Despite coal being one of the major contributors of CO2, it remains a cheap and stable source of electricity. However, several countries have turned to solar energy in their goal to “green” their energy generation. Solar energy has the potential to displace coal with support from natural gas. In this study, an hourly power flow analysis was conducted to understand the potential, limitations, and implications of using solar energy as a driver for decommissioning coal power plants. To ensure the results’ robustness, the study presents a straightforward weather-driven scenario analysis that utilizes historical weather and electricity demand to generate representative scenarios. This approach was tested in Japan’s southernmost region, since it represents a regional grid with high PV penetration and a fleet of coal plants older than 40 years. The results revealed that solar power could decommission 3.5 GW of the 7 GW coal capacity in Kyushu. It was discovered that beyond 12 GW, solar power could not reduce the minimum coal capacity, but it could still reduce coal generation. By increasing the solar capacity from 10 GW to 20 GW and the LNG quota from 10 TWh to 28 TWh, solar and LNG electricty generation could reduce the emissions by 37%, but the cost will increase by 5.6%. Results also show various ways to reduce emissions, making the balance between cost and CO2 a policy decision. The results emphasized that investing in solar power alone will not be enough, and another source of energy is necessary, especially for summer and winter. The weather-driven approach highlighted the importance of weather in the analysis, as it affected the results to varying degrees. The approach, with minor changes, could easily be replicated in other nations or regions provided that historical hourly temperature, irradiance, and demand data are available.
The Effect of the Carbon Tax Value on the Optimal Parameters and Characteristics of Coal Power Plants
