Decarbonization Of Power Sector Research Articles

The role of inter-island transmission in full decarbonisation scenarios for Indonesia’s power sector

Indonesia has large renewable energy resources that are not always located in regions where they are needed. Sub-sea power transmission cables, or island links, could connect Indonesia’s high-demand islands, like Java, to large-resource islands. However, the role of island links in Indonesia’s energy transition has been explored in a limited fashion. Considering Indonesia’s current fossil fuel dependency, this is a critical knowledge gap. Here we assess the role of island links in Indonesia’s full power sector decarbonisation via energy system optimisation modelling and an extensive scenario and sensitivity analysis. We find that island links could be crucial by providing access to the most cost-effective resources across the country, like onshore photovoltaics (PV) and hydropower from Kalimantan and geothermal from Sumatera. In 2050, 43 GW of inter-island transmission lines enable 410 GWp of PV providing half of total generation, coupled with 100 GW of storage, at levelised system costs of 60 US$(2021)/MWh. Without island links, Java could still be supplied locally, but at 15% higher costs due to larger offshore floating PV and storage capacity requirements. Regardless of the degree of interconnection, biomass, large hydro, and geothermal remain important dispatchable generators with at least 62 GW and 23% of total generation throughout all tested scenarios. Full decarbonisation by 2040 mitigates an additional 464 MtCO2e compared to decarbonisation by 2050, but poses more challenges for renewables upscaling and fossil capacity retirement.

Emerging environmental justice issues at the intersection of transportation and electricity systems

Rapid decarbonization of the transportation system is needed to address global climate change, and electrification of the transportation sector will likely be an important strategy to achieve decarbonization goals. While electrification is an effective approach to reducing carbon emissions, it may result in environmental justice consequences that need to be tackled. We discuss four categories of related issues: air quality and health-related equity; technology access; equitable infrastructure development; and a just global supply chain. In regions where grid decarbonization is well under way, transport-related disparities in air quality and health are expected to decrease with electrification. In contrast, in regions that still rely heavily on coal generation, disparities may increase, putting further strain on low-income communities and people of color. The high upfront cost of electric vehicles and limited access to charging present additional challenges for achieving equity in transportation electrification. Meeting the electricity demand of a fully electric vehicle fleet will require rapid expansion of power generation, transmission, and distribution capacity, and the location and design of this infrastructure will have further impacts on communities where it is sited. Here, we offer a perspective on these emerging environmental justice issues at the intersection of transportation and electricity systems and provide policy recommendations and future research directions for electrified transportation. We suggest there is a need for policies targeting electrification and power sector decarbonization in tandem, assessment of barriers to electric vehicle adoption in different groups, development of strategies for community inclusion in infrastructure development decisions, and creation of frameworks to assess equity tradeoffs along the global supply chain supporting electric vehicles and renewable energy technologies.

Can Sovereign Green Bonds Accelerate the Transition to Net-Zero Greenhouse Gas Emissions?

This paper focuses on sovereign green bonds issued in Europe. By issuing green bonds, European governments commit themselves to realizing environmentally friendly projects and encourage other entities, including private-sector ones, to do the same, thus increasing further domestic investments in addressing climate change. However, considering that governments could pursue their sustainable goals by also issuing conventional bonds, this begs the question of why governments should prefer green bonds. A dataset of European sovereign green bonds was retrieved from the Bloomberg Fixed Income database to answer this question. The data cover all European sovereign green bonds issued until the end of 2023. Quantitative analysis confirms the existence of a small green premium for the issuers, representing an incentive to increase the issuances of sovereign green bonds. Furthermore, the government's carbon emissions reduction, the power sector decarbonization, and good climate policies, measured by the Government Climate Risk Score, contribute to further reducing a country's climate risk and consequently the costs of the issuance, thus triggering a virtuous circle which could, in turn, accelerate the transition to net-zero emissions. Despite these benefits, hurdles still exist, and have curbed the development of the market. Examples include divergence between the use of funds raised through green bonds, which should be earmarked exclusively for climate and environmental projects, and the fungibility requirements for proceeds from sovereign debt and fiscal revenues.

