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At least 37 records · Page 2

Building the Case for Hybrid Energy Developments: Webinar Recording Day 2

INL, PNNL, and NREL, with support from our academic and industry partners, hosted a 2-day webinar to learn more about the benefits of hybrid energy systems, considerations for designing the right system for communities, and practical tools that can help with the design and development process. In Day 2 of this webinar, the focus was on tools that can be used to help inform design decisions for hybrid systems, including resource analysis, siting, resilience, valuation, and resource optimization. Day 2 also highlighted funding opportunities for hybrid systems.

14 SOLAR ENERGY↗

DSO+T: Valuation Methodology and Economic Metrics (DSO+T Study: Volume 4)

This report summarizes a rigorous valuation analysis methodology used by the Distribution System Operator with Transactive (DSO+T) study to estimate the financial benefits and costs of adopting Transactive Energy coordination of distributed energy resources for key stakeholders (for example distribution system operators and customers). This was achieved by modeling the value exchanges between stakeholders and determining the annualized costs and revenues experienced by stakeholders, enabling the evaluation of overall impact on stakeholder’s annualized cash flow. Extensive work was conducted developing methods to estimate the operating costs of distribution system operators at a level of granularity that would allow the financial impact of implementing a transactive energy approach to be estimated. This work included developing parametric models for labor and software costs, distribution system capital and maintenance costs, growth rates, and factors to determine annualized costs of capital investments. Simulation results were used to calculate wholesale energy costs and revenues from retail sales. Valuation analysis methods were also developed for other stakeholders including customers, the transmission system operator, independent system operator, and generators. The resulting capability allows a complete mapping of the flow of financial value between stakeholders that can be directly integrated with the results of demand flexibility simulations. Example results are provided for a business-as-usual case and compared to a transactive energy case as well as to actual cost data.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Potential long-term, global effects of enhancing the domestic terrestrial carbon sink in the United States through no-till and cover cropping

Abstract Background Achieving a net zero greenhouse gas United States (US) economy is likely to require both deep sectoral mitigation and additional carbon dioxide removals to offset hard-to-abate emissions. Enhancing the terrestrial carbon sink, through practices such as the adoption of no-till and cover cropping agricultural management, could provide a portion of these required offsets. Changing domestic agricultural practices to optimize carbon content, however, might reduce or shift US agricultural commodity outputs and exports, with potential implications on respective global markets and land use patterns. Here, we use an integrated energy-economy-land-climate model to comprehensively assess the global land, trade, and emissions impacts of an adoption of domestic no-till farming and cover cropping practices based on carbon pricing. Results We find that the adoption of these practices varies depending on which aspects of terrestrial carbon are valued. Valuation of all terrestrial carbon resulted in afforestation at the expense of domestic agricultural production. In contrast, a policy valuing soil carbon in agricultural systems specifically indicates strong adoption of no-till and cover cropping for key crops. Conclusions We conclude that under targeted terrestrial carbon incentives, adoption of no-till and cover cropping practices in the US could increase the terrestrial carbon sink with limited effects on crop availability for food and fodder markets. Future work should consider integrated assessment modeling of non-CO 2 greenhouse gas impacts, above ground carbon storage changes, and capital and operating cost considerations.

54 ENVIRONMENTAL SCIENCES↗

Challenges and Opportunities for Electric Utility Modeling and Asset Valuation Frameworks: Case Study on Valuing New Pumped Storage Hydropower

Asset valuation by electric utilities is becoming increasingly difficult in the rapidly changing electric sector. Rapid deployment of variable generation and inverter-based storage systems along with uncertain demand growth, climate, policies, and other factors create a challenging environment for understanding the value proposition of a new potential asset. This report describes an effort between the Tennessee Valley Authority (TVA) and three U.S. Department of Energy laboratories to perform a detailed review of utility modeling and analysis practices for asset valuation and identify challenges and opportunities for advancing its methods into the future. It focuses on a case study of new potential pumped storage hydropower (PSH) because of growing interest in new PSH capacity to provide energy balancing, firm capacity, and a range of ancillary services. Staff from the DOE labs conducted systematic interviews about current practices in capacity expansion modeling, production-cost modeling, hydrological modeling, and transmission stability modeling while also discussing how scenario analysis is conducted and how models and data are integrated. The effort resulted in a set of model, integration, and scenario recommendations that could be valuable to TVA, other utilities, system operators, and other stakeholders conducting integrated grid analysis. Individual model recommendations suggest exploring computational tradeoffs with detail and resolution across spatiotemporal structure, supply- and demand-side details, transmission overlays, market interactions, and ancillary services. Automated processes to pass data between models and conduct larger scenario suites could also enhance valuation practices by enabling a more consistent study of asset value across a broader range of uncertain future grid conditions where PSH could be particularly valuable. TVA and other industry stakeholders can learn from and adapt applied research-grade methods developed by DOE laboratories and other research institutions to improve decision making and accelerate progress towards a reliable, economic, sustainable energy system.

