Full Title: The challenge of making reliable carbon abatement estimates: the case of diesel microgrids
Author(s): Christian E. Casillas and Daniel M. Kammen
Publisher(s): S.A.P.I.EN.S
Publication Date: May 1, 2012
Full Text: Download Resource
Description (excerpt):
Carbon abatement cost curves can help guide policy decisions related to cost effective carbon mitigation. Carbon abatement cost curves are often presented at the national or international level, aggregating mitigation measures across local and regional scales. In this paper, we show how the microgrid optimization model, HOMER, can be used to construct a micro-level carbon abatement cost curve and may be used to explore conservation and supply measures at the local level. As an example, we highlight the subtle challenges of estimating the carbon reduction and abatement costs in a diesel microgrid. Most carbon mitigation measures decrease the load on the diesel generator, and thus its efficiency. It is critical to understand how energy efficiency and conversation measures impact diesel plant efficiency, to insure a net reduction in emissions. It is also important to understand how revenue streams may be impacted by certain mitigation efforts, a point that is rarely addressed in most macro-level abatement curve analyses. In the case of electricity systems, demand-side conservation measures can lead to savings by consumers and revenue loss to utilities. The electricity rate structure may need to be altered in order to compensate profit-making utilities, and encourage investment in conservation. In the case of a subsidized electric system, where the utility is losing money on each unit of energy generated, energy conservation results in savings to both the utility and the consumer.