission‐reduction potential by decreasing power generation based on carbon‐intensive fuels. In this paper, we discuss the impact of a primary‐energy tax and a CO₂ tax on the dispatching strategy in power generation. In a case study for the Belgian power‐generating context, several tax levels are investigated and the impact on the optimal dispatch is simulated. The impact of the taxes on the power demand or on the investment strategies is not considered. As a conclusion, we find that a CO₂ tax is more effective than a primary‐energy tax. Both taxes accomplish an increased generation efficiency in the form of a promotion of combined‐cycle gas‐fired units over coal‐fired units. The CO₂ tax adds an incentive for fuel switching which can be achieved by altering the merit order of power plants or by switching to a fuel with a lower carbon content within a plant. For the CO₂ tax, 13 €/tonCO₂ is withheld as the optimal value which results in an emission reduction of 13% of the electricity‐related GHG emissions in the Belgian power context of 2000. A tax higher than 13 €/tonCO₂ does not contribute to the further reduction of GHGs. Copyright © 2005 John Wiley & Sons, Ltd.     

Status of thermal power generation in India—Perspectives on capacity,generation and carbon dioxide emissions

India’s reliance on fossil-fuel based electricity generation has aggravated the problem of high carbon dioxide (CO₂) emissions from combustion of fossil fuels, primarily coal, in the country’s energy sector. The objective of this paper is to analyze thermal power generation in India for a four-year period and determine the net generation from thermal power stations and the total and specific CO₂ emissions. The installed generating capacity, net generation and CO₂ emissions figures for the plants have been compared and large generators, large emitters, fuel types and also plant vintage have been identified. Specific emissions and dates of commissioning of plants have been taken into account for assessing whether specific plants need to be modernized. The focus is to find out areas and stations which are contributing more to the total emissions from all thermal power generating stations in the country and identify the overall trends that are emerging.     

A new fuzzy adaptive hybrid particle swarm optimization algorithm for non-linear, non-smooth and non-convex economic dispatch problem

Economic dispatch (ED) plays an important role in power system operation. ED problem is a non-smooth and non-convex problem when valve-point effects of generation units are taken into account. This paper presents an efficient hybrid evolutionary approach for solving the ED problem considering the valve-point effect. The proposed algorithm combines a fuzzy adaptive particle swarm optimization (FAPSO) algorithm with Nelder–Mead (NM) simplex search called FAPSO-NM. In the resulting hybrid algorithm, the NM algorithm is used as a local search algorithm around the global solution found by FAPSO at each iteration. Therefore, the proposed approach improves the performance of the FAPSO algorithm significantly. The algorithm is tested on two typical systems consisting of 13 and 40 thermal units whose incremental fuel cost functions take into account the valve-point loading effects.     

Baseload wind energy: modeling the competition between gas turbines and compressed air energy storage for supplemental generation

The economic viability of producing baseload wind energy was explored using a cost-optimization model to simulate two competing systems: wind energy supplemented by simple- and combined cycle natural gas turbines (“wind+gas”), and wind energy supplemented by compressed air energy storage (“wind+CAES”). Pure combined cycle natural gas turbines (“gas”) were used as a proxy for conventional baseload generation. Long-distance electric transmission was integral to the analysis. Given the future uncertainty in both natural gas price and greenhouse gas (GHG) emissions price, we introduced an effective fuel price, p_NGeff, being the sum of the real natural gas price and the GHG price. Under the assumption of p_NGeff=$5/GJ (lower heating value), 650 W/m² wind resource, 750 km transmission line, and a fixed 90% capacity factor, wind+CAES was the most expensive system at ¢6.0/kWh, and did not break even with the next most expensive wind+gas system until p_NGeff=$9.0/GJ. However, under real market conditions, the system with the least dispatch cost (short-run marginal cost) is dispatched first, attaining the highest capacity factor and diminishing the capacity factors of competitors, raising their total cost. We estimate that the wind+CAES system, with a greenhouse gas (GHG) emission rate that is one-fourth of that for natural gas combined cycle plants and about one-tenth of that for pulverized coal plants, has the lowest dispatch cost of the alternatives considered (lower even than for coal power plants) above a GHG emissions price of $35/tC_equiv., with good prospects for realizing a higher capacity factor and a lower total cost of energy than all the competing technologies over a wide range of effective fuel costs. This ability to compete in economic dispatch greatly boosts the market penetration potential of wind energy and suggests a substantial growth opportunity for natural gas in providing baseload power via wind+CAES, even at high natural gas prices.     

