Energy Efficiency and Environmental Emissions Reduction: A Factor Decomposition Analysis

Paper in proceeding, 2002

This study analyzes the role of selected supply- and demand-side energy efficient technologies in the power sector development in a developing country using a long-term integrated resource planning (IRP) framework. The paper also analyzes the factors affecting the changes in total emission intensity from the power sector during the planning horizon. It is found that with the introduction of efficient electricity using technologies, there would be reductions in installed generating capacity requirement and electricity generation by 7 300 MW and 320 710 GWh during 2005-2019. In terms of environmental benefits, the use of efficient demand-side technologies would reduce power sector emissions of CO2, SO2 and NOx emissions from the power sector by about 8.9%, 6.6% and 9.7%, respectively. The analysis on CO2 emission intensity shows that CO2 emission intensity would be reduced by 4.5% and 5.5% during 2005-2019 in the business as usual (BAU) and energy efficiency improvement (EEI) cases, respectively. The decline in CO2 emission intensities was mainly due to changes in generation efficiency improvement in (BAU) case, and due to the changes in both thermal generation efficiency improvement and the structure of generation system in the EEI case.