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DOE OSTI2025

Solar and Storage Integration in the U.S. Southeast: Implications for Resource Adequacy

Resource adequacy concerns may be very different in electricity systems that have higher levels of solar and storage, requiring changes to existing planning models. This study explores a novel approach to evaluating resource adequacy under future scenarios with higher solar and storage in the Southeast U.S. It uses NREL’s Probabilistic Resource Adequacy Suite (PRAS), a collection of probabilistic resource adequacy modeling tools, and compares results when interacting PRAS and a portfolio planning tool with a more traditional modeling approach. The results suggest that traditional models perform reasonably well with lower levels of solar PV, but at higher levels of solar probabilistic tools better capture the changes in resource adequacy concerns—such as winter energy availability—associated with higher solar systems. This is the final study in the Preparing Southeast Markets for Reliable and Affordable Integration of Solar into Operations and Planning project. Two prior reports can be found at: Solar and Storage Integration in the Southeastern United States: Economics, Reliability, and Operations. https://emp.lbl.gov/publications/solar-and-storage-integration Solar and Wind Forecast Error Reserve Sharing in a Multi-Utility Region. https://eta-publications.lbl.gov/sites/default/files/2024-11/multiutility_fe_reserve_sharing_final.pdf

14 SOLAR ENERGY↗

DOE OSTI2024

Solar and Wind Forecast Error Reserve Sharing in a Multi-Utility Region

As electricity systems transition to higher levels of solar and wind generation, electric system operators will likely need to hold additional reserves to manage solar and wind forecast error. Because solar and wind forecast errors tend to be weakly correlated across space, system operators can reduce their reserve requirements by sharing reserves. This paper examines the benefits of forecast error reserve sharing among balancing areas in the Southeastern United States, in scenarios in which solar and wind generation ranges from 34% to 65% of total generation. It finds that day-ahead forecast error reserve requirements increase linearly with growth in solar and wind generation capacity (6%-10% of total capacity), but that reserve sharing can significantly reduce these requirements (by 6%-29%). It finds that, in economic terms, the value of forecast error reserve sharing ($\$$0.09-$\$$1.24 billion per year, $\$$0.12-$\$$1.68/MWh of load across scenarios) tends to decline with higher levels of solar and wind generation, due to lower reserve and energy prices. Even with declines in reserve prices, forecast error reserve sharing can still provide substantial value, though with higher levels of solar, wind, and electricity storage this value is increasingly tied to avoiding scarcity prices.

14 SOLAR ENERGY↗

DOE OSTI2024

Solar and Wind Forecast Error Reserve Sharing in a Multi-Utility Region

As electricity systems transition to higher levels of solar and wind generation, electric system operators will likely need to hold additional reserves to manage the forecast error associated with these resources. Because wind and solar forecast errors tend to be poorly correlated across space, system operators can reduce their reserve requirements by sharing reserves. This paper examines the value of forecast error reserve sharing among balancing areas in the Southeast United States. It finds that forecast error reserve requirements increase linearly with growth in solar and wind generation capacity but that reserve sharing can significantly reduce physical (MW) reserve requirements (from 25%-26% to 18%-19% of average load in high solar scenarios). It finds that the value of forecast error reserve sharing declines with higher levels of solar and wind generation, due to lower wholesale energy and reserve prices. Even with declines in wholesale prices, forecast error reserve sharing can still provide substantial value (as much as $\$$400 million per year in a high solar scenario), though with higher levels of solar, wind, and electricity storage, this value is increasingly tied to avoiding scarcity prices. The results suggest the importance of coordinated capacity expansion planning for forecast error reserve sharing.

14 SOLAR ENERGY↗

DOE OSTI2024

Solar and Storage Integration in the Southeastern United States: Economics, Reliability, and Operations

Solar energy has the potential to be a core energy resource for the southeastern United States. To better understand the implications of higher levels of solar PV (27%-43% of total generation capacity) and electricity storage (13%-49% of peak load) would affect electricity system reliability, costs, and operations in the U.S. Southeast, this study sought to address two main questions. First, how would higher levels of solar PV and electricity storage impact the costs, reliability, and operations of electricity systems in the Southeast in 2035? Second, at different levels of solar PV and electricity storage, what are the benefits of operational coordination among utilities in the Southeast, through more efficient regional dispatch and sharing operating reserves? To answer these questions, the study used detailed capacity expansion and dispatch modeling to develop and examine 15 scenarios with different levels of solar PV, electricity storage, and operational coordination, focusing on the year 2035. The study also evaluates the benefits of operational coordination among utilities through more efficient regional dispatch and reserve sharing, at different levels of solar and storage. The study focuses on five balancing regions that cover Alabama, Georgia, Kentucky, North Carolina, South Carolina, Tennessee, and parts of Mississippi and Missouri.

