Skip to main content

Please enter a keyword and click the arrow to search the site

Analysis of coal conversion to biomass as a transitional technology

Journal

Renewable Energy

Subject

Management Science and Operations

Authors / Editors

Bunn D W;Redondo-Martin J;Munoz-Hernandez J I;Diaz-Cachinero P

Biographies

Publication Year

2018

Abstract

The dominant transitional path towards a low carbon electricity industry for systems which have been heavily dependent upon coal is through its replacement by large scale wind farms and the widespread emergence of distributed solar. In this pathway, maintaining resource adequacy in the context of increased intermittency in generation has become a major concern. This paper examines this requirement to maintain resource adequacy and compare the costs and carbon impacts for new gas turbines or biomass conversions to achieve this in an expedient transitional way. This is formulated as a policy optimization in which the imperative is to replace existing coal with a renewable alternative (in this case study, wind) and to maintain the system security at the existing level, and thereby find the optimal subsidies, either as energy credits ("green certificates" or “contracts-for-differences”) or capital benefits ("capacity payments" or tax allowances). In a model of the GB system, the results show that that biomass-conversion outperforms investment in peaking gas turbines to deal with the transitional economic externality of extra reserve costs. In particular, the results suggest benefits of 10% lower costs of subsidies, 70% lower implied costs of carbon, and a reduction of 18% in wholesale power prices.

Keywords

Renewable energy; Biomass; Investment; Security; Carbon price

Available on ECCH

No


Select up to 4 programmes to compare

Select one more to compare
×
subscribe_image_desktop 5949B9BFE33243D782D1C7A17E3345D0

Sign up to receive our latest news and business thinking direct to your inbox

×

Sign up to receive our latest course information and business thinking

Leave your details above if you would like to receive emails containing the latest thought leadership, invitations to events and news about courses that could enhance your career. If you would prefer not to receive our emails, you can still access the case study by clicking the button below. You can opt-out of receiving our emails at any time by visiting: https://london.edu/my-profile-preferences or by unsubscribing through the link provided in our emails. View our Privacy Policy for more information on your rights.