Modeling investment decisions from heterogeneous firms under imperfect information and risk in wholesale electricity markets
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This paper presents a quantitative framework to support policy decision-making around equitable energy interventions. By combining sociodemographic and techno-economic models in the energy space, we propose a linear programming model to calculate the optimal portfolio of energy investments that explicitly minimizes the energy burden of a given population of energy insecure households. The model is formulated as a multi-objective optimization suitable to support the decisions on weatherization and deployment of distributed energy resources. We illustrate our methodology with a case study involving a population of 14,043 energy insecure households in Wayne County, Detroit, United States.
California’s vision for a net-zero future by 2045 relies heavily on variable renewable energy systems. Thus, energy storage - particularly long-duration storage - could play a fundamental role in reliably supplying low-carbon electricity. We study energy storage using the BRIDGES model, a combined gas-electric capacity expansion model for California across multiple investment periods (2025-2045), modeled with progressively decreasing carbon emission targets to a zero emissions by 2045. This least-cost optimization model includes renewable gas production via power-to-gas, long-term storage of energy in gaseous form, electric energy storage such as through batteries and hydrogen storage, and renewable energy generation, all with capacity tracking and investment. Multiple scenarios are evaluated to examine the sensitivity of the optimal storage portfolio to system-level and sector-level parameters. The scenario results show that all electric energy storage systems - which vary in storage duration - are deployed and required in a net-zero California in 2045, amounting to around 75 GW of storage capacity. Lithium ion systems make up approximately 80% of this power capacity and supply most short-run storage needs. Hydrogen storage - in the form of a power-to-gas-to-power system - emerges as a replacement to conventional natural gas storage, comprising most of the total energy storage capacity (~ 4 TWh). This capacity is less than 5% of the current natural gas storage capacity (94 TWh), indicating sufficient room for repurposing part of the gas infrastructure. A demand-side sensitivity analysis proves that higher electricity demand correlates with more builds of Li-ion batteries, while higher industrial heat demand leads to more builds of long-duration storage systems in a net-zero economy. Furthermore, power-to-gas systems satisfy part of the industrial heat demand by locally supplying renewable gas, which overtakes the traditional centralized gas storage and transfers through pipelines, casting significant doubts on the future of the large-scale gas infrastructure.
Power Purchase Agreements (PPAs) are becoming increasingly preferred among large energy consumers, such as data centers, to secure cost-effective energy and meet accelerating demand growth. Traditionally, variable renewable energy (VRE)-based PPAs operate on a pay-as-produced basis, balancing supply and demand for a relatively longer duration (e.g., annually). However, the focus is shifting toward matching supply and demand on an hourly basis to fully meet energy needs. This shift requires the integration of flexible energy resources, such as hydropower, thermal generation, and energy storage, to complement VRE sources like wind and solar, forming the foundation for 24/7 PPA. This work contributes by: (i) reviewing emerging market trends and current practices in PPA procurement, supported by data on PPA prices and technology portfolios; (ii) synthesizing the existing literature on modeling approaches for contract pricing, quantities, hybrid resource procurement, and risk management in 24/7 PPA design, while identifying key research gaps; and (iii) proposing an integrated 24/7 PPA design framework along with two contracting mechanisms from the perspectives of both PPA providers and consumers. The proposed framework highlights critical modeling challenges, risk-allocation issues, and future research opportunities for 24/7 PPA design.
Wind and hydropower are important renewable components of national energy portfolios, but their infrastructure negatively affects biodiversity. Regional development requires identification of scenarios that minimize the cumulative impacts of multiple facilities. We introduce the cumulative impact plot (CIP) to quantify cumulative impacts of renewable energy development within a region. Summed impacts of facilities are plotted as a function of the number of facilities, with facilities ranked by increasing (the best-case scenario) or decreasing (worst-case scenario) individual impact. These curves represent lower and upper bounds to which alternative development scenarios (e.g., facilities ranked by generating capacity) can be compared. We used CIPs to assess overlap of potential wind and hydropower facilities with two types of conservation area in the United States: (1) federally protected lands and (2) critical habitats of federally threatened and endangered species. Here, we evaluated two alternative scenarios: facilities ranked by (A) decreasing generating capacity and (B) increasing distance from urban centers. Differences between the best-case and worst-case scenarios were large, thus revealing opportunities to develop facilities with limited impact on conservation areas. Alternative scenarios maximizing energy density generally resulted in conservation area overlap intermediate to best-case and worst-case scenarios. CIPs can also identify the proportion of wind versus hydropower favored under alternative scenarios. Build-out scenarios aimed at minimizing conservation area overlap favor hydropower, whereas alternative scenarios favor wind power. We conclude that CIPs can (1) complement—but should not replace—project-level environmental impact assessment, (2) integrate strategic, cumulative, and scenario-based assessments, and (3) harness rapidly growing geospatial data.
