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At least 469 records · Page 26

Electricity Markets and Long-Duration Energy Storage: A Survey of Grid Services and Revenue Streams

Purpose of Review Long Duration Energy Storage (LDES) is increasingly viewed as a potential resource for providing grid services that enhance the stability and flexibility of electricity systems. While some LDES services are integrated into existing market frameworks, traditional mechanisms may not fully account for their operational characteristics, potentially leading to undervaluation. Within this context, this paper reviews the literature and industry practices to assess potential grid services for LDES, evaluates existing compensation mechanisms, and identifies challenges to full market integration. Recent Findings We first review existing literature and identify key grid services unique to LDES, including enhancing grid resilience during extreme weather events, enabling long-term energy shifting, and providing flexible and firm energy in systems with limited dispatchable resources. Here, we also review how LDES services are compensated in current market frameworks and the challenges associated with the full realization of LDES values. Additionally, we summarize market mechanisms for storage technologies across U.S. wholesale markets. We find that some markets are adjusting incentive structures, such as incorporating storage duration in capacity accreditation, to better align with system needs and LDES contributions to the grid. However, further refinements in capacity remuneration and dispatch timeframes may be needed for more effective realization of LDES value. Summary This review evaluates potential grid services for LDES, examines existing compensation mechanisms for LDES technologies, and identifies gaps between these mechanisms and LDES operational characteristics. The review concludes by outlining potential market enhancements for more effective LDES integration and articulating additional research needs to support its efficient participation in future power systems.

Flexible resources↗

Evaluating grid stress and reliability in future electricity grids across a range of demand, generation mix, and weather trends

The reliability of power grids in the future will depend on how system planners account for the integration of new technologies, extreme weather events, and uncertainties in demand growth from increased electrification and data centers. This study introduces an open-source, multisectoral, multiscale modeling framework that projects grid stress and reliability trends between 2020 and 2055 in the Western Interconnection of the United States. The framework integrates global to national energy-water-land dynamics with power plant siting and hourly grid operations modeling. We analyze future wholesale electricity price shocks and unserved energy events across eight scenarios spanning a range of population growth and economic change, generation mixes, and weather conditions. Our results show future grids with high percentage of non-renewable generation and strong economic growth are characterized by higher reliability and lower wholesale electricity prices than lower growth scenarios because of larger reliance on dispatchable generators and lower fossil fuel extraction costs. Scenarios with high percentage of renewable resources have lower median but more volatile wholesale electricity prices as well as more frequent and severe unserved energy events compared to scenarios relying more on dispatchable generators. These events occur because higher proportion of solar and wind energy causes net demand curves to deepen during midday (duck curves get progressively severe), exacerbating the challenge of meeting demand during summer evening peaks. This study suggests that robust and co-optimized transmission and energy storage planning could help maintain low wholesale electricity prices and high reliability levels in future electricity grids across uncertainties in generation mixes.

Electric grid reliability↗

Microgrid to enable optimal distributed energy retail and end-user demand response

In the face of unprecedented challenges in environmental sustainability and grid resilience, there is an increasingly held consensus regarding the adoption of distributed and renewable energy resources such as microgrids (MGs), and the utilization of flexible electric loads by demand response (DR) to potentially drive a necessary paradigm shift in energy production and consumption patterns. However, the potential value of distributed generation and demand flexibility has not yet been fully realized in the operation of MGs. This study investigates the pricing and operation strategy with DR for a MG retailer in an integrated energy system (IES). Based on co-optimizing retail rates and MG dispatch formulated as a mixed integer quadratic programming (MIQP) problem, our model devises a dynamic pricing scheme that reflects the cost of generation and promotes DR, in tandem with an optimal dispatch plan that exploits spark spread and facilitates the integration of renewables, resulting in improved retailer profits and system stability. Main issues like integrated energy coupling and customer bill reduction are addressed during pricing to ensure rates competitiveness and customer protection. By evaluating on real datasets, the system is demonstrated to optimally coordinate storage, renewables, and combined heat and power (CHP), reduce carbon dioxide emission while maintaining profits, and effectively alleviate the PV curtailment problem. Finally, the model can be used by retailers and MG operators to optimize their operations, as well as regulators to design new utility rates in support of the ongoing transformation of energy systems.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

