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Search indexed NASA NTRS and DOE OSTI research on propulsion, heat transfer, battery materials and energy systems. Follow report and document links to the original sources.

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At least 55 records · Page 3
All sourcesNASA NTRSDOE OSTI
DOE OSTI2024

Community-Based Transactive Coordination Mechanism for Enabling Grid Edge Systems

The changing landscape of the electricity industry, characterized by a surge in distributed energy resources (DERs) and proactive customers, necessitates practical solutions for coordinated operations especially at the distribution-level. This paper introduces a community-based transactive coordination mechanism designed to incentivize customers for providing localized and system-level services reflected through real-time prices. The work presents a bidding approach for communities with DERs, such as solar photovoltaic (PV) and battery energy storage systems (BESS), to formulate their price-responsiveness for retail energy coordination, emphasizing a community-centric model. By sending bidding curves to a third-party, the mechanism enables customers with DER assets to actively participate in localized coordination with the load serving entity (LSE), thereby supplementing each other’s and even the utilities needs through a shared energy economy. The proposed transactive mechanism is implemented leveraging a co-simulation framework that integrates a distribution grid simulator and Python-based agents for performance evaluation. Collaboration with a local utility to access real distribution feeder models and consumption profiles yields simulation results demonstrating the potential to reduce costs by 12\% for communities with DERs like PV and BESS.

Community-based coordination, grid-edge systems, R↗
DOE OSTI2024

Surrogate-assisted optimization under uncertainty for design for remanufacturing considering material price volatility

Remanufacturing is a well-established end-of-life (EOL) strategy that promises significant savings in energy and carbon emissions. However, the current design practices are not remanufacturing-inclusive, i.e., the majority of products are designed for a single life cycle. As a result, potential products that can sustain multiple life cycles are deprived of additional benefits of being designed for remanufacturing, such as reduced material usage, lower cost, and improved environmental impact. Moreover, the uncertainty in design, material selection, and economics are not considered to produce remanufacturable designs. Accordingly, this research proposes a design for remanufacturing (DfRem) framework that accounts for design uncertainty and material price volatility. The framework systematically explores the design space, performs design optimization under uncertainty, followed by topology optimization to provide additional mass savings, and finally, a price volatility analysis for plausible design material choices. The candidate designs are evaluated based on their design mass, material price volatility, failure mode characteristics, carbon footprint, and embodied energy impacts. The proposed framework's utility is demonstrated via the use of an engine cylinder head case study subjected to thermo-mechanical loads along with fatigue and wear failure. Considering grey cast iron and aluminum alloy as the design material choices, it was found that the cast iron design reduced the initial design mass by 6% as opposed to a 5% decrease for aluminum. On the other hand, about 8% area of the cast iron design failed due to fatigue, compared to 3% for aluminum. Here, we further observed that although the aluminum design provided better mechanical performance than the cast iron design, this material was more expensive and volatile in price.

36 MATERIALS SCIENCE↗
DOE OSTI2025

Optimizing district energy systems under uncertainty: Insights from a case study from Washington D.C., USA

This study investigates solutions for delivering affordable heating and cooling to a brownfield site, focusing on a case study in Washington, DC. Moving towards more diverse and resilient energy systems, we identify the optimal portfolio for a district energy system with diverse energy sources to meet the area’s energy demands. Our methodological approach integrates two detailed models: one calculating building-level energy demand and the other optimizing district energy technology choices based on their demand profiles, accounting for uncertainties in energy prices, policies, and other parameters. The results provide an economic comparison of district and individual supply options at the building level, emphasizing the flexibility district systems can offer to the electricity sector. District energy systems demonstrate cost-stabilization benefits amidst volatile energy prices and external uncertainties. For heating, district systems yield significant cost savings compared to individual solutions, driven by fuel flexibility and the use of local renewable energy sources. For cooling, district systems also show advantages, though individual systems may remain more cost-effective for smaller buildings. Additionally, district systems exhibit considerable flexibility on the heating side, as evidenced by variations in electricity consumption. We recommend future research to explore the relationship between the economics of district energy systems, particularly at the building level, and their flexibility potential for the electricity sector across diverse geographic contexts to reduce overall grid costs and promote grid reliability. This includes areas with distinct zoning laws, municipal priorities, utility structures, and funding mechanisms, such as the United States, and regions like Europe with pronounced electricity price volatility.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2024

A hierarchical framework for aggregating grid-interactive buildings with thermal and battery energy storage