In additive manufacturing/3D printing, the limitation no longer lies in people’s imagination but in the very materials that one can print with. While the additive manufacturing process can virtually create any geometry, available applications are often limited by factors like parts’ mechanical strength, glass transition temperature, and heat deflection temperature. These factors are especially critical for polymer-based printing. Here we introduce a simple formulation derived from the aminolysis of polylactic acid (PLA) plastic waste, namely the N-lactoyl ethanolamine (N-LEA). The N-LEA is next reacted with excess methacrylic anhydride, forming a photo-crosslinkable resin for MSLA 3D printing. The resulting 3D printed part has a set of impressive properties that is unrivaled amongst engineering grade 3D printing resins on the market and research literature. The 3D printed part has an ultrahigh tensile strength of 131.7 MPa, glass transition at ~190 °C, and heat deflection temperature at 162.6 °C. Furthermore, this work demonstrates a true upcycling approach for turning PLA waste into a value-added product in a simple and efficient manner while also expanding the high-performance material portfolio available for photocuring additive manufacturing.
Replacing fossil fuel-based energy by renewable sources is a transition that society needs to make to meet future energy demand and simultaneously address climate change. Coupling renewable energy sources with electrochemical catalysis provides a promising path to carbon-neutral fuels and chemicals when the necessary reducing equivalents and protons are harvested from water. Developing highly active, stable, and inexpensive electrocatalysts for the oxygen evolution reaction (OER) is accordingly a centerpiece of a renewable energy portfolio. Whereas viable OER catalysts are heterogeneous in nature, owing to their oxidative stability, the realization of stable molecular OER catalysts greatly expands the horizon of energy science with the ability to tune OER energetics and mechanisms with fidelity. In this perspective, current challenges in the field of molecular OER catalysis are addressed with promising lines of research that are directed to designing ligands that can withstand the harsh oxidizing environment of OER.
As nations transition toward sustainable energy systems, biomass has become a vital component of global energy portfolios. Derived from organic materials such as wood, agricultural residues, forestry byproducts, and organic waste, biomass is a renewable energy source with significant environmental and economic benefits. Responsible biomass energy production can improve waste management, reduce emissions of greenhouse gases, and mitigate environmental pollution. However, as the diversity of biomass-derived fuels increases, robust quality assessment methods are essential to ensure their efficiency, safety, and minimal environmental impact. Reflected light microscopy (RLM) is one such technique with the potential to complement conventional physico-chemical analyses by enabling a rapid identification of material constituents and impurities. To refine this methodology and evaluate the reproducibility of solid biomass component identification using RLM, an interlaboratory study (ILS) was conducted. The study involved the recognition of 58 components across 45 photomicrographs, with the participation of 65 scientists and students from 25 countries. The participants faced high difficulty identifying some of the marked components, and as a result, the percentage of correct answers ranged from 19.0 % to 98.3 %, with an average correct identification rate of 62.7 %. The most challenging aspects of the identification process included distinguishing between woody and non-woody (agro) biomass, accurately identifying petroleum-derived materials, and differentiating agro biomass from inorganic matter. The results suggest that while RLM is an important tool for characterizing solid biomass, further development of methodology guidelines and training are necessary to enhance its effectiveness. Future research should prioritize preparing detailed, image-rich, microscopic morphological descriptions of biomass fuel components, which could improve the accuracy and reliability of using RLM in biomass fuel characterization.
Distributed water treatment and desalination (DWTD) systems are critical for the development of a diverse water portfolio of the desired quality and intended use at the target location. Widespread adoption of DWTD has been hampered given the need for round-the-clock monitoring and the lack of local technical expertise for system management. However, self-adaptive operation, real-time remote monitoring, supervisory control, and asset management of DWTD systems are now feasible with the implementation of advanced local system control, cyberinfrastructure that facilitates real-time cloud-based analytics, data management, and artificial intelligence–powered decision support. Such an approach will introduce transformative virtual networks of DWTD systems to provide needed water to locations that are not served by centralized and satellite water treatment and desalination systems.
