Co-benefit analysis of incentives for energy generation and storage systems; a multi-stakeholder perspective

In this work, we are analyzing the advantages of energy incentives for all the stakeholders in an energy system. The stakeholders include the government, the energy hub operator, and the energy consumer. Two streams of energy incentives were compared in this work: incentives for renewable energy generation technologies and incentives for energy storage technologies. The first type aims increasing the share of renewable energies in the electricity system while the second type aims development of systems which use clean electricity to replace fossil fuels in other sectors of an energy system such as the transportation, residential and industrial sector. In this work, we are analyzing the advantages of energy incentives for all the stakeholders in an energy system. The stakeholders include the government, the energy hub operator, and the energy consumer. Two streams of energy incentives were compared in this work: incentives for renewable energy generation technologies and incentives for energy storage technologies. The first type aims to increase the share of renewable energies in the electricity system while the second type aims the development of systems which use clean electricity to replace fossil fuels in other sectors of an energy system such as the transportation, residential and industrial sector. The results of the analysis showed that replacing fossil fuel-based electricity generation with wind and solar power is a less expensive way for the energy consumer to reduce GHG emissions (60 and 92 CAD/ tonne CO_2e for wind and solar, respectively) compared to investing on energy storage technologies (225 and 317 CAD/ tonne CO_2e for Power-to-Gas and battery powered forklifts, respectively). However, considering the current Ontario's electricity mix, incentives for the Power-to-Gas and battery powered technologies are less expensive ways to reduce emissions compared to replacing the grid with wind and solar power technologies (1479 and 2418 CAD/ tonne CO_2e for wind and solar, respectively). Our analysis also shows that battery storage and hydrogen storage are complementary technologies for reducing GHG emissions in Ontario.     

Modeling of current and future energyintensity and greenhouse gas emissions ofthe Lebanese industrial sector: assessmentof mitigation options

Greenhouse gas emissions in Lebanon mainly come from energy activities, which are responsible for 85% of all CO₂ emissions. The CO₂ emissions from energy use in manufacturing industries and construction represent 24% of the total emissions of the energy sector. Lebanese manufacturers' accounted for 39.15 million gigajoules of fuel consumption for heat and power generation in 1994, including both fuel used directly and fuel burned remotely to generate electricity used in the sector. In addition to being processed by combustion, CO₂ is generated in calcining of carbonates in the manufacture of cement, iron and glass. Electricity, the most expensive form of energy, represented 25.87% of all fuel used for heat and power. Residual fuel oil and diesel, which are used mainly in direct combustion processes, represent 26.85 and 26.55% of all energy use by industry, respectively. Scenarios for future energy use and CO₂ emissions are developed for the industrial sector in Lebanon. The development of the baseline scenario relied on available data on major plants' outputs, and on reported amounts of fuels used by the industrial sector as a whole. Energy use in industry and the corresponding greenhouse gas (GHG) emissions for Lebanon are projected in baseline scenarios that reflect technologies, activities and practices that are likely to evolve from the base year 1994 to year 2040. Mitigation work targets a 15% of CO₂ emissions from the baseline scenario by year 2005 and a 20–30% reduction of CO₂ emissions by year 2040. The mitigation options selected for analysis are screened on the basis of GHG emissions and expert judgement on the viability of their wide-scale implementation and economic benefits. Using macroeconomic assessment and energy price assumptions, the final estimates of potential GHG emissions and reduction costs of various mitigation scenarios are calculated. The results show that the use of efficient electric motors, efficient boilers and furnaces with fuel switching from fuel oil to natural gas has the largest impact on GHG emissions at a levelized annual cost that ranges from −20 to −5 US$/tonne of CO₂ reduced. The negative costs are indicative of direct savings obtained in energy cost for those mitigation options.     

A comparison of avoided greenhouse gas emissions when using different kinds of wood energy