An ERCOT test system for market design studies

An open source test system is developed that permits the dynamic modeling of centrally-managed wholesale power markets operating over highvoltage transmission grids. In default mode, the test system models basic operations in the Electric Reliability Council of Texas (ERCOT): namely, centrally-managed day-ahead and real-time markets operating over successive days, with congestion handled by locational marginal pricing. These basic operational features characterize all seven U.S. energy regions organized as centrally-managed wholesale power markets. Modeled participants include dispatchable generators, load-serving entities, and non-dispatchable generation such as unrmed wind and solar power. Users can congure a broad variety of parameters to study basic market and grid features under alternative system conditions. Users can also easily extend the test system's Java/Python software classes to study modied or newly envisioned market and grid features. Finally, the test system is integrated with a high-level simulation framework that permits it to function as a software component within larger systems, such as multi-country systems or integrated transmission and distribution systems. Finally, detailed test cases with 8-bus and 200-bus transmission grids are reported to illustrate these test system capabilities.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Co-optimization of repairs and dynamic network reconfiguration for improved distribution system resilience

In this work, a post-disaster distribution system repair and restoration (DSRR) strategy is proposed to improve distribution system resilience. The DSRR strategy is formulated as a two-stage optimization. The first stage is a comprehensive co-optimization of repair crew scheduling, dynamic network reconfiguration, and distributed energy resource (DER) dispatch based on the forecast load profile. The goal is to minimize the accumulative operating cost caused by the load reduction payment as well as DER operating cost. In particular, since the number of available repair crews is usually smaller than the number of faulted lines after a disaster event, the DSRR strategy determines the optimal scheduling for repairing faulted lines. The second stage is a re-dispatch of the DER power output and load shedding based on the real-time load demand of each bus. The proposed algorithm is validated by case studies of the IEEE 33-bus and 123-bus test systems. We consider those scenarios in which faults occur in multiple heavy-loaded feeders. The simulation results demonstrate that the DSRR strategy effectively coordinate the repair scheduling, network reconfiguration and load shedding to minimize the operating cost.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Beyond Price Taker: Conceptual Design and Optimization of Integrated Energy Systems Using Machine Learning Market Surrogates

Future electricity generation systems must be optimized to provide flexibility that counteracts the variability of non-dispatchable renewable energy sources and ensures the reliability and safety of critical infrastructure, including the electric grid. The current state-of-the-art is to co-optimize the design and operation of integrated energy systems (IES) treating historical or predicted time-series electricity prices as fixed parameters. Recent literature has shown the limitations of this price taker assumption, which neglects how IES optimization decisions influence market outcomes. As such, this paper proposes a new optimization formulation that uses machine learning surrogate models, trained from a library of annual market operation simulations, to embed IES market interactions into the co-optimization problem directly. Using a thermal generator example built in the open-source IDAES computational environment, we show that the price taker approach routinely over-predicts annual revenues by 8% or more compared to a validation simulation, where the proposed approach has a typical relative error of 1% or less.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Design of a thermosyphon-based thermal valve for controlled high-temperature heat extraction

