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At least 235 records · Page 13

The long-term impacts of carbon and variable renewable energy policies on electricity markets

We present a computationally-efficient optimization model that finds the least-cost generation unit expansion, commitment, and dispatch plan to serve hourly electricity demand and ancillary service requirements. We apply the model to a case study based on data from the electricity market in Texas (ERCOT) to analyze the market and investment impacts of several incentive mechanisms that support variable renewable energy (VRE) investments and carbon emission reductions. In contrast to many previous studies, the model determines least-cost VRE investments under different cost and incentive assumptions rather than analyzing scenarios where VRE expansion is pre-determined. We find that electricity prices can vary significantly under different incentive mechanisms, even when comparable generation portfolios result. Therefore, the preferred incentive mechanism depends on stakeholder objectives as well as the prevailing electricity market framework. Our results indicate that a carbon tax is more system cost-efficient for reducing emissions, while production and investment tax credits are more system cost-efficient for increasing VRE investments. Similarly, incentive mechanisms that reduce electricity prices may increase the need for separate revenue sufficiency mechanisms (e.g. a capacity market) more than a policy that increases electricity prices. Moreover, the impacts on consumer payments are not always aligned with changes in system costs. Overall, the analysis illustrates the importance of considering electricity market impacts in assessing the economic efficiency of VRE and carbon incentive mechanisms.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Variability of interconnected wind plants: correlation length and its dependence on variability time scale

The variability in wind-generated electricity complicates the integration of this electricity into the electrical grid. This challenge steepens as the percentage of renewably-generated electricity on the grid grows, but variability can be reduced by exploiting geographic diversity: correlations between wind farms decrease as the separation between wind farms increases. However, how far is far enough to reduce variability? Grid management requires balancing production on various timescales, and so consideration of correlations reflective of those timescales can guide the appropriate spatial scales of geographic diversity grid integration. To answer 'how far is far enough,' we investigate the universal behavior of geographic diversity by exploring wind-speed correlations using three extensive datasets spanning continents, durations and time resolution. First, one year of five-minute wind power generation data from 29 wind farms span 1270 km across Southeastern Australia (Australian Energy Market Operator). Second, 45 years of hourly 10 m wind-speeds from 117 stations span 5000 km across Canada (National Climate Data Archive of Environment Canada). Finally, four years of five-minute wind-speeds from 14 meteorological towers span 350 km of the Northwestern US (Bonneville Power Administration). After removing diurnal cycles and seasonal trends from all datasets, we investigate dependence of correlation length on time scale by digitally high-pass filtering the data on 0.25–2000 h timescales and calculating correlations between sites for each high-pass filter cut-off. Correlations fall to zero with increasing station separation distance, but the characteristic correlation length varies with the high-pass filter applied: the higher the cut-off frequency, the smaller the station separation required to achieve de-correlation. Remarkable similarities between these three datasets reveal behavior that, if universal, could be particularly useful for grid management. For high-pass filter time constants shorter than about τ = 38 h, all datasets exhibit a correlation length $\xi $ that falls at least as fast as ${{\tau }^{-1}}$ . Since the inter-site separation needed for statistical independence falls for shorter time scales, higher-rate fluctuations can be effectively smoothed by aggregating wind plants over areas smaller than otherwise estimated.

17 WIND ENERGY↗

Grid Integration and the Carrying Capacity of the U.S. Grid to Incorporate Variable Renewable Energy

In the United States and elsewhere, renewable energy (RE) generation supplies an increasingly large percentage of annual demand, including nine U.S. states where wind comprised over 10% of in-state generation in 2013. This white paper summarizes the challenges to integrating increasing amounts of variable RE, identifies emerging practices in power system planning and operation that can facilitate grid integration, and proposes a unifying concept—economic carrying capacity—that can provide a framework for evaluating actions to accommodate higher penetrations of RE. There is growing recognition that while technical challenges to variable RE integration are real, they can generally be addressed via a variety of solutions that vary in implementation cost. As a result, limits to RE penetration are primarily economic, driven by factors that include transmission and the flexibility of the power grid to balance supply and demand. This limit can be expressed as economic carrying capacity, or the point at which variable RE is no longer economically competitive or desirable to the system or society.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Chapter 11: Marine and Hydrokinetic Power Generation and Power Plants