While 55% of Fortune 500 companies have committed to achieving net-zero emissions and/or zero-waste operations by 2035, only 2% are currently on track, revealing a critical gap between ambition and action. Designing supply chains that reduce both emissions and waste is a complex non-intuitive, multi-objective challenge, compounded by the high costs of new technologies and the need for resilient, profitable solutions. This paper aims to address this challenge by presenting a generic framework and multi-objective optimization formulation for designing cost-effective, circular, and resilient supply chains under uncertainty, implemented through a user-friendly decision-support tool with intuitive data visualization capabilities, enabling communication of results to both technical and non-technical stakeholders. We demonstrate the application of this framework in the context of multilayer plastic films (barrier films), which are widely used in food packaging and composite materials. The model quantifies trade-offs across three objectives: minimizing global warming potential, maximizing circularity, and minimizing cost. A key contribution of this work is the explicit modeling of technological resilience, the ability of supply chains to maintain function under disruption. In the cost-minimization case, the resilience constraint makes the design approximately three times more expensive in the short-term metric, but shifts the system from relying on a single recovery pathway to a portfolio of four recovery pathways, improving the robustness of the optimization solution under uncertainty. Lastly, we introduce TranZero, a decision-support tool that integrates material flow analysis, hotspot identification, and optimization-based scenario planning to support net-zero and circularity decisions.
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Control hunting due to improper proportional–integral–derivative (PID) parameters in the building automation system (BAS) is one of the most common faults identified in commercial buildings. It can cause suboptimal performance and early failure of heating, ventilation, and air conditioning (HVAC) equipment. Commercial fault detection and diagnostics (FDD) software represents one of the fastest growing market segments in smart building technologies in the United States. Implementation of PID retuning procedures as an auto-correction algorithm and integration into FDD software has the potential to mitigate control hunting across a heterogeneous portfolio of buildings with different BAS in a scalable way. This paper presents the development, implementation, and field testing of an automated control hunting fault correction algorithm based on lambda tuning open-loop rules. The algorithm was developed in a commercial FDD software and successfully tested among nine variable air volume boxes in an office building in the United States. The paper shows the feasibility of using FDD tools to automatically correct control hunting faults, discusses scalability considerations, and proposes a path forward for the HVAC industry and academia to further improve this technology.
Demand response (DR) increases the flexibility and reliability of the electricity grid as use of intermittent renewable energy sources increases. HVAC and envelope DR measures present the largest aggregate energy and peak demand savings potential of all commercial building end uses because their net demand savings occur during critical peak demand periods. Controllable envelope measures include switchable electrochromic windows, operable window attachments such as outdoor louvers, roller shades, and awnings, as well as other innovative facade technologies that can modulate both solar heat gain and daylight admission over a broad solar-optical range. This study evaluated the technical potential of DR-enabled dynamic windows to reduce critical peak demand for a prototypical medium office building situated in all 16 U.S. climates. Model predictive control (MPC) algorithms were designed to minimize electricity cost in daylit perimeter office zones through control of an electrochromic window with and without HVAC thermostat setpoint control. Conventional and time-of-use rates were used to shape the degree of DR. Median annual peak demand savings with window and thermostat control across all climate zones were 24.3 kW (4.4 W/m 2 ) per building or 15.9 W/m 2 for non-north perimeter zones. Resource adequacy at the whole building level was estimated to be 13.1 to 43.4 $/kW per year over the 30-year life of the installation. Co-benefits were increased energy efficiency, and reduced electricity cost and emissions. Visual and thermal comfort requirements were met at all times. Dynamic facades controlled by MPC have substantial technical potential for DR across all U.S. climates and warrant serious consideration for inclusion in DR portfolios.
This study investigates solutions for delivering affordable heating and cooling to a brownfield site, focusing on a case study in Washington, DC. Moving towards more diverse and resilient energy systems, we identify the optimal portfolio for a district energy system with diverse energy sources to meet the area’s energy demands. Our methodological approach integrates two detailed models: one calculating building-level energy demand and the other optimizing district energy technology choices based on their demand profiles, accounting for uncertainties in energy prices, policies, and other parameters. The results provide an economic comparison of district and individual supply options at the building level, emphasizing the flexibility district systems can offer to the electricity sector. District energy systems demonstrate cost-stabilization benefits amidst volatile energy prices and external uncertainties. For heating, district systems yield significant cost savings compared to individual solutions, driven by fuel flexibility and the use of local renewable energy sources. For cooling, district systems also show advantages, though individual systems may remain more cost-effective for smaller buildings. Additionally, district systems exhibit considerable flexibility on the heating side, as evidenced by variations in electricity consumption. We recommend future research to explore the relationship between the economics of district energy systems, particularly at the building level, and their flexibility potential for the electricity sector across diverse geographic contexts to reduce overall grid costs and promote grid reliability. This includes areas with distinct zoning laws, municipal priorities, utility structures, and funding mechanisms, such as the United States, and regions like Europe with pronounced electricity price volatility.