Conventional concentrated solar power (CSP) is a reliable alternative energy source that uses the sun’s heat to drive a heat engine to produce electrical power. An advantage of CSP is its ability to store thermal energy for use during off-sun hours which is typically done by storing sensible heat in molten salts. Alternatively, thermal energy may be stored as latent heat in a phase-change material (PCM), which stores large quantities of thermal energy in an isothermal process. On-sun, the PCM melts, storing energy. Off-sun, the latent heat is extracted to produce dispatchable electrical power. Here, this paper presents the design of a thermosyphon-based device with sodium working fluid that is able to extract heat from a source as demand requires. A prototype has been designed to transfer 37 kW of thermal energy from a 600°C molten PCM tank to an array of 9% efficient thermoelectric generators (TEGs) to produce 3 kW of usable electrical energy for 5 h. This “thermal valve” design incorporates a funnel to collect condensate and a central shut-off valve to control condensate gravity return to the evaporator. Three circumferential tubes allow vapour transport up to the condenser. Pressure and a thermal resistance models were developed to predict the performance of the thermal valve. The pressure model predicts that the thermal valve will function as designed. The thermal resistance model predicts a 5500× difference in total thermal resistance between “on” and “off” states. The evaporator and condenser walls comprise 96% of the “on” thermal resistance, while the small parasitic heat transfer in the “off” state is primarily (77%) due to radiation losses. Lastly, this simple and effective technology can have a strong impact on the feasibility, scalability, and dispatchability of CSP latent storage. In addition, other industrial and commercial applications can benefit from this thermal valve concept.

14 SOLAR ENERGY↗

Capacity optimization of nuclear power integration to meet dynamic industrial demand

To decarbonize their industrial facilities, The Dow Chemical Company has collaborated with Idaho National Laboratory (INL) to study the integration of nuclear power with an industrial chemical facility. Using Holistic Energy and Resource Optimization Network developed at INL for optimizing and analyzing integrated energy systems, a nuclear microreactor system was sized and evaluated for dynamic dispatch to Dow Silicones Corporation’s Carrollton, KY (USA) site for iloxane production. It was found that a 180 MW th system (12 × 15MW th ) with 75.1 MWh th of thermal energy storage could provide heat and power to the chemical facilities. In the process, this would reduce electricity imports by 99.9 % and reduce the Scope 1 and 2 emissions of the site by 292,100 tonnes CO 2 /yr (98.8 %). The primary novelty of this work is a first of a kind design and optimization of a microreactor powered integrated energy system to provide heat and power to a chemical plant using real plant data. This analysis will pave the way for future studies using dispatchable clean energy sources to reduce carbon emissions and commodity industries’ reliance on fossil fuels.

22 - GENERAL STUDIES OF NUCLEAR REACTORS↗

Dynamic simulation, control, and performance evaluation of a synergistic solar and natural gas hybrid power plant

Solar power is considered among the leading renewable energy technologies. Abundant supply, flexibility of installation, and decreasing cost makes it an interesting renewable energy resource. However, there are challenges associated with the reliability of solar power due to its intermittent nature. This work demonstrates the synergies that exist in integrated hybrid systems, where a dispatchable fuel is used in conjunction with concentrated solar power. In this simulation-based study, a parabolic trough solar concentrator is used to collect solar energy. The heat collected from the solar field is used to generate steam in a Rankine cycle. The system also utilizes natural gas combustion in the steam generator to provide supplemental steam when the solar intensity is reduced due to cloud cover or at night. Natural gas is also used for superheating the steam, which allows the system to produce higher temperatures and achieve increased thermodynamic cycle efficiencies. This flexible design produces 100 MW at nominal conditions, while it is capable of producing a maximum of 140 MW when sufficient solar energy is available. The novel contributions of this work include a complete, systems-level, dynamic model of a hybrid solar plant. The model is complete with a control system that smoothly transitions the plant from pure natural gas mode at night to solar hybrid mode during the day. It evaluates innovative design features such as flexible fuel operation, steam superheating to boost efficiency, and preheating by solar or waste heat. Furthermore, this work demonstrates that by hybridizing a solar system with a dispatchable energy source, both the reliability and efficiency of the solar power production are increased. The annual solar-to-electric efficiency increases from 15.2% to 26.13% with hybridization, which indicates that utilization of the solar energy is effectively increased.

