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How To Determine and Verify Operations and Maintenance Savings in Energy Savings Performance Contracts

Operations and maintenance (O&M) savings frequently occur in energy savings performance contracts (ESPCs). During FY 2022, 37% of reported annual cost savings for projects awarded under the U.S. Department of Energy (DOE) ESPC indefinite delivery indefinite quantity (IDIQ) contracts and in the performance period were due to O&M or other energy- and/or water-related cost savings, with the balance (63%) from utility cost savings (i.e., energy or water cost savings). Sometimes the energy- and water-related cost savings are acknowledged and included in payments within ESPCs; other times, for various reasons, they are not. As presented in this guide, FEMP recommends including energy- and water-related cost savings that are O&M (including related repair and replacement) savings in the financial aspects of an ESPC, to the extent such savings can be documented. Inclusion of these savings will help augment project scopes and/or lower interest costs (by shortening financing terms). However, there is a burden of proof as to what constitutes acceptability in O&M savings that needs to be carefully considered and documented in individual projects. Beyond promoting a key tenet used in U.S. federal performance contracting—that savings must be from actual budgets and therefore based on the level of O&M that is actually occurring, not what should have been performed—FEMP also recommends good practice in establishing and documenting O&M baselines, formulating the rationale for baseline adjustments during the performance period, and conducting ongoing verification activities. This document concludes with five examples of how O&M savings may be handled, in situations ranging from the partial displacement of O&M contracts to consolidation and “virtualization” of servers in data centers. A key theme that permeates this guide is the importance of thoroughly documenting all conditions and assumptions used in the development of and accounting for O&M costs and savings throughout the ESPC life cycle, from baseline-setting to measurement and verification (M&V) of the savings during each year of the performance period. Doing so not only prevents internal claims of non-performance (especially in the case of staff turnover during the contract term), but also simplifies ordering agency and energy service company (ESCO) response in the event of scrutiny from oversight organizations, such as government audits. While this guide focuses on federal ESPCs, it may also be applicable when O&M savings are included in utility energy service contracts (UESCs) and non-federal ESPCs.

Voss, Phil↗

Impact of installation faults in air conditioners and heat pumps in single-family homes on U.S. energy usage

To ensure that new residential air conditioners and heat pumps operate optimally, care must be taken during the initial system design and installation to avoid missteps that immediately degrade a system’s performance. Laboratory and simulation studies have quantified the impact that faults can have on capacity and efficiency. Field studies have demonstrated that installation-related faults are commonplace. However, the national impact of installation-related faults cannot be accurately estimated by only simulating a limited number of homes at several fault levels because of the variety of home characteristics and climates involved. In our analysis, we use an improved residential building stock simulation tool to predict the annual energy increase and additional utility costs resulting from two common installation faults: indoor airflow rate and refrigerant charge level. Our method considers the wide range of building characteristics and climate zones of the U.S. housing stock. We use existing field data to develop fault intensity probability distributions to inform our analysis. The study shows that these two faults result in approximately 20.7 TWh/y of additional energy use for central air conditioners and air-source heat pumps in U.S. single-family detached homes, which is a 9% increase over baseline (no-fault) usage, costing homeowners approximately $2.5 billion annually on utility bills. Air-source heat pumps are responsible for a disproportionate fraction of this energy use increase because of the larger number of operating hours compared to central air conditioners and the sensitivity of heating mode performance to the faults analyzed compared to cooling mode.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Customer Rate and Tariff Design

This webinar covers and introduction to customer rates and tariff design, drivers of utility costs, impacts of evolving grids on rate design, retail price signals, and methods for evaluating rates.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Techno-Economic Assessment of Residential Heat Pump Integrated with Thermal Energy Storage

Phase change material (PCM)-based thermal energy storage (TES) can provide energy and cost savings and peak demand reduction benefits for grid-interactive residential buildings. Researchers established that these benefits vary greatly depending on the PCM phase change temperature (PCT), total TES storage capacity, system configuration and location and climate of the building. In this study, preliminary techno-economic performance is reported for a novel heat pump (HP)-integrated TES system using an idealized approach. A simplified HP-TES was modeled for 1 year of space heating and cooling loads for a residential building in three different climates in the United States. The vapor compression system of the HP was modified to integrate with TES, and all heat transfer to and from the TES was mediated by the HP. A single PCM was used for heating and cooling, and the PCT and TES capacity were varied to observe their effects on the building’s energy consumption, peak load shifting and cost savings. The maximum reduction in electric consumption, utility cost and peak electric demand were achieved at a PCT of 30 °C for New York City and 20 °C for Houston and Birmingham. Peak energy consumption in Houston, New York City, and Birmingham was reduced by 47%, 53%, and 70%, respectively, by shifting peak load using a time-of-use utility schedule. TES with 170 MJ storage capacity allowed for maximum demand shift from on-peak to off-peak hours, with diminishing returns once the TES capacity equaled the daily building thermal loads experienced during the most extreme ambient conditions.

