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Supply- and demand-side effects of power sector planning with CO2 mitigation constraints in a developing country

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  • Shrestha, Ram M.
  • O.P. Marpaung, Charles

Abstract

In this paper, the implications of CO2 emission mitigation constraints in the power sector planning in Indonesia are examined using a long term integrated resource planning model. An approach is developed to assess the contributions of supply- and demand-side effects to the changes in CO2, SO2 and NOx emissions from the power sector due to constraints on CO2 emissions. The results show that while both supply- and demand-side effects would act towards the reduction of CO2, SO2 and NOx emissions, the supply-side options would play the dominant role in emission mitigations from the power sector in Indonesia. The CO2 abatement cost would increase from US$7.8 to US$9.4 per ton of CO2, while the electricity price would increase by 3.1 to 19.8% if the annual CO2 emission reduction target is raised from 10 to 25%.

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  • Shrestha, Ram M. & O.P. Marpaung, Charles, 2002. "Supply- and demand-side effects of power sector planning with CO2 mitigation constraints in a developing country," Energy, Elsevier, vol. 27(3), pages 271-286.
    • Handle: RePEc:eee:energy:v:27:y:2002:i:3:p:271-286
    DOI: 10.1016/S0360-5442(01)00085-8
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    References listed on IDEAS

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    2. Shrestha, Ram M. & Marpaung, Charles O.P., 2006. "Integrated resource planning in the power sector and economy-wide changes in environmental emissions," Energy Policy, Elsevier, vol. 34(18), pages 3801-3811, December.
    3. Nguyen, Nhan T. & Ha-Duong, Minh, 2009. "Economic potential of renewable energy in Vietnam's power sector," Energy Policy, Elsevier, vol. 37(5), pages 1601-1613, May.
    4. Taseska, V. & Markovska, N. & Causevski, A. & Bosevski, T. & Pop-Jordanov, J., 2011. "Greenhouse gases (GHG) emissions reduction in a power system predominantly based on lignite," Energy, Elsevier, vol. 36(4), pages 2266-2270.
    5. Henning, Dag & Trygg, Louise, 2008. "Reduction of electricity use in Swedish industry and its impact on national power supply and European CO2 emissions," Energy Policy, Elsevier, vol. 36(7), pages 2330-2350, July.
    6. Gitizadeh, Mohsen & Kaji, Mahdi & Aghaei, Jamshid, 2013. "Risk based multiobjective generation expansion planning considering renewable energy sources," Energy, Elsevier, vol. 50(C), pages 74-82.
    7. Rachmatullah, C. & Aye, Lu & Fuller, R.J., 2007. "Scenario planning for the electricity generation in Indonesia," Energy Policy, Elsevier, vol. 35(4), pages 2352-2359, April.
    8. Nhan T. Nguyen & Minh Ha-Duong, 2009. "The potential for mitigation of CO2 emissions in Vietnam's power sector," Working Papers 22, Development and Policies Research Center (DEPOCEN), Vietnam.
    9. Tanatvanit, Somporn & Limmeechokchai, Bundit & Chungpaibulpatana, Supachart, 2003. "Sustainable energy development strategies: implications of energy demand management and renewable energy in Thailand," Renewable and Sustainable Energy Reviews, Elsevier, vol. 7(5), pages 367-395, October.
    10. Shrestha, Ram M. & Marpaung, Charles O. P., 2005. "Supply- and demand-side effects of power sector planning with demand-side management options and SO2 emission constraints," Energy Policy, Elsevier, vol. 33(6), pages 815-825, April.
    11. Hu, Zhaoguang & Tan, Xiandong & Yang, Fan & Yang, Ming & Wen, Quan & Shan, Baoguo & Han, Xinyang, 2010. "Integrated resource strategic planning: Case study of energy efficiency in the Chinese power sector," Energy Policy, Elsevier, vol. 38(11), pages 6391-6397, November.
    12. Batas Bjelić, Ilija & Rajaković, Nikola & Ćosić, Boris & Duić, Neven, 2013. "Increasing wind power penetration into the existing Serbian energy system," Energy, Elsevier, vol. 57(C), pages 30-37.
    13. Krishna Priya, G.S. & Bandyopadhyay, Santanu, 2017. "Multi-objective pinch analysis for power system planning," Applied Energy, Elsevier, vol. 202(C), pages 335-347.
    14. Pasimeni, Maria Rita & Petrosillo, Irene & Aretano, Roberta & Semeraro, Teodoro & De Marco, Antonella & Zaccarelli, Nicola & Zurlini, Giovanni, 2014. "Scales, strategies and actions for effective energy planning: A review," Energy Policy, Elsevier, vol. 65(C), pages 165-174.
    15. Sarjiya, & Budi, Rizki Firmansyah Setya & Hadi, Sasongko Pramono, 2019. "Game theory for multi-objective and multi-period framework generation expansion planning in deregulated markets," Energy, Elsevier, vol. 174(C), pages 323-330.

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