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Business Models for Scaling Demand Flexibility Volume I – Value proposition characteristics, challenges, and lessons learned from U.S. programs

Load growth at the grid edge is driving increased attention to the distribution system and its ability to enable customer technology adoption in an affordable and timely manner. Key industry stakeholders, including electric utilities and regulators, can benefit from strategies to manage and balance customer needs with infrastructure investments, such as demand flexibility. This report focuses on demand flexibility—the ability to reduce, shift, shed, generate, or modulate loads in response to building and grid needs—to reduce the need for costly grid upgrades by deferring investment needs and increase system reliability by shifting electricity usage during periods of high risk. Specifically, we focus on the emerging characteristics of business models for demand flexibility as a framework to understand how demand flexibility programs generate value. In this report, we focus on demand flexibility value propositions, which provide information on value creation and describe how programs deliver clear benefits that address customer and grid needs. This report discusses the role of value propositions in demand flexibility programs, provides an overview of value propositions for a range of demand flexibility stakeholders, identifies existing challenges to establishing an effective value proposition, and describes lessons learned. This report is part of a series that includes reports on customer relationship management strategies, stakeholder ecosystem management, and program life cycle.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Business Models for Scaling Demand Flexibility Volume IV – Program life cycle challenges and lessons learned from U.S. programs

Load growth at the grid edge is driving increased attention to the distribution system and its ability to enable customer technology adoption in an affordable and timely manner. Key industry stakeholders, including electric utilities and regulators, can benefit from strategies to manage and balance customer needs with infrastructure investments, such as demand flexibility. This report focuses on demand flexibility—the ability to reduce, shift, shed, generate, or modulate loads in response to building and grid needs—to reduce the need for costly grid upgrades by deferring investment needs and increase system reliability by shifting electricity usage during periods of high risk. Specifically, we focus on the emerging characteristics of business models for demand flexibility as a framework to understand how demand flexibility programs generate value. In this report, we focus on the life cycle of demand flexibility programs, which provides information on value creation and describes the various deployment phases program implementers navigate from initial program conceptualization through to program expansion and replication to new customer segments and regions. This report characterizes the key phases of the demand flexibility program life cycle, identifies existing challenges across the program deployment phases, and describes lessons learned. This report is part of a series that includes reports on customer relationship management strategies, stakeholder ecosystem management, and program life cycle.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Distributed Solar and Storage Adoption Modeling

The National Renewable Energy Laboratory (NREL) is analyzing the rapidly increasing role of energy storage in the electrical grid through 2050 through its Storage Futures Study. In one phase of the study, NREL used the laboratory's Distributed Generation Market (dGen) model to examine the various future distributed storage capacity adoption scenarios, results, and implications.

agent-based modeling↗

Alternative Ratemaking in the US: A Prerequisite for Grid Modernization or an Unwarranted Shift of Risk to Customers?

With increasing frequency, investor-owned electric utilities are requesting preferred cost recovery for "grid modernization" in multiple forms, from multi-year rate plans to riders. Utilities' claims that massive grid investment is necessary, and that exceptional investment requires exceptional cost recovery, are typically accepted by policymakers with little challenge. It is difficult for policymakers to resist the siren call of grid modernization's perceived outcomes, from improved reliability and resilience to reduced risks to safety and new customer technology adoption (electric vehicles, distributed energy resources, and more). This paper provides a contrarian viewpoint that is virtually absent as policymakers consider alternative ratemaking practices. It introduces the possibility that excess grid investment in the name of modernization is not only possible, and economically harmful, but has already occurred, encouraged by alternative ratemaking. It provides examples of common grid modernization expenditures the authors have identified as cost-ineffective in the course of their work. It also describes traditional grid planning practices with proven ability to address changing requirements over time, calling into question the need for exceptional grid modernization investment plans. Most important, the paper explains the moral hazard inherent in alternative ratemaking, and the fundamental shift in ratemaking risks and responsibilities from utilities to customers that results. The perspectives this paper presents are critical for policymakers to understand before adopting, extending, or expanding alternative ratemaking practices in their respective jurisdictions.

