Limiting CO 2 emissions in the power sector of India : Supply curves for wind and small hydro

Abstract

The potential and the costs of windfarm and small hydro power generation as a means of offsetting CO2 emissions in India is discussed. Both the absolute and the incremental supply cost curves for CO2 offset are constructed. Of the two options, the use of wind electric generators in windfarms offers much higher potential for energy paths to reduce CO2 emissions but the estimated costs are substantially higher than the costs of small hydel. Unlike windfarm power generation, some identified small hydro sites offer possibilities of a net negative incremental cost of offsetting CO2 emissions. The incremental costs range from US$-120 to US$50 per tonne of carbon equivalent for small hydro and US$6 to US$470 per tonne for windfarms.