1 AIT Asian Institute of Technology

Acid rain and utility planning implications of sulfur tax in the power sector of Vietnam : an integrated resource planning analysis

AuthorNguyen Thi Ngoc Mai
Call NumberAIT Thesis no.ET-99-31
Subject(s)Acid rain-- Vietnam
Demand-side management (Electric utilities)--Vietnam

NoteA thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering. School of Environment Resources and Development
PublisherAsian Institute of Technology
AbstractAcid rain is an emerging issue in a number of Asia countries. The present study analyzes the implications of demand-side technologies and sulfur tax as options for S02 mitigation from the power sector. The study examines utility planning and environmental implications of electricity generation system expansion in Vietnam based on integrated resource planning (IRP) and compares the same to those under traditional resource planning (TRP). A mixed integer programming based IRP model has been used in this study to carry out generation expansion planning. The study has found that from the long-term IRP perspective, total electricity generation, total generating capacity addition, total expenditure and the environmental emissions would be reduced. However, with IRP, the electricity price would be increased. The utility planning and environmental implications are also analyzed for the introduction of sulfur tax as a market option to mitigate acid rain causing emissions (ARCEs) in power sector development. Four selected tax rates, i.e., US$500, 1000, 1500, 2000 per ton of sulfur (tS) are considered. Capacity and generation mixes have shifted toward less sulfur intensive fuels and technologies. Among introduced technology options of S02 abatement, only control technology-FGD would be selected at tax rate ofUS$1000/tS and higher. With the introduction of sulfur tax, an appreciable amount of S02 emission and other pollutant emissions from power sector could be reduced. The reduction of S02 could reach to 50 % at the tax rate of US$2000/tS. The reduction of S02 emission could take place through technology substitution and demand-side effect, in which the dominant one is technology substitution effect. Through the use of integrated resource planning in power sector and RAINS-Asia model, this study also analyzes the effect of IRP with and without sulfur tax on sulfur deposition in several parts of Vietnam. Vietnam does not appear to suffer too much from acid rain problem till 2020, except in two areas, the "potential hot spot area No. I" in the North and the "potential hot spot area No.2" in the South. Both of these areas have the exceedance of sulfur deposition density of higher than 1000mg/m 2 -year. The present study also indicates that consideration of demand-side options through IRP and an introduction of sulfur tax would reduce the acid rain problem significantly. The maximum level of reduction of sulfur deposition could be made by tax is around 34% for the "potential hot spot No.2" in 2020. It should be note that to solve the acid rain problem, sulfur tax should be introduced for not only power sector but also all economic sectors.
Year1999
TypeThesis
SchoolSchool of Environment, Resources, and Development
DepartmentDepartment of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC))
Academic Program/FoSEnergy Technology (ET)
Chairperson(s)Shrestha, Ram M. ;
Examination Committee(s)Bhattacharya, S.C. ;Lefevre, T. ;Nguyen Thi Kim Oanh;
Scholarship Donor(s)The Government of France;Asian Institute of Technology Fellowship;
DegreeThesis (M.Eng.) - Asian Institute of Technology, 1999


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