Distributional impacts of technology pathways for US power sector transformation
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Engineering topics
Publications and source records attributed to Awara, Sarah.
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Ocean current energy technology has been proposed as a potential contributor to Florida's energy portfolio. There has been limited investigation of how this energy would be valued when integrated into the Florida electrical grid. This study assesses three future grid scenarios to evaluate the impact of adding zero-cost ocean current energy to each. The Resource Planning Model, a tool developed by the National Renewable Energy Laboratory, is used to identify the least-cost generation mix through 2050, with and without ocean current energy. The first scenario is a base case and assumes existing policies in which the addition of ocean current energy does not retire fossil-based technologies but variable generation technologies. In the second scenario, solar and storage technologies are lower cost, and the addition of ocean current generation enables those technologies along with wind to retire existing natural gas units earlier. In the third scenario, which requires a 95% reduction in carbon emissions from 2020 levels by 2050, ocean current energy can play a role in decarbonization along with other variable generation technologies. This analysis is intended to inform stakeholders on the opportunity, potential challenges, and overall value to the grid of ocean current technology from a reliability and availability focused perspective.
New policy goals are explicitly guiding the future grid toward greater energy equity. At the same time, policy goals also guide the grid toward decarbonization and resilience, while maintaining cost, security, and reliability cornerstone requirements. In conclusion, these pressures create a dilemma: moving urgently to address climate change and respond to energy disruptions, but also slowly to engage communities on the climate frontlines in earnest.
Ocean current technology has been proposed as a potential contributor to Florida's energy portfolio. There has been limited investigation of how this energy would be valued when integrated into the Florida electrical grid. This study assesses three future grid scenarios to evaluate the impact of adding ocean current to each. NREL's capacity expansion model, Resource Planning Model, is used to identify the least-cost generation mix through 2050, with and without ocean current. The first scenario, Business as Usual, Base case assuming current policies, ocean current does not replace fossil-based technologies. In the second scenario, we allow solar and storage to have lower costs than the first scenario which allows ocean current to retire gas earlier and more variable generation technologies to be deployed. In the third scenario, the Florida carbon constraint 95 by 2050 from 2020 levels case, ocean current can play a bigger role in decarbonization than the two other cases when coupled with other technologies.
On November 29 and 30, 2023, the Energy Systems Integration Group convened a one-and-a-half-day workshop in Arlington, Virginia, to improve knowledge and practices for integrating energy equity considerations into power system planning and operation. Workshop participants were invited to discuss approaches for integrating energy equity aspects into models and tools and to explore possible pathways for enhanced technical practices. Participants included utility planning and modeling practitioners, social science and energy justice academics, representatives from energy and environmental justice nongovernmental organizations, non-profits, consumer advocates, and representatives from the U.S. Department of Energy, national labs, and other government agencies. This report summarizes the discussion points and outcomes of the workshop, which prioritized the technical aspects of incorporating the challenges and solutions identified by electricity-futures stakeholders and communities. These technical activities include the fundamental grid structure and hardware, detailed modeling approaches that benchmark energy system performance and justify future investments, and engineering designs and limitations for potential solutions to meet energy equity goals in communities.
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This report, originally published in December 2023, has been revised in January 2024. There were three changes in the revision. First, Anthony Lopez was added as a contributing author, as he had been erroneously omitted in the original publication. Second, in appendix section A.1 the cost of upgrading a hydrogen combustion turbine from a natural gas turbine was erroneously reported as 20% when it should have been 33%. Lastly, appendix Figure A-8 was erroneously a duplication of the same figure from the Standard Scenarios 2022, it has now been updated to reflect this year’s data.
