Parsons Brinckerhoff has today (14 November) published a study of the options available to European electricity generators to extend the life of coal power stations facing closure by the end of 2015 under European-wide emissions regulations,namey the Directive on Industrial Emissions (IED) which superseded the Large Combustion Plant Directive. The power stations involved generate approximately 130 GW (16%) of the EU’s electricity, with the UK potentially losing up to12 GW of its 80 GW current capacity.

Heralding a significant and imminent energy gap across Europe, the shut-downs will coincide with the ongoing closure of Europe’s ageing nuclear fleet and recent changes in attitude towards new nuclear, and a universal increase in demand for electricity.

While all these factors are expected to lead to a major increase in demand for new-build plants across Europe, they are also expected to introduce new opportunities for older plants which had elected to close by the end of 2015 under the regulations, rather than upgrade to meet more-demanding emissions standards. However, the regulations allow generators to continue operating plants beyond 2015 provided they can meet the ‘new plant’ requirements of the European legislation.

Parsons Brinckerhoff’s study entitled Continued Operation of ‘Opted Out’ Large Combustion Plants under the IED was undertaken in co-operation with Deloitte, which provided cost data support applicable to the EU zone. The study investigates the available options to allow such power plants to continue operating beyond 2015, and compares the relative costs and practicalities associated with each potential option.

Four options were considered as part of the study:

Plant upgrade – installation of pollution control measures

Plant refurbishment – replacement of main plant equipment; eg, boilers, turbines, etc

Plant conversion – to alternative fuel source or technology

Re-use of site – completely replace plant on existing site

Using a base reference plant, typical of the type and size of plant expected to be facing closure, the study explored the cost effectiveness of each of the above potential options to comply with the EU emissions directives and extend operating life. A lignite-fuelled power plant comprising four 500MW boiler/turbine units was selected as the reference plant.

The study found that there are a number of options available to the power plant operator, and that all of the studied options could meet the IED limits. However, the remaining potential life of each specific generation plant was found to be a determining factor in deciding the most attractive option.

The upgrade options were considered to be the most cost effective. However, as it is expected that any plant in a suitable condition for long-term continued operation is likely to have already been upgraded, these are expected to be more of a shorter-term solution. The plant refurbishment options represented the next preferred option, with the installation of a new circulating fluidised bed (CFB) boiler having the lowest relative cost.

The options associated with a change to natural gas represented the worst-case scenario, due to current high gas prices – although this situation could change significantly should the effects of carbon pricing be introduced.

The significant conclusion of the study is that there are good options for continued operation of these coal plants, but that local circumstances such as residual plant life, fuel costs, and forecasts of future carbon prices, will determine the best option for each case; each would require a detailed study to confirm the respective merits.

The full study can be viewed on-line at http://www.pbworld.com/regional/uk_europe.aspx