Cover Page
......Page 1
Copyright......Page 2
Dedication......Page 3
Foreword......Page 5
The technical dimension......Page 7
The economic dimension......Page 9
The political dimension......Page 10
References......Page 11
About the Contributors......Page 12
Historical context......Page 27
The carbon problem in context......Page 28
Objectives of the book......Page 31
The organization of this book......Page 32
Part One: The Carbon Challenge......Page 33
Part Two: Solutions......Page 35
Part Three: Case Studies......Page 37
Stabilizing World CO2 Emissions: A Bridge Too Far?......Page 41
Introduction......Page 42
Historical development of the New Zealand system......Page 44
Sources of Carbon Emissions......Page 46
The Initial Steps Taken by the Developed Countries......Page 49
The Global Setting for an Emissions Reduction Scheme......Page 50
Paths to emission reductions......Page 59
Addressing the Issues......Page 63
Conclusions......Page 66
Carbon Policies:
Do They Deliver in
the Long Run?......Page 68
Introduction......Page 69
Options for CO2 emission reduction......Page 70
Description of the Model......Page 73
Scenarios and Assumptions......Page 76
Power Generation Technologies......Page 79
Agent Definition and Behavior......Page 80
Average Total CO2 Emissions......Page 83
Electricity Prices......Page 84
CO2 Intensity......Page 86
Generation Portfolio Development......Page 87
Sensitivity to the Assumptions......Page 88
Conclusion......Page 90
References......Page 91
Emerging Carbon Markets and Fundamentals of Tradable Permits......Page 94
Carbon market size......Page 95
Cap-and-trade schemes......Page 98
Desirable Features of Cap and Trade......Page 100
Success Factors for Designing Cap and Trade......Page 101
Compliance and Voluntary Markets......Page 102
Carbon Dioxide Emissions......Page 103
The Commodity Life Cycle......Page 105
Transaction Mechanisms......Page 107
Market oversight......Page 108
Current State of Play on Market Oversight......Page 109
Modeling a Low-Carbon Electricity Future for China......Page 110
Registry Systems and Implementation......Page 111
Implementation of Oversight Mechanisms......Page 112
Market registries and tracking systems......Page 113
Functional Requirements of Market Registries......Page 114
Technology Platforms......Page 115
Environmental Registries......Page 118
Conclusion......Page 119
References......Page 120
Making It Personal: Per Capita Carbon Allowances......Page 123
Introduction......Page 124
Basic features of a national carbon allowance scheme......Page 126
Background on U.K. Energy Use and Carbon Emissions......Page 131
Personal Direct Carbon Emissions in Context......Page 132
Social Distribution of Carbon Emissions......Page 133
U.K. Political and Public Interest in PCA......Page 134
Context......Page 136
The Danish Energy System in Relation to PCA......Page 137
CO2 Emissions in the Danish Energy System......Page 139
Conclusion......Page 140
Acknowledgments......Page 141
References......Page 142
Addressing Climate Change......Page 144
Geothermal power from naturally occurring reservoirs......Page 451
The pros and cons of local and global scales......Page 146
A policy framework for blending local and global scales......Page 151
Consistency......Page 152
Projected Growth and Investment Needs......Page 506
Concentrated solar power (CSP)......Page 153
Accountability......Page 154
Conclusion......Page 155
References......Page 157
Eliminating CO2 Emissions from Coal-Fired Power Plants......Page 160
Introduction......Page 161
The basics of carbon capture and storage......Page 164
Carbon capture technologies: Retrofit options for coal-fired power plants......Page 167
Amine-based liquid solvent systems......Page 169
Aqueous ammonia process......Page 171
Membranes......Page 172
Cryogenics......Page 173
References......Page 497
Oxy-fuel Combustion......Page 174
Merchant Transmission......Page 177
Biomass Cofiring......Page 178
Post-combustion CO2 capture economics......Page 179
Oxy-fuel combustion economics......Page 182
Economics of biomass cofiring......Page 183
Economics of other systems......Page 184
Integrated CO2 capture designs......Page 185
Integrated Gasifier Combined Cycle Plant with Pre-Combustion CO2 Capture......Page 186
