Potential Capacity of Independent Power Producers (IPP's) with consideration for reduction in CO₂ emission in electric power industry

Abstract

By the amendment of electric utility industry law in 1995, independent power producers (IPP's) were allowed to enter the electric power market, and are to supply electricity from 1999. Many IPP's use coal or residual oil for electric power generation. However, because of high carbon-intensity of these fuels, the entry of such IPP's might influence the reduction in total CO₂ emission in Japan. This paper quantitatively evaluates the potential capacity of various types of IPP's with consideration for the reduction in CO₂ emission in the electric power industry on the basis of the optimal electric generation planning. The results show that the available incremental capacity of nuclear plants affects the maximum capacity and economic values of IPP's which use high carbon-intensity fuel. The optimal combinations of various types of IPP's in order to reduce generating costs of utility are also examined.