In this study, micro-level data from wood energy producers in Hedmark County were gathered and analysed. The aim was to find how much greenhouse gas (GHG) emissions various kinds of wood energy cause (not only CO₂, but also CH₄ and N₂O), which energy they substitute, their potential to reduce GHG emissions, and the major sources of uncertainty. The method was life cycle assessment. Six types of wood energy were studied: fuel wood, sawdust, pellets, briquettes, demolition wood, and bark.GHG emissions over the life cycle of the wood energy types in this study are 2–19% of the emissions from a comparable source of energy. The lowest figure is for demolition wood substituting oil in large combustion facilities, the highest for fuel wood used in dwellings to substitute electricity produced by coal-based power plants.Avoided GHG emissions per m³ wood used for energy were from 0.210 to 0.640 tonne CO₂-equivalents. Related to GWh energy produced, avoided GHG emissions were from 250 to 360 tonne CO₂-equivalents. Avoided GHG emissions per tonne CO₂ in the wood are 0.28–0.70 tonne CO₂-equivalents. The most important factors were technology used for combustion, which energy that is substituted, densities, and heating values. Inputs concerning harvest, transport, and production of the wood energy are not important.Overall, taking the uncertainties into account there is not much difference in avoided GHG emissions for the different kinds of wood energy.     

Achieving California's 80% greenhouse gas reduction target in 2050: Technology,policy and scenario analysis using CA-TIMES energy economic systems model

The CA-TIMES optimization model of the California Energy System (v1.5) is used to understand how California can meet the 2050 targets for greenhouse gas (GHG) emissions (80% below 1990 levels). This model represents energy supply and demand sectors in California and simulates the technology and resource requirements needed to meet projected energy service demands. The model includes assumptions on policy constraints, as well as technology and resource costs and availability. Multiple scenarios are developed to analyze the changes and investments in low-carbon electricity generation, alternative fuels and advanced vehicles in transportation, resource utilization, and efficiency improvements across many sectors. Results show that major energy transformations are needed but that achieving the 80% reduction goal for California is possible at reasonable average carbon reduction cost ($9 to $124/tonne CO₂e at 4% discount rate) relative to a baseline scenario. Availability of low-carbon resources such as nuclear power, carbon capture and sequestration (CCS), biofuels, wind and solar generation, and demand reduction all serve to lower the mitigation costs, but CCS is a key technology for achieving the lowest mitigation costs.     

Transitioning electricity systems: The environmental benefits and economic cost of repurposing surplus electricity in non-conventional end users

A power grid with a lower global warming impact has the potential to extend its benefits to energy systems that conventionally do not utilize electricity as their primary energy source. This study presents the case of Ontario where the role of complementing policies in transitioning electricity systems is assessed. The policy cost to incentivize surplus low emission electricity via an established mechanism for the transportation sector has been estimated (Electric and Hydrogen Vehicle Incentive Program). It is estimated that the 9056 (4760 battery and 4296 plug-in hybrid) electric vehicles that qualified for incentives from the provincial government at the end of 2016 vehicles cost $732.5-$883.9 to reduce a tonne of CO_2,e emissions over an eight year lifetime. This is then compared with the potential cost incurred by two power to gas energy hubs that utilize clean surplus electricity from the province to offset emissions within the natural gas sector. The use of hydrogen-enriched natural gas and synthetic natural gas (SNG) offsets emissions at $87.8 and $228.7 per tonne of CO_2,e in the natural gas sector. This analysis highlights the potential future costs for incentivizing new clean technologies such as electric vehicles and power to gas energy hubs in jurisdictions with a transitioning electricity system.     

GHG emissions and energy performance of offshore wind power

This paper presents specific life cycle GHG emissions from wind power generation from six different 5 MW offshore wind turbine conceptual designs. In addition, the energy performance, expressed by the energy indicators Energy Payback Ratio (EPR) Energy Payback Time (EPT), is calculated for each of the concepts.There are currently few LCA studies in existence which analyse offshore wind turbines with rated power as great as 5 MW. The results, therefore, give valuable additional environmental information concerning large offshore wind power. The resulting GHG emissions vary between 18 and 31.4 g CO₂-equivalents per kWh while the energy performance, assessed as EPR and EPT, varies between 7.5 and 12.9, and 1.6 and 2.7 years, respectively. The relatively large ranges in GHG emissions and energy performance are chiefly the result of the differing steel masses required for the analysed platforms. One major conclusion from this study is that specific platform/foundation steel masses are important for the overall GHG emissions relating to offshore wind power. Other parameters of importance when comparing the environmental performance of offshore wind concepts are the lifetime of the turbines, wind conditions, distance to shore, and installation and decommissioning activities.Even though the GHG emissions from wind power vary to a relatively large degree, wind power can fully compete with other low GHG emission electricity technologies, such as nuclear, photovoltaic and hydro power.     

