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Energy Storage Policy Summaries for the Global Energy Storage Database

This report includes energy storage policy analysis from six states: Arizona, California, Massachusetts, Nevada, New Mexico, and New York. These summaries offer prototypes for summaries that will subsequently be prepared for all 50 states (and territories). There is presently a shortage of comprehensive energy storage policy analysis that public utility regulators can call upon to inform policymaking in their own jurisdictions. The state policy summaries that will be offered publicly on the Global Energy Storage Database (GESDB) will include analysis on the executive directives, legislation, regulations pertaining to energy storage that have been adopted by an individual state, along with perspective on the remaining policy issues pertaining to storage that a state will be likely to address in the future. It is anticipated that public utility regulators in particular will find the database to be a useful resource in benchmarking policy approaches critical to the continued development of an energy storage marketplace in the U.S., including policy approaches specific to storage and renewables procurement targets, interconnection standards, valuation of energy storage, rate reform and tariff design specific to energy storage, consideration of multiple uses for storage at the distribution level, and potential revisions to existing state net metering programs to accommodate an expected growth of energy storage technologies.

25 ENERGY STORAGE↗

Cost Efficient and Highly Weather-Resistant Solar Panel Backsheet Produced through Continuous Co-Extrusion Processing

The efficient generation and delivery of ‘clean energy” through photovoltaic (PV) technology relies heavily on the cost, performance and reliability of solar panels, along with the individual components used in assembly of those panels. In order to continue towards the Department of Energy’s (DOE) goals of driving costs down, the lifetime of high-output power generation equipment (i.e. solar modules) must be extended to reduce costs associated with power output degradation and replacement of failed or degraded panels. One of the major sources of module failures in the past 30 years has been the failure of the solar panel backsheet. Failure of this component causes severe output losses due to oxidation and yellowing of the module while creating safety concerns as the major electrical insulation of the module is compromised. Tomark-Worthen LLC was formed in 2012 with the goal of designing and manufacturing novel PV backsheets and encapsulants that would be produced in the United States of America and exceed expectations of domestic and international module producers. These backsheets would improve upon known backsheet design failures (i.e. Isovoltaic’s AAA backsheet) and create domestic manufacturing jobs in the PV sector. This goal became a reality with a first-generation product in 2018 and now, with the support of the DOE, Tomark-Worthen has launched a second-generation product known as PhotoMark® Reflections™ 205-3 and 360-3. This 2+ year effort began in late 2017 with a screening of potential polymeric materials and backsheet structural designs. Performance evaluations of each material provided the necessary data needed to select the proper material combinations and move forward into the design of the manufacturing process. These decisions were made by teaming with a local university, well-respected government laboratories, and private research organizations who provided the tools necessary to predict long-term performance of these materials in much shorter periods of time. Once the go/no-go criteria were met at the mid-point of the project, the effort transitioned to predicting 30+ year performance, achieving certifications, and improving manufacturing efficiencies designed to lower costs in order to be competitive in a cost-driven market. Major project accomplishments include recognition of the new backsheet by Underwriters Laboratories (UL) and international certification for 1000V and 1500V modules by TUV Sud. Both 1000V and 1500V products have been proven on several module manufacturing lines and initial customer orders have been received by both domestic and international module producers. Accelerated exposure testing has shown that the performance of this backsheet exceeds the prior polyamide-based backsheet known to fail in the field. Cost-models and initial customer orders have shown the ability to produce this backsheet at a cost acceptable to many domestic manufacturers, while International costs for standard backsheet remains extremely low. Tomark-Worthen remains one of the only U.S. companies manufacturing backsheet domestically and this has drawn interest from many domestic module manufacturers looking to improve their material supply logistics by avoiding long lead times and custom’s headaches while avoiding current tariffs on Chinese-made components. Along with the launch of a new PV backsheet, this project has provided a critical deliverable to the PV R&D community. This deliverable is the knowledge that not all polyamide-containing backsheets are doomed to failure as the earlier versions did. There has been a fear amongst the PV community to consider these materials due to the failure of one design. This effort has brought a new level of interest to the scientific community as it has been shown that polyamides can be used successfully in a well-designed backsheet. As we move forward from this project, we are excited to see how backsheet technology and manufacturing in the U.S. will continue to progress and grow.

