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At least 217 records · Page 12

Powering the Blue Economy: Marine Energy at Kelp Farm Sites

Marine energy (ME) has the potential to power businesses in the blue economy. Kelp farms are an emerging maritime market of the blue economy and are predicted to grow, but they are not currently using ME for their power needs. As the number and size of kelp farms increase, more offshore power will be needed onsite for operations, monitoring, and harvesting. ME devices such as tidal current energy converters and wave energy converters (WECs) may be used to supply power for these needs. This article assesses the status of kelp farming in the continental United States, investigates the electricity needs of kelp farms, and examinesthe feasibility of generating the required electricity from wave and tidal current energy. The United States currently has 165 kelp farms that have either active or pending permits. The farms use electricity for boat operations, kelp drying, environmental monitoring, offshore lighting, and the raising and lowering of lines. Most kelp farms are in protected, nearshore waters that do not have significant wave energy resources. The limited available wave energy could be used to power small devices, but WECs have not yet been developed for that application. Some kelp farms are in locations that feature significant tidal energy resources, but small tidal current energy converters that are compatible with existing farm operations are not yet commercially available. As low-power WECs and tidal current energy converters are developed, kelp farms could be research partners and early adopters of the new technologies, which would encourage their broader use by other blue economy businesses.

16 TIDAL AND WAVE POWER↗

Performance of wind assessment datasets in United States coastal areas

The atmospheric dynamics that occur near the intersection of land and water offer exciting and challenging opportunities for wind energy deployment in coastal locations. New models and tools are continually being developed in support of wind resource assessment, and three recent products are explored in this work for their performance in representing characteristics of the wind resource at coastal locations: the Global Wind Atlas 3 (GWA3), the 2023 National Offshore Wind dataset (NOW-23), and the wind climate simulations that are a component of the Wind Integration National Dataset (WIND) Toolkit Long-Term Ensemble Dataset (WTK-LED Climate). These relatively new products are freely available and user-friendly so that anyone – from a utility-scale developer to a resident or business owner – can evaluate the potential for wind energy generation at their location of interest. The validations in this work provide guidance on the accuracy of wind resource assessments for coastal customers interested in installing small or midsize wind turbines (≤ 1 MW in capacity) to support energy needs at the residential, business, or community scale, such as the island and remotely located participants of the U.S. Department of Energy's Energy Transitions Initiative Partnership Project. At 23 coastal locations across the United States, dataset performance varies according to different evaluation metrics. All three recent datasets tend to overestimate the observed coastal wind resource. GWA3 produces the smallest annual average wind speed relative errors, whereas WTK-LED Climate is in best agreement in terms of representing diurnal wind speed cycles. NOW-23 is the highest performing of the datasets for representing seasonal and interannual trends in the coastal wind resource. While GWA3 and WTK-LED Climate are relatively insensitive to the dataset output heights selected for wind resource assessment at small and midsize wind turbine hub heights (20–60 m), significant variation in the NOW-23 representation of wind shear across the wind profile in the lowest 100 m of the atmosphere leads to notable differences in wind speed estimates according to the dataset output heights selected for evaluation. GWA3 exhibits challenges in the representation of observed wind speed diurnal cycles at small and midsize turbine hub heights, likely due to the dataset's consistent treatment of hourly wind speed trends regardless of altitude.

17 WIND ENERGY↗

Biomass for Carbon Removal and Storage (BiCRS) Counterfactual Decision Tree

Counterfactual is the term used to describe a "business-as-usual" scenario which used as a baseline to compare against a new project, allowing the calculation of net impacts for a life cycle analysis (LCA). The choice of counterfactual is critical for determining the results from LCA and must be carefully justified to ensure a fair and accurate comparison. Using forest residues as an example, this decision tree illustrates decision points to be considered for sustainable biomass sourcing and provides a framework for estimating the carbon emissions or storage under the "business-as-usual” scenarios for biomass otherwise destined for use in Biomass for Carbon Removal and Storage (BiCRS) projects.