Future energy consumption and greenhouse gas emissions in Jordanian industries

Most, i.e. 85%, of greenhouse gas (GHG) emissions in Jordan emanate as a result of fossil fuel combustion. The industrial sector consumed 23.3% of the total national fuel consumption for heat and electric-power generation in 1999. The CO₂ emissions from energy use in manufacturing processes represent 12.1% of the total national CO₂ emissions. Carbon dioxide is also released as a result of the calcining of carbonates during the manufacture of cement and iron. Electricity, which is the most expensive form of energy, in 1999 represented 45% of total fuel used for heat and power nationally. Heavy fuel oil and diesel oil represented 46% and 7%, respectively, of all energy used by industry. Scenarios for future energy-demands and the emissions of gaseous pollutants, including GHGs, have been predicted for the industrial sector. For these, the development of a baseline scenario relied on historical data concerning consumption, major industries’ outputs, as well as upon pertinent published governmental policies and plans. Possible mitigation options that could lead to a reduction in GHG emissions are assessed, with the aim of achieving a 10% reduction by 2010, compared with the baseline scenario. Many viable CO₂ emission mitigation measures have been identified for the industrial sector, and some of these can be considered as attractive opportunities due to the low financial investments required and short pay back periods. These mitigation options have been selected on the basis of low GHG emission rates and expert judgement as to their viability for wide-scale implementation and economic benefits. The predictions show that the use of more efficient lighting and motors, advanced energy systems and more effective boilers and furnaces will result in a significant reduction in the rates of GHG emissions at an initial cost of between 30 and 90 US$ t⁻¹ of CO₂ release avoided. However, most of these measures have a negative cost per ton of CO₂ reduced, indicating short pay-back periods for the capital investments needed.     

Economic and environmental competitiveness of high temperature electrolysis for hydrogen production

Alternative hydrogen production technologies are sought in part to reduce the greenhouse gas (GHG) emissions intensity compared with Steam Methane Reforming (SMR), currently the most commonly employed hydrogen production technology globally. This study investigates hydrogen production via High Temperature Steam Electrolysis (HTSE) in terms of GHG emissions and cost of hydrogen production using a combination of Aspen HYSYS® modelling and life cycle assessment. Results show that HTSE yields life cycle GHG emissions from 3 to 20 kg CO_2e/kg H₂ and costs from $2.5 to 5/kg H₂, depending on the system parameters (e.g., energy source). A carbon price of $360/tonne CO_2e is estimated to be required to make HTSE economically competitive with SMR. This is estimated to potentially decrease to $50/tonne CO_2e with future technology advancements (e.g., fuel cell lifetime). The study offers insights for technology developers seeking to improve HTSE, and policy makers for decisions such as considering support for development of hydrogen production technologies.     

Impacts of China's emissions trading schemes on deployment of power generation with carbon capture and storage

The establishment of an emissions trading scheme (ETS) in China creates the potential for a “least cost” solution for achieving the greenhouse gas (GHG) emissions reductions required for China to meet its Paris Agreement pledges. China has pledged to reduce CO₂ intensity by 60–65% in 2030 relative to 2005 and to stop the increase in absolute CO₂ emissions around 2030. In this series of studies, we enhance the MIT Economic Projection and Policy Analysis (EPPA) model to include the latest assessments of the costs of power generation technologies in China to evaluate the impacts of different potential ETS pathways on deployment of carbon capture and storage (CCS) technology. This paper reports the results from baseline scenarios where power generation prices are assumed to be homogeneous across the country for a given mode of generation. We find that there are different pathways where CCS might play an important role in reducing the emission intensity in China's electricity sector, especially for low carbon intensity targets consistent with the ultimate goals of the Paris Agreement. Uncertainty about the exact technology mix suggests that decision makers should be wary of picking winning technologies, and should instead seek to provide incentives for emission reductions. While it will be challenging to meet the CO₂ intensity target of 550 g/kWh for the electric power sector by 2020, multiple pathways exist for achieving lower targets over a longer timeframe. Our initial analysis shows that carbon prices of 35–40$/tCO₂ make CCS technologies on coal-based generation cost-competitive against other modes of generation and that carbon prices higher than 100$/tCO₂ favor a major expansion of CCS. The next step is to confirm these initial results with more detailed modeling that takes into account granularity across China's energy sector at the provincial level.     

