The City of Sydney has engaged the Allen Consulting Group to conduct a financial and economic analysis of renewable energy opportunities for the Decentralised Energy Master Plan — Renewable Energy. This study was undertaken using research commissioned by the City of Sydney on renewable electricity technology options by Arup, the City‘s proposed Trigeneration network by Kinesis, and renewable gas resources by Talent with Energy, as well as additional information in the public domain.
The objective of this study is to evaluate the potential relative economic costs of different electricity technology options that could be considered for use in achieving the City of Sydney‘s targets for renewable electricity use and greenhouse gas emissions abatement by 2030 under a particular macroeconomic scenario. This study focuses on a comparison of the marginal social cost of abatement for each of the 14 technologies and four gas resources that will enable the determination of the optimal technology mix for achieving the City‘s renewable electricity and emission reduction targets at least cost. The marginal social cost of abatement represents the estimated cost of achieving a given quantity of greenhouse gas emissions abatement, in this case, the real dollar cost of abating a tonne of carbon dioxide equivalent emissions in 2012 prices. This study is a high level evaluation of the economics of various electricity technology generation options and is subject to a number of limitations, such as uncertainty about future Australian macroeconomic developments, any future changes in the government policy framework, project specific factors, such as financing and taxation, and site-specific factors.
APO Editor's note:
This report is a technical appendix to City of Sydney. Decentralised energy master plan renewable energy 2012-2030