The behind-the-meter (BTM) thermal and battery energy storage can help improve energy efficiency, reduce energy costs, and enhance energy resilience, particularly in rural areas and for disadvantaged communities. Aggregating numerous BTM energy storage systems can act as a price influencer with a significant source of load shifting and peak demand reduction. An integrated and scalable control mechanism is required to effectively utilize energy storage systems and flexible building loads to maximize the economic benefits, considering various distribution system constraints. Here, this paper presents an innovative hierarchical coordination framework for energy storage and flexible load in buildings, considering various factors such as electricity prices, thermal comfort, and distribution system modeling and constraints. At the upper level, a distribution system operator optimizes the power flow to minimize its power procurement costs from the electricity wholesale market, while at the lower level, aggregators determine the optimal dispatch of battery and thermal energy storage systems in multiple buildings on behalf of end-users to minimize operating costs according to the power prices. These problems are solved using a game-theoretic approach through negotiations between the distribution system operator and aggregators as a bi-level decision model. Simulation case studies have been performed for a test distribution network with a number of building end-users using energy storage systems to quantify the performance of aggregators. The results demonstrate that the proposed strategy can reduce peak load for a reliable electricity distribution network while saving electricity bills for customers.

25 ENERGY STORAGE↗
DOE OSTI2024

Energy Storage to Enable Electricity as a Commodity

A lack of large-scale economical storage, demand-side flexibility, and the need to instantaneously balance supply and demand cause challenges for electricity as a commodity. With typical commodities, stock from periods of high production can be stored and sold during low production, smoothing demand and supply shocks. In electricity markets, high storage costs have long outweighed benefits, negating convenience yield; no-arbitrage models do not apply, and typical hedging strategies cannot be performed due to infinite carry costs. However, the mechanics of energy trading are changing due to advancing storage technologies, more price-responsive demands, and virtual bidding in electricity markets, shaping a system where electricity storage can be valued on factors other than diurnal arbitrage. We examine the valuation of electricity storage through the lens of commodity markets to assess the impacts of large-scale storage deployment.

energy storage↗
DOE OSTI2020

Opening the Door to Grid-Interactive Efficient Buildings with Energy Codes

Building codes represent standard design practice in the construction industry and must continually evolve to account for advancing technologies and innovative practices. Energy codes have historically focused on energy efficiency within buildings and across their systems. However, many of tomorrow's technologies go beyond efficiency and target increased flexibility. These demand flexibility (DF) measures can postpone or reduce building electric load based on price or other grid signals, and include smart appliances, connected lighting, and connected mechanical systems. Expanding codes to enable such grid-interactive efficient building (GEB) has the potential to influence their realization at scale, which will support renewable-energy grid-integration and building-sector decarbonization. However, considering DF measures in code development creates a new set of challenges for codes and the practices contained therein. This paper considers the role of building energy codes in enabling GEB. Specifically, it reviews the status of demand flexibility (DF) measures in current commercial building energy code. It examines the national model code development process and identifies components barring the consideration and inclusion of DF measures - including code scope, characterization and analysis of proposed new prescriptive measures, and accounting for time-of-day and geographic differences in their benefits. The paper presents findings from code development analyses that indicate the cost benefit of DF measures and the limitations associated with current code development conventions. To encourage building flexibility and improved energy resilience moving forward, recommendations are made for removing code development barriers and sanctioning DF measure consideration in future model codes.

Building Energy Codes and Standards, Grid-Interact↗
DOE OSTI2022

Making Grid-interactive Efficient Buildings a “Win” for Both Customers and Utilities

Buildings account for more than 70% of U.S. electricity use and at least one-third of U.S. economy-wide CO2 emissions. Changing the timing and overall amount of electricity consumption in buildings would significantly reduce energy costs to consumers and facilitate the transition to a decarbonized economy. Grid-interactive efficient buildings (GEBs) incorporate energy efficiency, smart technologies, and active use of distributed energy resources (DERs) to provide these benefits. As the link between the customer and the power system, utilities are central to widespread deployment of GEBs. Yet, despite the significant cost savings and operational benefits of GEBs for utilities, deployment has remained limited. This paper explores emerging models for enabling utilities to facilitate GEB adoption. Building off foundational research conducted to develop the U.S. DOE’s A National Roadmap for Grid-Interactive Efficient Buildings, we describe the most novel recent examples of ways in which utilities and regulators have made demand-side innovation a win for both the customer and the utility. Emerging concepts include: (1) performance incentive mechanisms to align GEB deployment with utility financial motivations, (2) the use of subscription pricing (i.e., fixed monthly bills) to promote load flexibility and energy efficiency, (3) rate-basing utility-controlled behind-the-meter assets, and (4) coupling energy efficiency and load flexibility with electrification proposals to ensure that customer benefits are maximized. The paper concludes with a discussion about prospects for widespread GEB deployment and utilization by utilities, and how to scale efforts.

