The purpose of this paper is to examine the extent to which electric utility integrated resource plans (IRPs) evaluate the impact of water constraints on electric generation resource portfolios and the extent to which IRPs consider the impacts of climate change to generation and loads. This white paper reviewed 30 IRPs to determine best practices with respect to analyzing and reporting on potential water-based and climate change risks within the integrated resource planning process. Best practices from electric utility IRPs are identified and additional recommendations and considerations are put forth.
In recent years, thermal generating facilities have experienced challenges with water availability: a shortage of cooling water, conditions in which incoming cooling water is too warm for optimal operation, and/or water discharge temperatures exceeding permit limits. S&P Global Market Intelligence recently reported on a study that identified for the year 2030, 98.2 gigawatts (GW) of coal capacity at risk due to water stress. Climate change effects on hydrological cycles may adjust the timing, temperature, and volume of water availability for thermal electric cooling and for hydropower generation, which could further exacerbate the frequency and duration of operational constraints. Climate change can also impact the timing and intensity of electric loads that utilities must serve, most notably for heating and cooling.