Snowmelt to Megawatts: Modeling Hydropower and its dependence on snowmelt water in a Hydro-Economic Framework
Researcher:
Cazcarro Castellano, Ignacio
Congress:
XX Congreso de la Asociación Española para la Economía Energética (AEEE)
Participation type:
Comunicación oral
Other authors:
Guillermo Rodríguez-López
Year:
2025
Location:
Bilbao, España
This study explores the critical role of water availability, particularly from snowmelt, in
hydropower production and its broader economic implications within the Ebro Basin, a semi-
arid region in the Iberian Peninsula. By integrating a hydro-economic model with a
Multiregional Input-Output (MRIO) model, the research assesses how variations in water and
snow availability impact hydropower generation, energy markets, and the wider economy.
The hydro-economic model, which incorporates snowmelt data and reservoir management
rules, evaluates water allocation for hydropower, irrigation, industrial, and urban uses. The
MRIO model extends this analysis by examining the indirect and induced effects of water
scarcity on various sectors and regions through production chains. Preliminary findings
suggest that reduced snowmelt due to climate change could significantly decrease water
inflows into reservoirs, leading to lower hydropower generation, economic losses, and
potential disturbances in energy markets. The study highlights the vulnerability of water-
dependent sectors, such as agriculture and energy, to climate change and emphasizes the need
for integrated water resource management strategies to enhance resilience and sustainability.
This study explores the critical role of water availability, particularly from snowmelt, in
hydropower production and its broader economic implications within the Ebro Basin, a semi-
arid region in the Iberian Peninsula. By integrating a hydro-economic model with a
Multiregional Input-Output (MRIO) model, the research assesses how variations in water and
snow availability impact hydropower generation, energy markets, and the wider economy.
The hydro-economic model, which incorporates snowmelt data and reservoir management
rules, evaluates water allocation for hydropower, irrigation, industrial, and urban uses. The
MRIO model extends this analysis by examining the indirect and induced effects of water
scarcity on various sectors and regions through production chains. Preliminary findings
suggest that reduced snowmelt due to climate change could significantly decrease water
inflows into reservoirs, leading to lower hydropower generation, economic losses, and
potential disturbances in energy markets. The study highlights the vulnerability of water-
dependent sectors, such as agriculture and energy, to climate change and emphasizes the need
for integrated water resource management strategies to enhance resilience and sustainability.