13 HYDRO ENERGY↗

Valuing Resilience for Microgrids: Challenges, Innovative Approaches, and State Needs

The United States depends on the delivery of reliable, affordable, clean, and safe electricity. Electric utilities invest billions of dollars each year in generation, transmission, and distribution assets to meet this need. However, experiences with recent natural disasters of increasing frequency and duration demonstrate the shortcomings of this approach in the face of modern threats. Further, as customers rely on electricity for a broader range of important needs, such as transportation, as well as critical life-saving services and mission critical facilities such as water treatment, medical care, shelters, telecommunications, and more, the need to minimize the likelihood and impacts of outages grows. Against this backdrop, resilience has emerged as a key consideration to guide electricity spending, whether from utilities, customers, or taxpayers. Although reliability has been defined and measured for decades with broadly accepted metrics that measure how many customers lose power and at what frequency and duration, resilience considers the electricity system’s response to a disruption and its subsequent impacts on customers. Developing tools and methods to accurately assess the costs and benefits of resilience investments is a critical step toward the goal of mitigating the impacts of outages on customers and society. Today, electric system resilience is largely treated as an externality due to challenges estimating the costs of long-duration outages, impacts of outages on society, and increasing reliance on electricity for a growing set of interdependent services. These interdependencies include the water, wastewater, telecommunications, natural gas, and health sectors. Without knowing how much a given resilience investment will benefit customers or society more broadly, investors, policymakers, and regulators are less likely to make or approve such investments, and less able to prioritize those investments. State Energy Offices and public utility commissions (PUCs) lead the development of state-level energy policy and utility regulation, respectively, and each has interests in encouraging appropriate public and private investments in resilience. To this end, the National Association of State Energy Officials (NASEO) and National Association of Regulatory Utility Commissioners (NARUC), with the support of the U.S. Department of Energy (DOE) Office of Electricity (OE), formed a joint Microgrids State Working Group to explore the costs and benefits of microgrids, barriers to broader deployment of microgrids to meet resilience and other objectives, and policy and regulatory strategies to optimize investments in resilience, including but not limited to microgrids. Although no universally accepted valuation tool for resilience exists, National Laboratories, utilities, researchers, and state and federal agencies have collaborated to develop, apply, and improve a number of approaches to quantify resilience, several of which are still in progress at the time this report is published. This report seeks to share these important advances by discussing current definitions of resilience (Section 1), how microgrids are defined and used to meet resilience objectives (Section 2), new approaches to valuing resilience (Section 3), steps State Energy Offices and PUCs have taken to further resilience valuation efforts (Section 4), and finally, considerations and suggested next steps for State Energy Offices and PUCs (Section 5). Relevant examples of specific microgrid projects and resilience valuation efforts are included throughout the report. While this report is written specifically for NASEO and NARUC members, it may be useful for utilities, local governments, and individual customers interested in improving the way public and private dollars are spent to achieve resilience outcomes.

24 POWER TRANSMISSION AND DISTRIBUTION↗

A multi-level load shape clustering and disaggregation approach to characterize patterns of energy consumption behavior

This study presents representative electrical load shapes, disaggregated to the end-use level, for over 5000 customer clusters across California’s residential, commercial, industrial and agricultural sectors. We developed a novel, multi-level load shape clustering approach for residential and commercial sectors leveraging interval meter data for over 350,000 California utility customers collected as a part of the Phase 4 California Demand Response (DR) Potential Study. The clustering approach allowed us to identify typical consumption patterns and categorize customers based on their daily load shape displayed throughout the year. For example, we were able to identify customers with particular energy technologies such as electric vehicles and rooftop solar, as well as building occupancy types such as restaurants, grocery stores and even unoccupied buildings, based solely on whole-building interval data. We then combined the load shape-based clusters with other customer information including building type, climate, geographical area, total consumption and low-income status, to create a set of customer clusters based on both demographics and usage patterns. Total cluster electricity demand was then disaggregated into a wide variety of end-uses using weather normalization and other publicly available end-use load shape datasets. The resulting disaggregated cluster load shapes will be released in anonymized form as part of the Phase 4 DR Potential Study. They will have wide-ranging applications in energy research and policy analysis, including estimation of energy efficiency (EE) and DR potential on the end-use level, time-dependent valuation of EE savings, building stock modeling, and developing customer targeting strategies for EE and DR programs.