09 BIOMASS FUELS↗

The CYBER security – Competency Health and Maturity Progression (CYBER-CHAMP) model: Extending the National Initiative for Cybersecurity Education (NICE) Framework Across Organizational Security

Problem Statement: There is a pervasive talent deficit in the cybersecurity industry that prevents employers from being able to fill their open positions efficiently. A holistic approach to security is required to ensure organizations have adequate prevention and response capabilities in case of a cyberattack. Specifically, industrial control systems (ICS’s) and their operational technology (OT) components have become a constant target for cyberattacks. Research Questions: It is proposed that the NICE Framework should be extended in the following areas: 1) Include guidance regarding the job roles and competencies for both IT and OT professionals. 2) Offer step-by-step solutions, based on the work role mappings from the NICE Framework, to increase cybersecurity through employee training and education. 3) Provide a streamlined, lifecycle approach to building a cybersecurity program. Contribution: The CYBER security – Competency Health and Maturity Progression (CYBER-CHAMP©) model provides a customized solution for businesses to understand their education gaps in organizational security and target areas for improvement. Rationale: The Framework for Improving Critical Infrastructure Cybersecurity v1.1 addresses ICS but does not offer a measurement of cybersecurity maturity or clear methods to ascertain an organization’s current risk profile. In Phases 1 and 5 of the model, measurements are provided to help an organization build their current and target risk profiles. The NICE framework provides a structure for planning an IT cybersecurity workforce, but the OT aspects of cybersecurity are only briefly discussed. The model uses Phases 2-3 to examine the competencies of an organization’s workforce, which includes both IT and OT roles. Current frameworks do not offer next steps to increase an organization’s cybersecurity. During Phase 4, employees’ roles are mapped to training, education, and/or certifications from common vendors. Investigative Approach: The model provides measurements and metrics for both an organization’s status and continual improvement. This improvement methodology includes guidance for creating an overall strategic plan for security improvement via products designed to increase an organization’s operational readiness through workforce competency health. Lessons Learned: Depending on who was participating, there were contradicting answers given in Phase 1 due to different security cultures in the organization. This revelation has influenced the steps listed in the User’s Guide, where Phase 1’s first recommended step is to assemble a team that champions the facilitation and implementation of the model in the organization. During Phase 2, the discovery was made that organizations may be missing roles that are necessary to perform critical cybersecurity functions. By understanding the functional roles and competencies needed, they can contract or hire cybersecurity help to fill these gaps. Implications: Using the model, organizations can discuss quantitative measures for improvement as a business case for advancing their security program. Future research can validate and extend the present theory and model to a variety of environments. It is of interest to investigate additional security roles and knowledge domains that are used to build standardized cybersecurity curriculum.

97 MATHEMATICS AND COMPUTING↗

Critical Asset Management at the Start of the Pandemic

COVID-19 has changed the daily lives of so many people and forced many companies to examine their way of doing business, including their Asset Management programs. This virus has given way to an unprecedented set of challenges to continue conducting business as usual when everything is unusual. On June 16, 2020, members of the Northern California Chapter of the Association of Asset Management Professionals came together for a panel discussion on Critical Asset Management during the COVID-19 pandemic and beyond. Participants were representatives from health care, water, and national security, which are all considered essential industries.

