The Effects of Climate Change on Interregional Electricity Market Dynamics on the U.S. West Coast
Abstract
The United States (U.S.) West Coast power system is strongly influenced by variability and extremes in air temperatures (which drive electricity demand) and streamflows (which constrain hydropower production). As hydroclimate changes across the West Coast, a combination of forces may work in tandem to make its bulk power system more vulnerable to physical reliability issues and market price shocks. In particular, a warmer climate is expected to increase summer cooling (electricity) demands and shift the average timing of peak streamflow (hydropower production) away from summer to the spring and winter, depriving power systems of hydropower when it is needed the most. Here, we investigate how climate change could alter interregional electricity market dynamics on the West Coast, including the potential for hydroclimatic changes in one region (e.g. Pacific Northwest (PNW)) to “spill over” and cause price and reliability risks in another (e.g. California). We find that the most salient hydroclimatic risks for the PNW power system are changes in streamflow, while risks for the California system are driven primarily by changes in summer air temperatures, especially extreme heat events that increase peak system demand. Altered timing and amounts of hydropower production in the PNW do alter summer power deliveries intomore »
- Authors:
-
- Univ. of North Carolina, Chapel Hill, NC (United States)
- North Carolina State Univ., Raleigh, NC (United States)
- Oregon State Univ., Corvallis, OR (United States)
- Pacific Northwest National Lab. (PNNL), Richland, WA (United States); Univ. of Washington, Seattle, WA (United States)
- Publication Date:
- Research Org.:
- Pacific Northwest National Laboratory (PNNL), Richland, WA (United States); University of North Carolina, Chapel Hill, NC (United States)
- Sponsoring Org.:
- USDOE; National Science Foundation (NSF)
- OSTI Identifier:
- 1841702
- Report Number(s):
- PNNL-SA-161485
Journal ID: ISSN 2328-4277
- Grant/Contract Number:
- AC05-76RL01830; 1639268(T2); 1740082(T1)
- Resource Type:
- Accepted Manuscript
- Journal Name:
- Earth's Future
- Additional Journal Information:
- Journal Volume: 9; Journal Issue: 12; Journal ID: ISSN 2328-4277
- Publisher:
- American Geophysical Union (AGU)
- Country of Publication:
- United States
- Language:
- English
- Subject:
- 24 POWER TRANSMISSION AND DISTRIBUTION; 29 ENERGY PLANNING, POLICY, AND ECONOMY; 54 ENVIRONMENTAL SCIENCES
Citation Formats
Hill, Joy, Kern, Jordan, Rupp, David E., Voisin, Nathalie, and Characklis, Gregory. The Effects of Climate Change on Interregional Electricity Market Dynamics on the U.S. West Coast. United States: N. p., 2021.
Web. doi:10.1029/2021ef002400.
Hill, Joy, Kern, Jordan, Rupp, David E., Voisin, Nathalie, & Characklis, Gregory. The Effects of Climate Change on Interregional Electricity Market Dynamics on the U.S. West Coast. United States. https://doi.org/10.1029/2021ef002400
Hill, Joy, Kern, Jordan, Rupp, David E., Voisin, Nathalie, and Characklis, Gregory. Tue .
"The Effects of Climate Change on Interregional Electricity Market Dynamics on the U.S. West Coast". United States. https://doi.org/10.1029/2021ef002400. https://www.osti.gov/servlets/purl/1841702.
