This study investigates the impacts of long-term temperature change and variability on electricity investments. Using the United States as a case study, the researchers show that under a high-emissions scenario (SSP2-RCP 8.5), mean temperature changes increase annual electricity demand by 0.5–8%, while peak temperature changes drive increases in capital investments by 3–22%. These temperature-induced investments are highly sensitive to socioeconomic assumptions and spatial heterogeneity in fuel prices and capital stock characteristics, highlighting the need for a comprehensive approach to long-term electric sector planning.

Zarrar Khan, Gokul Iyer, Pralit Patel, Son Kim, Mohamad Hejazi, Casey Burleyson, Marshall Wise