Combined heat and power system optimisation under carbon pricing policy: a comparison of five carbon markets

Abstract

The installation and optimisation of a gas turbine combined heat and power system was studied in an effort to reduce or eliminate financial liability under five different carbon pricing schemes around the world by becoming more energy efficient. The system was applied to a case study and configured to operate under carbon prices in Australia, the UK (EU ETS), New Zealand, California (USA) and British Columbia (Canada). As a policy designed to promote a reduction in emissions; the policy was successful in three of the five schemes namely Australia, the UK and British Columbia. These results were identified by systems that became unprofitable once financial liability was introduced for carbon emissions. The Australian carbon price was also examined in terms of effectiveness in light of its expected repeal. The Australian system ranked fourth of the five markets studied in terms of financial benefit both when financially liable and not liable for carbon pricing.