Carbon Capture and Storage in Developing Countries : A Perspective on Barriers to Deployment
This report assesses some of the most important barriers facing Carbon Capture and Storage (CCS) deployment within the context of developing and transition economies. The selection of the case studies is based on several criteria, including the lev...
| Main Authors: | , |
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| Format: | Publication |
| Language: | English |
| Published: |
Washington, DC: World Bank
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2012/06/16438735/carbon-capture-storage-developing-countries-perspective-barriers-deployment http://hdl.handle.net/10986/9369 |
| Summary: | This report assesses some of the most
important barriers facing Carbon Capture and Storage (CCS)
deployment within the context of developing and transition
economies. The selection of the case studies is based on
several criteria, including the level of reliance on fossil
fuels for power generation and the level of interconnection
of electricity networks. The case studies selected for this
analysis are the Balkans and Southern African regions. Many
countries within the Balkan region are considered transition
economies, a status recognized as different from
middle-income and low income developing countries. However,
for the purposes of this report, countries within both
regions are referred to as developing countries. The report
presents the results of a model developed to investigate
ways of structuring financing for power generation
facilities equipped with CCS in the developing world, using
instruments available from multilateral development banks
and commercial financiers, as well as concessional funding
sources. The objective is to assess whether a combination of
such instruments could result in reductions in the overall
cost of financing. The model calculates the resulting
Levelized Cost of Electricity (LCOE), and includes numerous
variable parameters, such as coal prices, CO2 prices, and
potential revenues from selling oil and gas obtained through
enhanced hydrocarbon recovery. Common theme found throughout
the analyses is that there could be potential for CCS
deployment in the regions under consideration. Lower-cost
opportunities, for example, in sectors practiced in handling
CO2, such as gas processing, or where extra revenues could
be made available from enhanced hydrocarbon recovery, could
provide platforms for the first CCS projects in developing
countries. However, broader CCS deployment is contingent
upon a number of factors, including an availability of a mix
of sources of finance from public funds and carbon market
mechanisms, as well as concessional financing sources. In
parallel, financing should be supported by legal and
regulatory frameworks not only to define mechanisms for
access to concessional and climate finance, but also to
reduce investor risk and create market drivers to leverage
all available sources of domestic and international support. |
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