@article{osti_1841702,
title = {The Effects of Climate Change on Interregional Electricity Market Dynamics on the U.S. West Coast},
author = {Hill, Joy and Kern, Jordan and Rupp, David E. and Voisin, Nathalie and Characklis, Gregory},
abstractNote = {The United States (U.S.) West Coast power system is strongly influenced by variability and extremes in air temperatures (which drive electricity demand) and streamflows (which constrain hydropower production). As hydroclimate changes across the West Coast, a combination of forces may work in tandem to make its bulk power system more vulnerable to physical reliability issues and market price shocks. In particular, a warmer climate is expected to increase summer cooling (electricity) demands and shift the average timing of peak streamflow (hydropower production) away from summer to the spring and winter, depriving power systems of hydropower when it is needed the most. Here, we investigate how climate change could alter interregional electricity market dynamics on the West Coast, including the potential for hydroclimatic changes in one region (e.g. Pacific Northwest (PNW)) to “spill over” and cause price and reliability risks in another (e.g. California). We find that the most salient hydroclimatic risks for the PNW power system are changes in streamflow, while risks for the California system are driven primarily by changes in summer air temperatures, especially extreme heat events that increase peak system demand. Altered timing and amounts of hydropower production in the PNW do alter summer power deliveries into California but show relatively modest potential to impact prices and reliability there. Instead, it is future climate conditions (extreme heat) in California that may exert a stronger significant influence on prices and reliability in the PNW, especially if California continues to rely on its northern neighbor for imported power to meet higher summer demands.},
doi = {10.1029/2021ef002400},
journal = {Earth's Future},
number = 12,
volume = 9,
place = {United States},
year = {Tue Dec 07 00:00:00 EST 2021},
month = {Tue Dec 07 00:00:00 EST 2021}
}
Works referenced in this record:
Climate-change impacts on water resources and hydropower potential in the Upper Colorado River Basin
journal, March 2015
- Kopytkovskiy, M.; Geza, M.; McCray, J. E.
- Journal of Hydrology: Regional Studies, Vol. 3
A simple hydrologically based model of land surface water and energy fluxes for general circulation models
journal, January 1994
- Liang, Xu; Lettenmaier, Dennis P.; Wood, Eric F.
- Journal of Geophysical Research, Vol. 99, Issue D7
Water-Related Power Plant Curtailments: An Overview of Incidents and Contributing Factors
report, December 2016
- McCall, James; Macknick, Jordan; Macknick, Jordan
Compounding climate change impacts during high stress periods for a high wind and solar power system in Texas
journal, January 2020
- Craig, Michael T.; Jaramillo, Paulina; Hodge, Bri-Mathias
- Environmental Research Letters, Vol. 15, Issue 2
Seasonal effects of climate change on intra-day electricity demand patterns
journal, March 2019
- Ralston Fonseca, Francisco; Jaramillo, Paulina; Bergés, Mario
- Climatic Change, Vol. 154, Issue 3-4
Hydrologic Response Of The Columbia River System To Climate Change
dataset, January 2017
- Chegwidden, O. S.; Nijssen, B.; Rupp, D. E.
- Zenodo
Sensitivity of Western U.S. power system dynamics to droughts compounded with fuel price variability
journal, May 2019
- O'Connell, ; Voisin, Nathalie
- Applied Energy, Vol. 247, p. 745-754
Vulnerability of the US western electric grid to hydro-climatological conditions: How bad can it get?
journal, November 2016
- Voisin, N.; Kintner-Meyer, M.; Skaggs, R.
- Energy, Vol. 115
Quantifying climate change impacts on hydropower generation and implications on electric grid greenhouse gas emissions and operation
journal, September 2016
- Tarroja, Brian; AghaKouchak, Amir; Samuelsen, Scott
- Energy, Vol. 111
The National Solar Radiation Data Base (NSRDB)
journal, June 2018
- Sengupta, Manajit; Xie, Yu; Lopez, Anthony
- Renewable and Sustainable Energy Reviews, Vol. 89
Climate impacts on hydropower and consequences for global electricity supply investment needs
journal, December 2017
- Turner, Sean W. D.; Hejazi, Mohamad; Kim, Son H.
- Energy, Vol. 141
US Power Production at Risk from Water Stress in a Changing Climate
journal, September 2017
- Ganguli, Poulomi; Kumar, Devashish; Ganguly, Auroop R.
- Scientific Reports, Vol. 7, Issue 1
Power-generation system vulnerability and adaptation to changes in climate and water resources
journal, January 2016
- van Vliet, Michelle T. H.; Wiberg, David; Leduc, Sylvain
- Nature Climate Change, Vol. 6, Issue 4
An Overview of the Global Historical Climatology Network-Daily Database
journal, July 2012
- Menne, Matthew J.; Durre, Imke; Vose, Russell S.