25 ENERGY STORAGE↗

Design of High-Power Polyphase PCB Coil Systems for Wireless Power Transfer

Printed circuit board (PCB) coils have been proposed prior for implementation as inductive wireless charging coils to minimize size and cost. Utilization of PCBs can allow for a reduced cost, improved manufacturability, and a wide range of geometric customization options. To circumvent material limitations on insulation and thermal performance, parallel paths can be implemented to divide the current per path accordingly. Within this paper, an unconventional high-power PCB coil is designed employing all possible techniques for wiring with axial and radial parallel paths with equivalent transposition to minimize circulating currents. Design studies are simulated in 3D finite element analysis (FEA) to evaluate imbalance between phases with and without transposition. Two experimental prototype coils were fabricated with measurements for self-inductance and mutual inductance between phases. These measurements were validated to be sufficiently consistent with FEA results. Additionally, a method is proposed for a two-step optimization of coupling coefficient and coil losses.

Lewis, Donovin D.↗

Simulation of a PCM Integrated Heat Pump Using Time-of-Use Utility Structure based Control Strategy for Demand Response

To mitigate the variation in demand on the electric grid, thermal energy storage (TES) is an alternative to electric batteries and constructing new peaking power plants. The aggressive carbon reduction goals of the United States are accelerating the electrification of building equipment. If space heating and cooling in the US were electrified using conventional heat pump technologies, the winter electric grid peak would approximately double. Integrating TES with heat pump (HP) enables electrification of space cooling and heating devices without overtaxing the grid.This paper evaluates the benefits of a novel phase change material (PCM) integrated heat pump configuration via simulation. A one-dimensional PCM heat exchanger model which discretizes the PCM tank and refrigerant tubes into small control volumes is developed. Each control volume can have different PCM temperatures, PCM properties, and heat transfer coefficients. The PCM tank is charged by a wrapped tank condenser and discharged by an internal refrigerant coil. The PCM heat exchanger model is integrated into DOE/ORNL Heat Pump Design Model for heat pump system simulation.To demonstrate the performance of the PCM integrated heat pump, a case study in Chicago was performed. A Time-of-Use utility structure-based control strategy is implemented to schedule the PCM tank charging and discharging mode switching. Compared with a conventional electric heat pump, the PCM integrated heat pump shows superior performance on load shifting and utility cost reduction. As a result, the proposed system demonstrates 24.6% utility saving for cooling application and 25.8% utility saving for heating application.

Li, Zhenning↗

Who is participating in residential energy efficiency programs? Exploring demographic and other household characteristics of participants in utility customer-funded energy efficiency programs

In addition to benefiting all customers by reducing the total electric system cost, utility customer-funded energy efficiency programs provide direct benefits to the participants. Understanding the current demographic and household characteristics of participants will help assess the extent of inequities in program participation and figure out what characteristics need to be targeted to achieve equitable outcomes. This report describes how 11 demographic and household characteristics including income, race and ethnicity, and education affect participation in residential utility customer-funded energy efficiency programs. It compiles previous work on this topic and adds new primary analysis of four datasets with different levels of detail from the Residential Energy Consumption Survey (RECS), two New England states, and a Midwestern state.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Multi-technology building system retrofits for utility incentive programs: Savings, costs and baseline considerations

Utility incentive programs are an important channel to support the deployment of energy efficiency in buildings. To date, these programs have largely been limited to single-component strategies. However, many utilities are now motivated to identify and develop multi-component system retrofits to achieve deeper energy savings, which are essential to achieving broader energy and greenhouse gas reduction goals in the buildings sector. In this paper we present the energy savings, demand reductions, and cost-effectiveness of 16 systems retrofit packages in six utility regions in the United States. These results are being used by these utilities to inform and develop incentive programs for systems retrofits. Our analysis shows that packages with proven lighting and HVAC measures can provide 5–22% whole building annual energy savings, and 13–22% annual energy costs savings, using utility incentive program baselines (code and existing building). The packages are reasonably cost effective for replace-on-burnout but generally not for a retrofit scenario prior to end of equipment life. Demand response can increase both the energy savings and energy cost savings, further improving the cost effectiveness of these packages. We analyzed the impact of using existing building vs. code baselines for calculating savings, showing that the choice of baseline in developing utility incentive programs has a substantial impact on the attributable energy savings to a program, with significant implications for the overall viability of a program (generally savings against existing building condition are higher and improve project and program cost-effectiveness).

