The influence of carbon tax on economically optimal adoption and operation of Distributed Energy Resources system

A carbon tax is a kind of environmental tax which creates economic incentives for society to act against environmental destruction and excessive resource consumption. In Japan, the Ministry of Environment has been active in research on various environmental taxes. This suggests the possibility of the introduction of a carbon tax in the near future. With the introduction of carbon tax, it will have a large effect on Distributed Energy Resources (DER) system. In order to improve the environment of introducing of DER, it is necessary to have a study on economic effect about the introduction price of carbon tax. E-GAMS is a tool designed to find the optimal combination of installed technology and an idealized operating schedule to minimize a site's energy bills. In this paper, using E-GAMS, we have analyzed the economic effects of DER system on the different carbon tax (0Yen/kg similar to 10Yen/kg) in Kitakyushu Science and Research Park (KSRP). Four cases of energy supply systems, (1)the current system, (2) optimal technology combination. (3) PV+optimal technology combination and (4) PV+FC+Optimal technology combination, were studied to evaluate the effect of different price of carbon tax about energy cost, total cost and pay back year of DER system.