- Journal of Atmospheric and Oceanic Technology, Vol. 29, Issue 7
Impact of climate change on water availability and its propagation through the Western U.S. power grid
journal, October 2020
- Voisin, Nathalie; Dyreson, Ana; Fu, Tao
- Applied Energy, Vol. 276
Effects of projected climate change on energy supply and demand in the Pacific Northwest and Washington State
journal, May 2010
- Hamlet, Alan F.; Lee, Se-Yeun; Mickelson, Kristian E. B.
- Climatic Change, Vol. 102, Issue 1-2
Impacts of recent drought and warm years on water resources and electricity supply worldwide
journal, December 2016
- van Vliet, Michelle T. H.; Sheffield, Justin; Wiberg, David
- Environmental Research Letters, Vol. 11, Issue 12
Non-stationary hydropower generation projections constrained by environmental and electricity grid operations over the western United States
journal, July 2018
- Zhou, Tian; Voisin, Nathalie; Fu, Tao
- Environmental Research Letters, Vol. 13, Issue 7
Compound climate events transform electrical power shortfall risk in the Pacific Northwest
journal, January 2019
- Turner, S. W. D.; Voisin, N.; Fazio, J.
- Nature Communications, Vol. 10, Issue 1
Examining global electricity supply vulnerability to climate change using a high-fidelity hydropower dam model
journal, July 2017
- Turner, Sean W. D.; Ng, Jia Yi; Galelli, Stefano
- Science of The Total Environment, Vol. 590-591
Climate change is projected to have severe impacts on the frequency and intensity of peak electricity demand across the United States
journal, February 2017
- Auffhammer, Maximilian; Baylis, Patrick; Hausman, Catherine H.
- Proceedings of the National Academy of Sciences, Vol. 114, Issue 8
Impacts of rising air temperatures and emissions mitigation on electricity demand and supply in the United States: a multi-model comparison
journal, June 2015
- McFarland, James; Zhou, Yuyu; Clarke, Leon
- Climatic Change, Vol. 131, Issue 1
Effects of Climate Change on Capacity Expansion Decisions of an Electricity Generation Fleet in the Southeast U.S.
journal, January 2021
- Ralston Fonseca, Francisco; Craig, Michael; Jaramillo, Paulina
- Environmental Science & Technology, Vol. 55, Issue 4
Assessing climate change impacts on California hydropower generation and ancillary services provision
journal, November 2018
- Forrest, Kate; Tarroja, Brian; Chiang, Felicia
- Climatic Change, Vol. 151, Issue 3-4
Amplification of future energy demand growth due to climate change
journal, June 2019
- van Ruijven, Bas J.; De Cian, Enrica; Sue Wing, Ian
- Nature Communications, Vol. 10, Issue 1
Data and code for Earth's Future submission
dataset, January 2021
- Hill, Joy; Kern, Jordan; Rupp, David
- Zenodo
Climate change impact and resilience in the electricity sector: The example of Austria and Germany
journal, April 2017
- Totschnig, G.; Hirner, R.; Müller, A.
- Energy Policy, Vol. 103
The Role of Climate Forecasts in Western U.S. Power Planning
journal, May 2006
- Voisin, Nathalie; Hamlet, Alan F.; Graham, L. Phil
- Journal of Applied Meteorology and Climatology, Vol. 45, Issue 5
Impacts of climate change on electric power supply in the Western United States
journal, May 2015
- Bartos, Matthew D.; Chester, Mikhail V.
- Nature Climate Change, Vol. 5, Issue 8
Impacts of climate change on energy consumption and peak demand in buildings: A detailed regional approach
journal, January 2015
- Dirks, James A.; Gorrissen, Willy J.; Hathaway, John H.
- Energy, Vol. 79
Dynamic modelling of water demand, water availability and adaptation strategies for power plants to global change
journal, May 2009
- Koch, Hagen; Vögele, Stefan
- Ecological Economics, Vol. 68, Issue 7
Thermal pollution impacts on rivers and power supply in the Mississippi River watershed
journal, March 2018
- Miara, Ariel; Vörösmarty, Charles J.; Macknick, Jordan E.
