Economics of CCS for coal plants: Impact of investment costs and efficiency on market diffusion in Europe

Energy Economics

Volumn 34, Issue 3, 2012, Pages 850-863

  Lohwasser, Richard ^a   Madlener, Reinhard ^a  

^a RWTH AACHEN UNIVERSITY   (Germany)

Author keywords

CCS; Electricity market; Power generation; Simulation model; Technology adoption

Indexed keywords

CARBON CAPTURE AND STORAGE; CCS; COAL PLANTS; COAL POWER PLANTS; COAL-FIRED POWER PLANT; COMMERCIAL GRADE; ELECTRICITY GENERATION COST; ELECTRICITY MARKET; ELECTRICITY SECTOR; GENERATION CAPACITY; INVESTMENT COSTS; POWER SECTOR; SIMULATION MODEL; TECHNOLOGY ADOPTION;

CARBON CAPTURE; CARBON DIOXIDE; COAL; COMMERCE; COMPUTER SIMULATION; CONVERSION EFFICIENCY; COSTS; ELECTRIC GENERATORS; ELECTRIC INDUSTRY; FOSSIL FUEL POWER PLANTS; INVESTMENTS; POWER GENERATION;

ECONOMICS;

CARBON DIOXIDE; CARBON SEQUESTRATION; COAL-FIRED POWER PLANT; ELECTRICITY SUPPLY; ENERGY MARKET; INVESTMENT; POWER GENERATION; TECHNOLOGY ADOPTION; TRANSACTION COST;

EUROPE;

EID: 84859703252     PISSN: 01409883     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.eneco.2011.07.030     Document Type: Article

References (40)