Marine and hydrokinetic (MHK) power generation is a relatively new type of renewable generation. Predecessors such as wind power generation, hydropower plant generation, geothermal generation, photovoltaic generation, and solar thermal generation have gained a lot of attention because of their successful implementation. The successful integration of renewable generation into the electric power grid has energized the power system global communities to take the lessons learned, innovations, and market structure to focus on the large potential of MHK to also contribute to the pool of renewable energy generation. This chapter covers the broad spectrum of MHK generation. The state-of-the-art power takeoff methods will be discussed. Types of electrical generators will be presented, and the options for implementation will be presented.

16 TIDAL AND WAVE POWER↗

Baseload Hydrogen Production Using Nuclear and Renewable Energy: A Comparative Analysis

As the global push towards net zero carbon gains momentum, the demand for clean hydrogen is expected to grow rapidly across various sectors, including transportation, industries and electrical grids. To meet this growing hydrogen demand, baseload hydrogen production facilities capable of providing a continuous and reliable supply of hydrogen will be necessary throughout the world. This paper explores the technoeconomic feasibility of establishing baseload electrolytic hydrogen production facilities in the United States, utilizing different clean generation resources. The key criteria include maintaining a consistent supply of clean hydrogen without putting baseload demand stress to already vulnerable power grid. In order to do that, the proposed facilities will host onsite clean power generation and energy storage technologies. The proposed facilities can capitalize on available investment and production incentives and have ability to export excess electricity to the utility at a bulk price. Several scenarios are considered based on the clean energy resources to support the electrolysis process including light water reactors (LWRs) currently evaluating retirement options, wind, solar PVs, and advanced small modular reactors (SMRs). For each scenario, a hypothetical hydrogen production facility is considered in a location in the US where the primary generation resource is at its peak strength. Comparative analysis in this paper reveal that the nuclear power plants are most economically viable for baseload hydrogen production facilities, outperforming renewable-based facilities with significantly lower levelized cost of hydrogen (LCOH). Even under best-case scenarios for resource availability, incentives and export prices, renewable-based facilities face challenges due to daily and seasonal generation variability, resulting in large installation sizes and lower capacity factors. Among renewable-based facilities, complementarity hybrids, providing more stable power supply, demonstrate superior economics compared to facilities based on a single renewable technology. While LWR-powered facility can achieve a negative LCOH with incentives, SMR-powered facilities can provide economic hydrogen supply with LCOH below $1/kg with high temperature electrolysis option. The analysis in this paper underscores the pivotal role of nuclear energy in the future hydrogen economy.

08 - HYDROGEN↗

A Technical and Economic Assessment of LWR Flexible Operation for Generation and Demand Balancing to Optimize Plant Revenue

