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Presented as part of the NREL Grid Planning and Analysis Center's (GPAC) "Powered By" Series, this iteration focuses not on a specific tool but instead on a domain of expertise/capability being built out at NREL: transmission planning. Various sets of tools are integrated together in this presentation to present a combination of transmission focus areas, case studies, tools and future directions of transmission research.
The rapid expansion of data centers in the United States is reshaping how the electric distribution system must plan for and accommodate large load interconnections. This report evaluates the role of the distribution grid in serving these loads, from small edge facilities to hyperscale campuses. Using national datasets, utility filings, and industry studies, we assess demand growth, reliability requirements, interconnection thresholds, and infrastructure needs at substations and feeders. The analysis highlights the mismatch between fast data center development timelines and slower utility planning and construction cycles, as well as strategies such as phased energization, on-site generation, hosting capacity maps, and structured interconnection frameworks. While focused on data centers, the insights also apply to other high-density loads such as advanced manufacturing, hydrogen production, and electrified transportation. The report concludes with approaches to align planning processes, transparency tools, and regulatory frameworks so utilities can manage new large loads in ways that support a reliable and resilient grid.
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.
Capacity expansion models are important tools in examining the evolution of the electric power sector. Embedded in these tools are many modeling choices with consequential impacts on computational burden and associated analysis. In this study, we adjust the spatial resolution of the Regional Energy Deployment System (ReEDS) to understand the implications of higher-fidelity modeling on energy system projections and model solve times. The native ReEDS regions capture the contiguous United States in 134 balancing areas whereas the regions in the higher-resolution version are defined by over 3,000 U.S. counties. Using both resolutions, we conduct a case study of the Texas Interconnection (The Electric Reliability Council of Texas [ERCOT]) to explore differences in model projections and to inform appropriate applications of high spatial resolution in a large-scale, applied capacity expansion model.
Karnataka ranks fourth among Indian states in installed capacity of renewable energy, which accounts for over 50% of its resource mix. The state is positioned to play a leading role in India's energy transition and contribute to meeting national targets for renewable energy thanks, in part, to ambitious state goals to develop Karnataka's abundant zero carbon energy resources and plans to phase out new investments in thermal plants. Power system stakeholders in Karnataka are faced with the challenge of planning a generation portfolio that accounts for the variability of wind and solar resources, meets increasing and shifting electricity demand, and satisfies operational and reliability requirements. The objective of this study is to evaluate least-cost pathways for Karnataka's electric power system through 2050. The capacity expansion model developed for this study identifies power system investment and operational decisions for every year (2020-2050) for all of India, with detailed representation of the state of Karnataka. The study led to five high-level results and provides a framework for recurring planning studies to meet changing system conditions and needs.
This scoping study synthesizes information that will help stakeholders understand the scope, scale, and drivers of recent increases in investor-owned utility (IOU) expenditures on local distribution power grids, while providing regulators and other decision-makers with potential strategies to keep electricity bills down. The study includes five distinct components. Drawing first on data from FERC Form 1, it summarizes key trends in past and recent IOU distribution costs. Next, through a review of a sample of distribution-system plans, it characterizes material drivers of planned distribution expenditures. Ultimately, regulators must approve cost recovery for IOU expenditures, including those for the distribution system. The study therefore also: examines trends in utility requests and regulatory approvals related to changes in retail rates and return on equity; identifies areas where utility shareholder and customer incentives may be misaligned; and develops a menu of options that state regulators might consider to optimize distribution system expenditures. Some of the key findings include: - IOU distribution spending at a national level has grown by 6%/yr since 2014 in real dollar terms, 4x faster than in the prior 20 years and consisting mostly of capital (not operating) expenditure. - On a per-kWh basis, increases in IOU distribution costs since 2014 represent over 30% of the overall national-average increase in retail electricity rates. - Regional spending growth has ranged from 2-8%/yr, with larger estimated rate impacts in CAISO, then NYISO & ISO-NE, and then the Southeast, MISO & PJM (see figure). - Some utilities are planning for significantly increased distribution system spending. Planned spending on managing the existing system (asset replacement, safety & reliability, and resilience are all important drivers) exceeds that for capacity expansion. - IOU rate increase requests ($18 billion in 2025) and public utility commission (PUC) approval levels (average of 64% of requested amounts from 2021-2025) have recently hit multi-decadal highs. - PUCs in New England and the Southeast have recently approved a greater fraction of rate requests (>75%, on average) than in ther regions, while PUCs in California and the Southeast have generally authorized higher equity returns than in other regions. - Regulators have many tools to tackle potential misalignments between utility and customer interests and, more specifically, to optimize and reduce distribution costs. Shorter-term options include those related to return on equity, capital structure, depreciation, trackers, construction work in progress, and securitization. Longer-term options include performance-based regulation and a wide variety of planning-related requirements. All options embed important tradeoffs.