The HyPr-Ring Process......Page 187
The ZECA Process......Page 188
The ALSTOM Process......Page 189
The Calcium Looping Process......Page 190
The GE Fuel-Flexible Process......Page 191
The Coal-Direct Chemical Looping Reforming Process and the Syngas Redox Process......Page 192
The Membrane Process......Page 193
The zero-emission concept......Page 194
Carbon storage options......Page 195
Ocean Sequestration......Page 196
Geological Sequestration......Page 197
Mineral Sequestration......Page 198
Conclusion......Page 199
References......Page 201
The Role of Nuclear Power in Climate Change Mitigation......Page 207
Greenhouse gas emissions and nuclear power......Page 208
California GHG Law......Page 528
The Solar Resource......Page 303
The United States......Page 218
Conclusion......Page 222
Russia......Page 227
Other Markets......Page 228
Modeling the future NZ portfolio......Page 229
Conclusion......Page 236
References......Page 331
Barriers and Policy Solutions to Energy Efficiency as a Carbon Emissions Reduction Strategy......Page 239
Introduction......Page 240
The magnitude of the energy efficiency resource......Page 241
Cap-and-trade policy design issues (see also Adib et al.)......Page 246
Implications of GHG policy for design of RTO spot markets......Page 570
Utility regulatory barriers......Page 249
Market Barriers......Page 250
The Limits of Price Elasticity Effects......Page 253
Allowance auction policies......Page 255
Implications of GHG policy for transmission policy and planning......Page 579
Allowance allocation policies......Page 257
Allowance set-asides......Page 258
Complementary energy policies......Page 259
Energy efficiency resource standards (EERS) and renewable portfolio standards (RPS)......Page 260
Toward a Low-Carbon Power Sector in China......Page 263
Appliance efficiency standards......Page 267
Building energy codes......Page 268
Labeling and rating policies......Page 269
Conclusion......Page 270
Wind Power: How Much, How Soon, and at What Cost?......Page 272
Background: NZ energy policy and its context......Page 273
The global wind power market......Page 275
Twenty percent wind electricity by 2030......Page 452
The potential global role of wind power......Page 292
Conclusion......Page 296
Conclusion......Page 297
Solar Energy: The Largest
Energy Resource......Page 301
Introduction......Page 302
Photovoltaics (PV)......Page 305
Solar water heating (SWH)......Page 312
Other direct solar technologies......Page 314
Solar PV......Page 315
CSP......Page 320
Solar Water-Heating Costs and Market Trends......Page 322
Overcoming Market Barriers to Wide-Scale Solar Deployment......Page 324
High penetration limits......Page 325
Conclusion......Page 329
Conclusion......Page 330
Geothermal Power......Page 333
Geothermal in the United States......Page 340
Engineered geothermal systems: manmade reservoirs......Page 343
References......Page 349
Hydroelectricity......Page 352
Introduction......Page 353
Current use and potential of hydropower......Page 354
The evolution of the coal-replacement policy......Page 363
Overcoming barriers to future hydro development......Page 367
GHG emissions associated with hydropower......Page 370
California's emissions performance standard......Page 533
References......Page 373
Ontario: The Road to Off-Coal Is Paved with Speed Bumps......Page 374
Introduction......Page 375
The setting in Ontario......Page 377
The coal-replacement plan......Page 383
Stakeholder assessments of the phase-out strategy......Page 385
Intermittent Renewables and Reliable Nonrenewables......Page 404
Technical Challenges......Page 388
Environmental Challenges and the Market Context......Page 390
Conclusion......Page 391
References......Page 393
Kicking the Fossil-Fuel Habit:New
Zealand’s Ninety
Percent Renewable
Target for Electricity......Page 395
The Rise and (Relative) Fall of Hydro......Page 398
California's renewable portfolio standard......Page 530
A Model of the Trade-Off......Page 407
Norway and Iceland as models......Page 409
The Electricity Commission's GEM Model......Page 414
Ministry of Economic Development Modeling Work......Page 421
The Long-Run Renewables Supply Curve......Page 425
Supply-Side Bias?......Page 428
Gaps in the Current Policy Framework......Page 429