Lifecycle carbon footprints of buildings and sustainability pathways in China

The Paris Agreement, with a 2 °C temperature increase baseline and a 1.5 °C target temperature increase, imposes challenges to the sustainability of buildings. However, as an end-user or end-of-the-art, the building sector overlaps with other sectors, such as industry and transportation in building materials manufacturing (such as steel, concrete, cement, etc. ) and electricity use (such as building-to-vehicle charging), imposing difficulties in lifecycle carbon footprint quantification in buildings. In this study, the lifecycle carbon footprint of buildings and sustainability pathways in China are provided. Tools and platforms for lifecycle carbon footprint quantification in buildings are reviewed. A global database for lifecycle carbon footprint quantification in buildings is reviewed and compared, together with an analysis of the advantages and disadvantages. Furthermore, decarbonization technologies in the building operation stage are comprehensively reviewed, including the decarbonization potential, technology readiness level (TRL), techno-economic performance, and current technical status. Pathways on carbon neutrality in building sectors in China are provided. The results indicate that inconsistencies in global databases, unclear definitions of lifecycle carbon emissions, and inaccurate models of building energy consumption are the main challenges for accurate lifecycle carbon analysis in buildings. Various carbon neutrality transformation technologies can be classified into ultralow energy building and near zero-energy building technologies and into efficient heat pump and smart metering technologies. Pathways for low-carbon transition in building sectors include building energy saving (330 million tCO2 with 22%), renewable energy supply (299 million tCO2 with 20%), building electrification and power sector decarbonization (450 million tCO2 with 30%), and carbon capture, utilization and storage (CCUS) technology (420 million tCO2 with 28%). These research results can pave the way for upcoming studies on the lifecycle carbon footprint in buildings and sustainability pathways in China.

Power sector decarbonisation in developing and coal-producing countries: A case study of Indonesia

Global efforts to transition away from coal within a decade encounter significant challenges, particularly in developing and coal-producing countries, e.g. Indonesia. Most current studies do not discuss the impact of coal phase-out on the upstream sector, which is important for coal-producing countries. This study aims to analyse Indonesia's power sector decarbonisation impact on the power and fossil upstream sectors. This analysis used VEDA-TIMES energy system optimisation using three scenarios: least-cost system (BAU), decarbonisation without coal phase-out (PA 1.5), and decarbonisation with coal phase-out (PA 1.5 PO). In all cases, decarbonisation will reduce the amount of coal used in energy systems. However, in a technology-agnostic transition, coal still constitutes 16% of total capacity in 2060. By this time, the coal-fired power generating assets have also transitioned to high efficiency, low emissions (HELE) technologies. CCS plays an important role in Indonesia's decarbonisation. A key implication of the coal phase-out scenario is the stranding of $9 bn worth of existing assets and an increased role for renewable energy and imported natural gas in 2035–2050, posing a notable threat to gas security within the industrial sector. In addition, the potential loss due to untapped coal reserves is estimated at $63 bn, while the cumulative net loss in the coal upstream sector amounts to $799 bn (0.26% of Indonesia's GDP and 3.7% of the coal-producing GDRP). Nevertheless, the total investment and electricity production costs exhibit negligible differences in the rapid VRE expansion, but it will reduce total investment by 24% in the low VRE buildrate.

Stakeholder-driven carbon neutral pathways for Thailand and Bangkok: integrated assessment modeling to inform multilevel climate governance

Thailand has established a target of carbon neutrality by 2050. Reaching this goal will require coordination and collaboration between stakeholders spanning sectors and scales, including energy system decision makers, land managers, and city planners. Robust decarbonization scenarios incorporating current plans and targets, additional measures needed, and trade-offs between strategies can help stakeholders make informed decisions in the face of uncertainty. Through iterative engagement with decision makers at the city and national levels, we develop and analyze carbon neutral scenarios for Thailand that incorporate Bangkok’s role using a global integrated assessment model. We find that Thailand can reach carbon neutrality through power sector decarbonization, energy efficiency improvements, widespread electrification, and advanced technologies including carbon capture and storage and hydrogen. Negative emissions technologies will also be needed to offset Thailand and Bangkok’s hardest-to-abate CO2 emissions. Bangkok, as a major population and economic center, contributes significantly to Thailand’s energy demand and emissions and can therefore play an important role in climate change mitigation. Accordingly, our results underscore the importance of subnational climate action in meeting Thailand’s carbon neutral goal. Our analysis also indicates that without sustained land-based carbon sequestration, much more mitigation effort will be needed in Thailand’s energy sector, including at the subnational scale, to reach carbon neutrality. These insights can help stakeholders identify priorities, consider tradeoffs, and make decisions that will impact Bangkok and Thailand’s long-term climate change mitigation potential. This analysis demonstrates how stakeholder engagement in integrated assessment modeling can facilitate and inform multilevel climate governance.