Climate change, energy system transitions, and socioeconomic change are compounding influences affecting the growth of electricity demand. While energy efficiency initiatives and distributed resources can address a significant amount of this demand, the United States will likely still need new utility-scale generation resources. The energy sector uses capacity expansion planning models to determine the aggregate need for new generation, but these models are typically at the state or regional scale and are not equipped to address the wide range of location- and technology-specific issues that are increasingly a factor in power plant siting. To help address these challenges, we have developed the Geospatial Raster Input Data for Capacity Expansion Regional Feasibility (GRIDCERF) data package, a high-resolution product to evaluate siting suitability for renewable and non-renewable power plants in the conterminous United States. GRIDCERF offers 264 suitability layers for use with 56 power plant technologies in a harmonized format that can be easily ingested by geospatially-enabled modeling software allowing for customization to robustly address science objectives when evaluating varying future conditions.
To meet ambitious global decarbonization goals, electricity system planning and operations will change fundamentally. With increasing reliance on variable renewable energy resources, energy storage is likely to play a critical accompanying role to help balance generation and consumption patterns. As grid planners, non-profit organizations, non-governmental organizations, policy makers, regulators and other key stakeholders commonly use capacity expansion modelling to inform energy policy and investment decisions, it is crucial that these processes capture the value of energy storage in energy-system decarbonization. Here we conduct an extensive review of literature on the representation of energy storage in capacity expansion modelling. We identify challenges related to enhancing modelling capabilities to inform decarbonization policies and electricity system investments, and to improve societal outcomes throughout the clean energy transition. Additionally, we further identify corresponding research activities that can help overcome these challenges and conclude by highlighting tangible real-world outcomes that will result from pursuing these research activities. Capacity expansion modelling (CEM) approaches need to account for the value of energy storage in energy-system decarbonization. A new Review considers the representation of energy storage in the CEM literature and identifies approaches to overcome the challenges such approaches face when it comes to better informing policy and investment decisions.
Through Net Zero World, the National Renewable Energy Laboratory (NREL), the National Energy Secretariat of Argentina, La Pampa's Energy and Mining Secretariat, Pampetrol, and the Administracion Provincial de Energia de La Pampa (APELP) conducted an integrated analysis of the power system of the La Pampa province in Argentina. The study assessed the impact that solar and battery energy storage systems could have on the region grid's reliability and electricity costs, providing insights into long-term decarbonization strategies across Argentina. The analysis demonstrated that these systems are expected not only to help with decarbonization efforts but also to bolster grid resiliency, reduce line losses, and improve voltage regulation while lowering electricity costs. The paper offers a replicable framework for similar studies across other Argentine provinces, which could inform a national grid reliability plan and promote regional coordination. Such coordination will play a key role in supporting a nationwide clean energy transition as Argentina increases its share of renewable energy. By coordinating subnational energy plans with national strategies, Argentina can secure a resilient clean energy future, leveraging the substantial renewable resources available across its provinces.
