| A linear programming model is used to examine the impact of carbon taxes on the optimal generation mix in the Alberta electrical system. The model permits decommissioning of generating assets with high carbon dioxide emissions and investment in new gas-fired, wind and, in some scenarios, nuclear capacity. Although there is an intertie from Alberta to the U.S., the focus is on the connection to British Columbia as wind energy can potentially be stored in reservoirs behind hydroelectric dams. However, storage can also be used to smooth out the net load facing nuclear facilities. A carbon tax facilitates early removal of coal-fired capacity, which is replaced by low-emissions gas plants. It is only when the carbon tax exceeds $125/tCO2 that wind enters the... |
