Assessing trade-offs among electrification and grid decarbonization in a clean energy transition: Application to New York State

Abstract

A modeling framework is presented to investigate trade-offs among decarbonization from increased low-carbon electricity generation and electrification of heating and vehicles. The model is broadly applicable but relies on high-fidelity parameterization of existing infrastructure and anticipated electrified loads; this study applies it to New York State where detailed data is available. Trade-offs are investigated between end use electrification and renewable energy deployment in terms of supply costs, generation and storage capacities, renewable resource mix, and system operation. Results indicate that equivalent emissions reductions can be achieved at lower costs to the grid by prioritizing electrification with 40–70% low-carbon electricity supply instead of aiming for complete grid decarbonization. With 60% electrification and 50% low-carbon electricity, approximately 1/3 emissions reductions can be achieved at current supply costs; with only 20% electrification, 90% low-carbon electricity is required to achieve the same emissions reductions, resulting in 43% higher grid costs. In addition, three primary cost drivers are identified for a system undergoing decarbonization: (1) decreasing per-unit costs of existing infrastructure with increasing electrified demand, (2) higher in-state generation costs from low-carbon sources relative to gas-based and hydropower generation, and (3) increasing integration costs at high percentages of low-carbon electricity.