Case Study on Incentive Mechanism of Energy Efficiency Retrofit in Coal-Fueled Power Plant in China
An ordinary steam turbine retrofit project is selected as a case study; through the retrofit, the project activities will generate emission reductions within the power grid for about 92,463 tCO2e per annum. The internal rate of return (IRR) of the project is only −0.41% without the revenue of carbon...
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| Format: | Article |
| Language: | English |
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Wiley
2012-01-01
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| Series: | The Scientific World Journal |
| Online Access: | http://dx.doi.org/10.1100/2012/841636 |
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| author | Donghai Yuan Xujing Guo Yuan Cao Liansheng He Jinggang Wang Beidou Xi Junqi Li Wenlin Ma Mingshun Zhang |
| author_facet | Donghai Yuan Xujing Guo Yuan Cao Liansheng He Jinggang Wang Beidou Xi Junqi Li Wenlin Ma Mingshun Zhang |
| author_sort | Donghai Yuan |
| collection | DOAJ |
| description | An ordinary steam turbine retrofit project is selected as a case study; through the retrofit, the project activities will generate emission reductions within the power grid for about 92,463 tCO2e per annum. The internal rate of return (IRR) of the project is only −0.41% without the revenue of carbon credits, for example, CERs, which is much lower than the benchmark value of 8%. Only when the unit price of carbon credit reaches 125 CNY/tCO2, the IRR could reach the benchmark and an effective carbon tax needs to increase the price of carbon to 243 CNY/tce in order to make the project financially feasible. Design of incentive mechanism will help these low efficiency enterprises improve efficiency and reduce CO2 emissions, which can provide the power plants sufficient incentive to implement energy efficiency retrofit project in existing coal-fuel power generation-units, and we hope it will make a good demonstration for the other low efficiency coal-fueled power generation units in China. |
| format | Article |
| id | doaj-art-e5c7797040094b2a9e5f412ada3285b2 |
| institution | Kabale University |
| issn | 1537-744X |
| language | English |
| publishDate | 2012-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | The Scientific World Journal |
| spelling | doaj-art-e5c7797040094b2a9e5f412ada3285b22025-02-03T06:45:27ZengWileyThe Scientific World Journal1537-744X2012-01-01201210.1100/2012/841636841636Case Study on Incentive Mechanism of Energy Efficiency Retrofit in Coal-Fueled Power Plant in ChinaDonghai Yuan0Xujing Guo1Yuan Cao2Liansheng He3Jinggang Wang4Beidou Xi5Junqi Li6Wenlin Ma7Mingshun Zhang8Key Laboratory of Urban Stormwater System and Water Environment, Ministry of Education, Beijing University of Civil Engineering and Architecture, Beijing 100044, ChinaKey Laboratory of Development and Application of Rural Renewable Energy, Biogas Scientific Research Institute of the Ministry of Agriculture, Chengdu 610041, ChinaBeijing Climate Change Response Research and Education Center, Beijing University of Civil Engineering and Architecture, Beijing 100044, ChinaWater Environment System Project Laboratory, Chinese Research Academy of Environmental Sciences, Beijing 100012, ChinaDepartment of Environmental Science and Engineering, Beijing University of Chemical Technology, Beijing 100029, ChinaWater Environment System Project Laboratory, Chinese Research Academy of Environmental Sciences, Beijing 100012, ChinaKey Laboratory of Urban Stormwater System and Water Environment, Ministry of Education, Beijing University of Civil Engineering and Architecture, Beijing 100044, ChinaBeijing Climate Change Response Research and Education Center, Beijing University of Civil Engineering and Architecture, Beijing 100044, ChinaBeijing Climate Change Response Research and Education Center, Beijing University of Civil Engineering and Architecture, Beijing 100044, ChinaAn ordinary steam turbine retrofit project is selected as a case study; through the retrofit, the project activities will generate emission reductions within the power grid for about 92,463 tCO2e per annum. The internal rate of return (IRR) of the project is only −0.41% without the revenue of carbon credits, for example, CERs, which is much lower than the benchmark value of 8%. Only when the unit price of carbon credit reaches 125 CNY/tCO2, the IRR could reach the benchmark and an effective carbon tax needs to increase the price of carbon to 243 CNY/tce in order to make the project financially feasible. Design of incentive mechanism will help these low efficiency enterprises improve efficiency and reduce CO2 emissions, which can provide the power plants sufficient incentive to implement energy efficiency retrofit project in existing coal-fuel power generation-units, and we hope it will make a good demonstration for the other low efficiency coal-fueled power generation units in China.http://dx.doi.org/10.1100/2012/841636 |
| spellingShingle | Donghai Yuan Xujing Guo Yuan Cao Liansheng He Jinggang Wang Beidou Xi Junqi Li Wenlin Ma Mingshun Zhang Case Study on Incentive Mechanism of Energy Efficiency Retrofit in Coal-Fueled Power Plant in China The Scientific World Journal |
| title | Case Study on Incentive Mechanism of Energy Efficiency Retrofit in Coal-Fueled Power Plant in China |
| title_full | Case Study on Incentive Mechanism of Energy Efficiency Retrofit in Coal-Fueled Power Plant in China |
| title_fullStr | Case Study on Incentive Mechanism of Energy Efficiency Retrofit in Coal-Fueled Power Plant in China |
| title_full_unstemmed | Case Study on Incentive Mechanism of Energy Efficiency Retrofit in Coal-Fueled Power Plant in China |
| title_short | Case Study on Incentive Mechanism of Energy Efficiency Retrofit in Coal-Fueled Power Plant in China |
| title_sort | case study on incentive mechanism of energy efficiency retrofit in coal fueled power plant in china |
| url | http://dx.doi.org/10.1100/2012/841636 |
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