Administration and management↗

Investment Tax Credit Requirements for Privately Owned Solar Photovoltaic Systems on Federal Sites

The federal investment tax credit (ITC) is an economically valuable tax incentive offered to taxable business entities that invest in certain energy technologies. The ITC is based on a percentage of the qualifying upfront capital costs of a project and directly reduces a business's tax liability (i.e., the taxes paid). This fact sheet focuses on ITC considerations for privately owned solar photovoltaic (PV) projects on federal land and buildings, although some of the considerations may be applicable to other technologies and non-federal entities.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗

Markets and Economic Requirements for Fission Batteries and Other Nuclear Systems

Fission Batteries (FBs) are nuclear reactors defined by five characteristics which enable large-scale deployment: cost competitive, standardized sizes for economic mass production, easy installation and removal, secure and safe unattended operation with high reliability. FBs are not defined by technology or power level. Technical and market considerations suggest that most FBs will produce 20 to 30 MWt. This proceedings reports on the outcomes of two workshops that were held in January 2021 to better define markets and economic challenges for FBs. Three major markets were identified. The largest market is the industrial and commercial heat market. There are about 4000 industrial users (excluding utilities) that require more than one megawatt of heat. The number of customers versus size of heat demand was determined. In a low-carbon world there is the potential for many additional customers—including expanded biofuels production and district heat. The second market is for non-grid electricity. This includes co-generation plants that produce heat and electricity for a single customer. The third market is the maritime market with ~100,000 ships worldwide. In the United States, natural gas is the low-cost energy option today and will remain so unless constraints or taxes impact its use. If restrictions on greenhouse gas emissions, the FB competition includes natural gas with carbon capture, biofuels, hydrogen and grid electricity. Natural gas with carbon capture is not economically viable on a small scale. Biofuels may be expensive but may be the economically preferred option for locations with small energy demands of a few megawatts. Hydrogen is a potential competitor with many of the characteristics of natural gas. Grid electricity is not a competitive source of heat. For FBs to be economically competitive, the price of delivered heat must be $20-50/MWh ($6-15/million BTU). The economically competitive range for non-grid electricity is estimated at $70-100/MWh. These electricity prices are competitive with the retail prices of electricity in many parts of the United States for the customer. FBs are not expected to be competitive selling wholesale electricity to the grid. To achieve the aforementioned cost targets for heat and electricity markets, FB designers must (1) maximize the power output within the constraints of a FB (e.g., truck transportability, passive decay heat removal), (2) drastically reduce the size of onsite staff, (3) adopt core designs with low fuel costs (enrichment and fabrication), and (4) develop a system design that is efficiently manufactured in factories. The business case depends upon more than being just a replacement for natural gas. The largest incentives for adoption of FBs is where they create new markets and new sources of revenue. An example is the paper and pulp industry that burns biomass wastes to provide heat and electricity to make paper. An external heat source could meet the demand for heat and electricity by the paper process and enable converting waste biomass into liquid biofuels rather than burning to provide heat. Other markets, such as data centers, are driven by special energy requirements such as extreme reliability. Most customers are not in the energy business but need heat and electricity to produce a product—a manufactured good, education, retail sales (shopping malls), marine transport or some other product. As a consequence, there will be large incentives to lease rather than own FBs. Leasing avoids the regulatory challenges that remain with the owner of the FB. Leasing creates large incentives for FP standardization of sizes and transportability to maintain the value of the FB at the end of the lease—similar to the leasing of jet engines and aircraft. The economic constraints combined with technical constraints suggest competitive FBs will likely have outputs exceeding 10 MWt. There appear to be little incentives for very long-lived reactor cores because such machines require much larger inventories of fuel. Maintenance requirements and the options to provide technology updates may favor shorter lifetimes (~5 years). The assessment is that there is the potential for FBs to be economically viable and play a major role in global decarbonization in three markets: heat, non-grid electricity and maritime applications.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

Resilient, Rural, and Revolutionary: Salisbury Square's Direct-Current Affordable Microgrid Community: Preprint

