Title: Combined heat and power system optimisation under carbon pricing policy: a comparison of five carbon markets

Authors: Chanel Ann Gibson; Mehdi Aghaei Meybodi; Masud Behnia

Addresses: School of Aerospace, Mechanical and Mechatronic Engineering, The University of Sydney, J07 Mechanical Engineering Building, NSW 2006, Australia ' School of Aerospace, Mechanical and Mechatronic Engineering, The University of Sydney, J07 Mechanical Engineering Building, NSW 2006, Australia ' School of Aerospace, Mechanical and Mechatronic Engineering, The University of Sydney, J07 Mechanical Engineering Building, NSW 2006, Australia

Abstract: The installation and optimisation of a gas turbine combined heat and power system was studied in an effort to reduce or eliminate financial liability under five different carbon pricing schemes around the world by becoming more energy efficient. The system was applied to a case study and configured to operate under carbon prices in Australia, the UK (EU ETS), New Zealand, California (USA) and British Columbia (Canada). As a policy designed to promote a reduction in emissions; the policy was successful in three of the five schemes namely Australia, the UK and British Columbia. These results were identified by systems that became unprofitable once financial liability was introduced for carbon emissions. The Australian carbon price was also examined in terms of effectiveness in light of its expected repeal. The Australian system ranked fourth of the five markets studied in terms of financial benefit both when financially liable and not liable for carbon pricing.

Keywords: carbon prices; cogeneration; combined heat and power; CHP optimisation; emissions trading schemes; ETS; emissions reduction; gas turbines; partial load operation; thermo-economic optimisation; global warming impact; carbon markets; energy efficiency; Australia; UK; United Kingdom; New Zealand; USA; United States; Canada; financial liability; carbon emissions.

DOI: 10.1504/IJGW.2015.072660

International Journal of Global Warming, 2015 Vol.8 No.3, pp.375 - 400

Received: 15 Feb 2014
Accepted: 08 May 2014
Published online: 23 Oct 2015 *

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