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Environmental implications of carbon limits on market penetration of combined heat and power with the U.S. energy sector (Slides)
Citation:
Kaplan, O. AND J. Witt. Environmental implications of carbon limits on market penetration of combined heat and power with the U.S. energy sector (Slides). Presented at USAEE Annual Meeting, Tulsa, OK, October 24 - 26, 2016.
Impact/Purpose:
This is the presentation of our analysis on environmental implications of carbon limits on market penetration of combined heat and power with the U.S. energy sector to be presented at 2016 USAEE Annual Meeting, Tulsa, OK, October 24-26, 2016.
Description:
Combined heat and power (CHP) is promoted as an economical, energy-efficient option for combating climate change. To fully examine the viability of CHP as a clean-technology solution, its market potential and impacts need to be analyzed as part of scenarios of the future energy system, particularly those with policies limiting greenhouse gas (GHG) emissions. This paper develops and analyzes scenarios using a bottom-up, technology rich optimization model of the U.S. energy system. Two distinct carbon reduction goals were set up for analysis. In Target 1, carbon emission reduction goals were only included for the electric sector. In Target 2, carbon emission reduction goals were set across the entire energy system with the target patterned after the U.S.’s commitment to reducing GHG emissions as part of the Paris Agreement reached at the COP21 summit. From a system-wide carbon reduction standpoint, Target 2 is significantly more stringent. In addition, these scenarios examine the implications of various CHP capacity expansion and contraction assumptions and energy prices. The largest CHP capacity expansion are observed in scenarios that included Target 1, but investments were scaled back in scenarios that incorporated Target 2. The latter scenario spurred rapid development of zero-emissions technologies within the electric sector, and purchased electricity increased dramatically in many end-use sectors. The results suggest that CHP may play a role in a carbon-constrained world, but that role diminishes as carbon policies become more stringent.