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Beginner's Guide to Understanding Power System Model Results for Long-Term Resource Plans

This guide was developed to improve decision-making in the electricity planning process by strengthening dialogue between electricity system planners and stakeholders throughout the process. This document was created for anyone who is first getting exposed to scenario results from power system planning models, or for those who are beginning to interact with power system modelers. It does not assume any experience with power system modeling, or familiarity with electricity planning concepts. This guide can be helpful to a wide range of people, including but not limited to state utility commissioners and commission staff, state energy offices, and intervenors in the planning process. It is targeted to those who are evaluating or reviewing model results presented by a utility, which typically span utility-scale generation and storage (and associated transmission) assets. This guide is designed to provide enough background and guidance that stakeholders can formulate and ask questions to evaluate model results through a deeper understanding of the key assumptions, data, and methods that drive decision outcomes. The ultimate purpose of this work is to increase transparency in the electricity planning process by enabling stakeholders to better engage and evaluate model results. A follow-on guide will provide a deeper dive into emerging topics, which are expected to become more prominent in the electricity planning process, but whose methods and approaches are still being refined.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Insights for Canadian electricity generation planning from an integrated assessment model: Should we be more cautious about hydropower cost overruns?

Hydropower accounts for approximately 60% of electricity generation in Canada, with growth expected in the coming decades as part of renewable energy transitions; however, frequent cost overruns threaten the viability of this growth. Here, using the integrated assessment model GCAM, we develop an endogenous representation of hydropower for Canada that accounts for market dynamics, thus permitting analysis of hydropower competition with other electricity generation technologies, both with and without cost overruns. Results show that modelling hydropower resources endogenously increases Canadian hydropower deployment relative to an assumption of fixed hydropower production, from 417 to 495 TWh annually by 2050. In scenarios that apply cost overruns at historical levels, hydropower loses market share to more easily scalable technologies like wind power. When including high cost overrun assumptions, the model determines that hydropower falls from about 73% to 65% of Canadian electricity generation by 2050, while wind power increases from about 8% to 11%. Countries may be better able to achieve electrification and renewable energy targets at lower cost by avoiding large-scale, overrun-prone hydropower and nuclear generation projects. Model results support that cost overruns are important considerations for policy decisions related to electricity sector development in Canada and elsewhere.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

MOD-Plan: Multi-Objective Decision Planning Framework for Electric Grid Resilience, Equity, and Decarbonization [Slides]

Traditionally electric grid planning strives to maintain safe, reliable, efficient, and affordable service for current and future customers. As policies, social preferences, and the threat landscape evolve, additional considerations for power system planners are emerging, including decarbonization, resilience, and energy equity and justice. The MOD-Plan framework leverages and extends prior work to provide a framework for integrating incorporating resilience, equity, and decarbonization into integrated distribution system planning.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Renewable electricity capacity planning with uncertainty at multiple scales

Abstract We formulate and compare optimization models of investment in renewable generation using a suite of social planning models that compute optimal generation capacity investments for a hydro-dominated electricity system where inflow uncertainty results in a risk of energy shortage. The models optimize the expected cost of capacity expansion and operation allowing for investments in hydro, geothermal, solar, wind, and thermal plant, as well as battery storage for smoothing load profiles. A novel feature is the integration of uncertain seasonal hydroelectric energy supply and short-term variability in renewable supply in a two-stage stochastic programming framework. The models are applied to data from the New Zealand electricity system and used to estimate the costs of moving to a 100% renewable electricity system by 2035. We also explore the outcomes obtained when applying different forms of CO 2 constraint that limit respectively non-renewable capacity, non-renewable generation, and CO 2 emissions on average, almost surely, or in a chance-constrained setting, and show how our models can be used to investigate the merits of a proposed pumped-hydro scheme in New Zealand’s South Island.

Ferris, Michael C.↗

USAID Colombia Young Leaders Workforce Training Program Action Plans: Planning for Electric Vehicle Charging Infrastructure in Bogotá

As part of the U.S. Agency for International Development (USAID)-National Renewable Energy Laboratory (NREL) Young Leaders Workforce Training Program in Colombia, the Grupo Energía Bogotá (GEB) participants leveraged their training and professional experience to develop an action plan for modeling and evaluating Bogotá's projected electric vehicle (EV) charging needs to meet future demand. This case study summarizes the collaboration between USAID-NREL, GEB, and the Bogotá Department of Transportation Mobility Secretariat (SDM) to estimate EV charging station needs to meet projected future EV sales in the city of Bogotá and determine high-priority locations within the greater Bogotá metropolitan area for planning and applying EVSE investment and installation.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Joint Planning of Electricity Transmission and Hydrogen Transportation Networks