- Environmental Research Letters, Vol. 13, Issue 3
Climate change impacts and greenhouse gas mitigation effects on U.S. hydropower generation
journal, December 2016
- Boehlert, Brent; Strzepek, Kenneth M.; Gebretsadik, Yohannes
- Applied Energy, Vol. 183
Climate change: impacts on electricity markets in Western Europe
journal, November 2011
- Golombek, Rolf; Kittelsen, Sverre A. C.; Haddeland, Ingjerd
- Climatic Change, Vol. 113, Issue 2
Projecting changes in annual hydropower generation using regional runoff data: An assessment of the United States federal hydropower plants
journal, February 2015
- Kao, Shih-Chieh; Sale, Michael J.; Ashfaq, Moetasim
- Energy, Vol. 80
Modeling thermoelectric power generation in view of climate change
journal, November 2009
- Förster, Hannah; Lilliestam, Johan
- Regional Environmental Change, Vol. 10, Issue 4
The impact of heat waves on electricity spot markets
journal, May 2014
- Pechan, Anna; Eisenack, Klaus
- Energy Economics, Vol. 43
An open source model for quantifying risks in bulk electric power systems from spatially and temporally correlated hydrometeorological processes
journal, April 2020
- Su, Yufei; Kern, Jordan D.; Denaro, Simona
- Environmental Modelling & Software, Vol. 126
Vulnerability of US and European electricity supply to climate change
journal, June 2012
- van Vliet, Michelle T. H.; Yearsley, John R.; Ludwig, Fulco
- Nature Climate Change, Vol. 2, Issue 9
Business risk and the emergence of climate analytics
journal, February 2021
- Fiedler, Tanya; Pitman, Andy J.; Mackenzie, Kate
- Nature Climate Change, Vol. 11, Issue 2
Evaluating the Financial Vulnerability of a Major Electric Utility in the Southeastern U.S. to Drought under Climate Change and an Evolving Generation Mix
journal, July 2017
- Kern, Jordan D.; Characklis, Gregory W.
- Environmental Science & Technology, Vol. 51, Issue 15
Assessing Climate Change Impacts on Global Hydropower
journal, February 2012
- Hamududu, Byman; Killingtveit, Aanund
- Energies, Vol. 5, Issue 2
Emissions – the ‘business as usual’ story is misleading
journal, January 2020
- Hausfather, Zeke; Peters, Glen P.
- Nature, Vol. 577, Issue 7792
A retrospective study of the 2012–2016 California drought and its impacts on the power sector
journal, August 2020
- Kern, Jordan D.; Su, Yufei; Hill, Joy
- Environmental Research Letters, Vol. 15, Issue 9
Quantifying the impacts of climate change and extreme climate events on energy systems
journal, February 2020
- Perera, A. T. D.; Nik, Vahid M.; Chen, Deliang
- Nature Energy, Vol. 5, Issue 2
Improving consistency among models of overlapping scope in multi-sector studies: The case of electricity capacity expansion scenarios
journal, December 2019
- Iyer, G. C.; Brown, M.; Cohen, S. M.
- Renewable and Sustainable Energy Reviews, Vol. 116
Water constraints on European power supply under climate change: impacts on electricity prices
journal, July 2013
- van Vliet, Michelle T. H.; Vögele, Stefan; Rübbelke, Dirk
- Environmental Research Letters, Vol. 8, Issue 3
RCP8.5 tracks cumulative CO 2 emissions
journal, August 2020
- Schwalm, Christopher R.; Glendon, Spencer; Duffy, Philip B.
- Proceedings of the National Academy of Sciences, Vol. 117, Issue 33
Impacts of climate change on European critical infrastructures: The case of the power sector
journal, January 2011
- Rübbelke, Dirk; Vögele, Stefan
- Environmental Science & Policy, Vol. 14, Issue 1
Energy sector vulnerability to climate change: A review
journal, February 2012
- Schaeffer, Roberto; Szklo, Alexandre Salem; Pereira de Lucena, André Frossard
- Energy, Vol. 38, Issue 1
Hydrologic Response Of The Columbia River System To Climate Change
dataset, January 2017
- Chegwidden, O. S.; Nijssen, B.; Rupp, D. E.
- Zenodo
Climate change and electricity demand in California
journal, December 2007
- Franco, Guido; Sanstad, Alan H.
- Climatic Change, Vol. 87, Issue S1
Data and code for Earth's Future submission
dataset, January 2021
- Hill, Joy; Kern, Jordan; Rupp, David
- Zenodo