The technology to interconnect buildings with a dedicated direct-current (DC) power distribution network is in place today; what is missing is a turnkey approach to designing a DC microgrid - and the business models allowing such systems to be deployed, owned, and operated at scale. To close this gap, the Salisbury Square Development Team, comprising clean-energy experts, has engineered a resilient community DC microgrid for an affordable housing community in Randolph, Vermont. Ten single-family, occupant-owned residences and 12 multifamily rental units will share locally generated and stored solar energy via a DC power distribution bus capable of operating during extended grid outages. With a DC power distribution network in place, each home will be equipped with high-efficiency DC lighting and appliances, operating alongside alternating current (AC) appliances, even during an islanded mode of operation. To obtain a comprehensive understanding of what is possible and achievable, the Team collaborated with the local utility, regulatory agencies, a national laboratory, energy-as-service providers, and vendors. The collaborators evaluated microgrid typologies, business models, and energy modeling, and analyzed electrification and resilience. Further, the Team applied the URBANoptTM (Urban Renewable Building and Neighborhood optimization, NREL 2022) software development kit (SDK) to Salisbury Square's single-family and multifamily buildings to validate workflows and identify needs for advanced capability. This paper addresses the barriers to entry, scalability, and impact on residents and system ownership. It also examines the analysis that informed the design and engineering of the DC microgrid and the opportunities to streamline the process.

DER↗

Integrated Operations for Nuclear: Work Reduction Opportunity Demonstration Strategy

EXECUTIVE SUMMARY The Light Water Reactor Sustainability Program Plant Modernization Pathway has been working with industry for a number of years to leverage digital technology to extend the life and improve the performance of the existing fleet through modernized technologies and improved processes for plant operation and power generation. This includes development of modernization solutions to improve reliability and economic performance while addressing US nuclear industry’s aging and obsolescence challenges. The objective of these efforts is to deliver a sustainable business model that enables US nuclear industry to remain competitive. Digital Infrastructure (DI) research has established a technical foundation for these efforts. This effort began with technical analysis and support for a safety-related instrumentation and control (I&C) pilot upgrade being performed at Constellation Energy Generation’s Limerick Nuclear Plant. The following publicly available reports were produced as part of this effort. • INL/EXT-20-61079, Vendor-Independent Design Requirements for a Boiling Water Reactor Safety System Upgrade [1] • INL/EXT-20-59371, Business Case Analysis for Digital Safety-Related Instrumentation & Control System Modernizations [2] • INL/EXT-20-59809, “Safety-Related Instrumentation and Control Pilot Upgrade: Initial Scoping Phase Implementation Report and Lessons Learned [3] • INL/RPT-23-72105, Safety-Related Instrumentation and Control Upgrade: Conceptual – Detailed Design Phase Report and Lessons Learned [4]

99 GENERAL AND MISCELLANEOUS↗

2022 Small Turbine Certification Awardee: NPS Solutions

Inverters convert the direct current power generated by wind turbines into the alternating current needed to serve local loads and feed onto the electricity grid. Although distributed wind systems typically supply electricity for homes and businesses near the turbines, these systems can also provide clean power to strengthen grid resilience. Certification to UL 1741 SA ensures that inverters will enable distributed wind turbines to provide grid support services and stay online when the grid experiences stability issues. Small companies often find the electrical listing process too complex and expensive to undertake on their own, so few distributed wind turbine inverters are certified to this standard. A U.S. Department of Energy (DOE) Competitiveness Improvement Project (CIP) award is helping NPS Solutions (NPS) secure this critical certification for the inverter in its 100-kilowatt NPS 100C wind turbine, which is optimized for on-site generation at farms, businesses, schools, hospitals, and remote locations.

CIP↗

Droning on to Delivery: Examining the Energy Impacts of Using Drones for Moving Goods