14 SOLAR ENERGY↗

DOE OSTI2024

Solar and Storage Integration in the Southeastern United States: Economics, Reliability, and Operations

Solar energy has the potential to be a core energy resource for the southeastern United States. To better understand the implications of higher levels of solar PV (27%-43% of total generation capacity) and electricity storage (13%-49% of peak load) would affect electricity system reliability, costs, and operations in the U.S. Southeast, this study sought to address two main questions. First, how would higher levels of solar PV and electricity storage impact the costs, reliability, and operations of electricity systems in the Southeast in 2035? Second, at different levels of solar PV and electricity storage, what are the benefits of operational coordination among utilities in the Southeast, through more efficient regional dispatch and sharing operating reserves? To answer these questions, the study used detailed capacity expansion and dispatch modeling to develop and examine 15 scenarios with different levels of solar PV, electricity storage, and operational coordination, focusing on the year 2035. The study also evaluates the benefits of operational coordination among utilities through more efficient regional dispatch and reserve sharing, at different levels of solar and storage. The study focuses on five balancing regions that cover Alabama, Georgia, Kentucky, North Carolina, South Carolina, Tennessee, and parts of Mississippi and Missouri.

14 SOLAR ENERGY↗

DOE OSTI2024

Impact of Hydrological Data on Power System Operational Studies: Preprint

Hydropower is expected to play an important role in maintaining grid reliability and flexibility as the share of of variable renewable energy increases. While the current hydropower operational models have been studied and used widely, they haven't been updated for decades to meet new performance standards. For example, current steady state and dynamic models often neglect hydrological conditions, which may lead to unrealistic expectations when relying on hydropower for energy and ancillary services. To study this impact, a multi-timescale hydrological model was created by leveraging the National Renewable Energy Laboratory-developed Multi-timescale Integrated Dynamics and Scheduling (MIDAS) tool. Using MIDAS, we compare the impact of considering hydrological conditions in a day-ahead unit commitment (DAUC) schedule on the reduced 240-bus Western Interconnect (WI) test system under winter and summer case studies. We show that neglecting current hydrological conditions of hydropower plants in power system models can lead to an overestimation of hydropower capabilities, which could lead to power balancing issues. For example, power system DAUC simulation results of our reduced test system show that in the case where hydrological conditions are not considered in the model, an approximate 31% overestimation of hydropower capabilities occurs in the summer case and approximately 60% occurs in the winter case compared to what is available. Additionally, results show an underestimation of WI day-ahead power system generation costs by approximately $54M - $80M in the weekly summer scenario and $116M - $126M in the weekly winter scenario. This analysis helps to underscore the importance of considering hydrological data in power system operational studies.

ENERGY PLANNING, POLICY, AND ECONOMY,HYDRO ENERGY↗

DOE OSTI2024

Transportation Electrification Impact Study (TEIS)

Recent U.S. Environmental Protection Agency (EPA) notices of proposed rulemakings for GHG emissions standards for light-, medium-, and heavy-duty on-road vehicles would accelerate ongoing advancements already happening in the industry because of private investment, consumer demand, state-level policies, and federal incentives. As the EPA finalizes these regulations, questions persist regarding the cost of the requisite charging infrastructure and associated upgrades to the nation's electric grid. With support from the U.S. Department of Energy, U.S. Joint Office of Energy and Transportation, and the EPA, a multidisciplinary team conducted a Multi-State Transportation Electrification Impact Study that quantitatively assesses the incremental investment necessary to enable the levels of vehicle electrification expected to be induced by pending EPA regulations and to estimate the potential value of deferred investments in electric distribution infrastructure stemming from proactive vehicle-grid integration planning and deployment. This study finds the simulated incremental capital cost of charging infrastructure (including grid upgrades) to be at least 2.5 times smaller than the lifetime net benefits of vehicle electrification (including fuel savings but excluding the value of avoided emissions). Additionally, the incremental distribution grid upgrade cost of the EPA Action-Unmanaged scenario was found to be approximately 3% of existing utility distribution system investments (on an annual basis). Finally, the potential for managed charging to defer distribution grid upgrades was found to be significant with costs found to decrease from $2.3 billion to an incremental cost of $1 billion across five states in the Action-Managed scenario (relative to the No Action-Unmanaged scenario).

ADVANCED PROPULSION SYSTEMS,POWER TRANSMISSION AND↗