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Sensitivity Analysis of Occupant Preferences on Energy Usage in Residential Buildings: Preprint

Residential buildings, accounting for 37% of the total electricity consumption in the United States, are suitable for demand-side management (DSM) programs to support effective and economical operation of the power system. A home energy management system (HEMS) enables residential buildings to participate in such programs. It is important to account for occupant preferences in HEMS to ensure occupant satisfaction while participating in DSM programs. For example, people who prefer a higher thermal comfort level are likely to consume more energy. In this study, we used foresee™, a HEMS developed by the National Renewable Energy Lab (NREL), to perform a sensitivity analysis of occupant preferences with the following objectives: minimize utility cost, minimize carbon footprint, and maximize thermal comfort. To incorporate the preferences into the HEMS, the SMARTER method was used to derive a set of weighting factors for each objective. We performed week-long building energy simulations using a model of a home in Fort Collins, Colorado, where there is mandatory time-of-use electricity rate structure. The foreseeTM HEMS was used to control the home with six different sets of occupant preferences. The study shows that occupant preferences can have a significant impact and is important to consider when modeling residential buildings. Results show that the HEMS could achieve energy reduction ranging from 3% to 21%, cost savings ranging from 5% to 24%, and carbon emission reduction ranging from 3% to 21%, while maintaining a low thermal discomfort level ranging from 0.78 K-hour to 6.47 K-hour in a one-week period during winter. These outcomes quantify the impact of varying occupant preferences and will be useful for controlling the electrical grid and developing HEMS solutions.

carbon footprint↗

Key Performance Indicators for Vehicle Grid Integration

Electric vehicle (EV) sales account for a rapidly growing portion of the light-duty vehicle market and a portion of medium and heavy-duty fleet vehicles. However, in many locations, charging stations will require costly utility grid upgrades with long lead times. Today, there are a few methods of smart charge management (SCM) which can reduce the costs and wait times for electric vehicle supply equipment (EVSE) interconnection approvals, as well as reduce impacts of the charging stations on the grid and on EV driver transportation costs. It is crucial for the EV charging industry to understand the vehicle grid integration (VGI) requirements for EVSE to prevent adverse impacts from EVSE interconnections and assure that charging loads and interconnections are affordable.

33 - ADVANCED PROPULSION SYSTEMS↗

Distributed clean energy opportunities for US oil refinery operations

The oil and gas industry is increasingly seeking operational improvements to reduce costs and emissions while improving resilience. This study describes techno-economic analysis of opportunities for distributed energy resources that could be integrated to support oil and gas companies’ economic, environmental, and energy resiliency goals. Specifically, the analysis evaluates solar photovoltaics, wind turbines, battery energy storage, landfill gas, biomass, municipal solid waste-to-energy, solar steam for process heat, combined heat and power, and electrolyzers for hydrogen production at two hypothetical refineries, one located in Louisiana and the other in southern California. These technologies could reduce the sites’ consumption of grid electricity and/or natural gas and thus can help reduce emissions. This study employs the ReOPT tool and System Advisor Model to evaluate the techno-economic potential for clean energy technologies to support refineries in achieving energy goals, including energy cost savings, resiliency, and emissions reductions. Results indicate that the associated costs of emissions reductions via several distributed clean energy technologies are competitive with other emissions reduction strategies such as energy efficiency, reducing flaring, direct carbon capture and sequestration, and markets under certain conditions. There are also cost beneficial opportunities for the use of renewable energy for refining, especially for resilience, depending on local conditions such as resources and utility costs.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Case Studies in Leveraging Performance Contracts for Resilience Projects

The resilience of federal facilities has become increasingly important among lawmakers, agency leadership, and the American public as high impact natural hazards occur more frequently over time. Resilience is broadly defined as the ability of a federal facility to withstand, respond to, and recover rapidly from disruptions to maintain critical functions. The Department of Energy (DOE) Federal Energy Management Program (FEMP) was codified to facilitate the strengthening of federal energy and water efficiency and resilience. Performance contracting is one of the mechanisms through which federal agencies can finance projects at their facilities, but resilience improvement measures do not always result in utility cost savings, which are the primary driver behind performance contracts. This report provides example cases where performance contracts, specifically energy savings performance contracts (ESPC) or utility energy service contracts (UESCs), were used to implement a resilience measure at a federal facility.