Comparative assessment of future power generation technologies based on carbon price development

The long-term assessment of new electricity generation was performed for various long-run policy scenarios taking into account two main criteria: private costs and external GHG emission costs. Such policy oriented power generation technologies assessment based on carbon price and private costs of technologies can provide information on the most attractive future electricity generation technologies taking into account climate change mitigation targets and GHG emission reduction commitments for world regions.Analysis of life cycle GHG emissions and private costs of the main future electricity generation technologies performed in this paper indicated that biomass technologies except large scale straw combustion technologies followed by nuclear have the lowest life cycle GHG emission. Biomass IGCC with CO₂ capture has even negative life cycle GHG emissions. The cheapest future electricity generation technologies in terms of private costs in long-term perspective are: nuclear and hard coal technologies followed by large scale biomass combustion and biomass CHPs. The most expensive technologies in terms of private costs are: oil and natural gas technologies. As the electricity generation technologies having the lowest life cycle GHG emissions are not the cheapest one in terms of private costs the ranking of technologies in terms of competitiveness highly depend on the carbon price implied by various policy scenarios integrating specific GHG emission reduction commitments taken by countries and climate change mitigation targets.     

Transition scenarios of power generation in China under global 2 °C and 1.5 °C targets

Under the Paris Agreement, targets implemented for 2100 specify temperature increases well below 2 °C, with an ambitious target of 1.5 °C. China signed this agreement and will support these global targets. The question remains whether they are possible, especially considering the slow progress in recent decades, despite the fact that the Kyoto Protocol implemented these targets in 2010. The Intergovernmental Panel on Climate Change (IPCC) required modeling research teams to analyze possible pathways, policy options, and cost benefit analyses for GHG mitigation. China’s CO₂ emissions from the energy and cement industries already accounted for almost 29% of global emissions in 2017, and this trend is expected to continue increasing. The role of China in global GHG mitigation is therefore crucial. This study presents a scenario analysis for China’s power generation against the background of the global 2 °C and 1.5 °C targets. We discuss the possibility of a lower CO₂ emission power generation scenario in China in order to evaluate the national emission pathway towards these targets. Our findings suggest that China can accomplish rapid transition in the power generation sector, reaching its emission peak before 2025. This would make the global 2 °C target possible because energy system development is a key factor. Furthermore, the recent progress of key power generation technologies, potential for further investment in the power generation sector, and recent policy implementation all significantly contribute to China following a low carbon emission development pathway.     

A methodology for territorial distribution of CO2 emission reductions in transport sector

Greenhouse gas emission reduction is the pillar of the Kyoto Protocol and one of the main goals of the European Union (UE) energy policy. National reduction targets for EU member states and an overall target for the EU‐15 (8%) were set by the Kyoto Protocol. This reduction target is based on emissions in the reference year (1990) and must be reached by 2012. EU energy policy does not set any national targets, only an overall reduction target of 20% by 2020. This paper transfers global greenhouse gas emission reduction targets in both these documents to the transport sector and specifically to CO₂ emissions. It proposes a nonlinear distribution method with objective, dynamic targets for reducing CO₂ emissions in the transport sector, according to the context and characteristics of each geographical area. First, we analyse CO₂ emissions from transport in the reference year (1990) and their evolution from 1990 to 2007. We then propose a nonlinear methodology for distributing dynamic CO₂ emission reduction targets. We have applied the proposed distribution function for 2012 and 2020 at two territorial levels (EU member states and Spanish autonomous regions). The weighted distribution is based on per capita CO₂ emissions and CO₂ emissions per gross domestic product. Finally, we show the weighted targets found for each EU member state and each Spanish autonomous region, compare them with the real achievements to date, and forecast the situation for the years the Kyoto and EU goals are to be met. The results underline the need for ‘weighted’ decentralised decisions to be made at different territorial levels with a view to achieving a common goal, so relative convergence of all the geographical areas is reached over time. Copyright © 2011 John Wiley & Sons, Ltd.     

Greenhouse gas emissions from current and enhanced policies of China until 2030: Can emissions peak before 2030?

In June 2015, China announced its post-2020 reduction targets, its central element being the intention to peak CO₂ emissions by 2030 or earlier. China has implemented several policies to reduce its greenhouse gas (GHG) emissions. This study provides emission projections for China up to 2030 given current policies and a selected set of enhanced policies, and compares the results with projected CO₂ emission trajectories that are consistent with the announced target for 2030. The projections are based on existing scenarios and energy system and land use model calculations. We project that the 2030 CO₂ emission level consistent with a peak in CO₂ emissions by 2030 ranges from 11.3 to 11.8 GtCO₂. The corresponding total GHG emission level ranges from 13.5 to 14.0 GtCO₂e in 2030. Current policies are likely not to be sufficient to achieve the 2030 targets, as our projected total GHG emission level under current policies ranges from 14.7 to 15.4 GtCO₂e by 2030. However, an illustrative set of enhancement policy measures, all of which are related to national priorities, leads to projected GHG emission levels from 13.1 to 13.7 GtCO₂e by 2030 – and thus below the levels necessary for peaking CO₂ emissions before 2030.     