Market uncertainties motivate the development of flexible polygeneration systems that are able to adjust operating conditions to favor production of the most profitable product portfolio. However, this operational flexibility comes at the cost of higher capital expenditure. A scenario-based two-stage stochastic nonconvex Mixed-Integer Nonlinear Programming (MINLP) approach lends itself naturally to optimizing these trade-offs. This work studies the optimal design and operation under uncertainty of a hybrid feedstock flexible polygeneration system producing electricity, methanol, dimethyl ether, olefins or liquefied (synthetic) natural gas. A recently developed C++ based software framework (named GOSSIP) is used for modeling the optimization problem as well as its efficient solution using the Nonconvex Generalized Benders Decomposition (NGBD) algorithm. Two different cases are studied: The first uses estimates of the means and variances of the uncertain parameters from historical data, whereas the second assesses the impact of increased uncertain parameter volatility. The value of implementing flexible designs characterized by the value of the stochastic solution (VSS) is in the range of 260–405 M$ for a scale of approximately 893 MW of thermal input. Increased price volatility around the same mean results in higher expected net present value and VSS as operational flexibility allows for asymmetric exploitation of price peaks.
Carbon capture and storage (CCS) is a promising approach to simultaneously maintaining energy security and reducing carbon dioxide (CO 2 ) emissions under the current energy portfolio that is dominated by fossil fuel energy. Pre-injection formation characterization and post-injection CO 2 monitoring are two critical tasks to guarantee storage efficiency in CCS. The CCS projects in the Illinois Basin, the first large-scale CO 2 injection into saline aquifers in the United States, employed conventional and the latest pulsed neutron logging (PNL) tools for mineralogy interpretation and CO 2 saturation estimation, which provide valuable references for future CCS projects. Because of the inherent fuzziness of petrophysical measurements and complex subsurface heterogeneity, interpreting well-logging data is time-consuming, and its accuracy can be user-biased. In recent years, data-driven methods have been widely used to capture the non-linear patterns between input features and interpretation results. This work applied and evaluated four commonly used machine learning (ML) models, including ridge regression (RR), random forest (RF), gradient boosting regression (GBR), support vector regression (SVR), and one deep learning (DL) model, the artificial neural network (ANN). We optimized the hyperparameters of the four ML models and the DL model using the simulated annealing algorithm and the grid search strategy, respectively. The input features of the mineralogy interpretation models were eleven conventional well-logging parameters, and the label data (i.e., ground truth) were the porosity and volumetric fractions of six minerals, including quartz, feldspar, dolomite, calcite, clay, and iron minerals. The results demonstrated that the GBR and RF models were superior in predicting volumetric fractions of minerals and porosity; label data with low coefficient of variation (CV) values tended to yield better performance. For CO 2 saturation estimation, the RF was the best-performing model, followed by SVR, ANN, GBR, and RR. Furthermore, we conducted feature importance ranking using the permutation importance algorithm and found that the formation sigma and well pressure were the most important features in this study. In conclusion, the study of CCS projects in the Illinois Basin bridges the gap between the limited knowledge and understanding of geological carbon storage and the increasing demand for reliable, cost-effective, and sustainable energy solutions.
Elevated pressure from large-volume injection is a key driver of risk and project cost. If transmissive features (e.g., non-isolating wells or fracture systems) are present, increased injection-zone pressure can drive fluids from depth toward protected freshwater resources. In US Carbon Capture and Storage (CCS) law, the area at risk is known as the Area of Review (AoR). The size and number of potentially transmissive features to be evaluated and possibly remediated or managed is a function of the size and location of the AoR. The size of the AoR depends on several variables, including properties of the injection zone, properties of protected resources, and injection rate and duration. Evaluation of the intersection of these variables across a portfolio of sites highlights the injection zone depth and boundary conditions as top-level controls. Deep injection, use of multiple stacked injection zones, reduced injection rate and choice of injection well location can all be used to minimize AoR and the number of potentially transmissive features within it. Here, we introduce the concept of pressure space (defined as connected pore volume times pressure) as the key subsurface commodity for CO 2 storage and we suggest that it forms a more robust basis for leasing and regulation than pore space alone.