The abundance and uneven distribution of renewable energy might cause congestion and curtailment in electric power systems. Transmission expansions can potentially alleviate transmission congestion and reduce renewable energy curtailment. On the other hand, with the substantial cost reduction of electrolyzer technology and the continuing rise of hydrogen demand, converting surplus renewable energy to hydrogen provides synergistic benefits to power and hydrogen systems, but consequently requires joint planning of the two systems. To this end, we propose a joint planning approach for power transmission and hydrogen transportation networks to coordinately optimize the investment and operation of power and hydrogen infrastructure. In our proposed model, detailed truck routing, pipeline, and hydrogen storage are formulated to quantify the flexibility of hydrogen transportation system. A robust joint planning approach is also proposed to address various uncertainties from renewable energy, electric load, and hydrogen demand. Furthermore, our numerical simulations show that the proposed joint planning model can save the total system cost, reduce renewable energy curtailment, and increase the utilization level of transmission lines.

08 HYDROGEN↗

The use of price-based demand response as a resource in electricity system planning

Utilities have conducted IRP for decades to consider both supply- and demand-side resources to meet bulk power system needs. More recently, an increasing number of states are requiring regulated utilities to file plans that identify distribution system needs, including DERs that can avoid or defer certain types of traditional utility investments cost-effectively. Price-based demand response (DR) is an underutilized resource that could substantially contribute to load flexibility. We find that evaluation of price-based DR as a solution to meet identified electricity system needs is uncommon at both planning processes. Where price-based DR is considered as a solution, methodologies are often deficient in the characterization and treatment of this resource. Based on our analysis of utility filings and state requirements, this brief provides recommendations for improving consideration of price-based DR in the context of long-term planning for bulk power and distribution systems.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Integration of equitable resilience metrics into climate-informed electric utility planning processes: phase one

Working together, Sandia National Laboratories, Southern California Edison (SCE) - an Investor-Owned Utility (IOU) - and the California Public Utilities Commission (CPUC) are studying how electric utilities can use equity and resilience metrics to help inform the prioritization and sequencing of resilience-driven infrastructure investments. To this end, this project evaluated “Social Burden,” an equitable resilience metric which measures the potential impact of disruptions in access to non-electric critical services on people and estimates community resilience to these disruptions. The Social Burden was expanded to incorporate SCE’s existing equity metric and applied to evaluate the potential impacts from a range of climate-informed hypothetical outage scenarios developed under SCE’s 2022 Climate Adaptation Vulnerability Assessment. One baseline (“blue-sky”) state and eight different outage scenarios were evaluated to measure the potential impacts of the outages on non-electric infrastructure, critical services, and people. Key findings include: 1) the Social Burden framework is flexible enough to adapt to and build upon existing utility equity and/or resilience metrics, 2) Social Burden results highlight the high degree of non-electric service redundancy within the SCE service area with most (6/8) hypothetical outage scenarios predicted to increase people’s Social Burden by less than 10%; however, 3) access to critical services and people’s ability to obtain them is unequal and spatially clustered, meaning that there are some hypothetical outage scenarios (2/8) that will exert a higher toll on communities directly experiencing the outage as well as some nearby communities with pre-existing vulnerabilities. The report concludes with recommendations for potential use cases of the expanded Social Burden metric and identifies priority follow-on work. Potential use cases may include incorporating equity into IOU’s prioritization of climate resilience investments. Additionally, Social Burden analysis may provide additional data and insights to augment grid planning, potentially by identifying additional needs and/or prioritizing previously identified needs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

A Computational Framework for Energy Storage Participation in Transmission Planning with Electricity Market Participation

Energy storage technologies—including pumped storage hydropower (PSH), batteries, and other technologies—have been technically proven to be capable of providing transmission services by regulating power flows and providing voltage support. These technologies will potentially increase the flexibility of transmission infrastructure and may defer (or eliminate) the need for transmission upgrades or new investments. On the regulatory side, Congress and the Federal Energy Regulatory Commission (FERC) have issued several orders over decades that have established energy storage’s (ES) eligibility as a transmission asset. The orders have required transmission planning entities to provide a level playing field where ES can participate in the transmission planning process (TPP) without undue discrimination and preference of technology. These developments pave the way for ES to participate in transmission planning as a transmission asset. On the other hand, as a flexible resource, ES can play an important role in the electricity market to enable more renewable energy integration by providing energy and grid reliability services. This could bring more revenue in return.