Comparative life-cycle assessment of a small wind turbine for residential off-grid use

As the popularity of renewable energy systems grows, small wind turbines are becoming a common choice for off-grid household power. However, the true benefits of such systems over the traditional internal combustion systems are unclear. This study employs a life-cycle assessment methodology in order to directly compare the environmental impacts, net-energy inputs, and life-cycle cost of two systems: a stand-alone small wind turbine system and a single-home diesel generator system. The primary focus for the investigation is the emission of greenhouse gases (GHG) including CO₂, CH₄, and N₂O. These emissions are calculated over the life-cycle of the two systems which provide the same amount of energy to a small off-grid home over a twenty-year period. The results show a considerable environmental benefit for small-scale wind power. The wind generator system offered a 93% reduction of GHG emissions when compared to the diesel system. Furthermore, the diesel generator net-energy input was over 200 MW, while the wind system produced an electrical energy output greater than its net-energy input. Economically, the conclusions were less clear. The assumption was made that diesel fuel cost over the next twenty years was based on May 2008 prices, increasing only in proportion to inflation. As such, the net-present cost of the wind turbine system was 14% greater than the diesel system. However, a larger model wind turbine would likely benefit from the effects of the ‘economy of scale,’ producing superior results both economically and environmentally.     

Energy balance and GHG-abatement cost of cassava utilization for fuel ethanol in Thailand

Since 2001, in order to enhance ethanol's cost competitiveness with gasoline, the Thai government has approved the exemption of excise tax imposed on ethanol, controlling the retail price of gasohol (a mixture of ethanol and gasoline at a ratio of 1:9) to be less than that of octane 95 gasoline, within a range not exceeding 1.5 baht a litre. The policy to promote ethanol for transport is being supported by its positive effects on energy security and climate change mitigation. An analysis of energy, greenhouse gas (GHG) balances and GHG abatement cost was done to evaluate fuel ethanol produced from cassava in Thailand. Positive energy balance of 22.4 MJ/L and net avoided GHG emission of 1.6 kg CO₂ eq./L found for cassava-based ethanol (CE) proved that it would be a good substitute for gasoline, effective in fossil energy saving and GHG reduction. With a GHG abatement cost of US$99 per tonne of CO₂, CE is rather less cost effective than the many other climate strategies relevant to Thailand in the short term. Opportunities for improvements are discussed to make CE a reasonable option for national climate policy.     

Long-term CO2 emissions reduction target and scenarios of power sector in Taiwan

This study analyses a series of carbon dioxide (CO₂) emissions abatement scenarios of the power sector in Taiwan according to the Sustainable Energy Policy Guidelines, which was released by Executive Yuan in June 2008. The MARKAL-MACRO energy model was adopted to evaluate economic impacts and optimal energy deployment for CO₂ emissions reduction scenarios. This study includes analyses of life extension of nuclear power plant, the construction of new nuclear power units, commercialized timing of fossil fuel power plants with CO₂ capture and storage (CCS) technology and two alternative flexible trajectories of CO₂ emissions constraints. The CO₂ emissions reduction target in reference reduction scenario is back to 70% of 2000 levels in 2050. The two alternative flexible scenarios, Rt4 and Rt5, are back to 70% of 2005 and 80% of 2005 levels in 2050. The results show that nuclear power plants and CCS technology will further lower the marginal cost of CO₂ emissions reduction. Gross domestic product (GDP) loss rate in reference reduction scenario is 16.9% in 2050, but 8.9% and 6.4% in Rt4 and Rt5, respectively. This study shows the economic impacts in achieving Taiwan's CO₂ emissions mitigation targets and reveals feasible CO₂ emissions reduction strategies for the power sector.     