14 SOLAR ENERGY↗

Impacts of High Variable Renewable Energy Futures on Electric-Sector Decision Making: Demand-Side Effects

Previous work by the Berkeley Lab describes how high shares of variable renewable energy (VRE) such as wind and solar power could change wholesale electricity price dynamics. These include the timing of when electricity is cheap or expensive, locational differences in the cost of electricity, and the degree of regularity or predictability in those costs. Many decentralized decision-makers on the demand-side may not yet have considered the implications of these possible future changes. In this report, we evaluate the sensitivity of a set of demand-side decisions to different levels of VRE penetration ranging from a low of 5-20% to a high of 40-50%. The analysis builds on hourly wholesale energy and capacity prices in different VRE scenarios for four wholesale markets in the United States for the year 2030 (CAISO, ERCOT, NYISO, and SPP). The principal question for this exploration is whether private and public electric-sector decisions that are made based on assumptions reflecting low VRE levels still achieve their intended objective in a high VRE scenario with 40-50% wind and solar? This scoping report evaluates the impacts of changing patterns of peak system needs on the benefits of demand reductions by examining the altered value of different energy efficiency (EE) measures. Similarly, we investigate new opportunities for large energy consumers that may arise from periods with very low wholesale electricity prices. We calculate the value of new process investments (e.g., hydrogen production and other generalized electro-commodities), showcase the varying value of new product storage investments (such as reservoir extensions at a desalination plant), and estimate the benefits of increased process flexibility that uses electricity as a process-input in addition to traditional fossil fuels (e.g., district energy systems). Finally, many decentralized decision-makers and end-use customers are not directly exposed to wholesale electricity prices but instead receive price signals from their retail electricity rates. As wind and solar shares increase, we compare the economic efficiency of flat retail rates relative to more dynamic time-of-use tariffs with and without critical peak-pricing events.

14 SOLAR ENERGY↗

Data Analytics for Electrical Distribution Systems with Micro PMUs (GMLC 1.4.9 Technical Report)

This report describes how electrical utilities with residential, industrial, commercial and government customers make decisions using Data Analytics (DA) applications and discusses how OpenFMB was leveraged to share that data among disparate types of devices for DA. OpenFMB is a data standard developed by utilities for distributed communication and control of power system assets. Here we explored how OpenFMB can be used for sharing analytics and what those analytics could be for a set of representative grid devices. A review of DA applications performed by electrical utilities and customers is presented. An overview of how the testbed we used was built and configured is summarized. Several experiments which were carried out to explore the capabilities of OpenFMB alongside other data sharing mechanisms for gathering sensor measurements and sharing analytics is also discussed. And finally a comparison of OpenFMB and LBNL’s SPARK framework is summarized. Today’s electrical utilities focus on monitoring the real-time customer consumptions, offering new real-time tariff models based on customer usage habits (rewards and punishments), providing energy peak during peak load times (plan energy generation and distribution), improving the load management for transformers and power lines, and controlling the energy and grid resources efficiently. On the other hand, the DA applications for residential customers are based on modifying the customer electricity usage habit to save money, making accurate and timely decisions for electrical billing. However, the DA applications for industrial, commercial and government customers focus on creating efficient programs to improve the environmental condition (reducing CO₂ emission), developing better load forecasting for industrial and/or commercial activities. In this project, a testbed was built to explore how the OpenFMB framework can be used to distribute data among various types of representative grid edge devices. Micro PMUs (Phasor Measurement Unit) were used to collect and transmit data to an OpenPDC server alongside relays with a framework configured with a system using OpenFMB to collect and transmit data. The testbed was composed of a physical asset based on a 60 Hz AC radial power system constructed using SI-GRID components. The power system consisted of a 3-phase 14 volts line-to-ground (24 volts line-to-line) power source, three 3-phase line emulators, a programmable resistive load bank, two smart relays, two micro PMUs, and a (SCADA) and Phasor Data Concentrator (PDC) computer. This testbed configuration allowed us to perform breaker operation tests collecting data from the micro PMUs and from the relays’ sensors. During the micro PMU breaker operation tests we collected the measured and estimated fundamental voltages, currents, frequency as well as the total true, reactive and apparent power. The displacement power factor from two micro PMUs located in parallel power lines was also used. The software steps for the implementation of the Synchrophasor system are explained in detail in this report. The setting (1-2-3) and data collection (4-5) phases were performed with a free download open source software. In the setting phase, the micro PMUs were set (1), the data stream for each micro PMU was validated, and the connection and configuration files were created (2). The PDC computer was set using the connection and configuration files of the micro PMUs (3). In the data collection phase, the binary data from the micro PMUs was collected (4), and the binary data files of the micro PMUs was converted to analyze the test results (5). OpenFMB was configured to use protocol translators to read Modbus and transform the reading into the OpenFMB data model to be read for DA applications.Our experiments showed that by leveraging the OpenFMB data model and the micro PMUs together we could obtain better situational awareness of network faults, which in some cases could lead to failures in the system and would be less perceivable otherwise. For example, in one experiment the fundamental RMS current angle, and the fundamental displacement power factor (estimated by the ratio between the measured real and apparent total power) had a disturbance at the micro PMU connected to the beginning of the parallel power line because the breaker was opened without the operators or SCADA system’s knowledge, and no current was available. Based on the breaker state scenarios and micro PMU locations, the DA applications using the current angle and displacement power factor from the micro PMUs should be studied in detail to avoid a non-desired measurement that could affect the decision from the DA. Also, the sample rates for PMU, Relay and micro PMU devices were compared. The DA application improved the control and operation between the electrical utilities and their customers (residential, industrial, transportation, commercial and government). The higher the sample rate, the better the quality of the measurement for DA estimations.

