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A bi-level model for coal power decarbonization via biomass co-firing considering CO2 emission trading system

Author

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  • Huang, Qian
  • Feng, Qing

Abstract

Faced with the challenges posed by the Paris Agreement targets, biomass co-firing offers an efficient measure to decarbonize coal-fired power generation. Although economic burden of biomass co-firing has severely limited the large-scale application, effective CO2 emission trading system has the capability to subsidize and incentivize. Existing studies related to biomass co-firing under CO2 emission trading system fail to consider multiple decision makers and uncertain decision-making environment. To address these limitations, this paper proposes a bi-level model for coal power decarbonization via biomass co-firing considering CO2 emission trading system in an uncertain decision-making environment. It considers the interactive relationship between multiple decision makers. The upper-level model focuses on the formulation of CO2 emission trading system, and the lower-level model decides biomass co-firing and emission reduction. Fuzzy set theory is employed to describe the uncertain parameters and convert them into exact values. To calculate the model, a bi-level interactive method based on satisfactory solution is developed. A case study is conducted to illustrate the effectiveness and practicality of the proposed model. Results show that the price of initial quotas fluctuates between 38.01 and 48.7 CNY/tonne, and the lowest carbon intensity is 0.741 kg/kWh. Management recommendations are provided to support CO2 emission reduction.

Suggested Citation

  • Huang, Qian & Feng, Qing, 2024. "A bi-level model for coal power decarbonization via biomass co-firing considering CO2 emission trading system," Energy, Elsevier, vol. 305(C).
    • Handle: RePEc:eee:energy:v:305:y:2024:i:c:s0360544224021595
    DOI: 10.1016/j.energy.2024.132385
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