Profitability and investment risk of Texan power system winterization
Source abstract
Abstract
We deliver the first analysis of the 2021 cold spell in Texas which combines temperature dependent load estimates with temperature dependent estimates of power plant outages to understand the frequency of loss of load events, using a 71 year long time series of climate data. The expected avoided loss from full winterization is 11.74bn\$ over a 30 years investment period. We find that large-scale winterization, in particular of gas infrastructure and gas power plants, would be profitable, as related costs for winterization are substantially lower. At the same moment, the necessary investments involve risk due to the low-frequency of events – the 2021 event was the largest and we observe only 8 other similar ones in the set of 71 simulated years. Regulatory measures may therefore be necessary to enforce winterization.
Source: openaire · Quality: candidate unverified · Source record ↗
Research context
OpenAlex topics: Atmospheric and Environmental Gas Dynamics · Integrated Energy Systems Optimization · Water-Energy-Food Nexus Studies
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References (29)
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