Decarbonizing the Non-Carbon: Benefit-Cost Analysis of Phasing Out the Most Potent GHG in Interconnected Power Grids
Song Xiao, Yuting Yang, Yuhang Li, Jingtong Lin, Yana Jin
Abstract
High Resolution Image Download MS PowerPoint Slide Sulfur hexafluoride (SF 6 ), the most potent greenhouse gas, is widely used in gas-insulated switchgear (GIS) in the power industry. With increasing electrification and deepening renewable penetration, GIS installations and SF 6 emissions are expected to rise. This work provides the first comprehensive analysis of the social economic viability of eliminating SF 6 in high-voltage GIS equipment. We develop a flexible and scalable benefit-cost analysis framework to assess the net social benefits of SF 6 replacement strategies. Using data from the Chinese power industry, we find that the social cost of carbon and firms’ compliance with SF 6 standards are critical factors. Although high-level policies to eradicate SF 6 in GIS are generally beneficial, net benefits can vary significantly across local implementation realities. Nonetheless, investing in SF 6 alternatives is highly cost-effective in reducing greenhouse gas emissions compared with other green technologies like wind and solar power.