Abstract
The purpose of this study is to analyze effects of Greenhouse Gas (GHG) emission reduction in district energy business mainly based on Combined Heat and Power (CHP) plants. Firstly this paper compares the actual carbon intensity of power production between conventional power plants and district energy plants. To allocate the GHG from CHP plants, two of different methods which were Alternative Generation Method and Power Bonus Method, have been investigated. The carbon intensity of power production in district energy plants (0.43 tonCO2e/MWh) was relatively lower than conventional gas-fired power plants (0.52 tonCO2e/MWh). Secondly we assessed the cost effectiveness of reduction by district energy sector compared to the other means using TIMES model method. We find that GHG marginal abatement cost of ‘expand CHP’ scenario (—$134/tonCO2) is even below than renewable energy scenario such as photovoltaic power generation ($87/tonCO2). Finally the GHG emission reduction potential was reviewed on the projected GHG emission emitted when the same amount of energy produced in combination of conventional power plants and individual boilers as substitution of district energy. It showed there were 10.1∼41.8% of GHG emission reduction potential in district energy compared to the combination of conventional power plants and individual boilers.
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