Impacts of climate change, population growth, and power sector decarbonization on urban building energy use

Climate, technologies, and socio-economic changes will influence future building energy use in cities. However, current low-resolution regional and state-level analyses are insufficient to reliably assist city-level decision-making. Here we estimate mid-century hourly building energy consumption in 277 U.S. urban areas using a bottom-up approach. The projected future climate change results in heterogeneous changes in energy use intensity (EUI) among urban areas, particularly under higher warming scenarios, with on average 10.1–37.7% increases in the frequency of peak building electricity EUI but over 110% increases in some cities. For each 1 °C of warming, the mean city-scale space-conditioning EUI experiences an average increase/decrease of ~14%/ ~ 10% for space cooling/heating. Heterogeneous city-scale building source energy use changes are primarily driven by population and power sector changes, on average ranging from –9% to 40% with consistent south–north gradients under different scenarios. Across the scenarios considered here, the changes in city-scale building source energy use, when averaged over all urban areas, are as follows: –2.5% to –2.0% due to climate change, 7.3% to 52.2% due to population growth, and –17.1% to –8.9% due to power sector decarbonization. Our findings underscore the necessity of considering intercity heterogeneity when developing sustainable and resilient urban energy systems.

Accelerating China’s power sector decarbonization can save lives: integrating public health goals into power sector planning decisions

China, the world’s largest greenhouse gas emitter in 2022, aims to achieve carbon neutrality by 2060. The power sector will play a major role in this decarbonization process due to its current reliance on coal. Prior studies have quantified air quality co-benefits from decarbonization or investigated pathways to eliminate greenhouse gas emissions from the power sector. However, few have jointly assessed the potential impacts of accelerating decarbonization on electric power systems and public health. Additionally, most analyses have treated air quality improvements as co-benefits of decarbonization, rather than a target during decarbonization. Here, we explore future energy technology pathways in China under accelerated decarbonization scenarios with a power system planning model that integrates carbon, pollutant, and health impacts. We integrate the health effects of power plant emissions into the power system decision-making process, quantifying the public health impacts of decarbonization under each scenario. We find that compared with a reference decarbonization pathway, a stricter cap (20% lower emissions than the reference pathway in each period) on carbon emissions would yield significant co-benefits to public health, leading to a 22% reduction in power sector health impacts. Although extra capital investment is required to achieve this low emission target, the value of climate and health benefits would exceed the additional costs, leading to $824 billion net benefits from 2021 to 2050. Another accelerated decarbonization pathway that achieves zero emissions five years earlier than the reference case would result in lower net benefits due to higher capital costs during earlier decarbonization periods. Treating air pollution impacts as a target in decarbonization can further mitigate both CO2 emissions and negative health effects. Alternative low-cost solutions also show that small variations in system costs can result in significantly different future energy portfolios, suggesting that diverse decarbonization pathways are viable.

Analysis of electrification and its greenhouse gas reduction potential in the industrial sector of Korea using mixed methods

Carbon neutrality has heightened the necessity for deep decarbonization in the industrial sector, emphasizing the significance of ambitious mitigation measures, including system-level energy and material efficiency, carbon capture and utilization, electrification, and green hydrogen utilization. Electrification, particularly in the hard-to-abate industrial sector, emerges as a critical tool assuming the power sector's decarbonization. This study aims to evaluate Korea's industrial sector electrification potential and its greenhouse gas (GHG) reduction potential by 2050. To achieve this, we employ a mixed-method approach, integrating quantitative methods, such as the Iterative Proportional Fitting Procedure (IPFP) for data consistency, energy forecast, and elasticity of substitution models, along with a qualitative method involving energy experts through the Delphi technique. The results indicate an estimated 41% electrification potential for Korea's industrial sector by 2050, with a potential GHG reduction of approximately 26.3% compared to the Business-as-Usual emissions.

