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.     

Small-scale CDM projects in a competitive electricity industry: How good is a simplified baseline methodology?

Setting baseline emissions is one of the principal tasks involved in awarding credits for greenhouse gas emission (GHG) mitigation projects under the Clean Development Mechanism (CDM). An emission baseline has to be project-specific in order to be accurate. However, project-specific baseline calculations are subject to high transaction costs, which disadvantage small-scale projects. For this reason, the CDM-Executive Board (CDM-EB) has approved simplified baseline methodologies for selected small-scale CDM project categories. While the simplified methods help reduce the transaction cost, they may also result in inaccuracies in the estimation of emission reductions from CDM projects. The purpose of this paper is to present a rigorous economic scheduling method for calculating the GHG emission reduction in a hypothetical competitive electricity industry due to the operation of a renewable energy-based power plant under CDM and compare the GHG emission reduction derived from the rigorous method with that obtained from the use of a simplified (i.e., standardized) method approved by the CDM-EB. A key finding of the paper is that depending upon the level of power demand, prices of electricity and input fuels, the simplified method can lead to either significant overestimation or substantial underestimation of emission reduction due to the operation of renewable energy-based power projects in a competitive electricity industry.