Social, Economic, and Environmental Effects of Electricity and Heat Generation in Yenisei Siberia: Is there an Alternative to Coal?

Abstract

The energy sector is one of the most important pollutants in the atmosphere and causes significant emissions of greenhouse gases. In Russia, coal is the main contributor to the fossil fuel consumption of thermal power plants and boilers, thus affecting atmospheric air pollution by releasing particulate matter and nitrogen oxides, which are strongly associated with a negative impact on human health. This problem is especially acute for the resource regions of Yenisei, Siberia, a 2.5+ mln sq km macro-region in the very heart of Russia. In this paper, we analyze the impact of the structure of electricity and heat generation on emissions of pollutants and climate-active gases in Yenisei, Siberia, and give an overview of their social, ecological, and economic effects. More than 75% of electricity in Yenisei, Siberia, is produced by hydroelectric power plants that do not pollute the atmosphere. The rest of the electricity is generated in the cogeneration mode by thermal power plants, which are cores of the heat supply designs of cities. The share of individual coal-powered heat sources is still high. A detailed analysis of existing equipment and technologies at existing thermal power plants is needed to select options for their modernization to reduce emissions while keeping coal in use. Our calculations for the biggest cities of Krasnoyarsk Krai show that investments in the transition to heating with pellets will require RUB 184.7 million for Nazarovo and RUB 313.9 million for Kansk. At the same time, switching to electric heating is more than twice as expensive: RUB 498.6 million for Nazarovo and RUB 847.5 million for Kansk. The additional costs will range from RUB 21 to RUB 45.4 thousand per household per year for the pellet variant and from RUB 56.8 to RUB 122.5 thousand per year for electric heating, which could triple the annual heating costs. Thus, these options are unlikely to be implemented without direct state support. We argue that creating an attractive living environment in Yenisei, Siberia, must begin with intensive public investment in mitigating the environmental externalities caused by coal emissions.