30 DIRECT ENERGY CONVERSION↗

Design and optimization of a modular hydrogen-based integrated energy system to maximize revenue via nuclear-renewable sources

Here, this paper demonstrates a novel modular distributed framework that uses optimal energy-dispatching strategies to enable greater flexibility and profitability in nuclear-renewable integrated energy systems (NR-IES). Hydrogen is used as a commodity in this framework since its production can improve grid stability and system operational flexibility, decarbonize heavy industry, and create an additional revenue stream for electricity generators, particularly nuclear power plants with high operational expenses. The proposed solution addresses the challenges associated with merging multiple software and services from various domains by using functional mock-up units (FMU) to co-simulate diverse subsystems designed in various platforms. The tightly coupled integrated energy system (IES) is optimized to maximize revenue by utilizing the deep reinforcement learning (DRL) technique to make smart dispatching decisions based on variable electricity prices and the availability of renewable energy. Proximal policy optimization (PPO) algorithm is used in training and testing the DRL agent. Over a period of 120 days, the proposed hydrogen-based IES framework showed about 10% revenue boost compared to a non-hydrogen generating baseline IES while also providing an easily-adoptable framework which can help to improve the flexibility of future generation nuclear power plants.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Operation-adversarial scenario generation

This paper proposes a modified conditional generative adversarial network (cGAN) model to generate net load scenarios for power systems that are statistically credible, conditioned by given labels (e.g., seasons), and, at the same time, “stressful” to the system operations and dispatch decisions. The measure of stress used in this paper is based on the operating cost increases due to net load changes. The proposed operation-adversarial cGAN (OA-cGAN) internalizes a DC optimal power flow model and seeks to maximize the operating cost and achieve a worst-case data generation. The training and testing stages employed in the proposed OA-cGAN use historical day-ahead net load forecast errors and has been implemented for the realistic NYISO 11-zone system. In conclusion, our numerical experiments demonstrate that the generated operation-adversarial forecast errors lead to more cost-effective and reliable dispatch decisions.

42 ENGINEERING↗

DNN-based policies for stochastic AC OPF

We report a prominent challenge to the safe and optimal operation of the modern power grid arises due to growing uncertainties in loads and renewables. Stochastic optimal power flow (SOPF) formulations provide a mechanism to handle these uncertainties by computing dispatch decisions and control policies that maintain feasibility under uncertainty. Most SOPF formulations consider simple control policies such as affine policies that are mathematically simple and resemble many policies used in current practice. Motivated by the efficacy of machine learning (ML) algorithms and the potential benefits of general control policies for cost and constraint enforcement, we put forth a deep neural network (DNN)-based policy that predicts the generator dispatch decisions in real time in response to uncertainty. The weights of the DNN are learnt using stochastic primal–dual updates that solve the SOPF without the need for prior generation of training labels and can explicitly account for the feasibility constraints in the SOPF. The advantages of the DNN policy over simpler policies and their efficacy in enforcing safety limits and producing near optimal solutions are demonstrated in the context of a chance constrained formulation on a number of test cases.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

The importance of capturing power system operational details in resource adequacy assessments

Traditional methods for assessing the resource adequacy (RA) of a power system are becoming obsolete due to emerging trends such as the increasing deployment of variable renewable energy and storage. Consequently, analysts are recommending that RA be assessed using a Monte Carlo simulation approach that models chronological power system operations over many instances of possible operating conditions. However, this approach is necessarily more complex and computationally demanding, which is an obstacle to real-world implementation. Here, in this study, we investigate which operational details of power systems are important to capture in order to accurately evaluate a system's RA, versus details that add complexity but do not meaningfully affect RA results. To do so, we develop a probabilistic RA assessment framework by adapting an existing production cost model and apply it to a case study based on the IEEE Reliability Test System. Our results indicate that multi-year data, storage dispatch, and transmission limits are key details to incorporate. Accurate RA results can be obtained using non-economic dispatch strategies as long as they are coordinated with detailed operational strategies. We also demonstrate how popular expectation-based RA metrics can mask important differences in the characteristics of loss of load events.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Post-extreme-event restoration using linear topological constraints and DER scheduling to enhance distribution system resilience