The Puerto Rico Grid Resilience and Transitions to 100% Renewable Energy Study (PR100) is a 2-year study by the U.S. Department of Energy's (DOE's) Grid Deployment Office and six national laboratories to comprehensively analyze stakeholder-driven pathways to Puerto Rico's clean energy future. In Year 1 of the study, the PR100 team rigorously modeled and analyzed scenarios that meet Puerto Rico's renewable energy targets and achieve short-term recovery goals and long-term energy resilience. This report, which summarizes PR100 progress in Year 1, provides considerations that can inform potential funding and implementation decisions by key federal and local agencies and stakeholders. The summary report follows the publication in July 2022 of a PR100 Six-Month Progress Update (in English and Spanish), as well as public webinars in February 2022 to kick off the study and in July 2022 to present the 6-month update. A final written report and web-based visuals will be published in late 2023. All publications and public events associated with the study will be available in Spanish and English. This report is also available in Spanish https://www.nrel.gov/docs/fy23osti/85144.pdf.
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Decarbonizing the electricity system to zero-carbon emission is crucial for climate change mitigation. Previous studies have shown that such a transition in the United States (U.S.) may lead to higher system cost compared to a business-as-usual case, but it is not well-known how the cost of electricity generation varies at sub-regional level under the transition, and studies have rarely evaluated the trade-off between the cost and avoided climate damages, as well as the potential roles of negative emission technologies (NETs) in the electricity decarbonization. In this work, we present a regionally resolved national model to quantify the cost of decarbonizing the U.S. electricity system under a set of possible scenarios. The results show that, compared to the reference scenario without a decarbonization policy, reaching zero CO 2 emission by 2050 would incur, depending on the scenarios, 335-494 billion USD additional cost to the U.S. electric power sector during 2020-2050. The regional costs of electricity generation ranges from 2.4 to 4.7 cent/kWh, largely due to the generation profiles and renewable resources availability of those regions. The additional costs can be translated to an average CO 2 abatement cost of 29-59 USD/metric ton CO 2 (with 2%-7% discount rates), which are comparable to the social cost of carbon in the literature at around 4% discount rate. The results also show that the cost of mitigating the last few percent CO 2 emission from the U.S. electricity system may exceed the costs of NETs, indicating an opportunity for NETs to contribute to electricity decarbonization.
This slide deck provides a high-level overview of wholesale electricity market design model development activities occurring at NREL. The motivation for this work, as well as the broader NREL modeling landscape in which it belongs, is first presented. Then the various model formulations and features are described.
Multiple capacity expansion models (CEMs) for the U.S. power system represent the balance of options among generation, transmission, and storage assets that can satisfy electric loads, operating and planning reserves, and policy requirements. These models are typically set up to find the least-cost portfolio of assets that meet specified requirements, and model decisions can include both investments in new, and retirement of existing, resources. The scenarios explored by CEMs can help inform strategies for meeting future electricity and energy needs under a range of future conditions. However, projections can differ between models, sometimes dramatically, for a seemingly similar scenario. Differences in model coverage, structure, and input assumptions contribute to the range of model outcomes. Understanding what drives the biggest differences in model outputs improves model insights and provides context for interpreting results. This summary presents analysis that was performed through a forum of analysts who own, update, and apply CEMs, as well as nuclear experts from national laboratories, industry, and the research community. The following sections describe methods, results, and findings from an original, innovative inter-model comparison that provides insights into what drives the greatest differences in nuclear retirement and deployment projections across models and a range of technology, market, and policy conditions.