The demand for fast, localized delivery has grown significantly in recent years. Whether for cheesy snacks, prepared food, medical solutions, or business deliveries, fast and efficient delivery is increasingly a demand and differentiator. Drone delivery in the freight sector offers to revolutionize last-mile logistics and improve services. This research analyzes the impacts of drone energy for delivery operations, aiming to compare various types of drones (large and small, rotary and VTOL) and various types of business methods. The project executes novel open-air and laboratory-based testing to look at the impacts of weights, operations, temperatures and weather conditions. The study combines this real-world experimental data with fleet optimization mathematical models to assess energy consumption of different scenarios as well as examine the minimum fleet size and additional battery requirements. These fleet optimization models compare energy between types of deployments with existing delivery methods. The model was also extended to look at mixed fleets of aerial drones and ground vehicles to accommodate different restrictions on drones or when weather prohibits their use. The analysis provided insights into factors such as drone design, payload weight, flight distance, weather conditions and operational parameters and impacts of each. It showed how to combine different types of vehicles to reduce energy and improve services. And it showed that drone speed, routing restrictions, and unfavorable weather significantly influence energy consumption. Our open experiment data and optimization models can assist stakeholders and industry in understanding drone package delivery and offers keys to improving deployment.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Digitalization mapping and assessment process supporting ION strategic transformation activities

The existing fleet of commercial nuclear power plants (NPPs) are an important asset in the nation’s portfolio of electrical generating resources. Their continued safe and reliable operation are critical to providing a large source of carbon-free electricity to power the nation’s economy. The United States Department of Energy’s (DOE) Light Water Reactor Sustainability (LWRS) Program develops the scientific bases, methods, and tools, for the continued safe and economical operation of the nation's commercial NPPs. The Plant Modernization Pathway within LWRS Program focuses on providing guidance to industry on the full-scale implementation of modernization solutions for NPPs that significantly reduce the technical and financial risks associated with modernization. This research is focused on helping the nuclear industry understand how to digitize and digitalize their NPPs so that they can design their modernization solutions to be scalable, sustainable, and integrated both laterally and horizontally within their organization. That is, this research creates a digital transformation in NPPs by reshaping cultural mindsets and by identifying business efficiencies. In partnership with industry, and using four previously established guiding principles for digitalization, this research supported NPP modernization through assessing readiness for digitalization as a means to achieve integrated operations for nuclear. Specifically, this research created an assessment to review an entire organization’s work processes to gather information about the digitalization health of the plant. The assessment tools were administered to plant employees, and the results were used to develop a digitalization plan. The survey assessment identified the optimal candidate processes that would most benefit from a digitalization initiative which were revealed through analytical frameworks. One analysis calculated mean digitalization health indicator scores for all endorsed activities which allowed the researchers to rank and color code the results for easy identification. Individual health indicator scores are also provided, should our industry partner wish to understand these findings according to their own organizational priorities, business considerations and desired end-state. The results were also analyzed from the perspective that organizations are comprised of different types of innovators (e.g., generators, optimizers, conceptualizers, and implementers), which differentially affects the organization’s ability to comprehend and adapt to change (i.e., opportunities to innovate). Understanding the relative composition of innovator types at an NPP allows them to gather insights into the strengths and weaknesses they have in innovating how work is performed. For the utility that partnered with this research team, the results showed that implementers make up the largest portion of respondents and conceptualizers the smallest portion. Knowing the proportion of innovator types gave this organization insights on how they can effectively implement their innovation solutions. Additionally, the results were analyzed from a technical, economic, and risk perspective to identify and quantify work reduction opportunities (WROs). Recognizing that not all cost-saving opportunities are the same, a Technical, Economic and Risk Assessment (TERA) was performed to evaluate WROs to identify areas of greatest potential and lowest risk. The key results from TERA included a digitalization opportunity score for each activity, and a calculation of potential cost savings. These two outputs formed the bases for calculating a priority index and rank for the activities/processes assessed. From the prioritization calculations, TERA can then help the utility 1) decide what digitalization priorities to invest money in implementing and then 2) calculates how much should be invested in the digitalization initiatives selected to achieve cost savings and/or an acceptable return on investment. Last, onsite interviews revealed several inefficiencies in the standard work processes that occur cross-departmentally that are due to the absence of digitized and digitalized processes. Examples of these include time spent scanning paper documents and then uploading the documents electronically, obtaining signatures, and searching for desired information. This represents a digital but not digitalized process. Over 15 opportunities to improve work processes were identified through this multi-method digitalization assessment. The various analytical assessments used (e.g., TERA, digitalization health indicator scores), as well as discussions with the utility partner, corroborated that all the opportunities identified had a strong potential to make work processes more efficient and to improve overall performance of the NPP.

