Optimal allocation of carbon capture technologies in the electric industry under a carbon emissions trading program

Abstract

The main source of electricity in developing countries comes from combined-cycle power plants which do not include carbon capture processes. Based on the concept of an energy hub, we propose a mathematical programming model for the optimal management of carbon emissions in a national-scale system for electricity generation operating under a carbon emissions trading program. Mexico is used as the case study. Given the installed infrastructure of the system, the goal is to meet energy demands with the least impact on greenhouse gas emissions. Each conventional combined-cycle power plant must decide how to reduce its carbon emissions, either through the implementation of capture technologies or by participating in an emissions market. Results show that capture technologies contribute significantly to the reduction of emissions, while the trading program plays a secondary role. Further, optimal decisions are dependent on parameters defined by environmental authorities, such as the emissions limit and credit price.