In this paper, a post-extreme-event restoration (PEER) algorithm is proposed to improve distribution system resilience. Linear topological constraints are proposed to ensure radial topology after N-k contingencies, possibly in multiple islands. The approach is made comprehensive by considering dispatchable distributed energy resources (DERs), non-dispatchable DERs, and demand responses, as well as on-load tap changers (OLTCs) and shunt capacitors. The goal is to minimize the accumulative expense caused by load reduction payment or penalty, as well as DER operation cost. As a result, the overall system will survive longer with higher resilience during an extreme event. To verify the effectiveness of the PEER algorithm, we proposed a resilience evaluation algorithm using Monte Carlo simulation (MCS) with reduced scenarios. This is based on a probabilistic model for generating random scenarios which consider the uncertainty of line faults and solar irradiance. Combined with the proposed PEER algorithm, this reduced-scenario MCS can evaluate the expected energy not served (EENS) which is an essential index for distribution system resilience. Case studies of the IEEE 33-bus and 123-bus test systems validate the proposed algorithm in reducing EENS.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Stochastic scheduling of generating units with weekly energy storage: A hybrid decomposition approach

We propose a solution method for the large-scale stochastic unit commitment (SUC) problem with weekly-dispatched energy storage and significant weather-dependent stochastic generating capacity. Weekly storage facilities that mostly charge during weekends and discharge during weekdays require a weekly scheduling of generating units, which result in a large-scale optimization problem. This SUC problem is formulated as a two-stage stochastic model and we use the conditional value-at-risk as a risk measure. Using a Benders framework, the proposed solution method decomposes the problem into a mixed-integer linear master problem and linear and continuous subproblems. The master problem corresponds to the first-stage decisions throughout the week and includes all the commitment (binary) variables and their corresponding constraints. The subproblems correspond to the actual dispatch of the generating units on a weekly basis. Based on the success of column-and-constraint generation algorithms to solve robust optimization problems, we improve the low communication between the master problem and the subproblems in the standard Benders decomposition by adding primal variables and constraints from the subproblems to the master problem, which provides a better approximation of the recourse function. Furthermore, our computational experiments demonstrate the effectiveness of the proposed decomposition method using an instance of the South Carolina synthetic system with 90 generating units under 40 scenarios.

25 ENERGY STORAGE↗

Getting brighter: Impacts of improved day-ahead solar forecasts in high-solar, high-storage electricity systems

This paper analyzes the impacts of improved day-ahead solar forecasts on costs and dispatch in the solar-rich Southeast U.S. It uses an optimized high-solar, high-storage resource portfolio in which solar generation capacity accounts for 45 % of total installed capacity (34 %–36 % of generation) and energy storage capacity (43 GW) is equivalent to 33 % of peak demand. In a base scenario, improved day-ahead solar forecasts reduce production costs by $\$87$ million per year ($\$0.13$ per MWh load, $2023$$). This level of savings is within the range or lower than earlier studies of solar forecast improvements at lower levels of solar generation (<25 % of total generation). In this study, solar expansion was accompanied by two important sources of flexibility for managing solar forecast error: energy storage and day-ahead solar curtailment. Furthermore, the analysis finds that regional coordination complements day-ahead solar forecast improvements while natural gas commitment flexibility is a substitute for forecast improvements, as the improved solar forecast leads to sub-optimal commitment of thermal units. Day-ahead solar forecast improvements reduce reserves required to manage forecast error by 30 %. Fewer reserves to manage large, infrequent solar forecast errors could be an important benefit of improved solar forecasts.

14 SOLAR ENERGY↗