ENERGY PLANNING, POLICY, AND ECONOMY,POWER TRANSMI↗

Modeling Distributed Generation in California

In support of analysis for the biennial Integrated Energy Policy Report, the California Energy Commission and the National Renewable Energy Laboratory have partnered to study the growth of distributed energy resources in California. This study involves the use of National Renewable Energy Laboratory's Distributed Generation Market Demand model, available at https://www.nrel.gov/analysis/dgen/, to project statewide adoption of distributed photovoltaics and paired storage. Key outcomes of the collaboration include: • Improved representation of California building stock, load profiles, historical adoption, and tariffs, including the net billing tariff, in the dGen model; • Trained CEC staff members to use and adapt the dGen model for their specific needs; • Developed a methodology for representing emerging consumer segments to potentially adopt distributed energy resources, including low-income, multifamily, and renter-occupied buildings; • Forecasted solar photovoltaic and paired storage growth in California using a common set of modeling parameters. This report describes the multiyear effort, which includes a discussion of: • Methodology and data employed in adapting the Distributed Generation Market Demand model for California to forecast solar photovoltaic and storage statewide through 2040; • Steps taken to modify the base model to forecast solar photovoltaic adoption in emerging market segments such as multifamily or renter-occupied homes or both; • Future enhancements of the model.

14 SOLAR ENERGY↗

Storage Futures Study - Distributed Solar and Storage Outlook: Methodology and Scenarios

This presentation discusses the fourth report in NREL’s Storage Futures Study (SFS) publications. The SFS is a multiyear research project that explores the role and impact of energy storage in the evolution and operation of the U.S. power sector. The SFS is designed to examine the potential impact of energy storage technology advancement on the deployment of utility-scale storage and the adoption of distributed storage, and the implications for future power system infrastructure investment and operations. This report describes the expanded capabilities of the Distributed Generation Market Demand (dGen) model to analyze the economics of distributed (behind-the-meter) PV paired with battery storage systems and presents projections of adoption for the contiguous United States out to 2050 under a range of scenarios. These scenarios use technology cost and performance assumptions consistent with the National Renewable Energy Laboratory’s 2020 Standard Scenarios paired with updated battery cost projections and existing policies. Additional scenarios evaluate sensitivities to the value of backup power and DER compensation mechanisms, collectively characterizing the future potential for behind-the-meter storage and identifying key drivers of adoption. Adoption projections of DER and battery storage at high spatial and temporal resolution, as presented in this report, can enable informed planning of technical infrastructure that can help planners capture the benefits and mitigate challenges to support the ongoing trend toward distributed electricity generation.

backup power↗

High-Level Synthesis of Irregular Applications: A Case Study on Influence Maximization

The Influence Maximization problem is the problem of identifying a small cohort of actors from a broader population that, when initially activated in a diffusion process, are expected to result in a large number of activations in the population. While the problem is known to be NP-hard, several approximation algorithms have been devised by leveraging its submodular structure. While these algorithms are theoretically efficient, they are computationally very expensive in practice. This work advances the current state-of-the-art parallelization scheme for the IMM algorithm by devising the adoption of custom hardware accelerators implemented on FPGAs by leveraging High Level Synthesis from OpenCL. We study the performance of our proposed approach by exploring optimizations tailored at improving the parallel efficiency of the accelerators and highlight their effects and limitations in accelerating complex graph analytic applications. Our experimental evaluation shows that FPGA acceleration can improve the performance of the LT diffusion model up to 1.72x for the entire application and up to 2.90x for its most important kernel with respect to a CPU only parallel execution. The FPGA acceleration of the LT model shows also a 1.54x reduction in energy consumption when compared to a parallel CPU only run.