The rapid surge in electric vehicle (EV) adoption, coupled with advancements in charging technologies, emphasizes the critical necessity for expanding EV recharging infrastructure. Simultaneously, the Distribution Network (DN) encounters escalating challenges in meeting charging demand during peak traffic periods. Consequently, there is a mounting demand for the deployment of innovative Vehicle-to-Grid (V2G) technologies to augment the DN’s flexibility in power dispatch and alleviate travel costs for EV users. Hence, this paper proposes an EV-user-equilibrium-(UE)-constrained V2G planning framework that enhances flexibility in the DN. The framework aims to ascertain the optimal placement and capacity of EV charging stations (EVCSs) and V2G charging piles within the Transportation Network (TN). It takes into account the equilibrium condition stemming from competitive EV charging and routing behaviors alongside the optimal expansion of DN energy resources to accommodate the electricity supplied by the V2G piles. This study commences by analyzing EV drivers’ travel decisions, considering the influence of charging and V2G pile locations and sizes. Subsequently, we tackle the Traffic Assignment Problem with User Equilibrium (TAP-UE) model to characterize the steady-state traffic flow distribution of EVs. Following this, we formulate the optimization model for the Coordinated Power and Transportation Network (CPTN), which encompasses the optimal expansion of DN facilities and traffic flow regulation under UE conditions. To mitigate the computational complexity associated with the V2G planning model, we introduce a series of linearization methods to obtain a manageable Mixed-Integer Linear Programming (MILP) solution. Finally, to validate the efficacy of our proposed planning framework, we apply it to two test systems, including a real-world case study. Through these case studies, we explore the necessity and potential benefits of V2G technologies.
The electrical transmission grid is a critical part of the U.S. national infrastructure, and its modernization is a U.S. Department of Energy (DOE) priority. We describe the Energy Zones Mapping Tool (EZMT), a unique, powerful, and public web-based system with multi-criteria decision analysis (MCDA) models for more than 20 power plant technologies and many other capabilities. Through a case study on natural gas combined cycle (NGCC) power plants in the Eastern Interconnection (EI), we provide an example of incorporating an EZMT MCDA model into a larger planning context, with projections of interconnection-level capacity expansion, thermoelectric power plant retirements, and water availability. Our results provide insights on candidate NGCC site distributions and the criteria influencing them. The case study provides both an efficient methodology for performing similar analyses and hundreds of candidate NGCC power plant sites that can be studied in more detail as potential project sites.
Climate change influences many aspects of the electric grid, but prior work and industry practices often ignore the potential effects of changing climate, or they only consider a single effect or individual effects in isolation. Challenges vary with each grid and include adapting to long-term trends such as changing temperature and precipitation or shorter-term events such as drought or storms that could increase in frequency or intensity. Here we present a multi-model framework designed to analyze the effects of long and short-term climate impacts in combination. This framework couples capacity expansion and production cost models with hydrologic models and future climate scenario data to analyze alternative climate and energy futures at high spatial, temporal, and process resolutions. Furthermore, we constructed and evaluated the results of a suite of simulated scenarios exploring climate impacts on capacity investment and stress-tested the resulting future infrastructures using hourly dispatch modeling under alternative drought and load conditions. We demonstrate the approach through a case study of the U.S. Western Interconnection, where climate impacts depend on interactions between temperature-induced load, water availability for hydropower, technology competitiveness, and demand flexibility. Changes in 2038 generating capacity range from -8.5-16.6 GW, and changes in 2038 transmission capacity range from -1-2 GW. Capacity increases are driven by higher load from higher temperatures, while capacity reductions can be achieved in scenarios with higher future hydropower availability and increased demand flexibility. Scenarios requiring additional capacity cost an additional $\$5$-$\$17$ billion (discounted) from 2018 to 2038; however, scenarios with capacity reductions cost $\$1$-$\$18$ billion less. Stress tests on four 2038 infrastructures demonstrated that the identified systems were able to serve at least 99.999% of load and 99.96% of reserves. However, drought and unexpected high-load conditions can result in reduced capacity to respond to contingency events we did not model. Although these results are system and scenario specific, they highlight the importance of considering multiple climate change impacts simultaneously in long-term planning efforts and demonstrate a multi-model, multiscale approach that can be flexibly applied to any system and set of climate change concerns.