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

TL;DR

This study presents a modeling framework applied to New York State to analyze trade-offs between electrification and grid decarbonization, revealing cost-effective pathways for emissions reduction in the clean energy transition.

Contribution

It introduces a detailed modeling approach that evaluates the economic and technical trade-offs of electrification and renewable deployment using high-fidelity local data.

Findings

Electrification with 40-70% low-carbon electricity achieves significant emissions reductions at lower costs.

Achieving 90% emissions reduction with only 20% electrification requires 50% low-carbon electricity, increasing costs by 43%.

Three main cost drivers identified: infrastructure costs, generation costs, and integration costs.

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.