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.     

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.     

Utilizing hydrogen energy to reduce greenhouse gas emissions in Canada's residential sector

An analysis of the potential to reduce greenhouse gas emissions in the residential sector by using hydrogen energy is reported. The residential sectors in provinces across Canada are considered. Greenhouse gas emissions are determined from the consumption of fossil fuels associated with the energy requirements in the residential sector. The use of hydrogen technologies in the residential sector is compared to conventional systems. The results are determined to vary by province, with the greatest attainable annual reductions in greenhouse gas emissions observed for heating to be in Alberta (7.2 t CO₂) and for power generation to be in Saskatchewan (7.2 t CO₂). The results suggest that hydrogen technologies for heating and power generation are promising options for reducing greenhouse gas emissions in Canada and its provinces.     

Cost‐effectiveness analysis of energy efficiency measures in the Swiss chemical and pharmaceutical industry

Energy efficiency improvement is an effective way of reducing energy demand and CO₂ emissions. Although the overall final energy savings potential in chemical industry has been estimated in a few countries, energy efficiency potentials by concrete measures applicable in the sector have been scarcely explored and their associated costs are hardly analyzed. In Switzerland, the production of chemicals and pharmaceuticals exceeds all other industrial sectors in terms of energy use and CO₂ emissions, and it accounted for 22% of the total industry's overall final energy demand and 25% of the CO₂ emissions related to non‐renewable energy sources in 2016. In this study, the economic potentials for energy efficiency improvement and CO₂ emissions reduction in the Swiss chemical and pharmaceutical industry are investigated in the form of energy efficiency cost curves. The economic potential for final energy savings and CO₂ abatement based on energy‐relevant investments is estimated at 15% and 22% of the sector's final energy use and fossil fuel‐related CO₂ emissions in 2016, respectively. Measures related to process heat integration are expected to play a key role for final energy savings. The economic electricity savings potential by improving motor systems is estimated at 15% of the electricity demand by these systems in 2016. The size of economic potential of energy efficiency improvement across the sector decreases from 15% to 11% for 0.5 times lower final energy prices while the size increases insignificantly for 1.5 times higher final energy prices. The additional power generation potential based on Combined Heat and Power plants is estimated at 14 MW for 2016. This study is a contribution to the so far limited international literature on economic energy efficiency measures applicable in this heterogeneous sector and can support policy development. The results for specific costs of energy efficiency measures can also be adapted to other parts of the world by making suitable adjustments which in return may provide useful insights for decision makers to invest in economically viable clean energy solutions.     

Metal requirements of low-carbon power generation

Today, almost 70% of the electricity is produced from fossil fuels and power generation accounts for over 40% of global CO₂ emissions. If the targets to reduce climate change are to be met, substantial reductions in emissions are necessary. Compared to other sectors emission reductions in the power sector are relatively easy to achieve because it consists mainly of point-sources. Carbon Capture and Storage (CCS) and the use of low-carbon alternative energy sources are the two categories of options to reduce CO₂ emissions. However, for both options additional infrastructure and equipment is needed. This article compares CO₂ emissions and metal requirements of different low-carbon power generation technologies on the basis of Life Cycle Assessment. We analyze the most critical output (CO₂) and the most critical input (metals) in the same methodological framework. CO₂ emissions and metal requirements are compared with annual global emissions and annual production for different metals. It was found that all technologies are very effective in reducing CO₂ emissions. However, CCS and especially non-fossil technologies are substantially more metal intensive than existing power generation. A transition to a low-carbon based power generation would require a substantial upscaling of current mining of several metals.     

Two-leveled allocation mechanism based on regional comparison in China’s power sector

Carbon emission allocation is the core issue of “cap and trade” and is also critical to achieve carbon dioxide (CO₂) emissions reduction in the power sector. A two-leveled allocation mechanism based on regional comparison is proposed and the corresponding model is established. In the proposed mechanism, the first leveled allocation considers the unbalance of regional development and the maldistribution of generation resources in China; the second leveled allocation reaches the overall minimum cost in terms of efficiency and benefit. The simulation result shows that this allocation mechanism can properly allocate carbon emission permits and is helpful for reducing CO₂ emissions in the power sector in China.     

Renewable energy for sustainable electrical energy system in India

Present trends of electrical energy supply and demand are not sustainable because of the huge gap between demand and supply in foreseeable future in India. The path towards sustainability is exploitation of energy conservation and aggressive use of renewable energy systems. Potential of renewable energy technologies that can be effectively harnessed would depend on future technology developments and breakthrough in cost reduction. This requires adequate policy guidelines and interventions in the Indian power sector. Detailed MARKAL simulations, for power sector in India, show that full exploitation of energy conservation potential and an aggressive implementation of renewable energy technologies lead to sustainable development. Coal and other fossil fuel (gas and oil) allocations stagnated after the year 2015 and remain constant up to 2040. After the year 2040, the requirement for coal and gas goes down and carbon emissions decrease steeply. By the year 2045, 25% electrical energy can be supplied by renewable energy and the CO₂ emissions can be reduced by 72% as compared to the base case scenario.     