Murthy, Samanvitha↗

Estimating the economic value of hydropeaking externalities in regulated rivers

Hydropower is a flexible form of electricity generation providing both baseload and balancing power to accommodate intermittent renewables in the energy mix. However, hydropower also generates various externalities. This study investigates individuals' preferences for policies aiming to reduce short-term regulations (i.e., hydropeaking in regulated rivers) while accounting for associated externalities with a discrete choice experiment. This is the first valuation study focusing on hydropeaking that considers both negative and positive externalities. The results imply that most individuals prefer stronger restrictions on short-term regulations to mitigate local environmental impacts. Individuals especially value improvements in recreational use, fish stocks, and the ecological state. On the other hand, potential increases in CO 2 emissions are linked with a clear disutility. The estimated benefits obtained from an improved state of the river environment due to such restrictions exceed the disutility caused by increased CO 2 emissions. Furthermore, the results also reveal unobserved preference heterogeneity among individuals, which should be accounted for in the willingness-to-pay (WTP) estimation using a model specification with correlated utility coefficients. Overall, the findings can inform policy-makers and environmental managers on the economic value of hydropeaking externalities and further guide the sustainable management of rivers regulated for hydropower generation.

13 HYDRO ENERGY↗

Leveraging concentrating solar power plant dispatchability: A review of the impacts of global market structures and policy

Concentrating solar power (CSP) integrated with thermal energy storage delivers flexible and dispatchable power, which is an increasingly valuable quality as electricity systems integrate growing penetrations of variable renewable energy. Valuing and compensating CSP's dispatchability and flexibility requires electricity market structures and policies that appropriately remunerate generation during high-value portions of the day. In this paper, we review previous analyses of CSP economics and deployment, and we find that continued CSP growth will require valuation mechanisms that appropriately compensate for CSP's flexibility during both plant design and plant operation. We then review market structures that drive CSP operations and dispatch in jurisdictions where CSP is being developed, with perspectives from Spain, Chile, Australia, Morocco, South Africa, the United States, China, and the United Arab Emirates (Dubai). Despite broad agreement that CSP's dispatchability provides value to electricity grids, countries' policies for remunerating and leveraging such dispatchability varies widely. As deployment of CSP and variable renewable energy grows, it will be increasingly important to redesign current integration policies to signal the delivery of CSP's grid services more appropriately.

14 SOLAR ENERGY↗

Federal Resilience Resources for State Energy Offices

The Weatherization and Intergovernmental Programs Office, through the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy, has compiled federally funded and publicly available qualitative and quantitative resources that support energy resilience and disaster mitigation planning. This handout is accompanied by the downloadable Resilience Valuation Tools Table that offers more detailed specifications on each quantitative tool.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Case Study: Resilience Benefits of Distributed Wind Against Fuel and Weather Hazards in Alaska

In this case study of St. Mary’s Village, Alaska, we present a resilience evaluation exercise. A resilience framework is employed to identify system characteristics, relevant metrics, and resilience hazards and to assess the performance against the hazards with and without a distributed wind system installed. The results show the resilience benefits provided by the distributed wind installation against fuel shortage hazards and cold weather hazards. The resilience benefits can be assigned monetary values, which will be highly dependent on actual circumstances of the hazard, but provide insight into value streams of distributed wind that are not usually considered. For example, the single 900 kW turbine was found to prevent an average of 14,643 kWh of load from being dropped during a two-day diesel fuel shortage event, which saved the community $447,592 from the prevented outages. This case study serves as an example for novel power system resilience analysis and builds understanding of resilience hazards that are common across many power systems.

