Coal based power generation: options, technologies and carbon credits

Abstract

This paper examines the role of coal as a source of energy in a world where constraints on carbon emissions is being adopted rapidly to mitigate the global warming. The premise on which this report is based assumes that government all across the world are undertaking or plan to undertake actions which will ensure restriction of greenhouse gas emissions thereby restricting global warming. However, coal is destined to play an indispensable role in the development of any economy and hence restriction in its usage is not feasible. The study has been divided into three phases: The first part of the report attempts to explore the concept of Carbon Credits trading and subsequently leads to the dynamics governing markets and the emerging role of international exchanges along with the valuation models being applied to carbon credits. A brief overview of the opportunities for India in this scenario has been included to highlight the relevance of the latter half of the study. Considering the fact that one of the challenges is to assure availability of demonstrated technologies that would facilitate achievement of carbon emission reduction goals, the second part of this report addresses this requirement. The focus is to study the various technologies available for utilities and the approaches adopted by them for controlling CO2 emissions. Carbon free technologies, chiefly nuclear and renewable energy for electricity, will also play an important role in a carbon-constrained world. The inclusion of CO2 capture and sequestration (CCS) is a critical technology aimed at reducing CO2 emissions significantly. Though availability of CCS makes a significant difference in the utilization of coal, it comes at a very high cost high enough, as of today, to mitigate all the benefits arriving from its implementation. Finally, the study highlights on the concerns which India has been raising while opposing CCS over the past years. This section completely focuses on CCS and its prospects in India. Overall, this study encourages further research and follow-up work within the utilities industry and applying the learnings and findings from this report to the Indian Power Sector can be of great value add for the overall industry.