How can Indian power plants cost-effectively meet the new sulfur emission standards? policy evaluation using marginal abatement cost-curves

Abstract

Thefirst-everSO2emissionconcentrationstandardsforIndiancoal-powerplantswerenotifiedonDecember7,2015.Inlightofthenewstringentstandards,thispaperconductsatechno-economicpolicyevaluationofSO2abatementoptionsbybuildingasystem-widemarginalabatementcostcurve(MACC)forIndia.Anabatementcostmodelisdeveloped,toestimateretrofitcostsforthreeend-of-process(EOP)SO2abatementtechnologies.Asystem-wideSO2MACCisderivedbasedoncostoptimalallocationofEOPabatementtechnologytoeachboiler.Compliancewiththenewstricteremissionstandardsisevaluatedat75%pollutionreduction(≈4600kt-SO2reductionsperyear).CompliancewiththenewstandardcorrespondstoamarginalabatementcostofINR23,500pertonofSO2(≈USD368.50pertonofSO2)andtotalsystem-wideabatementcostofINR75billion(≈USD1.2billion)peryear.Reductioninpollutionisestimatedtosave46,000livesperyearatthecostofaboutINR1.63millionperlifeperyear.SensitivityanalysisoftheMACcurveshowsthatplantcapacityutilizationhasthemostsignificantimpactontotallifetimecompliancecostsfollowedbyequipmentfixedcost,sorbentcost,andwatercostinthatorder.