Implications of carbon neutrality for power sector investments and stranded coal assets in China

China's 2060 carbon neutrality vision requires deep decarbonization of the power sector. Existing studies explore decarbonization pathways for China's power sector, but understanding of the associated economic costs still needs to be enhanced, especially in the context of carbon neutrality. We examine the implications of carbon neutrality for China's power sector investments and stranded coal assets under 12 illustrative scenarios by combining integrated assessment model simulations and post-simulation calculations, bottom-up coal capacity data. We inform a technology-level scenario-robust investment strategy for China's power sector in line with its carbon neutrality vision. We estimate that total investments in China's power sector reach $7.3–8.4 trillion between 2021 and 2060, of which 76–82% is expected to be invested in wind and solar. We also estimate that achieving carbon neutrality in our scenarios implies $60–130 billion of coal power assets in China at risk of being stranded after 2030. We emphasize that China's policy package to align power sector decarbonization with the carbon neutrality vision should include investment strategies and promotion measures for low-carbon technologies, particularly wind and solar, as well as a roadmap to completely phase out conventional coal plants by approximately 2050.

Comprehensive Thermodynamic Evaluation of the Natural Gas-Fired Allam Cycle at Full Load

In this study, thermodynamic modeling and simulations were used to optimize the design point performance of the Allam cycle. The topic fits perfectly with the strategies for power sector decarbonization toward net zero emission. In fact, it offers an environmentally friendlier alternative to natural gas combined cycle (NGCC) plants. The focus is on oxyfuel combustion that, combined with supercritical CO2 (sCO2) stream as working fluid, produces high-purity CO2, electricity, and water by means of a highly recuperated Brayton cycle. The former is ready for sequestration, pipeline injection, or other applications, such as enhanced oil recovery or industrial processes. Being designed within the last decade, large-scale plants are poorly documented in the published literature and not yet ready for operation. Accordingly, a thermodynamic model was developed for a net power (Pn) output of 300 MW. After validation against the little data available from academic studies, simulation sets were conceived to assess the impact of main process parameters on cycle efficiency. To that end, operating conditions of the compressor, turbine, and air separation unit (ASU) were varied in a parametric analysis, preparatory to performance optimization. For the chosen layout, the maximum net electric efficiency (ηel,n) was found to be 50.4%, without thermal recovery from ASU.

Impact of demand growth on decarbonizing India's electricity sector and the role for energy storage

Global energy sector decarbonization efforts are contingent on technology choices for energy production and end-use in emerging markets such as India, where air conditioning (AC) is expected to be a major driver for electricity demand growth. Here, we assess the impact of demand and supply side-drivers on the long-term evolution of the electricity sector in India under various technology and policy scenarios. Our analysis is based on developing: (a) multiple demand scenarios produced from a bottom-up forecasting model with high temporal resolution that capture structural changes in electricity consumption resulting from (AC) and electric vehicle (EV) adoption, and (b) a multi-period power system capacity expansion model with high temporal resolution of grid operations to model supply-side evolution in response to changes in demand and technology and policy factors. Such a framework allows us to, for example, quantify the impacts of improving appliance efficiency standards for AC systems or shifts in EV charging patterns on power system decarbonization prospects. Under projected renewables and Li-ion storage cost declines, our modeling points to solar and wind generation contributing substantially (46–67%) to meet annual electricity demand in India by 2030. However, without appropriate policy measures to phase out existing coal generation, even such rapid adoption of variable renewable energy coupled with one or more technological levers such as low-cost energy storage and demand-side measures such as setting aggressive AC efficiency standards and deploying distribution level storage, are insufficient to reduce annual CO2 emissions in 2050 vs. 2020 because of the relatively higher growth rate of projected electricity demand over this period. This suggests that deep decarbonization of India's power sector will require policy measures beyond efforts related to accelerating renewables deployment.

Linking Life Cycle and Integrated Assessment Modeling to Evaluate Technologies in an Evolving System Context: A Power-to-Hydrogen Case Study for the United States.

Carbon-neutral hydrogen (H2) can reduce emissions from hard-to-electrify sectors and contribute to a net-zero greenhouse gas economy by 2050. Power-to-hydrogen (PtH2) technologies based on clean electricity can provide such H2, yet their carbon intensities alone do not provide sufficient basis to judge their potential contribution to a sustainable and just energy transition. Introducing a prospective life cycle assessment framework to decipher the non-linear relationships between future technology and energy system dynamics over time, we showcase its relevance to inform research, development, demonstration, and deployment by comparing two PtH2 technologies to steam methane reforming (SMR) across a series of environmental and resource-use metrics. We find that the system transitions in the power, cement, steel, and fuel sectors move impacts for both PtH2 technologies to equal or lower levels by 2100 compared to 2020 per kg of H2 except for metal depletion. The decarbonization of the United States power sector by 2035 allows PtH2 to reach parity with SMR at 10 kg of CO2e/kg H2 between 2030 and 2050. Updated H2 radiative forcing and leakage levels only marginally affect these results. Biomass carbon removal and storage power technologies enable carbon-negative H2 after 2040 at about -15 kg of CO2e/kg H2. Still, both PtH2 processes exhibit higher impacts across most other metrics, some of which are worsened by the decarbonization of the power sector. Observed increases in metal depletion and eco- and human toxicity levels can be reduced via PtH2 energy and material use efficiency improvements, but the power sector decarbonization routes also warrant further review and cradle-to-grave assessments to show tradeoffs from a systems perspective.