11 NUCLEAR FUEL CYCLE AND FUEL MATERIALS↗

Space Cooling: Recovery, Reuse, Recycling and Supply Chain Impacts

The global cooling sector has undergone tremendous growth in recent years, and cooling demand is projected to double or triple by 2050. Surging air conditioning demand will continue to be driven by increased populations, incomes and occurrences of extreme heat and humidity events. Cooling equipment growth has important pollution and material implications as they are made up of critical metals and precious raw materials - including ferrous metals, copper, aluminum and printed circuit boards composed of copper, silver, gold and palladium - that generate significant electronic waste at end-of-life. Air conditioning equipment also contains fluorinated gas (F-gas) refrigerants, which are potent gases that are thousands of times more heat-trapping than carbon dioxide (CO2). While recovery, reuse, and recycling strategies have been assessed for cold chain and refrigeration, there is currently limited analysis on how these strategies could be adopted for the global space cooling industry and potential supply chain implications. This paper aims to address this research gap by qualitatively evaluating product and material recovery, reuse and recycling frameworks from both demand and supply-side perspectives and with the support of cooling-specific case studies. It also focuses on quantitatively assessing potential energy, emissions and resource benefits of such strategies for space cooling equipment. This paper first analyzes how existing recovery, reuse and recycling frameworks can be applied to space cooling, with emphasis on the demand-side enablers (e.g., innovative business models, supporting policies and regulations) and changes in supply-side production network throughout the supply chain (e.g., design, production and distribution, end-of-life recovery) needed to overcome existing barriers. It will present case studies of innovative business models for space cooling technologies, including reuse and recycling, and how effective refrigerant reclamation and recovery programs have been operationalized. Lastly, the paper will highlight global modeling results of energy, emissions and material recovery from scenario analysis of selected strategies for air conditioners. The findings of this paper are intended to inform the development of product and material recovery, reuse and recycling strategies for a rapidly growing stock of space conditioning equipment by addressing existing organizational, economic and regulatory barriers and potential supply-chain bottlenecks.

Khanna, Nina↗

Economic Benefits of Alternative Fuels in Rural Alabama

This fact sheet provides an overview of potential alternative fuel vehicle operational cost savings, opportunities to generate revenue for the state and income for individuals, and several examples of alternative fuels supporting jobs in Alabama. Alternative transportation fuels could potentially provide economic benefits to rural Alabama by lowering operating costs for vehicle owners and creating new revenue streams and job opportunities for fuel providers, technicians, and dealerships. The use of electricity, compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas (LPG or propane) could result in reduced fuel costs and maintenance expenses for both public and private fleets, as well as individual consumers. Fleet operators often invest in private fueling infrastructure, while publicly accessible stations could attract traffic and commerce to local businesses and communities. Technicians capable of retrofitting alternative fuels and maintaining the vehicles and fueling infrastructure could develop business opportunities as well, but they require special training and often certifications. These cost savings and increased revenues may be recirculated through the economy and impact more than just the beneficiaries listed above.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Virtual Power Plants: Pilots, Challenges, and Innovations Shaping Future Development

Virtual Power Plants (VPPs) aggregate distributed energy resources (DERs) to provide grid services traditionally delivered by centralized power plants. This article reviews the current state of VPP deployment, highlighting business models, compensation mechanisms, and global pilot projects. While VPPs offer benefits such as grid flexibility, resilience, and cost savings, challenges remain in communication infrastructure, regulatory frameworks, market access, and customer engagement. To address these, we propose a scalable, privacy-preserving hierarchical VPP architecture that coordinates with distribution utilities and preserves customer data. We also present the Integrated T&D Control Room of the Future as a key test bed for validating and accelerating VPP adoption. These innovations can help transition VPPs from pilot programs to integral components of a modern, reliable power grid.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Networked Microgrids for Grid Resilience, Robustness, and Efficiency: A Review

