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Expediting Transition Towards HELE Coal-Fired Electricity Generation Technologies in Southeast Asia: A Comparative Economic Analysis of HELE and Subcritical Coal-Fired Technologies

In: Energy Sustainability and Climate Change in ASEAN

Author

Listed:
  • Hassan Ali

    (College of the North Atlantic Qatar)

  • Han Phoumin

    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Steven R. Weller

    (The University of Newcastle)

  • Beni Suryadi

    (ASEAN Centre for Energy, ASEAN Centre for Energy Building)

Abstract

To decarbonise the electricity generation sector under the International Energy Agency’s 2 °C scenario, electricity generation from less efficient subcritical coal plants needs to be completely phased out by 2050. In addition, large potential exists in the Southeast Asia region for the deployment of high-efficiency, low-emission (HELE) electricity generation technologies. A cost–benefit analysis of HELE technologies against the less efficient subcritical electricity generation plants is thus carried out to find a persuasive scenario supporting a quicker transition from subcritical stations towards HELE technologies in the region. A levelised cost of electricity (LCOE) analysis is carried out for both the coal-fired technologies under four potential policy scenarios. To evaluate the LCOEs, scenario 1 does not take into consideration any carbon pricing or costs associated with the desulphurisation (deSOx) and denitrification (deNOx) facilities. Scenario 2 (scenario 3) incorporates carbon pricing (costs associated with the deSOx and deNOx facilities), while scenario 4 includes both carbon pricing and costs associated with the deSOx and deNOx facilities. A novelty of this study is that it includes advanced ultra-supercritical (A-USC) plants, and a sensitivity analysis is performed under each scenario to evaluate the uncertainty affecting the future coal prices on coal plants with 20- and 25-year lifespans. This study demonstrates that HELE technologies are competitive against the subcritical plants under all four scenarios, and both the technologies derive benefit from lifetime extensions and low coal prices. It is revealed that future deployments of HELE technologies can be expedited by factoring in carbon pricing in the LCOE costs of coal-fired power plants under scenario 2. It thus necessitates strengthening the carbon pricing policy for coal-fired power plants in Southeast Asia to support a quicker transition from less efficient subcritical stations towards HELE coal-fired technologies.

Suggested Citation

  • Hassan Ali & Han Phoumin & Steven R. Weller & Beni Suryadi, 2021. "Expediting Transition Towards HELE Coal-Fired Electricity Generation Technologies in Southeast Asia: A Comparative Economic Analysis of HELE and Subcritical Coal-Fired Technologies," Economics, Law, and Institutions in Asia Pacific, in: Han Phoumin & Farhad Taghizadeh-Hesary & Fukunari Kimura & Jun Arima (ed.), Energy Sustainability and Climate Change in ASEAN, chapter 0, pages 147-165, Springer.
    • Handle: RePEc:spr:eclchp:978-981-16-2000-3_6
    DOI: 10.1007/978-981-16-2000-3_6
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    Citations

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    Cited by:

    1. Dardan Klimenta & Marija Mihajlović & Ivan Ristić & Darius Andriukaitis, 2022. "Possible Scenarios for Reduction of Carbon Dioxide Emissions in Serbia by Generating Electricity from Natural Gas," Energies, MDPI, vol. 15(13), pages 1-33, June.
    2. Purusothmn Nair S. Bhasker Nair & Raymond R. Tan & Dominic C. Y. Foo & Disni Gamaralalage & Michael Short, 2023. "DECO2—An Open-Source Energy System Decarbonisation Planning Software including Negative Emissions Technologies," Energies, MDPI, vol. 16(4), pages 1-27, February.
    3. Han Phoumin & Fukunari Kimura & Jun Arima, 2021. "ASEAN’s Energy Transition towards Cleaner Energy System: Energy Modelling Scenarios and Policy Implications," Sustainability, MDPI, vol. 13(5), pages 1-29, March.
    4. Hassan Ali & Han Phoumin & Beni Suryadi & Aitazaz A. Farooque & Raziq Yaqub, 2022. "Assessing ASEAN’s Liberalized Electricity Markets: The Case of Singapore and the Philippines," Sustainability, MDPI, vol. 14(18), pages 1-24, September.
    5. Amanda Qinisile Vilakazi & Sehliselo Ndlovu & Liberty Chipise & Alan Shemi, 2022. "The Recycling of Coal Fly Ash: A Review on Sustainable Developments and Economic Considerations," Sustainability, MDPI, vol. 14(4), pages 1-32, February.

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