25 ENERGY STORAGE↗

Lessons Learned from the Clean Energy to Communities (C2C) Peer-Learning Cohort Incorporating Community Priorities into Electric Vehicle Plans and Projects

The National Renewable Energy Laboratory (NREL), with support from World Resources Institute (WRI), designed and led a six-month peer-learning cohort from January through July 2024 on "Enhancing Resilience at Critical Facilities through Solar, Storage, and Microgrids" as part of the U.S Department of Energy's Clean Energy to Communities (nrel.gov/c2c) (C2C) program. Representatives from 15 municipalities, municipal utilities, colleges, and Tribes from across the United States participated in monthly workshops covering best practices for planning and deploying local resilience projects. This document shares key takeaways, lessons learned, and resources from the cohort including key steps that can be taken to help entities design effective community engagement processes around clean mobility.

ADVANCED PROPULSION SYSTEMS,ENERGY PLANNING, POLIC↗

Valuing the Future Electric Grid: A Bid-Based Approach

Energy storage resources (ESRs) and other zero marginal cost (ZMC) resources have unique characteristics that are not fully captured in today’s electricity planning and operations modeling tools. Because the modeling assumptions used in these tools are simplified approximations of how operations and investment decisions occur in the real-world, accurately representing cost and operational characteristics are key for determining how these resources impact price formation. Questions such as—Where should we build new transmission? Will a small modular reactor earn enough revenue to participate in the future electric grid? Is retrofitting a coal plant with carbon capture technology economically feasible?—all require accurate electricity prices, which aren’t available from today’s electricity planning and operations modeling tools. As an example, production cost models (PCMs) are heavily utilized tools that determine the cost and reliability of the electric system. However, as PCMs were developed to help thermal generators manage their fuel inventories, production cost modeling is largely based on fuel prices. Because ESRs do not incur fuel costs, they are often modeled as ZMC resources. In reality, ESRs incur opportunity costs as well as technology-specific (degradation) costs that are non-trivial to calculate but are important for price formation. In this research, we identify options to incorporate more realistic opportunity and degradation costs in ESR bidding algorithms. Expanding available bidding assumptions allows energy system modelers to develop more accurate economic valuations for ESRs, leading to more accurate price formation from leading energy system modeling tools.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Optimal mass evacuation planning for electric vehicles before natural disasters

The electric vehicle (EV) market has significantly expanded because EVs have lower operational costs while leaving less environmental footprint than internal combustion engine vehicles. However, EVs also come with drawbacks, including long charging time and short operational ranges. With these drawbacks and limited charging facilities, efficient long-distance EV evacuation management is challenging and has not been properly addressed. Without an efficient evacuation plan, serious congestion could happen at charging facilities, the evacuation process would be excessively long, and thus human lives may be put at risk. This study is motivated to investigate the optimal mass evacuation planning for EVs considering limited charging facilities. A three-stage method is proposed to efficiently approach this problem. A case study of Florida hurricane evacuation is conducted. Here, the method's effectiveness is verified by comparing it with a benchmark. Management insights and policy indications are drawn through sensitivity analysis of key parameters.

33 ADVANCED PROPULSION SYSTEMS↗

Current Status and Future Plans for Electric Motors and Drives at NASA

Our work advances propulsion for aircraft while reducing energy consumption, noise, emissions and the cost of air travel. We are committed to investigating the use of alternative energy sources and improving the safety and expediency of flight. Electrified Aircraft Propulsion (EAP) is the use of propulsors (propellers or fans) driven by electric motors to propel aircraft ranging from air taxis to subsonic transports. NASA is developing technology, aircraft concepts, test aircraft, and ground test facilities to turn this idea from science fiction to- reality. Specifically, motors and/or generators (Electric machines) are needed on all electrified aircraft. And NASA is sponsoring or performing work to achieve power densities 2-3 times the state of the art for machines in the MW or larger class. Three major machine types are being developed: permanent magnet, induction, and wound field. Power converters are also an essential component in most EAP aircraft concepts, as they are used to convert from ac to dc power, or vice versa. Silicon carbide and gallium nitride convertors are being developed with conventional cooling as well as a cryogenically cooled converter. Future plans include demonstrating integrated flight-ready systems in both ground and flight tests; collaborating with and leveraging ARPA-E EAP programs; and supporting FAA standards development for market acceptance and safety.

Aircraft↗

An Enhanced Computational Framework for Energy Storage Participation in Transmission Planning with Electricity Market Participation: Dynamic Market Participation Restriction Estimation

