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Roundtable Discussion on Understanding the Energy-Water-Climate Change Nexus
25 Jul 2013

CEEW hosted a Roundtable Discussion on ‘Understanding the Energy-Water-Climate Change Nexus using a Comprehensive Stochastic Simulation Modeling Approach’ with Dr Vishnu Nanduri, Assistant Professor, University of Wisconsin-Milwaukee, USA.

Drought-like conditions in some parts of the U.S. and around the world are causing serious water shortages leading to power failures, becoming a source of concern to independent power system operators. Water shortages can cause significant challenges in electricity production and thereby result in direct socioeconomic impacts on the surrounding region. Dr Nanduri’s research presents a new, comprehensive stochastic simulation-optimization model that examines the electricity-water-climate change nexus. We investigate the impact of a joint water and carbon tax proposal on the operation of a transmission-constrained power network in a wholesale electric power market setting. Several cases, including the impacts of 1) different carbon and water tax schemes, 2) integration of renewables, and 3) capacity disruptions due to water shortages are investigated. Detailed analyses and results obtained using a 30-bus IEEE network are discussed. Future research areas such as impacts of investment in water saving technologies by power plants, transmission constraints, using a multi-objective approach for obtaining optimal tax rates, and a potential joint water and carbon dioxide cap-and-trade program were discussed during the roundtable.

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