42 ENGINEERING↗

Draft Electric Rule 21 Test Protocols for Advanced Inverter Functions

Disclaimer: The following document includes draft certification protocols and should not be viewed as a consensus-based performance standard. Distributed energy resources (DERs), such as photovoltaic (PV) systems, when deployed in a large scale, are capable of significantly influencing the operation of bulk and local power systems. Looking to the future, European and American stakeholders are working on standards to make it possible to manage the potentially complex interactions between DER and the power system. One of the jurisdictions considering modifications to the DER interconnection requirements is California. To determine what changes could improve electric grid reliability and allow greater penetrations of renewable energy, the California Public Utilities Commission (CPUC) and the California Energy Commission (CEC), in conjunction with consultant Frances Cleveland, convened the Smart Inverter Working Group (SIWG) in January 2013. The SIWG--composed of state agencies, utility engineers, national laboratories, manufacturers, trade associations, and advocacy groups--provided the CPUC a set of recommendations in early 2014 1 . The recommendations included specific advanced DER functions and interoperability requirements, along with a proposed timeline, for California to add new capabilities to grid-interconnected DER. On August 18, 2014 the three California Investor-Owned Utilities (IOUs)--Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE) and San Diego Gas & Electric Company (SDG&E)--drafted a Advice Letter filing to the CPUC setting forth revisions to Electric Tariff Rule 21 to conform to the seven recommendations made by the Working Group 2 . After a comment period, the CPUC issued an update to the IOU recommendations 3 . At the time of this publication, there was no final legal ruling on the CPUC Rulemaking (R.) 11-09-011 ("Order Instituting Rulemaking on the Commission's Own Motion to improve distribution level interconnection rules and regulations for certain classes of electric generators and electric storage resources"). In the U.S., Nationally Recognized Test Laboratories (NRTLs) independently verify products to safety and functional standards. PV inverters are certified to Underwriters Laboratories (UL) Standard 1741 4 . However, new advanced inverter functions described in the SIWG and IOU proposals are not included in this standard, so there is a critical need to develop test protocols for these functions in preparation of a positive ruling by the CPUC. Through a California Solar Initiative Grant, Sandia National Laboratories (Sandia or SNL), Underwriters Laboratories (UL), Electric Power Research Institute, Inc. (EPRI), Xanthus Consulting, SunSpec Alliance, Loggerware, and utility and PV inverter manufacturers have collaborated to draft this certification protocol for the Rule 21 SIWG Phase 1 advanced inverter functions. This report also includes test procedures for Phase 2 and Phase 3 functions that will be demonstrated later in the CSI4 project. This collaborative effort was performed in close junction with the UL 1741 Standards Technical Panel (STP) working group. This document represents a snapshot of the draft testing protocols at the time of publication and not a consensus certification protocol for advanced inverters. 1 California Public Utilities Commission, "Recommendations for Updating the Technical Requirements for Inverters in Distributed Energy Resources, Smart Inverter Working Group Recommendations," Filed 7 Feb 2014. 2 J.J. Newlander, R.G. Litteneker, S.W. Walter, M. Dwyer, Joint motion of Pacific Gas and Electric Company (U 39 E), Southern California Edison Company (U 338 E) and San Diego Gas & Electric Company (U 902 E) regarding implementation of smart inverter functionalities, Rulemaking 11-09-011 Advice Letter, 18 July, 2014. 3 J.T. Sullivan, CPUC Rulemaking 11-09-011 Agenda ID #13460, 13 Nov, 2014. 4 Underwriters Laboratories Std. 1741 Ed. 2, "Inverters, Converters, Controllers and Interconnection System Equipment for use with Distributed Energy Resources," 2010.