99 GENERAL AND MISCELLANEOUS↗

Levelized cost of charging of extreme fast charging with stationary LMO/LTO batteries

Extreme DC fast charging for electric vehicles (EVs) could be competitive with the internal combustion engine refueling experience and enable longer-distance travel, which could help with EV adoption and decarbonization, but these systems have high capital costs and extremely variable high-power demands. Behind-the-meter systems (BTMS) could support extreme-fast-charging (XFC) stations to increase nationwide adoption of EVs. Here, this study examines the optimal break-even levelized cost of charging (LCOC) across 96 BTMS scenarios to enable low-wait XFC stations providing 200 miles of charge in 10 min. This research simulates LCOC via synthetic XFC-capable EV loads, machine-learned battery life models from testing data, and nonlinear optimal controls, co-minimizing complex utility costs and battery replacements. An aggregate optimal BTMS design treating each EV load as equal likely gives an optimal LCOC per utility rate, the average of which is $\$$0.59/kWh. In addition, the sensitivity of optimal and off-optimal design factors, the long-life LMO/LTO chemistry, and optimized controls are analyzed. The battery control model, based on battery stressors to compare chemistries, optimizes LMO/LTO resting state of charge and cycle depth without compromising cost reduction, which enables greater flexibility in operation. The LCOC savings due to replacement reduction are small, up to $\$$0.035/kWh (6%), with an average of $\$$0.02/kWh (3.5%). Compared with gasoline stations, the aggregate XFC station design achieves comparable speed, experience of service, and cost at $\$$3.81/gal gasoline, showing that EVs can replace gasoline vehicles even for longer-distance travel.

25 ENERGY STORAGE↗

Quantification of Energy Savings and Demand Reduction for a Heat Pump Integrated with Thermal Energy Storage (Final Report)

To mitigate the variation in demand on the electric grid, thermal energy storage (TES) is an alternative to electric batteries or installing new peaking power plants. Stakeholders and policy makers across the United States have expressed interests in promoting TES, as demonstrated by the US Department of Energy’s Grid-Interactive Efficient Buildings program and the efforts of various state legislatures. However, the cost value provided by TES are unclear. If reliable cost benefits were determined, stakeholders would have a clearer picture of the financial returns that can be gained from their investment in TES. The study in this report is conducted by ORNL with collaboration with Emerson the Helix Innovation Center. In the first part of this report, EnergyPlus was used to perform whole-building simulations for two residential buildings in Indianapolis and Atlanta. The HVAC system in both buildings were equipped with phase change material TES. The TES tank was charged in off-peak hours and discharged in peak hours to perform load shifting. First, the economic value implied by existing time-of-use (TOU) rates offered by utility companies was analyzed via whole-building simulation. Second, existing demand reduction (DR) incentives sourced from 3 different electrical grid administrators (i.e., California, Texas, and New England region) were surveyed to determine their implied value. The study suggests that the traditional value analysis that focuses on ROI for the building owner significantly undervalues TES technology making economic viability difficult. A more comprehensive value analysis that includes peak demand management and deferred capital for peaking power plants shows that TES should be economically viable but here the value is greater for the utility and requires large market penetration and aggregation to fully realize the benefits. Therefore, to facilitate commercialization, new business models are needed that include a broader range of stakeholders and distribute the value of TES proportionally. In the 2 nd part of this project, the benefits of a novel phase change material (PCM) integrated heat pump configuration were evaluated via detailed component based simulation. A one-dimensional PCM heat exchanger model which discretizes the PCM tank and refrigerant tubes into small control volumes is developed. Each control volume can have different PCM temperatures, PCM properties, and heat transfer coefficients. The PCM tank is charged by a wrapped tank condenser and discharged by an internal refrigerant coil. The PCM heat exchanger model is integrated into DOE/ORNL Heat Pump Design Model for heat pump system simulation. To demonstrate the performance of the PCM integrated heat pump, a case study in Chicago was performed. A Time-of-Use utility structure-based control strategy is implemented to schedule the PCM tank charging and discharging mode switching. Compared with a conventional electric heat pump, the PCM integrated heat pump shows superior performance on load shifting and utility cost reduction. As a result, the proposed system demonstrates 24.6% utility saving for cooling application and 25.8% utility saving for heating application.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Accelerated CO2 Storage Optimization Using Multi-Resolution Fourier Neural Operator at the Illinois Basin Decatur Project (IBDP)

