Impacts of the Clean Power Plan on the Resource Mix and Renewable Energy Development
Open Access
- Author:
- Bateman, Evelyn L
- Area of Honors:
- Energy Engineering
- Degree:
- Bachelor of Science
- Document Type:
- Thesis
- Thesis Supervisors:
- Susan W Stewart, Thesis Supervisor
Dr. Sarma V Pisupati, Thesis Honors Advisor - Keywords:
- Clean Power Plan
wind energy
carbon emissions
economic dispatch - Abstract:
- Currently under a stay of proceedings from the Supreme Court, the Clean Power Plan is a carbon emission policy proposed by President Obama in response to international climate change discussions. The Plan gives each State the leeway to design individualized strategies for specified carbon reduction targets in the electricity sector by 2030. While the government and other independent agencies have predicted the impacts of the Clean Power Plan, this study aims to assess the effectiveness of the policy at promoting affordable means of achieving carbon reduction goals and incentivizing wind power, and to suggest future policy decisions beyond the 2030 goal. A linear optimization model written in GAMS is used to perform an economic dispatch for Texas and New York case studies under baseline, carbon cap, and carbon cap plus new wind technology scenarios. The carbon cap constraint on the dispatch model shifted the resource mix from coal to natural gas, as predicted by previous studies. However, the implementation of hypothetical wind resources in each State shifted the dispatch back to coal, suggesting that renewable energy development could actually reduce the negative impacts of the Clean Power Plan on the coal industry. Other factors impacting the State’s decisions, including regulated/deregulated electricity markets, renewable influx, and economic growth under the Clean Power Plan are discussed. While the Clean Power Plan offers successful alternatives for reducing carbon emissions including fuel switching, demand side reductions, and energy efficiency projects, the Plan lacks financial incentives for wind production that will be crucial for future carbon mitigation. While this may be adequate in the short term, it is suggested that legislation beyond 2030 should include more specific incentives for wind and renewable energy development.