Environmental and Economical Coherence of Energy-Saving Dispatch Based on Environmental Cost Internalization

Under China´s current energy-saving power generation dispatching methods, power generation units commitment is determined by the specific fuel consumption instead of bidding prices of the units. The results of sorting by fuel consumption and by prices are not the same, so it may not achieve the goals of emission reduction, energy saving and economics at the same time. This paper estimates the environmental cost of China´s electric power industry, applies an environmental cost calculation model to measure the environmental cost of the coal consumption for power generation; on the basis of the analysis on the energy-saving status of China´s power industry, this paper researches on the coherence of environmental and economical objectives based on environmental cost internalization. A case study is presented to verify the proposed method.