An adoption scenario for carbon capture in pulverized coal power plants in the USA

Abstract

In this paper we use the Electricity Supply and Investment Model (ESIM) power system model to examine the energy market effects of incentivized adoption of carbon capture and storage (CCS), with a primary focus on retrofi tting existing pulverized coal plants. In the presence of a 'medium' carbon charge and least-cost dispatch, units with CCS are operated with higher utilization rates than fossil energy plants without carbon capture, hence lowering CO 2 emissions. This path helps to lower the capital outlays that will be necessary to make a transition to a full portfolio of advanced low-carbon technologies. Required research, development and demonstration can be fi nanced by a portion of the carbon charge revenue.

The impacts of meeting a tight CO2 performance standard on the electric power sector

“…The ESIM model is the electric power sector component of the AMIGA modeling system (Shelby 2008, Hanson 2010, Hanson 2013). The AMIGA system also includes an inter-industry input-output model with nested constant elasticity of substitution (CES) production functions for capital, labor, materials, and energy (gas, liquids, electricity) by production sectors and household sectors.…”

“…To understand the fate of coal-based generation, it is important to examine trends at a granular level. An important feature of our model, the Electricity Supply and Investment Model (ESIM) (Hanson, 2013;Hanson, 2010; Shelby, 2008) is that it contains a unit inventory with unit characteristics and a memory of how each unit is operated going forward. This is important because low price gas and renewable penetration (encouraged by subsidies and mandates) have already been shifting generation from coal-based to gas and renewables, resulting in load-following for many of the coal units.…”