Probabilistic Modeling of Climate Change Impacts on Renewable Energy and Storage Requirements for NM's Energy Transition Act (SAND Report)

Abstract

This repo rt provides a study of the potential impacts of climate change on intermittent renewable energy resources, battery storage, and resource adequacy in Public Service Company of New Mexico?s Integrated Resource Plan for 2020 ? 2040. Climate change models and available data were first evaluated to determine uncertainty and potential changes in solar irradiance, temperature, and wind speed in NM in the coming dec ades. These changes were then implemented in solar and wind energy models to determine impacts on ren ewable energy resources in NM. Results for the extreme climate - change scenario show that the projected wind power may decrease by ~13% due to projected de creases in wind speed. Projected solar power may decrease by ~4% due to decreases in irradiance and i ncreases in temperature in NM. Uncertainty in these climate - induced changes in wind and solar resources was accommodated in probabilistic models assuming u niform distributions in the annual reductions in solar and wind resources . Uncertainty in battery st orage performance was also evaluated based on increased temperature, capacity fade, and degradation in round - trip efficiency. T he hourly energy balance wa s determined throughout the year given uncertainties in the renewable energy resources and energy sto rage. The loss of load expectation (LOLE) was evaluated for the 2040 No New Combustion portfolio and found to increase from 0 days/year to a median value of ~ 2 days/year due to potential reductions in renewable energy resources and battery storage perform ance and capacity . A rank - regression analyses revealed that battery round - trip efficiency was the most significant parameter that impacted LOLE, followed by solar resource, wind resource, and battery fade. An increase in battery storage capacity to ~25,00 0 ? 30,000 MWh from a baseline value of ~14,000 MWh was required to reduce the median value of LOLE to ~0.2 days/year with consideration of poten tial climate impacts and battery degradation.