The role of U.S.-Canada electricity trade in North American decarbonization pathways

Abstract

We investigate the role of U.S.-Canada electricity interconnections in supporting decarbonization efforts toward addressing both countries’ emission reduction goals. Using the OSeMOSYS energy system model, we calculate the generation mix and required transmission expansion between Canada and the U.S. under six climate policy and transmission cost scenarios. Overall, current emission prices will not provide enough incentive to meet stated emission reduction goals. Increases in emission penalties lead to increased transmission capacity. In all cases, the system requires significant dispatchable, low-carbon electricity to meet emission reduction goals and the flexibility of hydro resources provides significant system value. In addition to hydro and low-carbon dispatchable generation, the system requires significant investments in wind and solar in all scenarios.

Keywords

• Electricity trade
• North America
• Optimization
• Open source
• Decarbonization
• Electricity generation