Using market-based dispatching with environmental price signals to reduce emissions and water use at power plants in the Texas Grid

Joint Program Reprint • Journal Article
Using market-based dispatching with environmental price signals to reduce emissions and water use at power plants in the Texas Grid
Alhajeri, N.S., P. Donohoo, A.S. Stillwell, C.W. King, M.D. Webster, M.E. Webber and D.T. Allen (2011)
Environmental Research Letters, 6(4): 044018

Reprint 2011-23 [Download]

Abstract/Summary:

The possibility of using electricity dispatching strategies to achieve a 50% nitrogen oxide (NOx) emission reduction from electricity generating units was examined using the grid of the Electricity Reliability Council of Texas as a case study. Simulations of a hypothetical policy demonstrate that imposing higher NOx prices induces a switch from some coal-fired generation to natural gas generation, lowering NOx emissions. The simulation is for a day with relatively high electricity demand and accounts for transmission constraints. In addition to the lowering of the NOx emissions, there are co-benefits of the redispatching of generation from coal to natural gas, including reductions in the emissions of sulfur oxides (24%–71%), Hg (16%–82%) and CO2 (8.8%–22%). Water consumption was also decreased, by 4.4%–8.7%. Substantial reductions of NOx emissions can be achieved for an increased generation cost of 4–13%, which is due to the higher fuel price of gas relative to coal (assuming a price of $3.87 per MMBTU (MMBTU: million British thermal units) for natural gas, and $1.89 per MMBTU for coal). However, once the system has reduced NOx emissions by approximately 50%, there is little incremental reduction in emissions due to further increases in NOx prices.

© 2011 IOP Publishing Ltd

Citation:

Alhajeri, N.S., P. Donohoo, A.S. Stillwell, C.W. King, M.D. Webster, M.E. Webber and D.T. Allen (2011): Using market-based dispatching with environmental price signals to reduce emissions and water use at power plants in the Texas Grid. Environmental Research Letters, 6(4): 044018 (http://dx.doi.org/10.1088/1748-9326/6/4/044018)
  • Joint Program Reprint
  • Journal Article
Using market-based dispatching with environmental price signals to reduce emissions and water use at power plants in the Texas Grid

Alhajeri, N.S., P. Donohoo, A.S. Stillwell, C.W. King, M.D. Webster, M.E. Webber and D.T. Allen

Abstract/Summary: 

The possibility of using electricity dispatching strategies to achieve a 50% nitrogen oxide (NOx) emission reduction from electricity generating units was examined using the grid of the Electricity Reliability Council of Texas as a case study. Simulations of a hypothetical policy demonstrate that imposing higher NOx prices induces a switch from some coal-fired generation to natural gas generation, lowering NOx emissions. The simulation is for a day with relatively high electricity demand and accounts for transmission constraints. In addition to the lowering of the NOx emissions, there are co-benefits of the redispatching of generation from coal to natural gas, including reductions in the emissions of sulfur oxides (24%–71%), Hg (16%–82%) and CO2 (8.8%–22%). Water consumption was also decreased, by 4.4%–8.7%. Substantial reductions of NOx emissions can be achieved for an increased generation cost of 4–13%, which is due to the higher fuel price of gas relative to coal (assuming a price of $3.87 per MMBTU (MMBTU: million British thermal units) for natural gas, and $1.89 per MMBTU for coal). However, once the system has reduced NOx emissions by approximately 50%, there is little incremental reduction in emissions due to further increases in NOx prices.

© 2011 IOP Publishing Ltd