Networked microgrids (NMGs) are clusters of microgrids that are physically connected and functionally interoperable. The massive and unprecedented deployment of smart grid technologies, new business models, and involvement of new stakeholders enable NMGs to be a conceptual operation paradigm for future distribution systems. Much work needs to be done, however, to enable NMGs to achieve seamless coordination, including physical, communication, and functional integration. In this paper, we review and summarize the state-of-the-art methodologies for operation and control of NMGs. Furthermore, we also specifically discuss the notion of dynamic boundaries for advanced microgrid applications. In addition, we introduce the opportunities, challenges, and possible solutions regarding NMGs for improving grid resilience, robustness, and efficiency.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Optimizing an Integrated Renewable-Electrolysis System

Hydrogen is a versatile energy carrier that is used in a wide variety of chemical and industrial processes. Producing hydrogen using electrolysis can enable integration of multiple sectors including electricity, heating, and industrial sectors; however, the cost of producing hydrogen from electrolysis remains a challenge for encouraging greater adoption. With growing amounts of renewable generation on the California grid, there is downward pressure on wholesale electricity prices, particularly during the afternoon from photovoltaics (PV). These lower, or even potentially negative prices, challenge the business cases for new and existing PV plants. In addition, as the grid transitions to less flexible generation, there is greater need for system flexibility. To help improve the economics for both solar PV and hydrogen production using electrolyzers, we explore the benefit of combining PV and electrolysis systems. The optimal breakeven hydrogen production cost for six unique market participation configurations is calculated at six candidate locations where PV is already installed. The six market configurations include islanded, separated, retail, net energy metering (NEM), hybrid retail/wholesale and wholesale. Using the Revenue Operation and Device Optimization Model (RODeO) model, the optimal breakeven hydrogen price over the lifetime of the equipment is calculated. The cost includes production, storage, and compression in preparation for gaseous delivery trucks. Revenue streams include the sale of hydrogen, low carbon fuel standard (LCFS) credits, renewable electricity sold to the grid, and Renewable Energy Credits (REC). The costs included are the electricity costs, capital and fixed operation and maintenance cost (FOM) for the electrolyzer, PV, and storage and compression systems as well as taxes and financing costs. In addition, cost reductions are achieved through retail and wholesale rate optimization, by which electricity is purchased at the lowest price and sold, if possible, at the highest price. For all locations, the breakeven hydrogen production cost results show that, in the order of decreasing cost, the system configurations are islanded (highest), separated, NEM, retail, hybrid retail/wholesale, and wholesale (lowest). The resulting system design balances between the capital and maintenance cost components, the operation costs (i.e., electricity costs) and the additional market revenues. The integration of solar PV and electrolysis is shown to provide a mutually beneficial relationship. For PV, integration with electrolysis offers the potential to hedge against wholesale market price volatility, and integration with electrolysis may offer the potential to defer or avoid transmission investment to deliver power to the point-of-use and instead use it on-site. When compared with SMR without considering any renewable hydrogen premiums, this study finds that PV + Electrolysis systems with current costs are likely not competitive; however, with cost reductions for electrolysis equipment consistent with DOE projections, it was found that systems with wholesale market access would be competitive, largely on account of both low capital costs and low-cost electricity. The electrolysis units can provide greater flexibility than is required based on retail rate optimization, so there is an opportunity for a utility or CAISO to increase system flexibility with PV + Electrolysis systems in return for commensurate compensation. In this way, there are potentially several solutions that fall between the hybrid configuration and the wholesale configuration that could provide sufficient compensation for a PV + Electrolysis unit to compete with SMR while also providing greater flexibility to the grid.

24 POWER TRANSMISSION AND DISTRIBUTION↗