Abstract
We are arguing that in order to reduce climate change, governments should adopt legislation requiring generators and independent power producers (IPPs) to provide system operators with energy offer/bidding prices, incremental heat rates and cost curves, and emission factors of important pollutants. The system operator then include environmental costs in the incremental cost curve of energy/bid price when making the merit order for dispatch Less efficient, high-emitting fossil fuel power plants (such as coal-fired plants) lose slots in the merit order and have their annual operational hours reduced in an economic dispatch modelAs a result, emissions are lowered, and high-emitting power plants' profitability is diminished. The generation mix in the electricity market will be completely altered, and the entire electricity market scenario will permanently shift to cleaner energy. To demonstrate the concept, the cost and environmental performance of some selected fossil-fuel technologies are used to demonstrate the concept to show how the merit order changes completely when environmental costs are added to their marginal energy costs.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