In the previous study and report, we developed a computational framework to explore the technical and economic viability of the dual use of pumped storage hydropower (PSH) for both transmission assets and market participation. The rationale for the dual-use application is to improve the resource utilization rate and reduce the cost recovery burden. A PSH-based transmission solution generally has a large capacity, which corresponds to a higher investment cost compared to a traditional line solution. Market participation may allow the PSH asset to offset part of its high investment cost. A critical question is whether it is economically and technically viable to allow dual use of a PSH-based transmission project without jeopardizing transmission system reliability. And a more specific follow-up question is how to improve market participation performance while maintaining transmission reliability. In this study, we extend the computational framework by updating the method to determine transmission service obligation requirements dynamically based on the possibility of the need for transmission service in operation. Specifically, we correlate the need for transmission service with the probability of thermal overloading on a monitored transmission line, which is essentially based on the probability distribution of power flow and its probability of exceeding the line rating based on system dispatch and operational uncertainties. In addition, the need depends on the level of risk that a system operator is willing to take. The higher the risk tolerance, the lower the requirement that the system operator would apply to the PSH project as a transmission asset. The requirements are updated every day before the PSH project determines its market participation strategy. With the updated transmission service requirements, it is expected that a PSH project can serve as a transmission asset when the transmission system is at risk and really needs it, while it can participate in a market with sufficient information and certain restrictions. In this way, the transmission service quality and market participation performance can both be improved.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Multidisciplinary Design, Analysis, and Optimization (MDO) for Co-Designed Transmission & Distribution Electric Grid Planning

This paper describes early experiences and example use cases applying multi-disciplinary design analysis and optimization (MDO) to the integrated design of power grids. Adapted from aerospace, MDO enables combining multiple existing tools into a coordinated optimization. Here we use MDO to simultaneously capture integrated transmission-distribution and investment-engineering trade-offs in an automated framework. Example use cases showcase prototype interactions among existing grid models using MDO and hint at the types of integrated analyses enabled by this approach. In addition, we share experiences and thoughts on grid-specific challenges and opportunities to help advance further work in this area.

24 POWER TRANSMISSION AND DISTRIBUTION↗

A Framework for Addressing Hydropower Modeling Gaps in Electric Grid Planning and Operational Studies [Slides]

Realistic representation of hydropower in power system planning and operation studies is extremely important as it helps in avoiding under/over-estimation of the services the hydro power units can provide. A framework and tools have been developed to account for hydrological conditions and modify power system models accordingly. For example, HyDat – data and AI driven platform, that provides that data required for editing the power system model files Collaborative effort with V&R Energy. Also, development of POM based tools have been performed, a) Tool1: editing .raw files with realistic current and maximum hydrogeneration and redispatch of other units, and b) Tool2: Editing .dyr files to represent water head, current and maximum generation. Finally the framework, HASP framework combines HyDat and V&R energy tools to produce modified power system model files. Key Take-away points from contingency analysis studies include a) the number of critical contingencies increases as the water levels are reduced (70%>75%>80%), and b) both the extent and the quality of dynamic response of the Hydropower unit is different with varying water head levels.

13 HYDRO ENERGY↗

Evolution of Electric Sector Water Use Under Alternative Electricity Futures

Increasing competition for water resources in the United States could create future challenges for allocating and using thermal cooling water in the U.S. electric power sector. While thermal power plant retirements and the growth of wind and solar technologies can reduce national aggregate power sector cooling water use, local water constraints and growing demand for agricultural or municipal supply could create greater needs for higher-cost alternative water supplies such as groundwater or recycled wastewater. For some regions, these incentives could change future electricity planning and operational decisions. These relationships and impacts are studied here using the National Renewable Energy Laboratory (NREL) Regional Energy Deployment System (ReEDS), a national electric sector planning model that has recently been upgraded to include a highly detailed representation of thermal cooling water demand and supply. Thermal power technologies are differentiated by both cooling technology and water source type to track and constrain thermal cooling water use in a way that incorporates both physical and legal water considerations in the United States. This capability is exercised under a range of electricity sector futures with alternative technology costs, fuel prices, and water constraints to illustrate ways that U.S. electric sector water use could evolve under uncertain future electric sector drivers. In exploring changes to regional generation and transmission planning and operation, water requirements, and cost, we highlight the environmental and economic impacts of future power sector water decisions.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Climate-aware decision-making: lessons for electric grid infrastructure planning and operations

Abstract Climate change poses significant risks to large-scale infrastructure systems and brings considerable uncertainties that challenge historical planning approaches. Here we focus on how climate awareness might be better incorporated into planning and decision-making in the electric power sector. To do so, we consider lessons from decision science literature where researchers have specifically focused on how to make better decisions under uncertainty. We perform a three-part review: of decision science literature on best practices for decision-making under uncertainty, of industry practice documents to understand how new uncertainties may affect the types of decisions electric utilities are making today, and of literature on electricity sector planning under climate change to assess how lessons from decision science might fit into sector-specific analyses. We discuss how characterizations of uncertainty from the decision science literature might guide approaches in the electricity sector to appropriately capture climate-related uncertainties. We also distill three key ideas from the decision science literature that can be incorporated into electricity sector planning to manage these new uncertainties: robustness, adaptive planning, and multi-stakeholder engagement. We offer example recommendations for how these key ideas might be incorporated into one essential type of planning activity, capacity expansion.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