Publications, Reports & Research

Publications, Reports & Research

Economics and policies for carbon capture and sequestration in the western United States: A marginal cost analysis of potential power plant deployment

1st February 2010

Topic(s): Economics, Carbon capture, use and storage (CCUS)

Carbon capture and sequestration (CCS) is a technology that can significantly reduce power sector greenhouse gas (GHG) emissions from coal-fired power plants. CCS technology is currently in development and requires higher construction and operating costs than is currently competitive in the private market. A question that policymakers and investors have is whether a CCS plant will operate economically and be able to sell their power output once built. One way of measuring this utilization rate is to calculate capacity factors of possible CCS power plants. To investigate the economics of CCS generation, a marginal cost dispatch model was developed to simulate the power grid in the Western Interconnection. Hypothetical generic advanced coal power plants with CCS were inserted into the power grid and annual capacity factor values were calculated for a variety of scenarios, including a carbon emission pricing policy.

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Economics and policies for carbon capture and sequestration in the western United States: A marginal cost analysis of potential power plant deployment

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