Conclusion......Page 430
References......Page 432
Carrots and Sticks: Will the British Electricity Industry Measure Up to the Carbon Challenge?......Page 435
Introduction......Page 436
Energy Setting......Page 437
Electricity Generation......Page 438
Clean Fossil Power......Page 511
Policy Initiatives......Page 440
Climate Change Program......Page 441
2006 revised program......Page 442
The Stern Review......Page 443
2003 White Paper......Page 445
2006 Energy Review......Page 446
EU Climate and Energy Package......Page 447
Renewables obligation......Page 448
New renewables investment......Page 450
Assessment of renewables record......Page 453
CHP incentives......Page 454
Developments in CHP......Page 455
Nuclear policy......Page 456
Nuclear developments......Page 458
Clean coal incentives: CCS......Page 459
Clean coal developments......Page 460
Environmental Schemes: LCPD......Page 461
Emissions trading policy......Page 462
Assessment of EU ETS......Page 463
Energy efficiency commitments......Page 465
Post-2011 supplier obligations......Page 466
Assessment of domestic efficiency......Page 467
CCL and CCAs......Page 468
Assessment of business energy efficiency incentives......Page 469
Cost of Carbon Abatement......Page 470
Drivers......Page 471
Conclusion......Page 473
References......Page 476
CO2 Regulations......Page 477
Introduction......Page 478
Improving ETS market design for massive deployment of mature low-emitting technologies......Page 483
Tax vs. Cap and Trade: The Case for Hybrid Instruments......Page 486
Cap and Trade and Security of Supply......Page 489
R&D Policy Instruments for Immature Technologies......Page 491
Complementarity of Control and Command Instruments for a Consistent Energy Policy......Page 493
Toward a Sectoral Approach in Europe......Page 494
Competition Between Substitutable Sectors and Between Countries......Page 495
Low-Carbon Electricity Development in China: Opportunities and Challenges......Page 499
Introduction......Page 500
Overview......Page 501
Industry Structure......Page 504
Conventional Air Pollutants......Page 507
Renewables......Page 509
Energy Efficiency......Page 512
Reference Scenario......Page 516
CO2 Emission Constraint Scenario......Page 520
References......Page 524
California
Dreaming: The
Economics, Politics,
and Mechanics of
Meeting California’s
Carbon Mandate......Page 527
AB-32 Presents a Critical Challenge for Southern California Edison......Page 529
California's energy efficiency standards......Page 531
Southern California Edison's fuel mix......Page 534
A brief description of cap and trade for California......Page 536
Source-Based Cap and Trade......Page 538
Load-Based Cap and Trade......Page 539
First Deliverer......Page 540
Application of a first deliverer POR to a regional cap-and-trade program......Page 542
Generation Interconnection......Page 584
The Distinction Between Allocating Economic Value and Distributing Allowances......Page 543
Allocation Objectives......Page 544
Economic Impact of Allocation......Page 548
Cost Containment and Flexible Compliance Options......Page 549
What this means for SCE ratepayers......Page 550
SCE Is Looking for Real, Permanent Reductions at the Lowest Possible Cost......Page 551
Conclusion......Page 552
RTOs, Regional Electricity Markets, and Climate Policy......Page 553
Introduction......Page 554
Alternative GHG policy instruments and implications for RTO functions......Page 557
State and Regional GHG Regulation......Page 563
Implications of GHG policy for power system operations......Page 566
Spot Energy Markets......Page 571
Ancillary Service Markets......Page 572
Market Participation of Demand Response and Storage Technology......Page 574
Implications of GHG policy for resource adequacy......Page 575
RTO Planning Functions......Page 580
Reducing Transmission and Interconnection Barriers to Remote Renewable Resources......Page 581
Acknowledgment......Page 586
References......Page 587
Two Surprises and One Insight
......Page 590
A......Page 592
C
......Page 593
E......Page 597
G......Page 600
I......Page 601
L......Page 602
N......Page 603
O......Page 604
P......Page 605
R......Page 606
S......Page 607
T......Page 609
U......Page 610
Z......Page 611