Implications of Near-Term Coal Power Plant Retirement for SO2 and NOX and Life Cycle GHG Emissions

Abstract

Regulations monitoring SO(2), NO(X), mercury, and other metal emissions in the U.S. will likely result in coal plant retirement in the near-term. Life cycle assessment studies have previously estimated the environmental benefits of displacing coal with natural gas for electricity generation, by comparing systems that consist of individual natural gas and coal power plants. However, such system comparisons may not be appropriate to analyze impacts of coal plant retirement in existing power fleets. To meet this limitation, simplified economic dispatch models for PJM, MISO, and ERCOT regions are developed in this study to examine changes in regional power plant dispatch that occur when coal power plants are retired. These models estimate the order in which existing power plants are dispatched to meet electricity demand based on short-run marginal costs, with cheaper plants being dispatched first. Five scenarios of coal plant retirement are considered: retiring top CO(2) emitters, top NO(X) emitters, top SO(2) emitters, small and inefficient plants, and old and inefficient plants. Changes in fuel use, life cycle greenhouse gas emissions (including uncertainty), and SO(2) and NO(X) emissions are estimated. Life cycle GHG emissions were found to decrease by less than 4% in almost all scenarios modeled. In addition, changes in marginal damage costs due to SO(2), and NO(X) emissions are estimated using the county level marginal damage costs reported in the Air Pollution Emissions Experiments and Policy (APEEP) model, which are a proxy for measuring regional impacts of SO(2) and NO(X) emissions. Results suggest that location specific parameters should be considered within environmental policy frameworks targeting coal plant retirement, to account for regional variability in the benefits of reducing the impact of SO(2) and NO(X) emissions.