Neff, Reece W.↗

SolarPlus-Optimizer v0.1

With the falling costs of solar arrays and battery storage and reduced reliability of the grid due to natural disasters, small-scale local generation and storage resources are beginning to proliferate. However, very few software options exist for integrated control of building loads, batteries and other distributed energy resources. The available software solutions on the market can force customers to adopt one particular ecosystem of products, thus limiting consumer choice, and are often incapable of operating independently of the grid during blackouts. In this software package, we present the "Solar+ Optimizer" (SPO), a control platform that provides demand flexibility, resiliency and reduced utility bills, built using open-source software. SPO employs Model Predictive Control (MPC) to produce real time optimal control strategies for the building loads and the distributed energy resources on site. SPO is designed to be vendor-agnostic, protocol-independent and resilient to loss of wide-area network connectivity. The software was evaluated in a real convenience store in northern California with on-site solar generation, battery storage and control of HVAC and commercial refrigeration loads. Preliminary tests showed price responsiveness of the building and cost savings of more than 10% in energy costs alone.

Prakash, AnandKrishnan↗

SolarPlus Optimizer: Integrated Control of Solar, Batteries, and Flexible Loads for Small Commercial Buildings

Building-level microgrids may be a key strategy to unlock the combined potential of flexible loads, renewable generation, and energy storage. However, few software options exist for integrated control of building loads and other distributed energy resources at this scale. The commercial software solutions on the market can force customers to adopt one particular ecosystem of products, thus limiting consumer choice. The SolarPlus Optimizer (SPO) is an open-source building-level microgrid control platform that uses Model Predictive Control to optimize both building loads and behind-the-meter energy storage to reduce energy bills and increase demand flexibility. This paper evaluates the capabilities of SPO in a small commercial building in Northern California under multiple electricity tariffs and demand response scenarios. Comparing SPO operation with an emulated battery and baseline operation employing a commercial optimization service, SPO reduced electricity bills by an estimated 7.3% in summer, 3.2% in spring, and 3.7% in winter. In a “load shape” scenario meant to counter the “duck curve”, SPO achieved 71% fewer violations from the load signal than the baseline control method. During a three hour long load shed event, SPO reduced cooling and refrigeration load by 38%. This research shows significant potential to provide load flexibility for building-level microgrids for this type of control systems. Finally, the paper discusses the future direction of research on open-source control systems.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

A Handbook for Designing, Implementing, and Evaluating Successful Electric Utility Pilots

Since at least the late 1970s, electric utilities and their regulators have recognized the value of experimentation to motivate innovation. The industry has a long history of using pilots to help inform future decision making about electric utility rates, customer technology adoption and integration, and even changes to the utility’s regulatory or business model. Although utility pilots have become almost ubiquitous proving grounds for new rates, technologies, and alterations to the traditional utility regulatory and business model, some regulators are beginning to raise questions about what constitutes a “good” pilot. Much has been written about utility pilots over the years; however, what is missing from the literature is the identification of a comprehensive process for not only designing and evaluating a pilot, but also implementing, successful utility pilots that provide actionable outcomes upon which more informed decisions can be made. This report provides a step-by-step process that regulators, policymakers, and utilities can follow to help promote a more successful pilot, even if whatever is being tested fails to produce the intended or expected result(s). It is worth noting that this report is not intended to serve as a technical resource for those designing, implementing, and evaluating pilots. However, there are myriad references provided for those wishing to delve deeper into the technical details.

24 POWER TRANSMISSION AND DISTRIBUTION↗

A Methodology to Evaluate the Grid Reliability Impact of Oscillations Induced by Large Loads