With increased penetration of subsidized variable renewable energy (VRE) resources and competition from low natural gas prices, existing light water reactor (LWR) nuclear power plants (NPPs) are struggling to remain economically competitive. This work examines the potential economic competitiveness of various thermal energy storage (TES) technologies when coupled directly or indirectly with a NPP. To highlight their relative economic competitiveness, we contrast several energy storage solutions in stochastic dispatch optimization. We leverage data from recent work analyzing a range of TES technologies with varying capital costs, performance, and technology readiness level (TRL) to establish our case. We explore inserting these technologies into an electricity market with existing nuclear generation and large projected variable renewable energy (VRE) penetration. Although these technologies' projected capital costs may make them unlikely candidates in their current state, this analysis demonstrates a high-fidelity techno-economic analysis of energy storage. Furthermore, as the projected cost of energy storage technologies evolves, this analysis sets a precedent for similar future investigations. One region with projected trends that may be unfavorable for existing nuclear capacity is the New York Independent System Operator (NYISO) market. New York state’s baseload generation has been historically provided by fossil-fired and nuclear assets. However, amid economic pressures from subsidized VREs and low natural gas prices, the state has recently deactivated Indian Point nuclear power plant units 2 and 3. Furthermore, the state plans to meet its zero-emission generation target by 2040 by replacing fossil-fired capacity with significant investments in VRE resources like wind and solar photovoltaic (PV) and battery storage. Increased intermittent resource penetration lowers the baseload power requirement, adding further economic pressure to the state’s three remaining NPPs still in operation. With three NPPs still in operation in New York, this work analyzes potential economic benefits to NPPs on the New York grid when directly or indirectly coupled with various TES technologies. This work requires two modeling steps to analyze the potential economic benefits of various system configurations of the TES directly or indirectly coupled with nuclear. First, this analysis leverages capacity expansion modeling by experts at the Electric Power Research Institute (EPRI). Using their deterministic capacity expansion model, U.S. Regional Economy, Greenhouse Gas, and Energy (US-REGEN), EPRI analysts evaluated the capacity and generation evolution of the New York state energy market under four projection scenarios. These four projection scenarios were developed to represent the potential evolution of the capacity and generation in NYISO from 2015 to 2050 under various economic, technology, and policy constraints. The results from these capacity expansion models are then used as boundary conditions in the second modeling step. The second modeling step uses the Holistic Energy Resource Optimization Network (HERON) for a set of stochastic techno-economic analyses (STEAs) to investigate the potential increase in the economic viability of various configurations of the TES. With no current capacity expansion capabilities, HERON takes the data generated from US-REGEN for 2050 to generate synthetic load, solar, and wind data. Then HERON economically optimizes the capacity and dispatch of the various TES configurations. The potential economic benefit is the differential net present value (NPV) of the TES configurations from the no-TES baseline. As a stochastic techno-economic analysis package, HERON introduces uncertainty into the economic metrics, while US-REGEN trades resolution for reduced computational complexity. Using HERON also allows the modeling of direct thermal coupling, a feature not common in capacity and dispatch models. As expected, with high capital costs, the costs of introducing energy storage for all the technologies considered outweighed the potential economic benefit of this strategy for flexible plant operation. The benefit of this analysis is primarily in demonstrating a workflow that examines innovative solutions to increase NPP revenue via TES coupling. HERON’s stochastic capacity and dispatch optimization process used in this work has proven an effective tool in observing and evaluating the impact of introducing storage technologies in a grid energy system.

25 ENERGY STORAGE↗

Transient Stability Assessment of Power Systems With Uncertain Renewable Generation: Preprint

The transient stability of a power system depends heavily on its operational state at the moment of a fault. In systems where the penetration of renewable generation is significant, the dispatch of the conventional fleet of synchronous generators is uncertain at the time of dynamic security analysis. Hence, the assessment of transient stability requires the solution of a system of nonlinear ordinary differential equations with unknown initial conditions and inputs. To this end, we set forth a computational framework that relies on Taylor polynomials, where variables are associated with the level of renewable generation. This paper describes the details of the method and illustrates its application on a nine-bus test system.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Regional Energy Deployment System (ReEDS)

The Regional Energy Deployment System (ReEDS) is a deterministic optimization model of the deployment of electric power generation technologies and transmission infrastructure throughout the contiguous United States into the future. The model, developed by the National Renewable Energy Laboratory's Strategic Energy Analysis Center, is designed to analyze the critical energy issues in the electric sector, especially with respect to potential energy policies, such as clean energy and renewable energy standards or carbon restrictions. ReEDS provides a detailed treatment of electricity-generating and electrical storage technologies and specifically addresses a variety of issues related to renewable energy technologies, including accessibility and cost of transmission, regional quality of renewable resources, seasonal and diurnal generation profiles, variability of wind and solar power, and the influence of variability on the reliability of the electrical grid. ReEDS addresses these issues through a highly discretized regional structure, explicit statistical treatment of the variability in wind and solar output over time, and consideration of ancillary services' requirements and costs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Grid-Level Application of Electrical Energy Storage: Example Use Cases in the United States and China

