Implication of emission regulation on cost and tariffs of coal-based power plants in India: A system modelling approach

• Published in: Energy policy Vol. 148; p. 111924
• Main Authors: Nazar, Roshna, Srinivasan, Shweta L., Kanudia, Amit, Asundi, Jai
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01.01.2021; Elsevier Science Ltd
• Subjects: Air pollution; Air quality; Ambiguity; Capital; Coal; Cost analysis; Costs; Economic analysis; Electric power generation; Electric power rates; Electricity; Electricity pricing; Electricity tariff; Emission standards; Emissions; Emissions control; Industrial plant emissions; Installation; Investments; Maintenance costs; New emission standards for coal power plants in India; NOx and PM10; Pollutant emission from power plants; Pollutants; Pollution control; Pollution control technology cost; Power plants; SOx; Tariffs; Thermal power; Thermal power plants; India; New emission standards for coal power plants in India; Pollution control technology cost; NOx and PM10; Electricity tariff; SOx; Pollutant emission from power plants
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2020.111924

Coal-based thermal power plants (TPPs) are one of the major culprits contributing to the degrading ambient air quality globally. To address this issue, the Government of India revised the emission standards for coal TPPs in 2015. However, the high upfront cost for installing emission control technologies and ambiguity over their impact on electricity tariff and regulatory provisions have led to delays in the implementation of these technologies. In this study, the total investment—including capital, and operational and maintenance costs—required to meet the new emission standards for all existing and proposed TPPs by 2030 and their tariff implications are estimated. Moreover, the potential system-wide reduction in pollutant emissions by 2030 is also calculated. The detailed techno-economic analysis conducted in this study shows that a total investment of USD 59 billion (INR 3,906 billion) is required to meet the new emission standards across all Indian TPPs. In addition, levelized cost of electricity (LCoE) analysis showed that the electricity tariff would increase by 0.37–1.13 cents/kWh (0.25–0.75 INR/kWh) (around 9%–25% increase over the base electricity tariff), depending on the installation of suitable control technologies. Finally, the likely challenges in installing and operating the new controls are identified, and suitable policy recommendations are provided. •The study estimated the investment required to meet new emission standards for coal power plants in India till 2030.•The cost of electricity generation from coal power plants will increase by 9–25% with pollution control technologies.•Study also highlighted the challenges in implementing emission standards and provided suitable policy recommendations.