IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v51y2012icp493-501.html
   My bibliography  Save this article

MINLP model for optimizing electricity production from coal-fired power plants considering carbon management

Author

Listed:
  • Cristóbal, Jorge
  • Guillén-Gosálbez, Gonzalo
  • Jiménez, Laureano
  • Irabien, Angel

Abstract

In order to achieve the reduction in greenhouse gases committed in the Kyoto Protocol, countries must establish control policies and encourage industries to reduce their emissions. Two main options arise in a cap and trade framework: (i) buying/selling emission allowances; and (ii) reducing emissions by investing in abatement technologies. In this context, each industry must choose the best strategy considering its particular features. This work proposes a systematic tool to assist decision-makers in the design of coal-fired energy production with carbon management in existing power plants. Our approach relies on a novel mixed integer non-linear program (MINLP) that minimizes the cost of electricity (COE) for a given price of CO2 allowance on the trade market. We demonstrate the capabilities of this MINLP through a case study that addresses the retrofitting of a coal-fired power plant. Results show that the price of the CO2 allowance on the market that effectively induce the investment in carbon capture falls in the range 22–30 $/tCO2eq depending on the quantity of allowances distributed for free. In this solution, carbon capture is accomplished by implementing the oxy-fuel combustion technology (which is preferred to the post-combustion capture using monoethanolamine as solvent).

