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NS4054 Fall Term 2015 Climate Change and Energy Security Overview • Oxford Analytica, United States: Climate Change Threatens Energy Supply July 24, 2013 • DoE report (July 11,2013) argues that climate change poses significant risks to the domestic production and distribution network • DoE predicts disruptions and cascading system effects. • However great differences between regions and energy systems – make it difficult to develop a comprehensive approach to the problem 2 Aspects of the Problem Important Aspects • Federal standards will increasingly but not completely unify the components of the energy system • Modernization of power systems at the city and state level will be necessary to accommodate increasing peak demands • Location of future power plants will be dependent on water availability • Several major trends have significant impacts on many of the major utilities of the country, including electric, oil and gas, and affiliated infrastructure system 3 Climate Change Impacts I • Air and water temperatures have risen and will continue to rise • Water availability in many parts of the country has declined • California drought the last four years • From 2012 to early 2013 drought in the Great Plains and southcentral U.S. • Followed a 2010-12 drought in Texas and Deep South • Climate change exacerbates demand on water supplies, because it extends the growing season; it has lengthened by nearly two weeks since the early 20th century • Extreme weather events are increasing in intensity and frequency • These trends have significant impacts on many of the major utilities around the country 4 Climate Change Impacts II • Electricity will be affected in both production and distribution networks • Generation more difficult with a changed climate • Power generation facilities more susceptible to shutdown in high temperatures • Thermoelectric power generation facilities use air and water to cool their systems • Many of these supply peak power during the hottest hours of the year, compounding likelihood of failure • Renewables resources will be increasingly challenged by water shortages – hydropower, hydrostatic resources used to store variable and uncertain power sources such as wind and to grow bio-fuels. 5 Climate Change Impacts III • Water shortages will increase energy demand • Movement and treatment of water is responsible for 4% of total electricity consumption, 13% if end use is included. • Shortages will necessitate increased distances and more intensive treatment • Distribution – transferring electricity to consumer also more expensive and less reliable with elevated temperatures and lower water supplies. • Transformers and lines are also susceptible to failure in high temperature conditions. • Electric grid become less efficient and possesses a lower capacity to deliver power in high temeratues. • Currently about 7% of produced electricity is lost on the grid. 6 Climate Change Impacts IV • Traditional bottlenecks between net summer generating regions and their customers will be exacerbated • The Bonneville Power Association in Oregon experienced a net loss of 164 million dollars when it failed to meet its power generation obligations, primarily due to low water volumes. Oil and Gas • Production • Off shoue exploration my benefit from longer ice-free seasons in Arctic regions – tropical and sub-tropical operations will see additional threats from extreme weather events • Some localities ban fracking because it depletes groundwater supplies 7 Climate Change Impacts V • Distribution • Supply chain for oil and gas, even if additional pipelines are improved is vulnerable to effects of climate change. • Barge and rail movement of oil and coal is more susceptible to supply change disruptions as droughts and flooding restrict movement more frequently • Coastal refineries and distributions centers such a those on the Gulf Coast, responsible for 48% of domestic refinery capacity at increased risk from seal rise and costly storm surge and flooding 8