Environmentally Sustainable Solution for a Gas Turbine Upgrade with Aid of a Clean Development Mechanism Application in a Non-Annex I Country

Abstract

ALSTOM Power Service delivers solutions not only to recover degradation, but also to increase the performance and efficiency of the installed global power generation fleet. Such performance improvements also reduce greenhouse gases, particularly CO₂ emissions. The mechanisms of the Kyoto Protocol promote the implementation of CO₂-reducing state-of-the-art technologies to developing and emerging economies. Having installed the world's largest power generation fleet, ALSTOM wants to make use of the Clean Development Mechanism (CDM) to make technology implementation economically attractive for non-Annex I countries. This paper gives an overview and outlook for environmental mechanisms and technologies, the value proposition and some experience in pioneering a CDM project with a gas turbine upgrade in a non-Annex I country. It is shown that in a crediting period of 10 years 3 million tons of CO₂eq can be saved on a mid-sized power plant. Assuming a price of € 8 per ton of CO₂eq for Certified Emission Reductions this would lead to an annual revenue of 20 % of the initial implementation cost, representing a very attractive business case for the plant operator. The described CDM application can be a decisive factor for proceeding with a fuel switch or an upgrade. The revenues earned from emission trading enables the plant operator to make the investment to reduce Kyoto-relevant emissions.