The purpose of this study is an economic analysis of power plant utilities by comparing electricity generating cost including environmental costs. Economic growth has caused pollutant emission, and subsequent environmental pollution has been identified as a very real limit to sustainable development.
Considering the enormous role of electricity in the national economy, it is very important to study the effect of environmental regulation on the electricity sector. Because power utilities need for large investment during construction, operation and maintenance, and also require much construction lead time. Economic analysis is the very important process in the electric system expansion planning.
In this study, the levelized generation cost method is used in comparing economic analysis of power plant utilities. Among the pollutants discharged of the electricity sector, this study principally deals with the control activities related to $CO_2$ and $NO_2$. Since $SO_2$ and TSP(Total Suspended Particulates) control cost is already included in utilities. As $CO_2$ emission is recognized as one of the major causes of the global warming, international $CO_2$ emission regulation has been of great concern and this regulation is expected to affect the national economy as well as the national energy policy.
This study compares the costs of electricity generation including environmental costs between a coal-fired power plant and an LNG combined cycle power plants. With computer simulation, this study surveys the sensitivity of fuel prices, interest rate and carbon tax. In each case, this sensitivity can help to decide which utility is economically better in environmental regulation circumstance.
