Transition of a Conventional Power Utility to Achieve 2050 RES and Carbon Cut Targets—EPBIH Case Study

Abstract

Conventional power utilities are faced today with challenges in terms of sustainable development and decarbonisation. Different measures are used to achieve the set targets, i.e. increase of RES, increase of energy efficiency and CO2 cut. In this work, a method for achieving CO2 cut targets has been demonstrated on a real power system, i.e. EPBiH power utility, operating in Bosnia and Herzegovina. EPBiH power utility is based today on a mix of coal and hydro, while there is a great potential for RES projects; hydro, wind and biomass. So it is possible to sustainably exploit the available capacity, to drastically reduce the environmental impact of the power sector, for example by use of biomass and expansion of cogeneration in existing coal-based power plants. Also, for new thermal power units to be commissioned and being necessary for consumption coverage once when generation from RES is low, the environmental requirements are fulfilled. Those units are planned to be CHP which would additionally contribute to the decrease of overall emissions on district heating coverage area. Also, the efficient use of fuel will be maximized in accordance with the best available techniques, while biomass co-firing will significantly contribute to the set goals. The model used in this work took into account the security of supply, competitiveness and sustainability, considering environmental, economic and social indicators. Three scenarios with different CO2 cut rates by 2050 have been considered, while a range of measures have been applied to achieve the set decarbonisation targets. All scenarios involve significant increase of RES, from current 18 to 43% in LOW CO2 cut, through 62% in MID CO2 cut, up to 76% in HIGH CO2 cut scenario. As compared to 1990 level, CO2 emissions in those scenarios are decreased for 55, 65 and 80%, respectively. In all cases, attention was paid to maintaining the necessary level of stability of the power system and security of supply. SCA and MSA have been performed for sustainability assessment. SCA results show that HIGH CO2 cut scenario has advantage compared to MID CO2 cut and LOW CO2 cut scenarios, when environmental and economic OPEX indicators are considered. However, when only investment is considered, LOW CO2 cut scenario is preferable. Although electricity demand is met in all scenarios, it was found that an increase in investment in generation facilities that will contribute reducing the costs of operation and maintenance, as well as reducing CO2 emissions, in the long run will be multiply rewarded, when comparing LOW CO2 cut with HIGH CO2 cut scenario. It was confirmed by MSA analysis, which showed that no matter which relation between weighting factors is considered, HIGH CO2 cut scenario is preferable.