 Simulation analysis of emissions trading impact on a non-utility power plantKashif Imran, Tehzeebul Hassan, Muhammad Farooq Aslam, Hon-Wing Ngan and Intesar Ahmad Energy Policy, 2009, vol. 37, issue 12, 5694-5703 Abstract: Non-utility power plants can competitively participate in open electricity market to reduce operational costs but in the absence of pollution charges or emissions trading such generators are tempted to cause greater pollution for profit maximization. This paper presents a solution that incorporates pollution charges for nitrogen oxides and sulphur dioxide emissions in line with existing national environmental quality standards and a new carbon dioxide emissions trading mechanism. A novel approach has been used for allocation of allowable emissions that favors efficiently fuelled and environmentally friendly operation for maximizing profit. Impact of proposed carbon trading on economical utilization of enormous indigenous coal reserves has been analyzed and determined to be acceptable. Software developed in this paper, harnessing Sequential Quadratic Programming capabilities of Matlab, is shown to be adequate simulation tool for various emissions trading schemes and an useful operational decision making tool for constrained non-linear optimization problem of a non-utility power plant. Keywords: Emissions; trading; Electricity; markets; Government; policies (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:37:y:2009:i:12:p:5694-5703 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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