Optimizing regional electricity trading with Carbon Emissions Pinch Analysis

Abstract

The global effort to decarbonize electricity production requires the concurrent phaseout of fossil fuel-fired power plants coupled with the installation of new renewable energy capacity. The requirement for the latter capacity may be prohibitive in cases where deep greenhouse gas emissions cuts are sought. Electricity trading among countries provides an opportunity to aggregate electricity sources and demands and reduce incremental new renewable energy generation. Carbon emissions limits of each country can be met if a renewable energy certification system is in place. In this work, modified Carbon Emissions Pinch Analysis (CEPA) approaches were developed to determine the minimum renewable energy target for a group of countries with an electricity trading agreement. CEPA is implemented here both graphically and via the Automated Targeting Model (ATM). The effectiveness of this approach for carbon-constrained energy planning is illustrated using three case studies, which include a case study based on countries in the Association of Southeast Asian Nations (ASEAN). The case study results show that electricity trading can reduce new aggregated renewable energy capacity by 9 TWh. Furthermore, the case studies demonstrate reduced investments in renewable energy generation capacity and avoiding energy assets from being stranded in some cases.