Low Carbon Power Plant Projects Cost-Benefit Analysis Based On Real Options

Greenhouse gas emissions caused by human activity has had a huge impact on ecology. Effective control and reduction of greenhouse gas emissions is urgent problems of humanity. China’s coal-fired power generation is one of China’s major CO2 emission sources, the main obstacle to promoting carbon emissions reducing is its high cost, so its important to research the cost and benefit of low carbon power plant project in China.The prerequisite to achieve coal-fired power plant carbon emissions reduction is to calculate the carbon emissions from coal-fired power plant carbon emissions trading accurately and feasibility of low carbon power plants economically. This paper defined the carbon emissions calculation scope, proposed the calculation method of carbon emissions, and takes the practical measurement by case.On this basis, the paper analyzed the technology path and current cost of carbon reduction system, and investigated the investment cost and operating cost to capture, transport, and storage period respectively. And analyzed the carbon reduction system cost through the case study. At the same time, the paper put forward the low carbon power plant project financial evaluation index system, and set up the model by real option theory to research carbon reduction system finance feasibility in current carbon price. Display by model, when the carbon price higher than the 142.31 Yuan/ton, investment carbon reduction system that has the economy. Finally, the paper compared the different type’s power plants efficiency and economy of added carbon emission reduction system.The paper believes low carbon power plant still lack economy in current carbon price, technology level and cost. With the technology improve and economies of scale development, it’s feasible to develop low carbon power plants in future.