Culler, Megan J.↗

Determining Utility System Value of Demand Flexibility From Grid-interactive Efficient Buildings

This report focuses on ways current methods and practices that establish the value to electric utility systems of distributed energy resource (DER) investments can be enhanced to determine the value of demand flexibility in grid-interactive efficient buildings that can provide grid services. The report introduces key valuation concepts that are applicable to demand flexibility that these buildings can provide and links to other documents that describe these concepts and their implementation in more detail.The scope of this report is limited to the valuation of economic benefits to the utility system. These are the foundational values on which other benefits (and costs) can be built. Establishing the economic value to the grid of demand flexibility provides the information needed to design programs, market rules, and rates that align the economic interest of utility customers with building owners and occupants. By nature, DERs directly impact customers and provide societal benefits external to the utility system. Jurisdictions can use utility system benefits and costs as the foundation of their economic analysis but align their primary cost-effectiveness metric with all applicable policy objectives, which may include customer and societal (non-utility system) impacts.This report suggests enhancements to current methods and practices that state and local policymakers, public utility commissions, state energy offices, utilities, state utility consumer representatives, and other stakeholders might support. These enhancements can improve the consistency and robustness of economic valuation of demand flexibility for grid services. The report concludes with a discussion of considerations for prioritizing implementation of these improvements.

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Energy Resilience Reference Guide, Chapter Three: Climate Resilience Strategies for Regulators

The NARUC Energy Resilience Reference Guide is envisioned as a one-stop primer for state public utility commissions (PUCs) to assist in the development of a shared language, valuation framework, and educational tool on the topic of energy resilience. The resilience of the energy system has increasingly become part of commissions’ regulatory scope so informed decisions are made regarding how to best enhance system resilience. Several states have already established evaluative resilience criteria (via legislative statute or regulatory directive). This guide is intended to succinctly summarize many of the critical topic areas within energy resilience and to facilitate adoption of resilience valuation frameworks by which PUCs can weigh investment decisions regarding energy system resiliency.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Master Services Agreement - Flexible Feeder/Distribution System Support: Cooperative Research and Development (Final Report)

PGE will engage NREL on a broad range of projects related to the integration of distributed energy resources (DERs) into the utility's operations. This portfolio of work could include projects focused on DER adoption models, advanced distribution management system (ADMS) and distributed energy management system (DERMS) design, DER dispatch strategy development, and DER valuation framework development. Additional topics could include long-term energy planning, renewable energy, energy efficiency and demand-side management. As well as technology evaluations and design guidance for building retrofits and new construction projects, energy and energy infrastructure planning, policies, and markets (and their analysis), energy storage, energy security and resilience (including energy system-related cybersecurity), transportation and mobility, technology integration analysis. Additionally, other assistance as requested by PGE consistent with NREL’s expertise.

24 POWER TRANSMISSION AND DISTRIBUTION↗

The Value of Distributed Wind: A Valuation Framework

While there has been an increase in distributed energy resource (DER) adoption, particularly for solar photovoltaic (PV) DERs, distributed wind deployment is still relatively low. However, distributed wind has significant growth potential for behind-the-meter applications and can provide improved resource diversity and resilience in high-DER grid systems. In order to make optimized decisions about distributed wind deployment, it is important to identify and characterize the value streams of distributed wind in a way that will help policy makers, microgrid developers, utilities, project developers, and others understand the potential value of distributed wind. In our paper, we develop a framework to provide a consistent and comprehensive approach to finding the net benefits of distributed wind to various stakeholders in different scenarios. We do this by considering the main use cases for distributed wind, and then developing a framework which is flexible for these various use cases and the relevant stakeholders while maintaining the same overall structure for analysis. Ongoing work includes applying this framework to valuing two distributed wind power systems, one in a remote village in Alaska and one in a front-of-the-meter deployment in Iowa. Our analysis aims to understand the full value that distributed wind is providing in these systems, including the resilience benefits it is contributing. As a better understanding of distributed wind valuation is gained, it will be easier for stakeholders to make informed decisions in order to have resilient renewable energy systems.

17 WIND ENERGY↗

Influence of Business Models on PV-Battery Dispatch Decisions and Market Value

PV-battery hybrid projects dominate interconnection queues in some regions in the United States, but few projects have been operational long enough to assess how the hybrid capabilities may be used in practice. We interview plant operators and analyze empirical dispatch data for eleven large-scale PV-battery hybrids in three organized wholesale markets in the United States. We use the dispatch data and wholesale market prices to estimate the market value of our sample hybrids in 2020. The empirical increase in market value of a PV-battery hybrid relative to a standalone PV plant varies by project and ranges from $\$$1 to $\$$48/MWhsolar. The premium is driven by market, location, technical characteristics of the PV and battery asset, and battery dispatch strategies. In contrast to the widespread assumptions in the PV-battery hybrid modeling literature, only three of the eleven project operators optimize battery usage for wholesale market revenue as merchant plants. Instead, the majority of operators in the sample have alternate objectives. For example, load-serving entities target peak load reductions, incentive program participants focus on compliance with program requirements, and large energy consumers prioritize resiliency and utility bill minimization. Understanding prevalent dispatch signals and the degree of alignment with system-wide grid needs can increase the market value of PV-battery hybrids.