42 ENGINEERING↗

Regulatory Issues and Approaches to Municipal LED Street Lighting Conversions

Municipalities considering energy-efficient light-emitting diode street lights for their jurisdiction face a variety of regulatory issues. This brief describes how cities can successfully address these challenges to achieve multiple advantages. The brief first reviews the structure of street lighting tariffs and the costs and cost assumptions that underlie them. It then lays out pathways that municipalities can take to consider street lighting retrofits if faced by these regulatory barriers. The brief references cases of municipalities’ successes and challenges in pursuing these pathways. For more information, see the resources listed at the end of the brief.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Building Blocks of Electric Vehicle Deployment: A Guide for Developing Countries

Countries can use electric transportation to help fulfill numerous goals, including greenhouse gas (GHG) emissions targets, local air quality goals, mobility objectives, energy security, and transportation resiliency. Vehicle electrification is a promising pathway to achieving clean energy transitions in the transport sector at scale. As vehicles electrify, the traditionally siloed electricity and transport sectors increasingly converge to create technical, institutional, and economic opportunities and challenges. To navigate this transition effectively, we propose the following foundational pillars or “building blocks” that undergird effective electric vehicle (EV) deployment. Jurisdictions with experience and mature EV markets offer useful lessons learned that may enable developing countries to leapfrog over common roadblocks. Nonetheless, developing countries face distinct challenges collectively, and individually, from developed countries that require careful consideration. From our work around the world, the U.S. Agency for International Development (USAID) and National Renewable Energy Laboratory (NREL) have witnessed interest growing in EVs for a variety of reasons. Lao People’s Democratic Republic (PDR), for example, looks toward EVs as a way to use their surplus of hydropower to displace expensive oil. Thailand and Pakistan seek economic development opportunities in EV manufacturing. Cities including Mexico City, Surat, India, and Kingston, Jamaica see the potential of bus electrification to improve local air quality and reduce traffic congestion. Many USAID partner countries in Southeast Asia are trying to understand how to reach ambitious EV deployment targets and implement EV and transportation plans. This pursuit is prompting questions about EV supply equipment (EVSE) standards, tariff design, and business models that affirm the importance of the building blocks outlined in this report.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Preparing Distribution Utilities for the Future - Unlocking Demand-Side Management Potential: A Novel Analytical Framework

