The importance of transnational impacts of climate change in a power market

The importance of transnational impacts of climate change in a power market We contribute to the discussion on transnational impacts of climate change by analysing the potential cross-border impacts climate change driven changes in the hydropower potential. We analyse this in the context of the Nordic countries where Norway and Sweden are likely to gain hydropower potential and Finland is likely to experience transnational impacts. We use an economic simulation model and a dynamic optimization model to study the impact of climate change to the production mix, the price of electricity, consumption of electricity and emissions from electricity production. We show that climate change might reduce prices through increased renewables supply, which decreases the profitability of power production. The changes in the inflow profile affect the hydropower profiles over the hydrological year such that the reduced inflow peak in the spring shifts the hydropower production from spring to autumn and winter. In addition the larger inflow increases the share of hydropower in production mix over the year. The emissions per consumed energy unit is going to be decreased because of the decreasing share of the thermal production in the system. However, increased hydropower production reduces prices which in turn increases the quantity demanded. This rebound effect somewhat dampens the emission reduction. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Energy Policy Elsevier

The importance of transnational impacts of climate change in a power market

Loading next page...
 
/lp/elsevier/the-importance-of-transnational-impacts-of-climate-change-in-a-power-U0mSEOxePg
Publisher
Elsevier
Copyright
Copyright © 2018 Elsevier Ltd
ISSN
0301-4215
D.O.I.
10.1016/j.enpol.2018.01.039
Publisher site
See Article on Publisher Site

Abstract

We contribute to the discussion on transnational impacts of climate change by analysing the potential cross-border impacts climate change driven changes in the hydropower potential. We analyse this in the context of the Nordic countries where Norway and Sweden are likely to gain hydropower potential and Finland is likely to experience transnational impacts. We use an economic simulation model and a dynamic optimization model to study the impact of climate change to the production mix, the price of electricity, consumption of electricity and emissions from electricity production. We show that climate change might reduce prices through increased renewables supply, which decreases the profitability of power production. The changes in the inflow profile affect the hydropower profiles over the hydrological year such that the reduced inflow peak in the spring shifts the hydropower production from spring to autumn and winter. In addition the larger inflow increases the share of hydropower in production mix over the year. The emissions per consumed energy unit is going to be decreased because of the decreasing share of the thermal production in the system. However, increased hydropower production reduces prices which in turn increases the quantity demanded. This rebound effect somewhat dampens the emission reduction.

Journal

Energy PolicyElsevier

Published: Apr 1, 2018

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create lists to
organize your research

Export lists, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off