1. Abrell J., Herold J., Leuthold F. Modeling the diffusion of carbon capture and storage under carbon emission control and learning effects, available at SSRN: 2009, retrieved 20.07.2011, available at SSRNretrieved 20.07.2011. http://ssrn.com/abstract=1478384.
2. Anderson, et al. The ACCSEPT project: summary of the main findings and key recommendations, final report from ACCSEPT 2007, retrieved 20.07.2011, from. http://accsept.org/outputs/wp_5_2dec_2007_final.pdf.
3. Best-Waldhober M., Daamen D., Faaij A. Informed public opinions on CCS in comparison to other mitigation options. Energy Procedia 2009, 1(1):4795-4802.
4. Cancun UN Climate Change Conference Outcome of the work of the Ad Hoc Working Group on long-term Cooperative Action under the Convention 2010, retr. 20.07.2011. http://unfccc.int/files/meetings/cop_16/application/pdf/cop16_lca.pdf.
5. Carrillo-Hermosilla J. A policy approach to the environmental impacts of technological lock-in. Ecological Economics 2005, 58(4):717-747.
6. Copenhagen Conference on Climate Change, 2009. Copenhagen Accord, from: http://www.denmark.dk/NR/rdonlyres/C41B62AB-4688-4ACE-BB7B-F6D2C8AAEC20/0/copenhagen_accord.pdf, retrieved 20.07.2011.
7. CO2-Europipe Towards a transport infrastructure for large-scale CCS in Europe 2010, retrieved 20.07.2011, from. http://www.co2europipe.eu/Publications/D2.2.1%20-%20CO2Europipe%20Report%20CCS%20infrastructure%2009%202010.pdf.
8. 2 capture and storage: a case study for the Netherlands. International Journal of Greenhouse Gas Control 2009, 3(2):217-236.
9. Deutsche Bank Target 2008 EUAs at EUR40/Tonne 2008, Frankfurt, retrieved 20.07.2011, from. http://www.carbon-financeonline.com/index.cfm?section=lead&action=view&id=11288.
10. DG TREN, Directorate-General For Energy And Transport European Energy and Transport - Trends to 2030, Update 2007 2008, Commission of the European Communities, Brussels. 1st Edition.
11. 2 infrastructures. Issue Rev. 01 2010, retrieved 20.07.2011, from. http://ec.europa.eu/energy/coal/studies/doc/2010_10_co2_infrastructures.pdf.
12. Ecofys Energy-efficiency and carbon capture in new fossil power plants in the EU 2008, retrieved 20.07.2011, from. http://www.ecofys.com/com/publications/documents/RPTEnergy-efficiencyandcarboncaptureinnewpowerplantsENFinal.pdf.
13. EU Commission Commission communication on sustainable power generation from fossil fuels: aiming for near-zero emissions from coal after 2020. Summary of the Impact Assessment. Commission Staff Working Document. COM(2006) 1723 2006, Commission of the European Communities, Brussels, retrieved 20.07.2011.
14. EU Commission Package of implementation measures for the EU's objectives on climate change and renewable energy for 2020 2008, retrieved 20.07.2011, Commission of the European Communities, Brussels, from. http://ec.europa.eu/energy/climate_actions/doc/2008_res_ia_en.pdf.
15. GeoCapacity Assessing European capacity for geological storage of carbon dioxide - the EU GeoCapacity project; Conference poster at the 9th International Conference on Greenhouse Gas Control Technologies, Washington, 16-20 Nov. 2008 2008, retrieved 20.07.2011, from. http://www.geology.cz/geocapacity/publications/Geocapacity_poster_Washington.pdf.
16. Global CCS Institute Database of resources and projects 2011, retrieved 20.07.2011, from. http://www.globalccsinstitute.com/resources/projects.
17. Groenenberg H., De Coninck H. Effective EU and Member State policies for stimulating CCS. International Journal of Greenhouse Gas Control 2008, 2(4):653-664.
18. Haszeldine S.R. Carbon capture and storage: how green can black be?. Science 2009, 325(5948):1647-1652.
19. IEA, 2006. International Energy Agency (IEA), GHG Emissions Database, , retrieved 20.07.2011. http://www.co2captureandstorage.info/co2emissiondatabase/co2emissions.htm.
20. IEA, International Energy Agency World Energy Outlook 2010 2010, OECD/IEA, Paris.
21. IEA CCC International Energy Agency Clean Coal Centre CCS in the CDM 2010, retrieved 20.07.2011. http://www.iea-coal.org.uk/site/2010/news-section/news-items/ccs-in-the-cdm?
22. IPCC, Intergovernmental Panel On Climate Change Special Report on Carbon Dioxide Capture and Storage 2005, Cambridge University Press, Cambridge.
23. 2 emissions. Energy Policy 2004, 32(3):367-382.
24. Lohwasser R., Madlener R. Simulation of the European electricity market and CCS development with the HECTOR model. FCN Working Paper No. 6/2009 2009, RWTH Aachen University, Aachen, Germany, November.
25. Lohwasser R., Madlener R. Relating R&D and investment policies to CCS market diffusion through two-factor learning. FCN Working Paper No. 6/2010 2010, RWTH Aachen University, Aachen, Germany, June.
26. 2 mitigation option for Germany? - A bottom-up approach. Energy Policy 2007, 35(4):2110-2120.
27. MIT The future of coal, Massachusetts Institute of Technology, Cambridge 2007, retrieved 20.07.2011, from. http://web.mit.edu/coal/The_Future_of_Coal.pdf.
28. McKinsey Carbon capture & storage: assessing the economics 2008, retrieved 20.07.2011, McKinsey & Company, Inc, New York, from. http://www.mckinsey.com/clientservice/ccsi/pdf/CCS_Assessing_the_Economics.pdf.
29. McKinsey Pathways to a low carbon economy 2009, retrieved 20.07.2011, McKinsey & Company, Inc, New York, from. http://www.mckinsey.com/clientservice/ccsi/pathways_low_carbon_economy.asp.
30. 2 Transport Network 2010, Publications Office of the European Union, JRC Publication No, JRC61201.
31. 2 capture and storage within Europe. International Journal of Greenhouse Gas Control 2008, 2(4):417-438.
32. Riahi K., Rubin E., Schrattenholzer L. Prospects for carbon capture and sequestration technologies assuming their technological learning. Energy 2004, 29(9-10):1309-1318.
33. Rijkers F., Janszen F., Kaag M., Battjes J. POWERS. Simulatie van prijsvorming en investeringsbeslissingen in een geliberaliseerde Nederlandse elektriciteitsmarkt. ECN Report No. ECN-C--01-033 2001, Energy Reserach Centre of the Netherlands, Petten.
34. Rohlfs W., Madlener R. Cost effectiveness of carbon capture-ready coal power plants with delayed retrofit. FCN Working Paper No. 8/2010 2010, RWTH Aachen University, Aachen, Germany, August 2010, revised December 2010 and July 2011.
35. Rohlfs W., Madlener R. Valuation of CCS-ready coal-fired power plants: a multi-dimensional real options approach. Energy Systems 2011, (published online June 15, 2011). doi:10.1007/s12667-011-0034-9.
36. 2 capture and storage (CCS) in Europe: an assessment of the key determining factors: Part 2. The social acceptability of CCS and the wider impacts and repercussions of its implementation. International Journal of Greenhouse Gas Control 2009, 3(3):344-356.
37. Unruh G. Understanding carbon lock-in. Energy Policy 2000, 28(12):817-830.
38. Unruh G. Escaping carbon lock-in. Energy Policy 2002, 30(4):317-325.
39. Wildenborg T., Coussy P., Doukelis A., et al. Scenario for large-scale implementation of CCS in Europe. Energy Procedia 2009, 1(1):4265-4272.
40. Wise M., Dooley J. The value of post-combustion carbon dioxide capture and storage technologies in a world with uncertain greenhouse gas emissions constraints. International Journal of Greenhouse Gas Control 2009, 3(1):39-48.