Capturing CO2 in flue gas from fossil fuel-fired power plants using dry regenerable alkali metal-based sorbent

CO₂ capture and storage (CCS) has received significant attention recently and is recognized as an important option for reducing CO₂ emissions from fossil fuel combustion. A particularly promising option involves the use of dry alkali metal-based sorbents to capture CO₂ from flue gas. Here, alkali metal carbonates are used to capture CO₂ in the presence of H₂O to form either sodium or potassium bicarbonate at temperatures below 100 °C. A moderate temperature swing of 120–200 °C then causes the bicarbonate to decompose and release a mixture of CO₂/H₂O that can be converted into a “sequestration-ready” CO₂ stream by condensing the steam. This process can be readily used for retrofitting existing facilities and easily integrated with new power generation facilities. It is ideally suited for coal-fired power plants incorporating wet flue gas desulfurization, due to the associated cooling and saturation of the flue gas. It is expected to be both cost effective and energy efficient.     

Internalisation of external cost in the power generation sector: Analysis with Global Multi-regional MARKAL model

The Global MARKAL-Model (GMM), a multi-regional “bottom-up” partial equilibrium model of the global energy system with endogenous technological learning, is used to address impacts of internalisation of external costs from power production. This modelling approach imposes additional charges on electricity generation, which reflect the costs of environmental and health damages from local pollutants (SO₂, NO_x) and climate change, wastes, occupational health, risk of accidents, noise and other burdens. Technologies allowing abatement of pollutants emitted from power plants are rapidly introduced into the energy system, for example, desulphurisation, NO_x removal, and CO₂ scrubbers. The modelling results indicate substantial changes in the electricity production system in favour of natural gas combined cycle, nuclear power and renewables induced by internalisation of external costs and also efficiency loss due to the use of scrubbers. Structural changes and fuel switching in the electricity sector result in significant reduction of emissions of both local pollution and CO₂ over the modelled time period. Strong decarbonisation impact of internalising local externalities suggests that ancillary benefits can be expected from policies directly addressing other issues then CO₂ mitigation. Finally, the detailed analysis of the total generation cost of different technologies points out that inclusion of external cost in the price of electricity increases competitiveness of non-fossil generation sources and fossil power plants with emission control.     

Would methanol formed from CO2 from the atmosphere give the advantage of hydrogen at lesser cost?

Our energy situation is called precarious because of the frequent changes in reports on the date of Hubert’s peak and the danger of oncoming global warming. Further, there is the several decades needed to build a new system of energy production and distribution. This paper describes various likely methods which we could use. It concludes that methanol synthesized from hydrogen and CO₂ removed from the atmosphere allows this substance to be used in our situation with zero net CO₂ results. It would then remove the problem of the cost of storage, transportation and reconversion to electricity which hangs on to the use of hydrogen itself. On the other hand its use would provide, in practice, a “liquid form” of hydrogen.     

Hydrogen production through sorption-enhanced steam methane reforming and membrane technology: A review

With the rapid development of industry, more and more waste gases are emitted into the atmosphere. In terms of total air emissions, CO₂ is emitted in the greatest amount, accounting for 99 wt% of the total air emissions, therefore contributing to global warming, the so-called “Greenhouse Effect”. The recovery and disposal of CO₂ from flue gas is currently the object of great international interest. Most of the CO₂ comes from the combustion of fossil fuels in power generation, industrial boilers, residential and commercial heating, and transportation sectors. Consequently, in the last years’ interest in hydrogen as an energy carrier has significantly increased both for vehicle fuelling and stationary energy production from fuel cells. The benefits of a hydrogen energy policy are the reduction of the greenhouse effect, principally due to the centralization of the emission sources. Moreover, an improvement to the environmental benefits can be achieved if hydrogen is produced from renewable sources, as biomass.     

Energetic and exergetic analysis of CO2- and R32-based transcritical Rankine cycles for low-grade heat conversion

Transcritical Rankine cycles using refrigerant R32 (CH₂F₂) and carbon dioxide (CO₂) as the working fluids are studied for the conversion of low-grade heat into mechanical power. Compared to CO₂, R32 has higher thermal conductivity and condenses easily. The energy and exergy analyses of the cycle with these two fluids shows that the R32-based transcritical Rankine cycle can achieve 12.6–18.7% higher thermal efficiency and works at much lower pressures. An analysis of the exergy destruction and losses as well as the exergy efficiency optimization of the transcritical Rankine cycle is conducted. Based on the analysis, an “ideal” working fluid for the transcritical Rankine cycle is conceived, and ideas are proposed to design working fluids that can approach the properties of an “ideal” working fluid.     