Non-sequential Monte Carlo simulation tool in order to minimize gaseous pollutants emissions in presence of fluctuating wind power

In this paper, an original non-sequential Monte Carlo simulation tool is developed. This tool permits to compute the optimal dispatch of classical (coal, oil, etc.) thermal generation in order to minimize polluting gases (NO_x, CO₂, etc.) emissions in presence of wind power and under constraints. These constraints include, e.g., the maximal generation cost or the ability of the electrical system to cover the load, … In comparison with existing analytical tools that are based on restrictive hypotheses when it comes to wind power modelling (generally represented by a single entirely correlated global wind park), unexpected outages of conventional parks or fluctuating representation of the load, the use of Monte Carlo simulation allows to remove all those limitations. Indeed, thanks to the developed tool, the optimal dispatch of classical thermal generation can be reached under several load conditions. Well-known reliability indices can also be computed and, moreover, following the wind speed sampling that is used, entirely correlated, independent or more accurate correlation level between wind parks can be considered. Finally, it is thought that the proposed solution can be a useful tool for electrical system operators in order to dispatch the polluting thermal units under cost, reliability, emissions, fluctuating wind power and unexpected outages constraints.     

Multi-objective optimization model for sustainable Indonesian electricity system: Analysis of economic,environment, and adequacy of energy sources

This paper presents a multi-objective optimization model for a long-term generation mix in Indonesia. The objective of this work is to assess the economic, environment, and adequacy of local energy sources. The model includes two competing objective functions to seek the lowest cost of generation and the lowest CO₂ emissions while considering technology diffusion. The scenarios include the use of fossil reserves with or without the constraints of the reserve to production ratio and exports. The results indicate that Indonesia should develop all renewable energy and requires imported coal and natural gas. If all fossil resources were upgraded to reserves, electricity demand in 2050 could be met by domestic energy sources. The maximum share of renewable energy that can be achieved in 2050 is 33% with and 80% without technology diffusion. The least cost optimization produces lower generation costs than the least CO₂ emissions, as well as the combined scenario. Total CO₂ emissions in 2050 are five to six times as large as current emissions. The least CO₂ emissions scenario can reduce almost half of the CO₂ emissions of the least cost scenario by 2050. The proposed multi-objective optimization model leads some optimal solutions for a more sustainable electricity system.     

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.     

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.     

Global overview of industrial energy intensity

Given the need to reduce the CO₂ emissions coming from the manufacturing sector, it is important, for planning purposes, to know which countries and which manufacturing sub-sectors have the greatest potential for reducing energy use. Using data from the International Atomic Energy Agency and the United Nations Industrial Development Organization, the authors estimate trends in global decoupling of energy use and manufacturing value added, compare energy-use intensity in six country groups and estimate the potential for reducing energy use and CO₂ emissions under two scenarios and compare selected sub-sector energy intensity and estimate the potential for reducing energy use CO₂ emissions. The comparison of energy intensities across country groups and among countries suggests that there still remains significant potential to reduce energy use and associated CO₂ emissions. The analysis of four sub-sectors in developing and transition economies also shows similar but varied potential for reducing energy use and associated CO₂ emissions.     

A post-Kyoto analysis of the Greek electric sector

The obligations resulting from the Kyoto Protocol (KP) are implemented by many participants, e.g. Greece, by a combination of two methods: (a) application of regional measures which restrict CO₂ emissions and (b) procurement of green certificates e.g. in a Climate Exchange Market (CEX). Therefore, the cost for compliance with the KP depends on the extent each method is used and also on the traded values in the CEX. The energy policy and planning to be considered are long-term items and now extension of the KP to a post-KP is discussed which reaches year 2020. In Greece, the electricity sector is with a weighted CO₂ contribution of 73%, the dominantly emission sector. The paper analyzes the cost and other merits of different scenarios for the expansion of electrical power system in Greece. For different scenarios, the total cost of the electrical power system expansion is calculated as a function of the price of emission certificates. It has been shown that there is a price of 27.5€/tCO₂, above which specific mitigation measures may lead to cost optimum solutions. A sensitivity analysis is also presented concerning the variation of key parameters like the participation in the system expansion of new supercritical coal units, the price evolution of natural gas, the RES usage rate and the discount rates of the expansion investments. Results may be of interest for a decision on the cost optimum electrical power system expansion.     

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.     

Quantifying CO2 abatement costs in the power sector

CO₂ cap-and-trade mechanisms and CO₂ emission taxes are becoming increasingly widespread. To assess the impact of a CO₂ price, marginal abatement cost curves (MACCs) are a commonly used tool by policy makers, providing a direct graphical link between a CO₂ price and the expected abatement. However, such MACCs can suffer from issues related to robustness and granularity. This paper focuses on the relation between a CO₂ emission cost and CO₂ emission reductions in the power sector. The authors present a new methodology that improves the understanding of the relation between a CO₂ cost and CO₂ abatement. The methodology is based on the insight that CO₂ emissions in the power sector are driven by the composition of the conventional power portfolio, the residual load and the generation costs of the conventional units. The methodology addresses both the robustness issue and the granularity issue related to MACCs. The methodology is based on a bottom-up approach, starting from engineering knowledge of the power sector. It offers policy makers a new tool to assess CO₂ abatement options. The methodology is applied to the Central Western European power system and illustrates possible interaction effects between, e.g., fuel switching and renewables deployment.     