The rapid growth of hyperscale AI data centers is bringing renewed attention to the reliability risk that sustained forced oscillations pose to bulk power systems, with cyclic computational workloads emerging as a new forcing source. Unlike the broadband, stochastic disturbances from traditional industrial loads such as arc furnaces, AI training and inference facilities can inject large active power swings concentrated at specific frequencies over extended durations - characteristics that existing grid planning practices do not account for. While the North American Electric Reliability Corporation (NERC) has recognized this gap and called for system-level studies of large load interconnections, no standardized methodology exists to screen, simulate, and quantify these risks at the planning stage. This report presents the Risk Assessment Tool for Large Load-induced Events (RATLLE), a Python-based, publicly available script suite developed at the Pacific Northwest National Laboratory to evaluate bulk power system reliability risks from data center-induced oscillations. RATLLE implements a three-module workflow: a screening module that identifies vulnerable interconnection locations and excitable system modes; a simulation module that models cyclic data center load behavior using a commercial positive sequence simulation platform; and an analysis module that computes risk metrics and generates interactive visualization dashboards. The risk metrics, formulated around simulation observables, map oscillation impacts to a three-stage severity scale spanning latent equipment fatigue through imminent cascading failure. The methodology is demonstrated on two Western Electricity Coordinating Council (WECC) system models: a publicly available 240-bus reduced representation and a detailed 2031 Heavy Winter planning case. Case studies illustrate that even modest 50 MW forced oscillations at resonant frequencies can produce wide-area power swings, N-1 security constraint violations, and cascading generator trips through protection actions - outcomes that would not occur under normal operating conditions without oscillations present. The results underscore the need for standardized oscillation impact assessment in large load interconnection studies and provide a reproducible, extensible framework for utilities to adopt or customize within their existing planning workflows.

Biswas, Shuchismita↗

Solar+ Optimizer: A Model Predictive Control Optimization Platform for Grid Responsive Building Microgrids

With the falling costs of solar arrays and battery storage and reduced reliability of the grid due to natural disasters, small-scale local generation and storage resources are beginning to proliferate. However, very few software options exist for integrated control of building loads, batteries and other distributed energy resources. The available software solutions on the market can force customers to adopt one particular ecosystem of products, thus limiting consumer choice, and are often incapable of operating independently of the grid during blackouts. In this paper, we present the “Solar+ Optimizer” (SPO), a control platform that provides demand flexibility, resiliency and reduced utility bills, built using open-source software. SPO employs Model Predictive Control (MPC) to produce real time optimal control strategies for the building loads and the distributed energy resources on site. SPO is designed to be vendor-agnostic, protocol-independent and resilient to loss of wide-area network connectivity. The software was evaluated in a real convenience store in northern California with on-site solar generation, battery storage and control of HVAC and commercial refrigeration loads. Preliminary tests showed price responsiveness of the building and cost savings of more than 10% in energy costs alone.

14 SOLAR ENERGY↗

On Performance Prediction of Big Data Transfer in High-performance Networks

Big data generated by large-scale scientific and industrial applications need to be transferred between different geographical locations for remote storage, processing, and analysis. High-speed dedicated connections provisioned in High-performance Networks (HPNs) are increasingly utilized to carry out such big data transfer. HPN management highly relies on an important capability of performance (mainly throughput) prediction to reserve sufficient bandwidth and meanwhile avoid over-provisioning that may result in unnecessary resource waste. This capability is critical to improving the resource (mainly bandwidth) utilization of dedicated connections and meeting various user requests for data transfer. Conventional methods conduct performance prediction by fitting prior observed transfer history with predefined loss functions, without considering unobservable latent factors such as competing loads on end hosts. Such latent factors also have a significant impact on the application-level data transfer performance, which may result in an inaccurate prediction model. In this paper, we first investigate the impact of latent factors and propose a clustering-based method to eliminate their negative impact on performance prediction. We then develop a robust machine learning-based performance predictor by: i) incorporating the proposed latent factor elimination method into data preprocessing, and ii) adopting a customized domain guided loss function. Extensive experimental results show that our predictor achieves significantly higher prediction accuracy than several other state-of-the-art methods.