Battery storage is increasingly identified as being among the least-cost mix of technologies in the evolving U.S. electricity mix. This study explores the marginal capacity credit of batteries using a probabilistic, reliability-based, effective firm capacity method, which we apply for multiple battery power ratings, durations, coupling types, deployment locations, and dispatch profiles within a test system that is based on the Texas Interconnection in the year 2024. We find that the capacity credits for all battery durations depend on their ability to predict the timing of reliability events. Even 1-2 h forecast errors - resulting in early or delayed battery discharging relative to the onset of a reliability event - lead pronounced capacity credit reductions, especially for 4-h duration batteries. Coupling batteries with solar mitigates the uncertainty associated with a shorter-duration battery's availability during reliability events, primarily due to the relatively high solar capacity credit in our test system. Coupled (or hybrid) system designs with oversized solar arrays, the ability to charge the coupled battery with grid energy, and larger batteries lead to the greatest capacity credit benefits of hybridization. We do not see evidence that the hybrid capacity credit exceeds the sum of the separate battery and solar capacity credits.
This report documents the eighth edition of the annual Standard Scenarios. It summarizes 70 forward-looking scenarios of the U.S. electricity sector that have been designed to capture a wide range of possible futures. In August 2022, the United States Congress passed the Inflation Reduction Act (IRA), a law aimed at accelerating U.S. decarbonization, clean energy manufacturing, and deployment of new power and end-use technologies. This year’s scenarios include representations of the main electricity-sector provisions from IRA and the potential impact on electricity demand. The Standard Scenarios are simulated using the Regional Energy Deployment System (ReEDS) model, which projects utility-scale electricity sector evolution for the contiguous United States using a system-wide, least-cost approach subject to policy and operational constraints. A subset of the scenarios are simulated in the PLEXOS production cost model to obtain a broader suite of metrics at the hourly resolution, which are made available through the National Renewable Energy Laboratory’s (NREL’s) annual Cambium data sets. The scenarios can be viewed and downloaded from NREL’s Scenario Viewer. Annual results are available for the full suite of scenarios in the Standard Scenarios projects in the viewer, whereas the Cambium projects contain hourly data for a subset of scenarios. The Standard Scenarios includes a scenario called the Mid-case, which has central or median values for core inputs such as technology costs and fuel prices, moderately paced demand growth averaging 1.3% per year, and electricity sector policies as they existed in September 2022 (including IRA). The remaining 69 scenarios are created by varying inputs such as technology and fuel prices, resource availability, demand growth, whether nascent generation technologies are allowed, and by introducing national decarbonization constraints.
Representing energy-limited resources in power system probabilistic resource adequacy assessment introduces new considerations that invalidate classical modeling assumptions. In particular, such resources have multi-period operating objectives and constraints that in real systems are addressed via a sequence of rolling intertemporal optimizations. Ideally, adequacy models would develop dispatch decisions by solving a similar sequence of problems, but this approach has historically been too computationally intensive for practical use in Monte Carlo simulations, with studies making use of simplifying approximations instead. These simplifications have the potential to distort the assessed value of energy-limited resources on the system.This work describes three classes of storage dispatch assumptions in current use and discusses their theoretical differences. It then provides an empirical analysis of their differences on test systems with different levels of storage, assessing the potential for a study's modeling assumptions to influence the perceived contribution of energy-limited resources.
Utility-scale systems that combine solar photovoltaic and battery (PV+battery) technologies are growing in popularity on the U.S. bulk power system. The business case for PV+battery systems depends on both their ability to reduce costs and their ability to generate value synergies associated with the provision of energy, capacity, and ancillary services. Capacity value can constitute a significant portion of the value PV+battery hybrids provide to the grid (e.g., through avoided or deferred capacity) and receive through revenues. Throughout this report, we define capacity value as the monetary value of a plant's contribution towards the planning reserve margin, which ultimately depends on market rules and structures. PV+battery hybrids do not always fit into current market structures because of the interactions between the PV and battery components. Unique considerations for the capacity value of PV+battery hybrids include the disparate nature of participation models for PV and battery technologies in existing market rules and the potential influence of a shared interconnection capacity; limitations imposed by a shared inverter; limited ability to charge the battery in advance of capacity events if charging must be sourced from the coupled PV; and challenges or uncertainties associated with co-optimizing the operations of the PV and battery components. Grid operators are currently considering how market structures can be modified to optimally determine the capacity value provided by PV+battery systems, and the rules of how they are integrated into markets are still being written. As with any resource, poorly designed rules could increase the cost of energy and reduce system reliability, while well-designed rules could allow markets to receive the full benefits hybrid systems can offer without overcompensating them for the services they provide. Well-designed rules for PV+battery systems must consider the unique aspects listed above, while leveraging the commonalities with existing resource types. In this report, we summarize the technical capability and market rules that influence the capacity value of PV+battery systems. We further discuss the potential tradeoffs between computational complexity and accuracy for the various ways in which grid operators can credit PV+battery systems for capacity. Finally, we describe markets for capacity, survey current wholesale market rules applying to PV+battery systems, and provide a snapshot of the current regulatory landscape for PV+battery systems.