Future demand for electricity generation materials under different climate mitigation scenarios

<h2>Summary</h2> Achieving global climate goals will require prodigious increases in low-carbon electricity generation, raising concerns about the scale of materials needed and associated environmental impacts. Here, we estimate power generation infrastructure demand for materials and related carbon-dioxide-equivalent (CO₂eq) emissions from 2020 to 2050 across 75 different climate-energy scenarios and explore the impact of climate and technology choices upon material demand and carbon emitted. Material demands increase but cumulatively do not exceed geological reserves. However, annual production of neodymium (Nd), dysprosium (Dy), tellurium (Te), fiberglass, and solar-grade polysilicon may need to grow considerably. Cumulative CO₂ emissions related to materials for electricity infrastructure may be substantial (4–29 Gt CO₂eq in 1.5°C scenarios) but consume only a minor share of global carbon budgets (1%–9% of a 320 Gt CO₂eq 1.5°C 66% avoidance budget). Our results highlight how technology choices and mitigation scenarios influence the large quantities of materials mobilized during a future power sector decarbonization.

Materials availability and supply chain considerations for vanadium in grid-scale redox flow batteries

Redox flow batteries (RFBs) are a promising electrochemical storage solution for power sector decarbonization, particularly emerging long-duration needs. While the battery architecture can host many different redox chemistries, the vanadium RFB (VRFB) represents the current state-of-the-art due to its favorable combination of performance and longevity. However, the relatively high and volatile price of vanadium has hindered VRFB financing and deployment opportunities. Here we evaluate the vanadium supply chain to understand how it enables or constrains VRFB advancement and assess opportunities for accelerated growth. We find that – while vanadium may not be scarce – its abundance is confounded by highly concentrated production coupled with the disperse nature of sources suitable for potential supply increase. These factors challenge rapid growth, limiting deployment rate and magnitude. We estimate gigawatt-hour deployment scales are feasible over the next decade, which would represent marked expansion of the RFB industry and drive down system costs substantially, though this would require growth rates to vanadium production above historical averages. Accordingly, we review opportunities to accelerate supply chain growth and economic strategies to stabilize the market. Finally, we posit terawatt-hour deployment scales will be challenged by vanadium market conditions and resource availability, motivating the continued efforts developing next-generation RFB chemistries.

Open source modeling for planing sustainable power development in resource-rich economies: case study for Kazakhstan

Power sector decarbonization is currently seen as a necessary condition of sustainable development in the modern world. options of resources-rich economies. Energy modeling is an effective measure to elaborate long-term decarbonisation policies. However, energy modeling evidence available for resources-rich economies remain up to the date limited, especially in part of realistic representation of the power system operation. We apply open code and open data approach to fill this gap considering a case study for Kazakhstan power system. The modeling input datasets have been validated against independent data sources with a satisfactory result. The simulation outputs are plausible both in terms reproducing the main features of the “pragmatic” scenario and in providing useful insights for the implementation of net-zero pathways. Renewable energy sources have been found to be economically viable even under the considered “pragmatic” scenario with quite conservative assumptions. Existing coal generation has been shown to dominate the investments costs hampering implementation of renewable power. A role of the power interconnection has been demonstrated for an economically optimal generation mix and a level of marginal electricity costs across the country. The results are intended to support energy transition implementation in the resources-rich economies under realistic technological assumptions.