Optimal operation of an integrated energy system including fossil fuel power generation, CO2 capture and wind

This study considers the optimization of operations for an integrated fossil-renewable energy system with CO₂ capture. The system treated consists of a coal-fired power station, a temperature-swing absorption CO₂ capture facility powered by a natural gas combustion turbine, and wind generation. System components are represented in a modular fashion using energy and mass balances. Optimization is applied to determine hourly system dispatch to maximize operating profit given energy prices and wind generation data. A CO₂ emission constraint, modeled after a California law, is enforced. Idealized and realistic scenarios are considered, along with several different system specifications. For a year of operation, simulated using available wind and energy price data, operating profit for optimized operation is shown to be approximately 20% greater than profit using a heuristic procedure. The benefit from optimization is positively correlated with electricity price variability and mean wind generation. The impact of different component specifications and different CO₂ absorption solvents on the optimal operation of the energy system is also assessed. In total, this study demonstrates that the effective operating cost of an integrated energy system operating under a CO₂ emission constraint can be substantially reduced via optimal flexible operation.     

Boiling coal in water: Hydrogen production and power generation system with zero net CO2 emission based on coal and supercritical water gasification

Coal is the single most important fuel for power generation today. Nowadays, most coal is consumed by means of “burning coal in air” and pollutants such as NO_x, SO_x, CO₂, PM2.5 etc. are inevitably formed and mixed with excessive amount of inner gases, so the pollutant emission reduction system is complicated and the cost is high. IGCC is promising because coal is gasified before utilization. However, the coal gasifier mostly operates in gas environments, so special equipments are needed for the purification of the raw gas and CO₂ emission reduction. Coal and supercritical water gasification process is another promising way to convert coal efficiently and cleanly to H₂ and pure CO₂. The gasification process is referred to as “boiling coal in water” and pollutants containing S and N deposit as solid residual and can be discharged from the gasifier. A novel thermodynamics cycle power generation system was proposed by us in State Key Laboratory of Multiphase Flow in Power Engineering (SKLMFPE) of Xi'an jiaotong University (XJTU), which is based on coal and supercritical water gasification and multi-staged steam turbine reheated by hydrogen combustion. It is characterized by its high coal-electricity efficiency, zero net CO₂ emission and no pollutants. A series of experimental devices from quartz tube system to a pilot scale have been established to realize the complete gasification of coal in SKLMFPE. It proved the prospects of coal and supercritical water gasification process and the novel thermodynamics cycle power generation system.     

Joint economic and emission dispatch in energy markets: A multiobjective mathematical programming approach

Economic load dispatch is the method of determining the most efficient, low-cost and reliable operation of a power system by dispatching the available electricity generation resources to supply the load on the system. Environmental concerns that arise due to the operation of fossil fuel fired electric generators, change the classical problem into multiobjective emission/economic dispatch (MEED) which is formulated as a constrained nonlinear multiobjective mathematical programming (MMP). The proposed MEED formulation includes emission minimization objective, AC load flow constraints and security constraints of the power system which usually are found simultaneously in real-world power systems. The proposed model has a more accurate evaluation of transmission losses obtained from the load flow equations. The MMP approach based on ?-constraint algorithm has been proposed for generating Pareto-optimal solutions of power systems MEED problem. Moreover, fuzzy decision making process is employed to extract one of the Pareto-optimal solutions as the best compromise nondominated solution. The proposed approach is simulated on the IEEE 30-bus six-generator test system and obtained results have been comprehensively compared with some of the most recently published research in the area (from the both aspects of precision and execution tome) which confirms the potential and effectiveness of the proposed approach.     

Techno-economic appraisal of fossil-fuelled power generation systems with carbon dioxide capture and storage

Carbon capture and storage (CCS) facilities coupled to power plants provide a climate change mitigation strategy that potentially permits the continued use of fossil fuels whilst reducing the carbon dioxide (CO₂) emissions. This process involves three basic stages: capture and compression of CO₂ from power stations, transport of CO₂, and storage away from the atmosphere for hundreds to thousands of years. Potential routes for the capture, transport and storage of CO₂ from United Kingdom (UK) power plants are examined. Six indicative options are evaluated, based on ‘Pulverised Coal’, ‘Natural Gas Combined Cycle’, and ‘Integrated (coal) Gasification Combined Cycle’ power stations. Chemical and physical CO₂ absorption capture techniques are employed with realistic transport possibilities to ‘Enhanced Oil Recovery’ sites or depleted gas fields in the North Sea. The selected options are quantitatively assessed against well-established economic and energy-related criteria. Results show that CO₂ capture can reduce emissions by over 90%. However, this will reduce the efficiency of the power plants concerned, incurring energy penalties between 14 and 30% compared to reference plants without capture. Costs of capture, transport and storage are concatenated to show that the whole CCS chain ‘cost of electricity’ (COE) rises by 27-142% depending on the option adopted. This is a significant cost increase, although calculations show that the average ‘cost of CO₂ captured’ is £15/tCO₂ in 2005 prices [the current base year for official UK producer price indices]. If potential governmental carbon penalties were introduced at this level, then the COE would equate to the same as the reference plant, and make CCS a viable option to help mitigate large-scale climate change.