The balance of supply and demand in the power systems has traditionally been served solely through generation and network capacity planning and operations. However, with increased requirements for flexibility due to the uptake in variable renewable generation sources such as wind and solar there is a need to increased demand-side flexibility. In addition, there are increased communications and flexibility capabilities emerging on the demand-side from the adoption of advanced metering infrastructures and smart meter deployment and intelligent loads such as smart thermostats and schedulable white goods (e.g. dishwashers and washing machines). Unlocking demand-side flexibility can bring system benefits from peak load reduction bringing about generation capacity and network upgrade deferral, to reducing demand and more efficient utilization of generation and network capacity. Unlocking demand-side flexibility is an evolving process for utilities and solutions must be tailored to each specific customer group. Demand-side management (DSM) is a broad set of tools that can include demand response (both dispatchable and non-dispatchable), energy efficiency and distributed energy resources and demand-side technologies. The National Renewable Energy Laboratory (NREL), in collaboration with BSES Rajdhani Power Ltd. (BRPL) and Deloitte, examined the potential of DSM in BRPL’s service territory, developing detailed information on customer classes and willingness to participate in DSM. The study developed modeling frameworks for load analysis and the analysis tools to assess the potential of time-of-use tariffs in motivating customers to reduce their peak period energy consumption. The study shows that BRPL customers, specifically their domestic customers, are willing to participate in DSM programs and that time-of-use pricing can help BRPL reduce their peak demand and help unlock demand-side flexibility.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Numerical Modeling and Parametric Study of a Dual Purpose Underground Thermal Battery

Buildings’ thermal energy systems for providing space heating/cooling consume a considerable amount of electricity nationwide. Integrating thermal energy storage with buildings’ thermal systems has the potential to shave the peak electric demand and to overcome the mismatch between the intermittent renewable power and the fluctuating daily demand for electricity. A novel dual-purpose underground thermal battery (DPUTB) has been developed to provide diurnal thermal energy storage in conjunction with a dual-source heat pump (DSHP)system. A two-dimensional numerical model is developed to simulate the transient performance of the DPUTB. This model has similar accuracy as a detailed three-dimensional model developed with commercial heat transfer and fluid dynamics simulation program but with 1000 times faster computational speed. A parametric study is performed to identify a design of the DPUTB that can provide 14 kWh thermal storage capacity for each charging and discharging cycle. A system simulation has been developed to assess the performance of the designed DPUTB when it is integrated with a DSHP for conditioning a typical residential building in summer and winter. Simulation results indicate that the DPUTB can meet all the design requirements in both summer and winter with the simple rule-based control strategy and the overall integrated DPUTB and DSHP system can shift the electric load for meeting the thermal demand from the peak hours to off-peak hours during a day, which would result in considerable energy cost savings if a Time of Use electricity tariff is applicable.

25 ENERGY STORAGE↗

Comprehensive Assessment of On-And Off-Board Vehicle-To-Grid Technology Performance and Impacts on Battery and the Grid

This project defined, developed, and tested the open standards-based requirements, engineering design and system integration of on and off-vehicle Vehicle-to-Grid technologies both on the grid and on the PEV, to assess their effectiveness in implementing the use cases that create value for the grid, which in turn, can be passed on to the ratepayers and the PEV owners. The project comprised of three key categories of work and four key sub-areas of work. The three key categories were: On-Vehicle V2G, Off-Vehicle V2G, and impact of V2G operation on the battery capacity degradation. The four key sub-areas of work under each of these categories were: defining requirements, implementing the technology, performing system integration testing, and estimating the value of each of the grid services under specific assumptions, on a per-vehicle and on an aggregated basis. The technical implementation demonstrated the validity of standards-based approach to grid integration that led to interoperability, in addition to assessing the operational details with grid constraints imposed at the transformer level. The technology implementation also identified the subtle gaps in the standards definition to close the feedback loop on the accuracy of the standards as written, which are being implemented as revisions to the appropriate protocols. The battery impacts assessment developed a test cycle that the batteries from a real PHEV were subjected to for both the mobility-only and mobility with V2G specific energy cycling. While the battery impact results show a clear incremental degradation in response to additional throughput for V2G application purposes, the amount of additional kWh that can be made available without exceeding the end-of-life capacity definition of the battery at its 10-year warranty period was found to be significant. Given that the PEV battery being exercised during testing was a PHEV battery (smaller energy capacity), and 44% of its usable energy (i.e., SOC) was utilized daily for V2G applications, the EVs with much larger batteries will fare much better, either in terms of extracting more value in terms of incremental kWh for V2G, or in terms of relative incremental degradation of the capacity through the battery lifespan. Further, this battery was the second-generation Lithium-Ion chemistry circa 2015, which is at least two generations ago. Continual improvements in electrochemistry and manufacturing techniques as well as on-board capacity will enable the future batteries to provide even more energy for non-mobility-related services. Finally, the valuation of V2G energy services at the premise, distribution, and the ISO/market level was carried out for both the on-vehicle and off-vehicle cases, to understand both the GHG mitigation and operational efficiency improvements in quantitative terms. The analysis indicates that between $\$400$ and $\$1400$ per year of total value to the grid can be realized. When netted of costs to implement V2G either on or off-vehicle, the net value is available to be shared between the ratepayers and the EV owners. Over the life of the EV, therefore, this value becomes significant and can easily provide both ratepayer and EV owner benefits more than the cost of the equipment, either on or off-board, in addition to providing GHG mitigation benefits both on the grid and on the mobility sides. For these benefits to accrue, the key learnings from both the on- and off-vehicle V2G parts of the project indicate the need for at-scale demonstrations through involvement of real EV owners to validate both the technical feasibility, interoperability, as well as real grid benefits by performing extensive data collection and analysis. This will help inform the grid planners, the program designs, and tariff designers, as well as automotive and equipment manufacturers how best to create their products to maximize grid, ratepayer, and EV owner value.

