Decarbonizing the Non-Carbon: Benefit-Cost Analysis of Phasing Out the Most Potent GHG in Interconnected Power Grids

Sulfur
hexafluoride (SF6), 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 SF6 emissions are expected
to rise. This work provides the first comprehensive analysis of the
social economic viability of eliminating SF6 in high-voltage
GIS equipment. We develop a flexible and scalable benefit-cost analysis
framework to assess the net social benefits of SF6 replacement
strategies. Using data from the Chinese power industry, we find that
the social cost of carbon and firms’ compliance with SF6 standards are critical factors. Although high-level policies
to eradicate SF6 in GIS are generally beneficial, net benefits
can vary significantly across local implementation realities. Nonetheless,
investing in SF6 alternatives is highly cost-effective
in reducing greenhouse gas emissions compared with other green technologies
like wind and solar power.