Liu, Wuji↗

Feedback from International Decommissioning Planning Projects - 20269

Decommissioning of Nuclear Power Plants is an increasing reality in many countries with nuclear power. Already many years before final shutdown, planning of the decommissioning work is usually started in order to understand for example the costs, waste volume capacity and licensing work needed. In many countries it is required to have a final decommissioning plan before any decommissioning work is allowed to start. Westinghouse has been involved in international decommissioning planning for more than 30 years, where the first 20 years was mostly funding and preliminary plans due to that decommissioning was many years away. However, as many more plants are now moving into decommissioning, the focus has shifted to final decommissioning plans with budgets instead of funding plans, strategic decisions instead of choices, waste volume specifications instead of estimates and a defined approach instead of what ifs. Westinghouse has developed a methodology based on the planning and execution of many decommissioning projects in Europe, America and Asia. That international experience and understanding helps the customers to adopt a systematic planning process where strategy development is done with the end state in mind, where the goals are clearly outlined and the starting point described. The process and steps to reach the desired end state need to be clearly defined and all options/alternatives evaluated from a cost/benefit point of view. This is followed by a thorough and quantitative risk analysis in order to give solid recommendations and credible conclusions. One important feedback has been that real decommissioning experience from reference projects is invaluable for an efficient and timely progress in order not to spend unnecessary time and effort on understanding the barriers and links between different activities in decommissioning. Skilled project managers or engineers can drive the project forward, but without decommissioning experience previously gained, valuable lessons learned are not used and the same mistakes can be made again. Many utilities have invested in knowledge transfer from other decommissioning projects through site visits, exchange programs and supplier meetings, which is a valuable asset and way of implementing lessons learned from performed decommissioning projects into the planning process. (authors)

12 MANAGEMENT OF RADIOACTIVE AND NON-RADIOACTIVE W↗

Improving the economics of battery storage for industrial customers: Are incentives enough to increase adoption?

As adoption of behind-the-meter battery energy storage increases across the United States, implementation continues to lag in the industrial sector. This analysis considers two manufacturing facilities with potential for load shifting to reduce peak demand. Although both facilities have load profiles that demonstrate great potential for regular and programmed demand reduction during peak hours, battery energy storage was deemed prohibitively expensive. A review of several existing utility and state-level policies and incentives determined that few may be rightsized for the industrial customer class. Furthermore, this analysis further considers multiple incentive structures and finds that although incentives increase viability of energy storage, developers must also consider optimization, unique load profiles, and use case to effectively increase adoption of battery energy storage by industrial customers.

25 ENERGY STORAGE↗

Affordable and Accessible Solar for All: Barriers, Solutions, and On-Site Adoption Potential

Solar energy technologies can be used as part of a suite of tools to reduce the energy burden of low-income customers, but to date, low- and moderate-income (LMI) customers have not adopted solar at the same rate as other income groups. This paper summarizes the barriers of LMI solar adoption related to finance and funding, community engagement, site suitability, policy and regulatory, and resilience and recovery and discusses existing and potential future solutions to address these barriers. In addition, we model future LMI on-site solar adoption, using the National Renewable Energy Laboratory's (NREL's) dGen model. We model future scenarios assuming no changes in the current LMI solar policy and program environment, and we add two incentives to low-income households for adopting solar: a $\$$3,000 incentive and a full incentive (i.e., the full cost of a PV system). While we model a financial incentive, this dollar reduction in cost could also come from other efforts, for example, reductions in solar soft costs. We find that by 2050, 48-49% of LMI households adopt solar, resulting in $\$$69- $\$$101 billion in first year utility bill savings to these consumers.

14 SOLAR ENERGY↗

Building efficiency, electrification, and distributed solar PV bill savings under time-based retail rate designs

Building energy technologies and distributed generation, including energy efficiency (EE), distributed solar PV (DPV), and building electrification, are critical to meeting decarbonization goals. Rate design may play an important role in determining the customer economics of adopting these technologies, but it is unclear whether – and to what extent – current rate design trends support or impede progress toward these goals. In this study, we answer these questions by quantifying the range of residential customer bill impacts of EE, DPV, and building electrification investments under current and emerging time-based retail electricity rate designs (i.e., time-of-use, event-based pricing, coincident demand charges, and real time pricing). We also compare these customer bill savings to power system and societal benefits and assess how well the investments are compensated relative to the societal value they provide.

14 SOLAR ENERGY↗