Suggested Citation

  • Cristóbal, Jorge & Guillén-Gosálbez, Gonzalo & Jiménez, Laureano & Irabien, Angel, 2012. "MINLP model for optimizing electricity production from coal-fired power plants considering carbon management," Energy Policy, Elsevier, vol. 51(C), pages 493-501.
    • Handle: RePEc:eee:enepol:v:51:y:2012:i:c:p:493-501
    DOI: 10.1016/j.enpol.2012.08.055
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421512007379
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2012.08.055?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cristóbal, Jorge & Guillén-Gosálbez, Gonzalo & Jiménez, Laureano & Irabien, Angel, 2012. "Multi-objective optimization of coal-fired electricity production with CO2 capture," Applied Energy, Elsevier, vol. 98(C), pages 266-272.
    2. Zhang, Dongjie & Ma, Linwei & Liu, Pei & Zhang, Lili & Li, Zheng, 2012. "A multi-period superstructure optimisation model for the optimal planning of China's power sector considering carbon dioxide mitigation," Energy Policy, Elsevier, vol. 41(C), pages 173-183.
    3. Baris, Kemal, 2011. "The role of coal in energy policy and sustainable development of Turkey: Is it compatible to the EU energy policy?," Energy Policy, Elsevier, vol. 39(3), pages 1754-1763, March.
    4. Karl-Martin Ehrhart & Christian Hoppe & Joachim Schleich & Stefan Seifert, 2003. "Strategic Aspects of Co2-Emissions Trading: Theoretical Concepts and Empirical Findings," Energy & Environment, , vol. 14(5), pages 579-597, September.
    5. Szolgayova, Jana & Fuss, Sabine & Obersteiner, Michael, 2008. "Assessing the effects of CO2 price caps on electricity investments--A real options analysis," Energy Policy, Elsevier, vol. 36(10), pages 3974-3981, October.
    6. Cristóbal, Jorge & Guillén-Gosálbez, Gonzalo & Jiménez, Laureano & Irabien, Angel, 2012. "Optimization of global and local pollution control in electricity production from coal burning," Applied Energy, Elsevier, vol. 92(C), pages 369-378.
    7. Cohan, Daniel S. & Douglass, Catherine, 2011. "Potential emissions reductions from grandfathered coal power plants in the United States," Energy Policy, Elsevier, vol. 39(9), pages 4816-4822, September.
    8. Ackerman, Frank & Biewald, Bruce & White, David & Woolf, Tim & Moomaw, William, 1999. "Grandfathering and coal plant emissions: the cost of cleaning up the Clean Air Act," Energy Policy, Elsevier, vol. 27(15), pages 929-940, December.
    9. Andris Piebalgs, 2006. "Green paper: A European strategy for sustainable, competitive and secure energy," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 7(02), pages 8-20, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cristóbal, Jorge & Guillén-Gosálbez, Gonzalo & Kraslawski, Andrzej & Irabien, Angel, 2013. "Stochastic MILP model for optimal timing of investments in CO2 capture technologies under uncertainty in prices," Energy, Elsevier, vol. 54(C), pages 343-351.
    2. Huang, Yi & Yi, Qun & Kang, Jing-Xian & Zhang, Ya-Gang & Li, Wen-Ying & Feng, Jie & Xie, Ke-Chang, 2019. "Investigation and optimization analysis on deployment of China coal chemical industry under carbon emission constraints," Applied Energy, Elsevier, vol. 254(C).
    3. Malladi, Krishna Teja & Sowlati, Taraneh, 2020. "Bi-objective optimization of biomass supply chains considering carbon pricing policies," Applied Energy, Elsevier, vol. 264(C).
    4. Barradale, Merrill Jones, 2014. "Investment under uncertain climate policy: A practitioners׳ perspective on carbon risk," Energy Policy, Elsevier, vol. 69(C), pages 520-535.
    5. Noshchenko, Olga & Hagspiel, Verena, 2024. "Environmental and economic multi-objective real options analysis: Electrification choices for field development investment planning," Energy, Elsevier, vol. 295(C).
    6. Munguía-López, Aurora del Carmen & González-Bravo, Ramón & Ponce-Ortega, José María, 2019. "Evaluation of carbon and water policies in the optimization of water distribution networks involving power-desalination plants," Applied Energy, Elsevier, vol. 236(C), pages 927-936.
    7. Xiaohua Song & Xiao Jiang & Xubei Zhang & Jinpeng Liu, 2018. "Analysis, Evaluation and Optimization Strategy of China Thermal Power Enterprises’ Business Performance Considering Environmental Costs under the Background of Carbon Trading," Sustainability, MDPI, vol. 10(6), pages 1-27, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bialek, Sylwia & Gregory, Jack & Revesz, Richard L., 2022. "Still your grandfather's boiler: Estimating the effects of the Clean Air Act's grandfathering provisions," Working Papers 05/2022, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    2. Zhang, Minkai & Guo, Yincheng, 2013. "Rate based modeling of absorption and regeneration for CO2 capture by aqueous ammonia solution," Applied Energy, Elsevier, vol. 111(C), pages 142-152.
    3. Pavão, L.V. & Costa, C.B.B. & Ravagnani, M.A.S.S. & Jiménez, L., 2017. "Costs and environmental impacts multi-objective heat exchanger networks synthesis using a meta-heuristic approach," Applied Energy, Elsevier, vol. 203(C), pages 304-320.
    4. Chinnasamy Palanichamy & Palanichamy Naveen & Wong Kiing Ing & Michael Kobina Danquah & Jayaraman Indumath, 2015. "Energy Efficiency Enhancement of Fossil-Fuelled Power Systems," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 765-771.
    5. Lee, Suh-Young & Lee, In-Beum & Han, Jeehoon, 2019. "Design under uncertainty of carbon capture, utilization and storage infrastructure considering profit, environmental impact, and risk preference," Applied Energy, Elsevier, vol. 238(C), pages 34-44.
    6. Noshchenko, Olga & Hagspiel, Verena, 2024. "Environmental and economic multi-objective real options analysis: Electrification choices for field development investment planning," Energy, Elsevier, vol. 295(C).
    7. Fernández, David & Pozo, Carlos & Folgado, Rubén & Guillén-Gosálbez, Gonzalo & Jiménez, Laureano, 2017. "Multiperiod model for the optimal production planning in the industrial gases sector," Applied Energy, Elsevier, vol. 206(C), pages 667-682.
    8. repec:ntu:ntugeo:vol2-iss1-14-005 is not listed on IDEAS
    9. Shi, Wenxiao & Lin, Chen & Chen, Wei & Hong, Jinglan & Chang, Jingcai & Dong, Yong & Zhang, Yanlu, 2017. "Environmental effect of current desulfurization technology on fly dust emission in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 1-9.
    10. Regina Betz & Wolfgang Eichhammer & Joachim Schleich, 2004. "Designing National Allocation Plans for Eu-Emissions Trading — A First Analysis of the Outcomes," Energy & Environment, , vol. 15(3), pages 375-425, July.
    11. Lee, Shun-Chung & Shih, Li-Hsing, 2010. "Renewable energy policy evaluation using real option model -- The case of Taiwan," Energy Economics, Elsevier, vol. 32(Supplemen), pages 67-78, September.
    12. Gesine Bökenkamp & Wan-Jung Chou & Olav Hohmeyer & Wouter Nijs & Alistair Hunt & Anil Markandya, 2010. "Policy Instruments," Chapters, in: Anil Markandya & Andrea Bigano & Roberto Porchia (ed.), The Social Cost of Electricity, chapter 6, Edward Elgar Publishing.
    13. Brauneis, Alexander & Mestel, Roland & Palan, Stefan, 2013. "Inducing low-carbon investment in the electric power industry through a price floor for emissions trading," Energy Policy, Elsevier, vol. 53(C), pages 190-204.
    14. Peter Lund, 2012. "The European Union challenge: integration of energy, climate, and economic policy," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 1(1), pages 60-68, July.
    15. Szolgayová, Jana & Golub, Alexander & Fuss, Sabine, 2014. "Innovation and risk-averse firms: Options on carbon allowances as a hedging tool," Energy Policy, Elsevier, vol. 70(C), pages 227-235.
    16. Finon, Dominique & Locatelli, Catherine, 2008. "Russian and European gas interdependence: Could contractual trade channel geopolitics?," Energy Policy, Elsevier, vol. 36(1), pages 423-442, January.
    17. Dawid Szutowski & Piotr Ratajczak, 2016. "The Relation between CSR and Innovation. Model Approach," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 12(2), pages 1-1.
    18. Dieckhoener, Caroline, 2010. "Simulating security of supply effects of the Nabucco and South Stream projects for the European natural gas market," EWI Working Papers 2010-7, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI), revised 21 Jan 2012.
    19. Weiwei Liu & Yuan Tao & Zhile Yang & Kexin Bi, 2019. "Exploring and Visualizing the Patent Collaboration Network: A Case Study of Smart Grid Field in China," Sustainability, MDPI, vol. 11(2), pages 1-18, January.
    20. deLlano-Paz, Fernando & Calvo-Silvosa, Anxo & Iglesias Antelo, Susana & Soares, Isabel, 2015. "The European low-carbon mix for 2030: The role of renewable energy sources in an environmentally and socially efficient approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 49-61.
    21. Jean-Arnold Vinois, 2007. "The Way towards an Energy Policy for Europe," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 76(1), pages 17-25.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:51:y:2012:i:c:p:493-501. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.