Decarbonization of the electricity generation sector and its effects on sustainability goals

Abstract

AbstractThe substitution of fossil fuels, especially coal, with renewable energy is a crucial step for the CO2 emissions reduction and the avoidance of Global Climate Change. The electric power generation industry is the first economic sector that will have to transition to renewable energy. However, wind and solar energy, the two most abundant renewable energy forms, are not dispatchable. The high penetration of these renewables in the energy market will create a demand–supply mismatch, which can only be alleviated with large-scale energy storage. This paper uses the case of Texas—a state that generates and consumes more electricity than several large, industrialized nations—to quantitatively examine the required infrastructure for the decarbonization of the electricity generation industry, while satisfying the current electric power demand in the State. Among the parameters that are examined are: the additional solar and wind capacity; the necessary energy storage infrastructure; the energy dissipation in the storage/regeneration process; and the effect of decarbonization on the cost of electricity and the welfare of the citizens. The computations show that the technology is available for the transition to a decarbonized electric power sector but requires significant investment in new wind and photovoltaic units as well as substantial energy storage. This would increase the electricity prices by a factor between 2.9 and 3.7 and, would have a disproportionate impact on the citizens in the lower income brackets.