30 DIRECT ENERGY CONVERSION↗

Options For Large-Scale Installation of Individual Heat Substations Based on International Best Practices

The purpose of this report is to provide recommendations for actions Ukraine could take to implement large-scale installation of IHSs as part of comprehensive district heating reform. The report discusses the importance of IHS in the district heating sector, then presents several case studies of approaches that European countries have taken to facilitate large-scale IHS installation in multi-apartment buildings. These case studies focus on the ownership and financing of IHS, as there are different models for how this can be done (the DH company can make the investments and recover the costs through the tariff, or building residents can make the investments themselves). They also include details on the approval process and technical specifications, as these can add additional barriers and time to the installation process.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Increasing Access to Grid-Tied Distributed Photovoltaics for Low-Income Populations: Considerations for Developing Countries

Governments around the world are under immense pressure to promote inclusive economic growth, reduce budget deficits, and promote sustainable development goals. Such goals may potentially be addressed through public policy approaches to encourage the use of distributed photovoltaic (DPV) systems in developing countries, particularly among low-income electricity customers. At the same time, low-income customers face numerous barriers to DPV deployment including a lack of access to capital and financing, a lack of awareness about the technology, lack of homeownership, and distorted price signals via lower retail tariffs. As a result of these factors, among others, they are often the least likely customers in developed and developing countries alike to deploy solar. However, under the right set of conditions, low-income grid tied DPV programs can offer beneficial outcomes for governments, customers, utilities, and the environment. This brief informs decision makers in developing countries as they explore ways to promote equitable access to solar energy in their communities.

14 SOLAR ENERGY↗

Integrating Hydrogen Production and Electricity Markets: Analytical Insights from California

This report compares the cost of different pathways for producing hydrogen in California. In addition to capturing the current cost of electrolyzers and other equipment, the pathways apply current retail electricity tariff options offered by utilities Southern California Edison (SCE), Pacific Gas & Electric Company (PG&E), and San Diego Gas & Electric Company (SDG&E). The analysis also tests the cost of combining hydrogen production with utility-scale wind or solar generation in California. Scenarios examine current costs as well as projections for 2030. The cost benchmark - a relatively low electrolytic hydrogen production cost - is based on the wholesale price of electricity used by a theoretical hydrogen production plant connected directly to the California Independent System Operator (CAISO) transmission system. California law currently prohibits this approach in CAISO, but it is permissible in other organized wholesale electricity markets. The cost for producing hydrogen under 2019 conditions in this theoretical case was approximately $3/kg. Different scenarios are used to examine current costs, e.g., 2019, as well as projections for 2030.

