Climate and weather uncertainty in the electricity industry

S. Parkpoom, G. P. Harrison, J. W. Bialek

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)

Abstract

The short-term variability of weather patterns and, over the longer term, of climate has a significant impact on the generation, transmission and demand for electricity. Utilities traditionally managed these effects through central planning and vertical integration. In the long term, sufficient plant was planned and constructed to meet anticipated peak demand, whilst the costs of dealing with short-term variability were absorbed and passed on to consumers. With deregulation, the need to manage weather and climate effects has changed dramatically (e.g. imbalance penalties for incorrectly predicted demand). In the longer term, there is a risk that climate change will alter the availability of renewable energy resources, adversely affecting the financial viability of such plant. This paper examines the extent of climatic and weather-related uncertainty affecting the electricity industry and reviews currently available techniques of assessing and managing both short and long term risks.

Original languageEnglish
Pages (from-to)455-464
Number of pages10
JournalInternational Energy Journal
Volume6
Issue number1 PART 4
Publication statusPublished - Jun 2005
Externally publishedYes

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