Emission constrained power system planning: a pinch analysis based study of Indian electricity sector

In the light of rising electricity demands and a need to curb carbon dioxide emissions, this article investigates the problem of power system planning with emission targeting. A pinch analysis based approach is utilised here. The key aspect of this study is investigating the parameters that decide the priority of one type of power plant over another. For this, a quantity called prioritised cost, a trade off between cost incurred and emission from a new power plant is identified. In addition to cost and emission factor of a power plant, a third parameter, the present state of the system, also plays a significant role in deciding a power plant’s prioritised cost. The analysis done proves that new power plants can be added to the system in the order of their prioritised cost. This methodology is applied to Indian power sector as a case study. Two different problems, involving minimisation of investment and annualised cost, are considered. It is observed that renewables are slightly more favoured when the objective is to minimise overall cost and not just the capital investment. In both cases, the energy mix is still dominated by coal-based power generation. The share of renewables was seen to increase with more stringent emission targets when the objective was to minimise overall cost.