A Methodological Approach With Application to Integrating Carbon Emission Externalities Costs in Unit Commitment

Interconnected power grids represent a significant advancement in sustainably and economically meeting global energy demands. However, a crucial gap persists in effectively integrating the costs of imported emissions into the power generation planning of importing countries. This paper introduces a novel methodology to incorporate these costs into the unit commitment problem, illustrated through the case study of the Sudan-Egypt power trade. This trade, is essential for addressing Sudan’s energy trilemma, offering substantial mutual benefits by enhancing energy security and sustainability for both nations. However, it also presents unique challenges, particularly the underexplored impact of imported emissions on Sudan’s unit commitment operations, a critical aspect our study aims to address. Our analysis evaluates the integration of Sudan’s grid with Egypt, focusing on the benefits and environmental costs, including emission externalities, across various scenarios. This approach emphasizes the significance of these factors in Sudan’s energy planning and the wider advantages of cross-border electricity exchange. The primary aim is to elucidate the environmental and economic impacts of the Sudan-Egypt power trade, promoting a balanced perspective that weighs both energy gains and environmental ramifications. We discovered that the total cost of power generation increases significantly with environmental impacts, rising from $ {\$}908,761$ to $ {\$}5,550,824$ . However, adopting carbon capture technologies, with efficiencies ranging from 40% to 90%, can substantially reduce these costs, highlighting the economic benefits for Sudan. This study not only illuminates the financial and environmental aspects of the Sudan-Egypt power trade but also serves as a blueprint for other nations facing similar energy and environmental issues.