Electrical energy storage (EES) systems are expected to play an increasing role in helping the United States and China-the world's largest economies with the two largest power systems-meet the challenges of integrating more variable renewable resources and enhancing the reliability of power systems by improving the operating capabilities of the electric grid. EES systems are becoming integral components of a resilient and efficient grid through a diverse set of applications that include energy management, load shifting, frequency regulation, grid stabilization, and voltage support.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Distributed Smart Grid Asset Control Strategies for Providing Ancillary Services

With large-scale plans to integrate renewable generation driven mainly by state-level renewable portfolio requirements, more resources will be needed to compensate for the uncertainty and variability associated with intermittent generation resources. Distributed assets can be used to mitigate the concerns associated with renewable energy resources and to keep costs down. Under such conditions, performing primary frequency control using only supply-side resources becomes not only prohibitively expensive but also technically difficult. It is therefore important to explore how a sufficient proportion of the loads could assume a routine role in primary frequency control to maintain the stability of the system at an acceptable cost. The main objective of this project is to develop a novel hierarchical distributed framework for frequency based load control. The framework involves two decision layers. The top decision layer determines the optimal gain for aggregated loads for each load bus. The gains are computed using decentralized robust control methods, and will be broadcast to the corresponding participating loads every control period. The second layer consists of a large number of heterogeneous devices, which switch probabilistically during contingencies so that aggregated power change matches the desired amount according to the most recently received gains. The simulation results show great potential to enable systematic design of demand-side primary frequency control with stability guarantees on the overall power system. The proposed design systematically accounts for the interactions between the total load response and bulk power system frequency dynamics. It also guarantees frequency stability under a wide range of time varying operating conditions. The local device-level load response rules fully respect the device constraints (such as temperature setpoint, compressor time delays of HVACs, or arrival and departure of the deferrable loads), which are crucial for implementing real load control programs. The promise of autonomous, Grid Friendly™ response by smart appliances in the form of under-frequency load shedding was demonstrated in the GridWise Olympic Peninsula Demonstration in 2006. Each controller monitored the power grid voltage signal and requested that electrical load be shed by its appliance whenever electric power-grid frequency fell below 59.95 Hz. The controllers and their appliances responded reliably to each shallow under-frequency event, which was an average of one event per day and shed their loads for the durations of these events. Another objective of this project was to perform extensive simulation studies to investigate the impact of a population of Grid Friendly™ Appliances (GFAs) on the bulk power system frequency stability. The GFAs considered in this report are represented as demonstration units with water heaters individually modeled.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Systematic Approach to Better Understanding Integration Costs

This research presents a systematic approach to evaluating the costs of integrating new generation and operational procedures into an existing power system, and the methodology is independent of the type of change or nature of the generation. The work was commissioned by the U.S. Department of Energy and performed by the National Renewable Energy Laboratory to investigate three integration cost-related questions: (1) How does the addition of new generation affect a system's operational costs, (2) How do generation mix and operating parameters and procedures affect costs, and (3) How does the amount of variable generation (non-dispatchable wind and solar) impact the accuracy of natural gas orders? A detailed operational analysis was performed for seven sets of experiments: variable generation, large conventional generation, generation mix, gas prices, fast-start generation, self-scheduling, and gas supply constraints. For each experiment, four components of integration costs were examined: cycling costs, non-cycling VO&M costs, fuel costs, and reserves provisioning costs. The investigation was conducted with PLEXOS production cost modeling software utilizing an updated version of the Institute of Electrical and Electronics Engineers 118-bus test system overlaid with projected operating loads from the Western Electricity Coordinating Council for the Sacramento Municipal Utility District, Puget Sound Energy, and Public Service Colorado in the year 2020. The test system was selected in consultation with an industry-based technical review committee to be a reasonable approximation of an interconnection yet small enough to allow the research team to investigate a large number of scenarios and sensitivity combinations. The research should prove useful to market designers, regulators, utilities, and others who want to better understand how system changes can affect production costs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Modeling and Simulation of Ternary Pumped Storage Hydropower for Power System Studies

