Potential water‐related risks to the electric power industry associated with changing surface water conditions

Abstract

AbstractThis study identifies and summarizes potential risks to operations, regulatory compliance, supply chains, and infrastructure of the electric power industry from changing surface water conditions resulting from global climate change. The results help inform companies/utilities seeking to incorporate climate change risk in their planning and decision‐making processes by ranking risk severity and likelihood of occurrence on both a regional basis and by risk receptor. The assessment includes identification of potential risks to: (1) thermal generating, (2) hydroelectric, (3) land‐based renewable generating, and (4) transmission and distribution assets. These risks may result from such projected changes as reduced water availability (e.g., for hydroelectric or once‐through cooling), increased water temperatures (e.g., decrease in cooling efficiency, inability to meet discharge permit conditions), increased flood severity (e.g., increased streambank erosion and/or damage to river‐adjacent infrastructure), and decreased water quality (e.g., from increased transport of sediment and dissolved solids). The potential risks identified from this qualitative risk‐assessment are documented in a graphical format depicting both severity and likelihood. This approach allows for comparison of risks across a portfolio and for future prioritization of adaptation strategies. A total of 32 risks were identified in the study, including nine risks to infrastructure, six risks to operations, four risks to supply chain, and 13 environmental/regulatory risks.