Energy and environmental performance of photovoltaic cooling using phase change materials under the Mediterranean climate

The energy and environmental performance of photovoltaic (PV) panel cooling, when using phase change materials (PCMs), was examined. Actual, long-term field data were collected from a PV and a PV-PCM system, both operating under Mediterranean conditions (Greece). The energy analysis revealed that even though cooling increases (9.4%) the panel's energy output, PCM cooling is associated with a high initial energy investment, leading to low energy-return-on-investment values (1.79) compared to PV (4.94). High energy payback times were observed for the PV-PCM (⁓14 years) compared to the PV system (⁓5 years). Furthermore, the life cycle assessment methodology revealed that PCM cooling increases PV's total environmental footprint by 21.9%. However, in the Greek context, the additional electricity attributed to PV cooling leads to significant environmental gains through fossil-fuel-dependent electricity substitution. Cooling can also decrease the rate of cell degradation and prolong PV useful life, leading to additional environmental gains. Due to PCM's initial high energy investment, other cooling technologies should also be examined since, apart from improving electricity output and stability, cooling can also reduce PV's impact on land use, increase the power sector's decarbonization, and address global warming's impact on PV performance by reducing temperature fluctuations and extremes on the panel's surface.

Power sector decarbonization planning considering renewable resource variability and system operational constraints

Bottom-up long-term planning models generally consider low levels of spatial, temporal, and technical details to reduce associated computation. However, these details are required to capture spatial and temporal variability of Renewable Energy Sources (RESs) and perform harmonized dispatch of conventional generating units. In their absence, models may overestimate RESs uptake and underestimate the quantum of required flexible resources. This may create a false impression of sector decarbonization and the obtained capacity mix may result in frequent RES or load curtailment during real-time system operations. In this context, this study aims to improve upon the shortcomings of conventional planning approaches and develop a TIMES based planning model for the Indian power sector. The model adopts high spatial and temporal definitions of 5 regions and 288 sub-annual timeslices. RESs are categorized into sub-classes based on annual capacity factors to capture their intra-regional variations without further increasing the spatial resolution. Each month is represented by a day of chronological hourly resolution that facilitates the capture of RES temporal variations and incorporation of operational aspects of generating units such as minimum stable generation, ramp limits and partial load operation. The impact of these operational parameters on system planning is analysed to identify a trade-off between planning accuracy and computational complexity. The study is relevant for countries that are rigorously following their decarbonization plans with high penetration of variable RESs and have a similar trajectory as that of India. The results indicate that decarbonization levels can be better assessed if capacity mix and flexible resources are adequately valued by considering operational parameters at the planning stage for a power system dominated by low flexible generation.

The role of output-based emission trading system in the decarbonization of China's power sector

The emission trading system (ETS) is a key policy for China to achieve carbon neutrality. China's national ETS started operation and covered the power sector first, which will promote its transformation. This study explores how China's national ETS can support the future decarbonization of the power system. With benchmark tightening, China's ETS can cost-effectively peak CO2 emissions of the power sector before 2030 and reduce 13% of the total emissions by 2035, compared to a No-Carbon-Pricing Scenario. Under the ETS, the allowance price would rise gradually to 350 yuan/tCO2 by 2035. The main driving factor for emissions reduction would be improving the efficiency of coal-fired power generation between 2020 and 2025 and deploying carbon capture and storage (CCS) from 2030, respectively. Fuel-switching away from coal is limited under the ETS with technology-specific benchmarks and free allocation. Regional distributional effects could arise under the ETS. Regions with a higher share of ultra-supercritical units could have allowance surpluses at the beginning, while only regions with CCS-equipped coal-fired units have the potential to gain high allowance surpluses by 2035.

Diverse Pathways for Power Sector Decarbonization in Texas Yield Health Cobenefits but Fail to Alleviate Air Pollution Exposure Inequities.

Decarbonizing power systems is a critical component of climate change mitigation, which can have public health cobenefits by reducing air pollution. Many studies have examined strategies to decarbonize power grids and quantified their health cobenefits. However, few of them focus on near-term cobenefits at community levels, while comparing various decarbonization pathways. Here, we use a coupled power system and air quality modeling framework to quantify the costs and benefits of decarbonizing the Texas power grid through a carbon tax; replacing coal with natural gas, solar, or wind; and internalizing human health impacts into operations. Our results show that all decarbonization pathways can result in major reductions in CO2 emissions and public health impacts from power sector emissions, leading to large net benefits when considering the costs to implement these strategies. Operational changes with existing infrastructure can serve as a transitional strategy during the process of replacing coal with renewable energy, which offers the largest benefits. However, we also find that Black and lower-income populations receive disproportionately higher air pollution damages and that none of the examined decarbonization strategies mitigate this disparity. These findings suggest that additional interventions are necessary to mitigate environmental inequity while decarbonizing power grids.