Flexible options to provide energy for capturing carbon dioxide in coal-fired power plants under the Clean Development Mechanism

Abstract

Operators of coal-fired power plants with carbon dioxide capture and storage (CCS) can provide energy for carbon dioxide (CO2) capture by increasing coal input (option i) or reducing electricity output (option ii). Under the Clean Development Mechanism (CDM), does a flexible option exist in the future to provide energy for capturing CO2? In this study, we use a representative coal-fired power plant in China (600 MW) as a case study to assess the options to be implemented and the corresponding economic performance and emission reductions of coal-fired power plants with CCS. Both Monte Carlo simulation and the net present value (NPV) methods are used in this study. The results show that the flexible options yield an average NPV that is 57.36 and 48.07 million Chinese Yuan more than the net present values of option i and option ii, respectively, during three crediting periods. Additionally, the implementation of flexible options can improve the emission reduction effect in coal-fired power plants with CCS and promote the optimization of power systems. The priority for expanding the positive effects of flexible options is for international climate change policy negotiators and policymakers to formulate stricter international emission reduction policies with a high certified emission reduction price. In addition, a good communication and coordination mechanism between the coal-fired power plants and the administration of the power system are required to ensure the efficient implementation of flexible options.