08 HYDROGEN↗

Forecasting Distributed PV Adoption in Barranquilla, Colombia [Slides]

The objective of the dGen Colombia project is to provide projections to 2050 on distributed PV deployment by sector for a range of scenarios for Barranquilla, Colombia. NREL used the open-source Distributed Generation Market Demand Model (dGen) adapted for international projects for this analysis. As part of this analysis, technical potential, economic potential, and adoption projections of rooftop and groundmount PV for the city of Barranquilla are presented. Five main scenarios and their combinations were modeled to provide insight on the impact of increased demand from electric vehicles, air conditioning, and time-of-use tariffs.

14 SOLAR ENERGY↗

Efficiency and Demand Flexibility in Large Office Buildings: The Potential for Cost Savings and CO 2 Reductions from Lighting and Cooling Measures

This report presents the estimated impact of lighting and cooling efficiency and demand flexibility measures in large office buildings in each state in the contiguous United States. It provides modeled results for three different metrics: bill savings, regional grid operational costs savings, and carbon dioxide (CO 2 ) emissions reductions. Lighting efficiency and demand flexibility are estimated to reduce load by up to 80 MWh/yr in a single large office building. These load reductions result in customer bill savings of up to $8,800/yr per building, with the highest savings in southern and midwestern states. Grid operating cost savings are estimated at up to $3,240/yr/building, with greatest benefit in southern and northeastern states. CO 2 emissions reduction potential is highest in the Dakotas, Nebraska, across the Midwest, in West Virginia, and in Mississippi (<48,200 kg/yr/building). Comparatively, cooling measures are found to have less load reduction potential (<28.5 MWh/yr/building), with the greatest potential in southern states including Texas, which ranks top of the list across several of the metrics studied. In numerous states, shifting cooling load to off-peak hours is found to increase costs and CO 2 emissions because precooling results in increased load during high-cost or high-CO 2 emissions periods. In general, focusing on cooling efficiency and load shedding has the potential for more savings. In all cases, the specific rate structure is a significant determinant in actual bill savings, which are up to $4,000/yr/building. To realize the full potential for bill savings through an energy measure, building operators must identify how the measure will change the building load pattern and the interaction of this load change with the applicable rate tariff. To realize CO 2 emissions reductions, industry and state coordination is needed to verify which fuel source is on the margin and then to create incentives for end users to reduce load during high-CO 2 emissions hours. Regular updates to data sets and analyses are critical. Regulators and policymakers are well positioned to facilitate the necessary coordination between the electric industry and building energy managers to develop appropriate price signals and incentives.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

FERC Order No. 2222 and Considerations for Distributed Wind

The Federal Energy Regulatory Commission (FERC) issued Order No. 2222 in October 2020. The rule directs Regional Transmission Organizations and Independent System Operators (ISOs) to amend their tariffs and participation models to accommodate heterogeneous distributed energy resource (DER) aggregations in the wholesale energy markets that they operate, including capacity, energy, and ancillary service markets. The Commission issued the rule to better capture the benefits provided by DERs deployed in the United States, whose use has been expanding rapidly. The Commission defines DERs as “any resource located on the distribution system, any subsystem thereof or behind a customer meter,” including but not limited to “electric storage resources, distributed generation, demand response, energy efficiency, thermal storage, and electric vehicles and their supply equipment.” The rule aims to increase DER participation in wholesale markets by allowing the creation of DER aggregations, in which multiple DERs that are too small to meet minimum capacity requirements for wholesale markets individually would be able to participate in markets as a single unit. As of June 20, 2023, all ISOs have filed initial compliance plans and a number have begun implementation. Compliance dates range from 2024 to 2029, with Midcontinent ISO having the latest date of compliance proposed for 2029. Southwest Power Pool still has an outstanding date, having no final order yet from FERC, but a target date of the third quarter of calendar year 2025. The rule, which is technology agnostic and requires ISOs to create participation plans that accommodate different DERs, provides an opportunity for distributed wind market expansion. In addition, distributed wind can bring benefits to heterogenous DER aggregations. These benefits include resource diversity (i.e., a complementary generation profile to other types of distributed generation), its small footprint and ability to be co-located with load, and its potential to provide frequency response, voltage support, and black start services, among other ancillary services. This report provides a status update on FERC Order No. 2222, the current state of ISO compliance, and information relevant to the distributed wind industry as DER aggregators and other stakeholders expand their participation to wholesale energy markets.

