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theses

Climate change poses a serious threat to human welfare. There is now unequivocal scientific evidence that human actions are the primary cause of climate change. The principal climate forcing factor is the increasing accumulation of atmospheric carbon dioxide (CO2) due to combustion of fossil fuels for transportation and electricity generation. Generation of electricity account for nearly one-third of the greenhouse (GHG) emissions globally (on a CO2-equivalent basis). Any kind of economy-wide mitigation or adaptation effort to climate change must have a prominent focus on the electric power sector. I have developed a capacity expansion model for the power sector called LP-CEM (Linear Programming based Capacity Expansion Model). LP-CEM incorporates both the long-term climate change effects and the state/regional-level macroeconomic trends. This modeling framework is demonstrated for the electric power system in the Northeast region of United States. Some of the methodological advances introduced in this research are: the use of high-resolution temperature projections in a power sector capacity expansion model; the incorporation of changes in sectoral composition of electricity demand over time; the incorporation of the effects of climate change and variability on both the demand and supply-side of power sector using parameters estimated in the literature; and an inter-model coupling link with a macroeconomic model to account for price elasticity of demand and other effects on the broader macro-economy. LP-CEM-type models can be of use to state/regional level policymakers to plan for future mitigation and adaptation measures for the electric power sector. From the simulation runs, it is shown that scenarios with climate change effects and with high economic growth rates have resulted in higher capacity addition, optimal supply costs, wholesale/retail prices and total ratepayers’ costs. LP-CEM is also adapted to model the implications of the proposed Clean Power Plan (Section 111 (d)) rules for the U.S. Northeast region. This dissertation applies an analytical model and an optimization model to investigate the implications of co-implementing an emission cap and an RPS policy for this region. A simplified analytical model of LP-CEM is specified and the first order optimality conditions are derived. The results from this analytical model are corroborated by running LP-CEM simulations under different carbon cap and RPS policy assumptions. A combination of these policies is shown to have a long-term beneficial effect for the final ratepayers in the region. This research conceptually explores the future implications of climate change and extreme weather events on the regional electricity market framework. The significant findings from this research and future policy considerations are discussed in the conclusion chapter.

ETD_6109

Ph.D.

Includes bibliographical references

by Shankar N. Chandramowli

doi:10.7282/T3WS8VZ1

ETD doctoral

The author owns the copyright to this work.