The degree to which wind energy can contribute to the capacity needed to meet resource adequacy requirements, also known as capacity credit (CC), varies regionally with wind resource and correlation to net load. CC is an important metric widely used for resource planning and resource adequacy assessments. However, there are multiple methods for computing and estimating CC, depending on specific needs, access to data, and computational burden. It is unclear the extent to which the CC computation method may influence the result. To address this, we use a probabilistic resource adequacy tool and multiple approximation methods to systematically assess the CC of wind for near-term wind deployment under a case study in Texas. We find that proper consideration of transmission constraints is important; some approximation methods may overestimate the CC of wind due to a lack of consideration of transmission constraints, while other approximation methods may underestimate the CC by not capturing the ability of wind to be shipped to neighboring regions. In this case study, we find that several approximation methods do come close to the CC calculated by more robust probabilistic methods. However, the best approximation method may vary on a case-by-case basis, depending on system-specific considerations.
Given its physical characteristics and the range of services that it can provide, energy storage raises unique modeling challenges. This paper summarizes capabilities that operational, planning, and resource-adequacy models that include energy storage should have and surveys gaps in extant models. Existing models that represent energy storage differ in fidelity of representing the balance of the power system and energy-storage applications. Modeling results are sensitive to these differences. The importance of capturing chronology can raise challenges in energy-storage modeling. Some models ‘decouple’ individual operating periods from one another, allowing for natural decomposition and rendering the models relatively computationally tractable. Energy storage complicates such a modeling approach. Improving the representation of the balance of the system can have major effects in capturing energy-storage costs and benefits.
The City of Los Angeles has set ambitious goals to transform its electricity supply, aiming to achieve a 100% renewable energy power system by 2045, along with aggressive electrification targets for buildings and vehicles. To reach these goals, and assess the implications for jobs, electricity rates, the environment, and environmental justice, the Los Angeles City Council passed a series of motions directing the Los Angeles Department of Water and Power (LADWP) to determine the technical feasibility and investment pathways of a 100% renewable energy portfolio standard. The Los Angeles 100% Renewable Energy Study (LA100) is a first-of-its-kind objective, rigorous, and science-based power systems analysis to determine what investments could be made to achieve these goals. The LA100 final report is presented as a collection of 12 chapters and an executive summary, each of which is available as an individual download. This chapter explores pathways to 100% renewable electricity, describing the types of generation resources added, their costs, and how the systems maintain sufficient resources to serve customer demand, including resource adequacy and transmission reliability.
Abstract The degree to which wind energy can contribute to the capacity needed to meet resource adequacy requirements, also known as capacity credit (CC), can be impacted by many factors. The CC varies regionally with wind resource and correlation to net load and may also vary with wind technology (land‐based versus offshore) and turbine specifications. We use a probabilistic resource adequacy tool to systematically assess the CC of multiple technologies for near‐term wind deployment across the Western US power system to help inform planning decisions. We find that wind CC varies by weather year and location but averages 16% for land‐based turbines and 41% for offshore turbines, with large regional variations. The average wind CC increases to 20% for land‐based and 53% for offshore when considering only the sites in the top 25th percentile of capacity factor. The CC of land‐based wind is generally lower than its capacity factor, which indicates a low correlation of generation to system needs. However, offshore wind shows a substantially higher CC, which is driven by not only a higher capacity factor but also a greater correlation with system needs.