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Managing Water Shortages in the Western Electricity Grids

Author

Listed:
  • Hugh Scorah
  • Amy Sopinka
  • G. Cornelis van Kooten

Abstract

British Columbia’s electricity grid is comprised primarily of hydroelectric generating assets. The ability to store water in reservoirs is a significant advantage for the province allowing it to import from Alberta when prices are favourable. Alberta, has a heavily fossil-fuel based electricity portfolio, but has seen substantial growth in its wind energy capacity. However this variable energy technology impacts the province’s grid operations. Wind energy is both variable and uncertainty. However, wind energy in Alberta can be stored via BC’s reservoir systems. In this paper, we examine the extent that drought impacts the both overall operating costs as well as the cost of reducing CO2 emissions. We model the Alberta and BC interconnected grids varying both the impact of the drought and the transmission capacity between the provinces. We determine that storing wind energy leads to an overall cost reduction and that emission costs are between $20 and $60 per tonne of CO2.

Suggested Citation

  • Hugh Scorah & Amy Sopinka & G. Cornelis van Kooten, 2010. "Managing Water Shortages in the Western Electricity Grids," Working Papers 2010-03, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    • Handle: RePEc:rep:wpaper:2010-03
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    File URL: http://web.uvic.ca/~repa/publications/REPA%20working%20papers/WorkingPaper2010-03.pdf
    File Function: Final version, 2010
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    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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