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Innovation in Global Power - Parsons Brinckerhoff

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Renewables – The Risks, Concerns and Potential<br />

http://www.pbworld.com/news_events/publications/network/<br />

other renewables and conventional plant, and crucially, optimal<br />

designs have yet to be converged upon. A few large-scale<br />

prototypes have been built and tested <strong>in</strong> real sea conditions,<br />

but no commercial wave and tidal stream projects have yet<br />

been completed.”<br />

Biomass BFB technology. Bubbl<strong>in</strong>g fluidised bed (BFB) is a<br />

well-proven technology suitable for small (less than 100 MWe)<br />

biomass power plants. (Biomass is plant or animal matter or<br />

biodegradable waste used as fuel.) The BFB provides thermal<br />

<strong>in</strong>ertia that makes it suitable for combustion of fuels of high<br />

and variable moisture content and fuels that are difficult to<br />

pulverise effectively, such as woody materials.<br />

Base Comparison<br />

The base assumption is that the cost of carbon is based on<br />

the European Union Emission Trad<strong>in</strong>g Scheme and is based<br />

on a £25/tonne long-term cost. The quantity of allowances<br />

provided to the electricity generators is assumed to be<br />

phased out by 2018, 4 when they will need to purchase<br />

carbon certificates for their emissions.<br />

Comparison of the technologies with each other and <strong>in</strong><br />

relation to the present expectation of market forward<br />

electricity pric<strong>in</strong>g (Figure 1) reveals that there are two<br />

dist<strong>in</strong>ct groups of technologies:<br />

• Those that are viable (or marg<strong>in</strong>ally so) with the present<br />

market expectations<br />

• Those that will cont<strong>in</strong>ue to require support from external<br />

mechanisms to cont<strong>in</strong>ue their development towards<br />

commercial reality.<br />

Carbon costs are beg<strong>in</strong>n<strong>in</strong>g to form a significant portion of<br />

the overall cost of generation for fossil fired power plants.<br />

As the allowances provided decrease and the carbon price<br />

<strong>in</strong>creases, this effect will be more pronounced, with the gap<br />

between the fossil fired and renewable generation sources<br />

be<strong>in</strong>g reduced. This reduction alone is not sufficient to give<br />

the commercial <strong>in</strong>centives to build renewable plant, and<br />

there will be a cont<strong>in</strong>ued need for support mechanisms—<br />

be it through feed-<strong>in</strong> tariffs, renewable obligation mechanisms<br />

or other such support schemes.<br />

Summary<br />

• Renewable generation will cont<strong>in</strong>ue to need support<br />

mechanisms to ensure that the best use of the resources<br />

is made and that the “best value” is returned <strong>in</strong> terms of<br />

carbon reduction and energy delivered.<br />

• Nuclear plant cont<strong>in</strong>ues to have uncerta<strong>in</strong>ty surround<strong>in</strong>g<br />

decommission<strong>in</strong>g costs and the need for a long-term<br />

solution for spent fuel from nuclear plant. The expectations<br />

are that any new build is likely to replace exist<strong>in</strong>g nuclear<br />

capacity only and, therefore, would not result <strong>in</strong> a net ga<strong>in</strong><br />

<strong>in</strong> carbon sav<strong>in</strong>gs.<br />

• Conventional fossil-fired generation plants are likely to<br />

cont<strong>in</strong>ue to “feel the pressure” through uncerta<strong>in</strong>ty<br />

surround<strong>in</strong>g future carbon allocation levels, carbon pric<strong>in</strong>g,<br />

fuel pric<strong>in</strong>g and security of supply.<br />

<br />

Figure 1:<br />

Comparative Costs<br />

of Generation.<br />

Dom<strong>in</strong>ic Cook has 20+ years of utility and consultancy experience <strong>in</strong> the power <strong>in</strong>dustry. He has been <strong>in</strong>volved <strong>in</strong> regulatory audits and the development of power<br />

generation plant, and <strong>in</strong> provid<strong>in</strong>g advice to f<strong>in</strong>ancial <strong>in</strong>stitutions. His publications <strong>in</strong>cluded “<strong>Power</strong><strong>in</strong>g the Nation” <strong>in</strong> June 2006 and he is presently <strong>in</strong>volved with the<br />

UK government on the carbon capture competition.<br />

4 Phas<strong>in</strong>g out assumed to be 90 percent to 2010; 50 percent between 2013 to 2017 and 0 percent from 2018 onwards.<br />

5 Standby energy is the cost to provide replacement power when a plant suffers a forced outage.<br />

47 PB Network #68 / August 2008

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