Impacts of CO2 Reduction Target and Taxation on Thailand's Power System Planning towards 2030

During 2000-2010, Thailand's energy intensity has rapidly increased because of fast economic growth which may correlate to an increment of electricity consumption and CO2 emission during 2010-2030. Emission reduction in the power sector is a significant issue to develop a sustainable power system. The objectives of this study are to analyze impacts of CO2 reduction targets on Thailand's power sector and to determine equivalent carbon taxation. Regarding optimization manner, the Asia Pacific Integrated Model (AIM/Enduse) was applied to several scenarios including Business-As-Usual scenario (BAU), 20% 40% and 60% of emission reduction targets, as well as, carbon taxation. In 2030, the cost optimization shows that when the reduction target is at 60% and a carbon tax of $200/tCO2, CCS technology is selected.