Research Database

A large potential exists in the Southeast Asia region for deployment of high-efficiency, low-emission (HELE) electricity generation technologies. A cost–benefit analysis of HELE technologies compared to the less efficient subcritical electricity generation plants is thus carried out to find a persuasive scenario supporting quicker transition from subcritical stations towards HELE technologies in the region. A levelized cost of electricity (LCOE) analysis is carried out for both technologies under four potential policy scenarios. Scenario 1 does not take into consideration any carbon pricing or costs associated with the desulphurization (deSOx) and denitrification (deNOx) facilities. Scenario 2 (Scenario 3) incorporates carbon pricing (costs associated with the deSOx and deNOx facilities), and Scenario 4 includes both carbon pricing and costs associated with the deSOx and deNOx facilities. Under each scenario, a sensitivity analysis is performed to evaluate the uncertainty affecting the future coal prices. This study demonstrates that HELE technologies are competitive against the subcritical plants under all four scenarios and both the technologies derive benefit from lifetime extensions and low coal prices. It is revealed that future deployments of HELE technologies can be best expedited by factoring in carbon pricing in LCOE costs of coal-fired power plants under Scenario 2.

Offshore renewable energy resources are options to address a country’s energy and climate objectives without having to occupy vast amount of land space. Offshore wind power production, among the various offshore renewable options, has gained popularity albeit its dependence on the deployment location’s wind conditions, technical challenge in construction and grid connection, and potentially high capital cost. The wind conditions in Southeast Asia are generally much less favourable as compared to other parts of the world, but several economies in this region consider offshore wind energy as a long term solution to decarbonize the electricity sector and to diversify the source of electricity. There is thus a need to evaluate the true benefits of offshore wind energy under the region’s suboptimal climatic conditions. In response, this study employs the life cycle analysis approach to conduct a cost-benefit analysis of offshore wind energy in the context of Southeast Asia. Findings from study suggest that the cost of offshore wind energy remains high at the moment for Southeast Asia. The findings further contribute to the debate on offshore wind energy by setting the bottom-line for deployment under unfavourable climatic conditions in the tropical region and world-wide. However, offshore wind farm could still represent a plausible option through technology innovation in wind turbine designs and reductions in the cost of wind turbine and submarine power cable. As suggested in this study, there is potential for the cost of offshore wind energy to reach parity against onshore renewables such as solar energy in the context of Southeast Asia.