This paper presents a deep learning-based approach for optimizing CO2 injection in carbon capture and storage (CCS) operations. We developed a multi-resolution machine learning model to significantly reduce data generation costs. Utilizing this proxy model, we implemented a multi-objective genetic algorithm to optimize well control during the CO2 injection process. The proposed approach was applied to the Illinois Basin Decatur Project (IBDP), successfully optimizing the CO2 injection schedule based on three key objectives: maximizing the amount of CO2 stored, maximizing sweep efficiency, and minimizing pressure increase. The use of the proxy model accelerated the optimization workflow by two orders of magnitude, while the cost of data generation for the proxy model was reduced by 90% by utilizing a coarse-scale model.

accelerated CO2 storage optimization↗

Techno-Economic Analysis for the Addition of Thermal Energy Storage to a Campus With Existing Battery Storage

Rising global temperatures and increasing energy demands pose significant challenges for energy management, particularly in institutional and commercial settings. As cooling needs grow, campuses must balance operational efficiency, cost control, and grid stability. Energy storage solutions, such as thermal energy storage (TES) systems, offer a promising approach to shifting energy consumption from peak to off-peak periods, alleviating peak demand, reducing utility costs, and enhancing grid resilience. When integrated with existing battery energy storage systems (BESS), TES can further optimize load management and improve energy savings, especially in buildings with diverse energy needs. This article presents a techno-economic analysis of integrating a chilled water TES system into the central plant at California State University, Dominguez Hills, which already operates a BESS. We assess three TES sizing strategies—full storage, load leveling, and peak demand limiting—by modeling and simulations based on historical energy loads. Our findings show that we can control TES systems to complement BESS operation, with campus-level load leveling providing the greatest cost savings by reducing peak demands. Furthermore, the study also evaluates the long-term economic viability of TES, considering installation costs, energy savings, and payback periods under varying tariffs. This research offers practical guidance for institutions seeking to enhance energy resilience and reduce operational costs through energy storage solutions.

25 ENERGY STORAGE↗

Annual report for DOE VTO

Carbon fiber (CF)/polymer composites are a transformative class of high-performance, lightweight material, where high aspect-ratio CFs reinforce a polymer matrix and exceed the strength of steel alloys at a fraction of the density. Despite the advantages of such a class of material, the broader implementation of CF composites in a range of automotive, aerospace, and energy applications is hindered by limitations of current manufacturing methods. These current techniques (e.g., hand lay-up, wet filament winding) are costly and impose severe limitations on fiber placement, orientation, and angle, and thus a composite’s ultimate properties. Today’s CF composites are expensive to manufacture, limited in form factor, and utilize costly and sub-optimal continuous filament CF. Advanced additive manufacturing (AM) processes, combined with computational design optimization and new approaches to resin development, offer alternative design and manufacturing paradigms that have the realistic potential to lift these constraints. Such integrated AM approaches could thus help to realize the full potential of CF composite materials. One relevant application of CF composite materials where manufacturing constraints limit the cost-benefit ratio is in the manufacture of high-performance composite pressure vessels for onboard compressed natural gas (CNG) storage. Current CNG storage vessels (Types 3–5) are made from load-bearing filament-wound carbon-fiber composite and are ~3.5 times as expensive as an all-metallic Type-1 vessel. This cost is invariably tied to the complex and labor-intensive nature of conventional filament winding processes and the large volumes of expensive high tensile-strength CF tow feedstock required in manufacture. Our proposed approach to CNG storage vessel manufacture is based on a combination of AM technologies for CF composite printing and design optimization tools that were pioneered at Lawrence Livermore National Laboratory (LLNL), with advances in resin/composite formulation enabled by chemical and nano-material modification. Through the successful development of this technology, LLNL seeks to demonstrate the capability for advanced CNG storage vessel manufacture at reduced cost with no reduction in performance versus the most advanced, extant Type-5 designs.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Reinforcement-Learning-Based Smart Water Heater Control: An Actual Deployment

Utilizing smart control algorithms for electric water heaters (EWHs) is essential for fully harnessing the demand response (DR) potential of EWHs. For this reason, the use of reinforcement learning (RL) algorithms for EWHs has received increasing attention in recent years. However, existing RL approaches are either simulation-based or use pretrained RL agents. To this end, this paper presents the real-world deployment of a set of model-free RL approaches that aim to minimize the electricity cost of a EWH under a time-of-use electricity pricing policy using standard DR commands (e.g., shed, load up). The experiment results showed that the RL agents can help save electricity cost in the range of 11% to 14% compared to the baseline operation. This study demonstrated that RL-based EWH controllers can be deployed in real world without any prior training and can still save electricity cost.

deep learning↗