The future choice of technologies and co-benefits of CO2 emission reduction in Bangladesh power sector

This paper examines the impacts of CO₂ emission reduction on future technology selection and energy use in Bangladesh power sector up to 2035 considering the base year 2005. It also examines the implications of CO₂ emission reduction targets on energy security of the country. The analysis is based on a long-term energy system model of Bangladesh using the MARKAL framework. The results show that the introduction of the CO₂ emission reduction targets directly affect the shift of technologies from high carbon content fossil-based to low carbon content fossil-based as well as clean, renewable energy-based technologies compared to the base scenario. With the CO₂ emission reduction target of 10–30%, the cumulative net energy imports during 2005–2035 would be reduced in the range of over 1400 PJ to 4898 PJ compared to the base scenario emission level. The total primary energy requirement would be reduced in the range of 5.5–15.2% in the CO₂ emission reduction targets and the primary energy supply system would be diversified compared to the base scenario.     

Targeting existing power plants: EPA emission reduction with wind and demand response

Electricity generation accounts for 40% of CO₂ emissions from fossil fuel combustion in the United States. Section 111 of the Clean Air Act (CAA) allows for greenhouse gas emission regulation by the US Environmental Protection Agency (EPA). In June 2014, EPA issued the Clean Power Plan that proposes regulation of existing power plants via a “best system of emission reduction” or BSER. Reducing carbon dioxide emissions caused by electricity generation is one of the main motivations for increasing wind power and other renewable energy use, and this option is included in the BSER. This paper applies Monte Carlo simulation with a two-stage power flow optimization framework to analyze the potential CO₂ emission reduction with 10% and 20% wind penetration using the proposed BSER. The results show that EPA's BSER does achieve significant emission reduction, but an increase in cost of electricity and load curtailment can result if significant wind is installed without other measures. These concerns are eliminated by including recourse to real-time demand response along with EPA's BSER, suggesting that the proposed BSER, implemented alone, could be insufficient for reaching EPA's target CO₂ reductions while also safeguarding power system reliability and cost.     

Power sector development in India with CO2 emission targets: Effects of regional grid integration and the role of clean technologies

The power sector in India at present comprises of five separate regional electricity grids having practically no integrated operation in between them. This study analyses the utility planning, environmental and economical effects of integrated power sector development at the national level in which the regional electric grids are developed and operated as one integrated system. It also examines the effects of selected CO₂ emission reduction targets in the power sector and the role of renewable power generation technologies in India. The study shows that the integrated development and operation of the power system at the national level would reduce the total cost including fuel cost by 4912 million $, total capacity addition by 2784 MW, while the emission of CO₂, SO₂ and NO_x would be reduced by 231.6 (1.9%), 0.8 (0.9%), 0.4 (1.2%) million tons, respectively, during the planning horizon. Furthermore, the study shows that the expected unserved energy, one of the indices of generation system reliability, would decrease to 26 GWh under integrated national power system from 5158 GWh. As different levels of CO₂ emission reduction targets were imposed, there is a switching of generation from conventional coal plants to gas fired plants, clean coal technologies and nuclear based plants. As a result the capacity expansion cost has increased. It was found that wind power plant is most attractive and economical in the Indian perspective among the renewable options considered (Solar, wind and biomass). Copyright © 2003 John Wiley & Sons, Ltd.     

Vision 2023: Feasibility analysis of Turkey's renewable energy projection

Electricity consumption of Turkey at the year 2023 is estimated to be around 530,000 GWh. Turkey plans to supply 30% or 160,000 GWh of this demand from renewable energy sources according to the recently avowed government agenda Vision 2023. However, the current installed renewable energy capacity is around 60,000 GWh. Detailed literature analysis showed that only wind and solar energy potential in Turkey can solely supply this demand. In this study, two different scenarios were generated to analyse the cost and environmental impacts of supplying this demand. Scenario 1, which is derived from the official Vision 2023 targets, suggests supplying this demand from wind, solar, geothermal energy and hydropower. The total projected cost based on Scenario 1 is estimated to be $31.000 billion and annual greenhouse gas emissions of 1.05 million tonnes of CO₂ equivalent. According to Scenario 2 or the contrary setup it is assumed that the required demand gap could not be supplied from new renewable energy investments but equally from coal and natural gas. The projected cost is estimated to be around $8.000 billion and annual greenhouse gas emissions at appalling 71.30 million tonnes of CO₂ equivalent. Assuming carbon tax at the year 2023 to be $50 per tonne of CO₂ emitted, supplying the demand from renewable energy sources according to Scenario 1 would generate savings worth nearly $2.175 billion from environmental taxes annually. Thus, making the payback time of the renewable energy investments less than 15 years.