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dc.contributor.authorLiang, X.en
dc.contributor.authorLiu, H.en
dc.contributor.authorReiner, D.en
dc.date.accessioned2016-04-22T15:00:41Z
dc.date.available2016-04-22T15:00:41Z
dc.date.issued2014-08-04en
dc.identifier.otherCWPE1430
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/255195
dc.description.abstractBuilding on previous stakeholder consultations from 2006 to 2010, we conduct a financial analysis for a generic CCS power plant in China. In comparison with conventional thermal generation technologies, a coal-fired power plant with CCS requires either a 70% higher on-grid electricity tariff or carbon price support of approximately US$50/tonne CO2 in the absence of any other incentive mechanisms or financing strategies. Given the difficulties of relying on any one single measure to finance a large-scale CCS power plant in China, we explore a combination of possible financing mechanisms. Potential measures available for increasing the return on the CCS investment include: enhanced oil recovery (EOR), a premium electricity tariff, and operational investment flexibility (e.g. solvent storage, upgradability). A simulation found that combining several financing options could not only provide private investors with a 12% to 18% return on equity (ROE), but also significantly reduce the required on-grid tariff to a level that is very close to the tariff level of existing coal-fired power plants and much lower than the tariffs for natural gas combined cycle and nuclear power plants. Therefore, we suggest that a combination of existing financing measures could trigger private investment in a large-scale CCS power plant in China.en
dc.publisherFaculty of Economics
dc.relation.ispartofseriesCambridge Working Papers in Economics
dc.rightsAll Rights Reserveden
dc.rights.urihttps://www.rioxx.net/licenses/all-rights-reserved/en
dc.subjectElectricityen
dc.subjectFinanceen
dc.subjectChinaen
dc.titleStrategies for Financing Large-scale Carbon Capture and Storage Power Plants in Chinaen
dc.typeWorking Paperen
dc.identifier.doi10.17863/CAM.5848


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