As the deployment of wind and solar energy increases in the United States, energy storage (ES) will play an important role in future electric power grids. To help manage the variability from high penetration levels of renewable generation, ES can provide promising power/energy demand to coordinate with renewables generation, as a virtual power plant (VPP). There is an industry need for the capability in power system studies to model ternary pumped storage hydropower (T-PSH) that offers increased system benefits. This paper presents a comprehensive vendor-neutral dynamic model of T-PSH in GE's commercial software positive sequence load flow (PSLF). A new governor model is developed with detailed gate valve modeling and a shared-penstock function. Specifically, this model is designed to simulate the seamless transition among three operation modes: generation mode, pumping mode, and hydraulic short-circuit mode. The developed T-PSH model has been tested and validated on a 10-bus test system. A comparison study of T-PSH to conventional pumped storage hydropower has also been conducted on the Western Interconnection system.

13 HYDRO ENERGY↗

Operations Optimization of Nuclear Hybrid Energy Systems

We proposed a plan for nuclear hybrid energy systems (NHES) as an effective element to incorporate high penetration of clean energy. Our paper focuses on the operations optimization of two specific NHES configurations to address the variability raised from various markets and renewable generation. Both analytical and numerical approaches are used to obtain the optimization solutions. Furthermore, key economic figures of merit are evaluated under optimized and constant operations to demonstrate the benefit of the optimization, which also suggests the economic viability of considered NHES under proposed operations optimizer. Furthermore, sensitivity analysis on commodity price is conducted for better understanding of considered NHES.

21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS↗

Long-Term Wind Power Variability

The National Renewable Energy Laboratory started collecting wind power data from large commercial wind power plants (WPPs) in southwest Minnesota with dedicated dataloggers and communication links in the spring of 2000. Over the years, additional WPPs in other areas were added to and removed from the data collection effort. The longest data stream of actual wind plant output is more than 10 years. The resulting data have been used to analyze wind power fluctuations, frequency distribution of changes, the effects of spatial diversity, and wind power ancillary services. This report uses the multi-year wind power data to examine long-term wind power variability.

17 WIND ENERGY↗

Resource Planning Model: An Integrated Resource Planning and Dispatch Tool for Regional Electric Systems

This report introduces a new capacity expansion model, the Resource Planning Model (RPM), with high spatial and temporal resolution that can be used for mid- and long-term scenario planning of regional power systems. Although RPM can be adapted to any geographic region, the report describes an initial version of the model adapted for the power system in Colorado. It presents examples of scenario results from the first version of the model, including an example of a 30%-by-2020 renewable electricity penetration scenario.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Impacts of Climate Change on the Generation Potential of Solar and Wind Energy Systems in India

Low-carbon energy sources like wind and solar are essential for decarbonizing the electricity sector. In addition, the cost of electricity generated from these sources has plummeted over the last decade. Therefore, these energy sources are poised to take a significant share of the total installed capacity soon. However, they are susceptible to the impacts of climate change as their generation potential depends on the weather conditions. Estimating the installed capacity requirements of solar and wind energy to decarbonize the power sector without accounting for these possible changes in generation potential could lead to missing out on the set climate goals and meeting future electricity demand. This study evaluates the effect of climate change on the generation potential of wind and solar energy systems in India for two future periods, 2050 and 2070, under two climate scenarios or Shared Socioeconomic Pathway (SSP): SSP245 and SSP585. Almost all regions show a decrease, and most regions show a significant decline (>5%) in the generation potential of solar Photovoltaic (PV) as compared to 2010 levels under both climate scenarios and future periods. The changes in the generation potential of wind energy are more significant (>10%), and the majority of regions show a decline in generation potential. Southwestern and central regions show an increase in wind generation potential for 2070 as compared to 2050 levels under the SSP245 scenario and the SSP585 scenario, respectively.

climate change↗