14 SOLAR ENERGY↗

Progressing Analysis of Variable Electric Rates (PAVER) Study

The Progressing Analysis of Variable Electric Rates (PAVER) study analyzed the impact of a range of time-varying electric rates on the performance of a regional electric grid and the resulting costs for participating and non-participating customers. This analysis leveraged and extended the work of PNNL’s Distribution System Operator with Transactive (DSO+T) study. Five different rate designs were included: a flat volumetric energy charge, a typical Time of Use (TOU) rate, a dynamic energy (DE) rate (based on wholesale locational marginal prices), a dynamic energy and capacity (DE+C) rate, and, finally, a Block and Swing (B&S) rate that billed customers based on their average load profile at constant pricing, but used the DE+C dynamic price for load deviations from their average profile. These rates were analyzed in a large-scale co-simulation of an entire regional grid with a customer population representative of the current state. A large fraction (80%) of residential and commercial customers were assumed to participate in these time-varying rates with automatically controlled HVAC, water heaters, electric vehicles, and batteries. This study assumed no industrial sector participation. The DE and DE+C rates saw system peak loads reduced by 6-7%, while the large participation in the TOU rate case saw a significant rebound effect and a resulting peak load increase of >5%. The impacts to the annual and peak system demand impacted system wholesale prices and the overall grid operating costs. This cost structure determined the revenue needed to be collected from customers by each rate design. Participating customers on the DE and DE+C rates (located in one of the modeled DSOs) saw reductions in average annual electricity bills of 11-17% with average increases in monthly bill variation of no more than 13%. At such high participation levels, TOU customers saw 10% higher average annual bills (due to system-wide rebound effects) and average increased monthly bill variation of 16%. Residential owners of large flexible loads (such as electric vehicles) saw larger bill savings (17-20%) when on a fully dynamic rate. The presence of on-site generation (such as rooftop solar) did not appear to appreciably change customer outcomes. Customers on the Block and Swing rate did see 6% lower monthly bill variation (as intended) than the flat rate case, but at the expense of appreciable bill savings, which were only 3%, comparable to the savings seen by non-participants. Given this finding we recommend that additional research be conducted into how best various bill protection mechanisms can balance minimizing customer bill variation with providing financial incentives commensurate with the flexibility customers provide. We also recommend that customer outcomes be explored across a range of regions using current actual customer and system cost data.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Aggregated Distributed Energy Resources in 2024: The Fundamentals

This report builds upon existing literature and leading examples of ADER pricing and programs in practice to equip commissioners and staff at Public Utilities Commissions (PUCs) and State Energy Offices with the fundamentals of ADER grid services, valuation options, and approaches to compensation. Examples, active debates, and opportunities for further reading are highlighted throughout the document for readers to explore. This report does not seek to outline a specific objective for ADERs in the electricity system nor does it recommend any specific policies for ADERs—it seeks to provide helpful information to inform policymakers’ own ADER strategies and priorities.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Distributed Wind and Impacts of FERC Order No. 2222 Implementation

In September of 2020, FERC issued Order No. 2222, directing ISOs to adjust their long-standing tariffs and participation models to enable the operation of distributed energy resource (DER) aggregators in wholesale energy markets. The rule sought to bring wholesale markets under its jurisdiction up to speed with existing expansion of DERs across the United States and to capture the potential benefits that these technologies can provide. This report describes the implementation of FERC Order No. 2222 and the compliance plans that have been submitted so far, attempt to understand the potential impact the rule may have on distributed wind, and provide opportunities for future work to analyze and encourage deployment under these policy conditions. There is an information gap for the type of market interactions distributed wind may have or how it could be best deployed in DER aggregations under future market conditions. There is significant potential for profitable deployment of distributed wind in states that are served by ISOs and covered under Order No. 2222. Distributed wind and other DERs provide local energy that does not need to travel those distances and avoids the losses typically associated with long-distance energy transmission. Deployment of distributed wind can benefit communities that exist away from large load centers by providing local, clean, and affordable energy. Aggregating DERs that include distributed wind could provide these benefits across multiple far-ranging communities if they have access to participate in wholesale markets. A new baseline valuation of distributed wind in areas covered by Order No. 2222 is required to accurately gauge where it is profitable and how it can compete or complement existing or future DER deployment, including as part of an aggregate.

17 WIND ENERGY↗