17 WIND ENERGY↗

Bifacial PV Module Energy Modeling Validation Study

The cost delta between monofacial and bifacial photovoltaic (PV) modules was decreasing in 2018 when this study was initially proposed, making bifacial modules an attractive offering. However, there were limited field studies available that could be considered utility-scale representative, and PV module manufacturers were stating large ranges for the expected energy yield improvements of bifacial technology. This generated uncertainties regarding bifacial performance gains and the actual LCOE (levelized cost of energy). There was also relatively low confidence in the industry’s energy modeling tools’ ability to accurately predict bifacial energy yield, meaning that early adopters of bifacial modules were not able to fully account for the increased energy yield in their energy and financial models. The intent of this project was to provide the solar industry with greater certainty on the energy yield gains of bifacial modules and provide higher confidence in the ability for different energy modeling software to model bifacial PV site performance. Achieving this would allow for bifacial technology to become bankable (i.e. accepted by Independent Engineers, site financiers and other PV site stakeholders), offering a step change in PV site performance that had not been seen since the widespread adoption of the single-axis tracker. Over the course of this study other economic factors including a significant tariff exemption for bifacial modules resulted in accelerated adoption of bifacial technology throughout the US utility scale solar segment. The number of early adopters increased rapidly, and with many investors accepting this module choice the question of bifacial bankability was seemingly answered faster than expected. However, PVEL’s study has still achieved significant accomplishments in demonstrating the accuracy of bifacial modeling across three different software platforms. The results of this study have shown that the mean biased error (MBE) between the field data and the predicted values from all three software platforms were aligned with a maximum MBE of 1.3% and a minimum MBE of -1.8%.

14 SOLAR ENERGY↗

Stabilizing the Grid and Reducing Utility Bills Through Price-Responsive Controls for Heat Pump Water Heaters

The electricity grid is facing increasing challenges in cost-effectively balancing supply and demand. These challenges are exacerbated by increased penetration of photovoltaics, which causes mid-day overproduction, and electrification of gas appliances, which increases peak-period electricity demand. Decarbonization requires shifting building loads from fossil-intensive high-cost times to renewable-intensive low-cost times while maintaining quality of service to occupants. Utilities and ISO’s are investigating new ways of incentivizing this load shifting. One promising method is the use of Highly Dynamic Prices (HDPs). HDPs feature continuously changing prices that reflect real-time grid generation and distribution costs and capacity constraints, and thus incentivize consumers to shift their loads. California’s CPUC CalFUSE proposal and Hawaii’s recent changes demonstrate that electricity tariffs are moving towards this model. For this to work however, loads must have the capability to respond to these prices. Heat pump water heaters (HPWHs) are an ideal device for this purpose because their storage tanks decouple delivery of domestic hot water from electricity consumption. The storage enables control strategies that consume midday solar power to increase the energy stored in the tank, then provide evening peak domestic hot water services using the stored energy. Berkeley Lab's CalFlexHub project is pioneering price-driven load flexibility by developing and deploying cost-minimizing controls for many flexible loads - including HPWHs - in response to HDP. Control development is based on simulations using the Flexible Heat Pump Water Heater Performance Predictor which captures the control decisions of the on-board controller in a residential, integrated HPWH . The price-responsive controls a) shift load in ways that consume additional midday solar power to help stabilize the grid and reduce overall emissions, b) ensure that occupants receive equal or better hot water delivery service, and c) minimize the operating cost for each home in the fleet. On the grid level, the resulting shift will reduce utility operating costs and emissions, and can avoid expensive system capacity expansions. The control approach is customized to each home based on typical hot water consumption patterns. HPWH controllers, whether on the device or remotely, will receive a schedule of CTA-2045-B signals or set temperature adjustments customized to the current HDP price schedule and home. Simulation results for a fleet of 148 HPWHs on a summer day in Berkeley, California show cost savings of 29% and high price electricity consumption reductions of 80%, while maintaining full quality of service.

24 POWER TRANSMISSION AND DISTRIBUTION↗