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.     

Environmental control technology for atmospheric carbon dioxide

The impact of fossil-fuel use in the United States on worldwide CO₂ emissions and the impact of increased coal utilization on CO₂ emission rates are assessed. The aspects of CO₂ control are discussed, as well as the available CO₂ control points (CO₂ removal sites).The primary factor affecting the practicability of a CO₂ control system is the energy required by the control system. Of the three potential CO₂ control points, removal from the stacks of fossil fuel power plants appears to require the least amount of energy. Estimates of the energy required to capture and recover CO₂ from coal-fired power plant stacks by various processes are presented.Although capture and recovery of CO₂ is an important consideration in the overall scheme of CO₂ control, disposal or reuse of recovered CO₂ may be the weakest link in the CO₂ control chain. Of the several options considered, deep ocean storage appears to be the most promising.Two control scenarios are evaluated, one based on the absorption of CO₂ contained in power plant flue gas by seawater; the other, based on absorption of CO₂ by monoethanolamine (MEA). Captured CO₂ is injected into the deep ocean in both cases. Our analyses indicate that capture and disposal by seawater is not feasible, whereas capture and disposal using MEA is a possibility. However, the economic penalties of CO₂ control are significant; for example, at a CO₂ removal efficiency of 50%, it is estimated that the power generation efficiency of a conventional coal-fired power plant would be reduced from 34% to about 25%. The cost of power generation would be expected to double. For 90% CO₂ removal, power generation efficiency is reduced to between 15 and 6% and the cost of power generation increases by a factor of from 4 to 7.The use of non-fossil energy sources, such as nuclear or solar energy, to control the CO₂ emissions resulting from fossil energy usage is not considered in this study.     

Analysis of CO2 emissions reduction potential in secondary production and semi-fabrication of non-ferrous metals

Industrial sector growth in developing countries requires the provision of alternatives to guarantee sustainable development. Improving energy efficiency and fuel switching are two measures to reduce CO₂ emissions in the industrial sector, with natural gas and low-carbon electricity as the most feasible options in the short term. In this work, a linear programming optimization model has been developed to study the potential of energy efficiency improvement and fuel substitution for CO₂ emissions reduction, at national level in the non-ferrous metals industry. The energy resource/end-use device allocation problem in secondary metal production and semi-fabrication has been modeled. Using this model, the particular case of Colombia, where low-carbon electricity is available, has been studied. By improving energy efficiency, energy use and CO₂ emissions can be reduced significantly, 73% and 72%, respectively, at negative costs. Further CO₂ emissions reductions, up to 88%, are possible with fuel switching to low-carbon electricity, increasing the costs for the energy system; however, cost reductions caused by energy efficiency improvement outweigh cost increments of fuel switching. Benefits achieved with fuel substitution using low-carbon electricity can be lost if hydropower is not available; in such a case, efficient natural gas-fired end-use devices are preferable.     

Modeling the CO2 emissions from battery electric vehicles given the power generation mixes of different countries

With the number of vehicles on the world’s roads expected to grow to 2.9 billion by 2050, steps must be taken to reduce the CO₂ emissions from transport. Battery electric vehicles (BEVs) can help achieve this. This study aimed to determine the CO₂ emissions stemming from BEV operation in different countries and to compare those CO₂ emissions to the emissions from similar vehicles based on internal combustion engines (ICEs). This study selected four ICE-based vehicles, and modeled BEVs based on the specifications of each of these vehicles. The modeled BEVs were run through a simulation to determine their energy consumption. Their energy consumption was combined with data on the CO₂ intensity of the power generation mix in different countries to reveal the emissions resulting from BEV operation. The CO₂ emissions from the BEVs were compared to the CO₂ emissions for their ICE-based counterparts. Amongst the results, it was shown that for China and India, and other countries with a similarly high CO₂ intensity, unless power generation becomes dramatically less CO₂ intensive, BEVs will not be able to deliver a meaningful decrease in CO₂ emissions and an increase in the penetration of BEVs could actually lead to higher CO₂ emissions.     

Development forecast of renewable energy power generation in China and its influence on the GHG control strategy of the country

CO₂ emissions of the electricity supply sector in China account for about half of the total volume in the country. Thus, reducing CO₂ emissions in China’s electricity supply sector will contribute significantly to the efforts of greenhouse gas (GHG) control in the country and the rest of the world. This paper introduces the development status of renewable energy and other main CO₂ mitigation options in power generation in China and makes a preliminary prediction of the development of renewable energy in the country for future decades. Besides, based on the situation in China, the paper undertakes a comprehensive analysis of CO₂ mitigation costs, mitigation potential, and fossil energy conversation capacity of renewable energy and other mitigation options, through which the influence of renewable energy on the mitigation strategy of China is analyzed.