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Change in subcritical coal electrical capacity in the new policies and the 4-for-2 °C Scenarios, 2020
Reducing the use of inefficient coal-fired power plants :In the 4-for-2 °C Scenario, the use of the least efficient coal-fired power plants is reduced, relative to the New Policies Scenario. We as... sume a ban is introduced prohibiting the construction of new subcritical coal-fired power plants. Plants that have recently been built or are already under construction and have therefore yet to recover their investment cost, continue to operate, albeit at reduced levels. Those inefficient plants that have already repaid their investment costs are either retired or idled. Possible levers to achieve this policy include: * Adoption of energy effciency or CO2 emissions standards for coal-fired power plants. * Adoption of air pollution standards. * Pricing the use of carbon, for example through an emissions trading scheme. * Assigning power production limits for each generator to incentivise the use of the most efficient plants (typically in liberalised markets). * Allocation of generation slots, renewing (or not) operational licences or altering the dispatch schedule in favour of more efficient plants (typically in regulated markets). As a result of the proposed policy, the global installed capacity of subcritical power plants in operation decreases by more than one-fourth in 2020, or about 340 gigawatts (GW), compared with the New Policies Scenario (Figure 2.7). Existing plants account for the vast majority of this reduction: while 170 GW of new subcritical plants are added in the New Policies Scenario by 2020, only about 50 GW of them are not already under construction and therefore do not go ahead in the 4-for-2 °C Scenario. Of the 1 270 GW of subcritical coal-fired power plants in 2020 in the New Policies Scenario, 290 GW with the lowest efficiencies are either retired or not used at all by 2020. A more complete phase-out of coal subcritical plants by 2020 is unrealistic in most regions both because it would unacceptably reduce the reliability of electricity supply and because of the costs involved. --- Source : IEA - Four energy policies can keep the 2 °C climate goal alive http://www.iea.org/newsroomandevents/pressreleases/2013/june/name,38773,en.html
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