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Adaptation to climate-induced regional water constraints in the Spanish energy sector: An integrated assessment

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  • Khan, Zarrar
  • Linares, Pedro
  • García-González, Javier

Abstract

The energy sector depends on water in all phases of its life-cycle, including raw material extraction, power plant cooling, irrigation of biofuel crops and directly in hydropower generation. In the coming decades, several regions of the world are expected to experience a decrease in water resource availability, in part due to climate change. The dependence of the energy sector on water resources calls for an active effort to adapt to the possible scenarios. This paper presents a novel model that addresses the direct impacts of regional and temporal water shortages on energy operation and investment decisions. The paper investigates the costs and benefits of adapting the energy sector to climate-induced water scarcity. The results show that the increase in costs for an energy plan that considers future water stress is relatively small as compared to one which ignores it. A plan which ignores water constraints, however, may lead to significant economic damages when actually exposed to water shortages. The results also highlight the value of the availability of water for the energy sector, which is significantly higher than existing prices. The paper concludes that the potential benefits to be gained by integrating energy and water models can be considerable.

Suggested Citation

  • Khan, Zarrar & Linares, Pedro & García-González, Javier, 2016. "Adaptation to climate-induced regional water constraints in the Spanish energy sector: An integrated assessment," Energy Policy, Elsevier, vol. 97(C), pages 123-135.
    • Handle: RePEc:eee:enepol:v:97:y:2016:i:c:p:123-135
    DOI: 10.1016/j.enpol.2016.06.046
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    References listed on IDEAS

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    1. Linares, Pedro & Rey, Luis, 2013. "The costs of electricity interruptions in Spain. Are we sending the right signals?," Energy Policy, Elsevier, vol. 61(C), pages 751-760.
    2. Pedro Linares & Gonzalo Sáenz de Miera, 2010. "Implications for water of the world energy scenarios," Working Papers 08-2010, Economics for Energy.
    3. Ruiz-Romero, Salvador & Colmenar-Santos, Antonio & Gil-Ortego, Rosario & Molina-Bonilla, Antonio, 2013. "Distributed generation: The definitive boost for renewable energy in Spain," Renewable Energy, Elsevier, vol. 53(C), pages 354-364.
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    5. Rio Carrillo, Anna Mercè & Frei, Christoph, 2009. "Water: A key resource in energy production," Energy Policy, Elsevier, vol. 37(11), pages 4303-4312, November.
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    Citations

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    Cited by:

    1. Yao An & Lin Zhang, 2023. "The Thirst for Power: The Impacts of Water Availability on Electricity Generation in China," The Energy Journal, , vol. 44(2), pages 205-240, March.
    2. Khan, Zarrar & Linares, Pedro & García-González, Javier, 2017. "Integrating water and energy models for policy driven applications. A review of contemporary work and recommendations for future developments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1123-1138.
    3. Plaga, Leonie Sara & Bertsch, Valentin, 2023. "Methods for assessing climate uncertainty in energy system models — A systematic literature review," Applied Energy, Elsevier, vol. 331(C).
    4. Zhou, Yuanchun & Ma, Mengdie & Gao, Peiqi & Xu, Qiming & Bi, Jun & Naren, Tuya, 2019. "Managing water resources from the energy - water nexus perspective under a changing climate: A case study of Jiangsu province, China," Energy Policy, Elsevier, vol. 126(C), pages 380-390.
    5. Suo, C. & Li, Y.P. & Mei, H. & Lv, J. & Sun, J. & Nie, S., 2021. "Towards sustainability for China's energy system through developing an energy-climate-water nexus model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    6. Yolanda Lechón & Cristina De La Rúa & Helena Cabal, 2018. "Impacts of Decarbonisation on the Water-Energy-Land (WEL) Nexus: A Case Study of the Spanish Electricity Sector," Energies, MDPI, vol. 11(5), pages 1-24, May.
    7. Khan, Zarrar & Linares, Pedro & Rutten, Martine & Parkinson, Simon & Johnson, Nils & García-González, Javier, 2018. "Spatial and temporal synchronization of water and energy systems: Towards a single integrated optimization model for long-term resource planning," Applied Energy, Elsevier, vol. 210(C), pages 499-517.
    8. Licandeo, Francisca & Flores, Francisco & Feijoo, Felipe, 2023. "Assessing the impacts of economy-wide emissions policies in the water, energy, and land systems considering water scarcity scenarios," Applied Energy, Elsevier, vol. 342(C).
    9. Parkinson, Simon C. & Makowski, Marek & Krey, Volker & Sedraoui, Khaled & Almasoud, Abdulrahman H. & Djilali, Ned, 2018. "A multi-criteria model analysis framework for assessing integrated water-energy system transformation pathways," Applied Energy, Elsevier, vol. 210(C), pages 477-486.

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