The efficiency of coal-fired power plants decreases over time as components and systems degrade
with age and use. Good O&M practices can slow down the loss of efficiency, but older power
plants will not be as efficient as newer plants with more technologically advanced and newer
systems. But simply replacing old power plants with newer plants is rarely cost effective as the
relative increase in power output seldom justifies the cost. CFPPs that are more efficient emit less
CO2 per unit of electricity produced because they use less coal. Making improvements to increase
the efficiency of CFPPs (while producing the same electrical output) could result in a significant
reduction in CO2 emissions. According to several of the studies summarized in this report, the
major improvements in GHG emissions would likely result from major retrofits in technology, or
conversions to natural gas (or possibly biomass) as a fuel.
Detailed information on the actual cost of efficiency-enhancing improvements is not readily
available, as concerns over confidentiality and competitiveness with regard to actual projects has
largely prevented the sharing of such information. The studies referenced in this report largely
show relative information on cost (i.e., high, medium, low), estimate the cost effectiveness of
improvements, or mention general cost levels. The case studies have reported costs of efficiency
improvements and actual increases in efficiency for specific power plant.64 But these are
considered as useful for estimating a range of costs for improvements rather than actual guides
for costs, since each power plant has its own design characteristics and maintenance history.
Actual cost information would require a technical evaluation, and a cost vs. benefit analysis to
obtain reliable cost estimates for the options under consideration, taking into account site-specific
conditions.
Other potential roles exist for Congress. For example, legislation could use tax incentives to
encourage energy efficient upgrades for CFPPs which were placed in-service after a certain date.
This would allow newer units with environmental controls to recover the cost of scrubbers and
other systems, and allow “newer” units to continue operations over a “reasonable” service life,
and recover the cost of environmental improvements.