Page 318 - Low Carbon Development in China and India
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industrial and energy-related sources, transport to a storage location 3.2
and long-term isolation from the atmosphere” (IPCC 2005). It is
one among the portfolio of measures being considered for reducing
greenhouse gas (GHG) emissions with a view to mitigating climate
change. While no single measure may alone be sufficient for climate
change mitigation, CCS, along with energy efficiency improvements,
renewable energy, enhancement of biological sinks, and other
measures, may be able to achieve the emissions reductions needed to
achieve climate stabilization.
While there are various methods of arriving at the costs of CCS,
according to a scoping study by TERI & IISD, the most important
financial indicators are not the absolute values of costs but the increase
in the cost of electricity entailed as a result of CCS activity. It should also
be noted that the costs of CCS are very specific to projects. Therefore,
average values will not be a good indicator. CCS deployment makes
most sense in case of large thermal power plants or other large point
emission sources, but since no such CCS project exists in India, a
normative case was considered of a UMPP. Other than the variety of
coal, all other plant specifications were considered to remain the same.
In Table 2.15, we can see a 50 per cent increase in the cost of electricity
with CCS. A monitoring cost was also incorporated in this study. The
other cost heads for CCS were standard costs of capture, transport,
and storage.
Table 2.15: Cost of electricity with CCS for imported coal and Indian coal
Indicator Imported coal Indian coal
4.84
CoE without capture (Rs/kWh) 5.26 6.97
7.12
CoE with capture (Rs/kWh) 7.52 7.43
53%
CoE with CCS (Rs/kWh) 7.67
CoE with CCS and monitoring (Rs/kWh) 7.98
Increase in CoE due to CCS and monitoring 52%
Source: TERI & IISD (2013)
2.3.3 Transportation
According to the International Energy Agency (IEA), the transport
sector contributed approximately 23 per cent of the global CO2
emissions due to fuel combustion in 2012. The fast emission growth in
transport is driven largely by emissions from the road sector. Transport
sector in India contributed 216.2 million tonnes of CO2 in 2012 which
is nearly 11 per cent of its total CO2 emissions from fuel combustion
(IEA 2014).
Chapter 2 Innovative Financing for Low Carbon Development 283
and long-term isolation from the atmosphere” (IPCC 2005). It is
one among the portfolio of measures being considered for reducing
greenhouse gas (GHG) emissions with a view to mitigating climate
change. While no single measure may alone be sufficient for climate
change mitigation, CCS, along with energy efficiency improvements,
renewable energy, enhancement of biological sinks, and other
measures, may be able to achieve the emissions reductions needed to
achieve climate stabilization.
While there are various methods of arriving at the costs of CCS,
according to a scoping study by TERI & IISD, the most important
financial indicators are not the absolute values of costs but the increase
in the cost of electricity entailed as a result of CCS activity. It should also
be noted that the costs of CCS are very specific to projects. Therefore,
average values will not be a good indicator. CCS deployment makes
most sense in case of large thermal power plants or other large point
emission sources, but since no such CCS project exists in India, a
normative case was considered of a UMPP. Other than the variety of
coal, all other plant specifications were considered to remain the same.
In Table 2.15, we can see a 50 per cent increase in the cost of electricity
with CCS. A monitoring cost was also incorporated in this study. The
other cost heads for CCS were standard costs of capture, transport,
and storage.
Table 2.15: Cost of electricity with CCS for imported coal and Indian coal
Indicator Imported coal Indian coal
4.84
CoE without capture (Rs/kWh) 5.26 6.97
7.12
CoE with capture (Rs/kWh) 7.52 7.43
53%
CoE with CCS (Rs/kWh) 7.67
CoE with CCS and monitoring (Rs/kWh) 7.98
Increase in CoE due to CCS and monitoring 52%
Source: TERI & IISD (2013)
2.3.3 Transportation
According to the International Energy Agency (IEA), the transport
sector contributed approximately 23 per cent of the global CO2
emissions due to fuel combustion in 2012. The fast emission growth in
transport is driven largely by emissions from the road sector. Transport
sector in India contributed 216.2 million tonnes of CO2 in 2012 which
is nearly 11 per cent of its total CO2 emissions from fuel combustion
(IEA 2014).
Chapter 2 Innovative Financing for Low Carbon Development 283