Satchwell, Andrew↗
DOE OSTI2025

Upcycling of post-consumer mixed polyolefin feedstock: An economic and technical evaluation

Here, this study reports techno-economic and life cycle analyses to evaluate the economic and environmental impacts of mechanically recycled PE/PP blends in the presence of rheology modifiers. Additionally, fiber-reinforced composites derived from the compatibilized blends were prepared and evaluated for their performance compared with virgin plastics. Results suggest that compatibilized PE/PP blends exhibit a 70% lower selling price compared to virgin PE. Furthermore, these blends achieved a 74% reduction in greenhouse gas emissions or climate change impact compared to the virgin counterpart. Fiber-reinforced composites from compatibilized PE/PP blends demonstrated improved or comparable mechanical properties relative to composites made from virgin PE/PP blends. Based on their favorable cost and environmental impact, along with performance comparable to virgin composites, compatibilized PP/PE composites made from post-consumer plastics can find applications in large-scale composite manufacturing.

Fiber reinforced plastics (FRP)↗
DOE OSTI2020

Voluntary Renewable Energy Procurement Programs in Regulated Utility Markets

Multinational corporations are increasingly purchasing renewable energy (RE) to fulfill international commitments, reduce supply chain emissions, limit environmental impact, and secure stable and affordable electricity. The potential scale of global corporate RE purchasing has been estimated to be nearly 100 GW and growing; however, many markets still lack supportive enabling environments for corporations to access RE through on-site project development or private sector transactions. Even where allowed by law, on-site generation may be insufficient due to space and technical constraints, introducing additional challenges. Utility green pricing and utility green tariff programs backed by renewable energy certificates (RECs), referred to as utility green procurement programs (GPPs) in this report, offer powerful market-based solutions to utilities, regulators, and policymakers to provide corporate and other consumers with RE product options while generating revenue to support RE development. As RE markets expand around the globe, GPPs have proven to be effective mechanisms in market regimes, ranging from fully integrated state-owned utilities to broadly liberalized power markets. GPPs utilize RECs, which are a type of energy attribute certificate and closely resemble guarantees of origin, to track and ultimately monetize RE attributes that corporations and other buyers must procure to demonstrate progress against their RE commitments and make public claims of RE use. Time-tested and transparent REC accounting mechanisms provide market confidence, while at the same time offering flexibility to utilities, regulators, and customers for a range of applications. RECs are used in all types of electricity market structures, as indicated in Figure 1, but REC-based program designs and supporting components differ depending on the type of market. Liberalized markets allow for customers to contract directly with generators for electricity and RECs, while traditionally regulated markets with vertically integrated utility structures may have greater restrictions on generation asset ownership and electricity sales. RE markets can be further defined as being either mandatory or voluntary. Mandatory markets require suppliers to deliver specified amounts of RE to grid customers, such as under a renewable portfolio standard (RPS), while voluntary markets involve no legal mandates, but demand is driven by self-imposed customer goals.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2024

Electrolyte and Cutoff Potential Effects on Cycle Life of Li4Ti5O12/LiNi0.9Mn0.1O2 Batteries for Behind-the-Meter Storage Applications

Behind-the-Meter Storage (BTMS) is a stationary battery energy storage system that is connected to the electrical distribution system on the customer's side of the utility's service meter. BTMS systems are used to store electrical energy from the grid as well as inconstant, renewable energy, such as local solar and wind generation. A successful BTMS system will allow the customer to pair their energy generation and storage to optimize electrical consumption from the grid, improving reliability and minimizing cost. For BTMS applications, batteries must be designed and optimized with different set of criteria from other leading segments of the Li-ion battery market, like transportation, due the system being stationary and proximal to the residential or commercial building it's benefitting. BTMS applications prioritize safety, cost (low/no-critical materials), reliability (20-year calendar life), and durability (10,000 cycle life), while having the ability to (minimally) compromise energy density and rate capability. Lithium titanate (Li4Ti5O12-, LTO) is a promising anode candidate for BTMS applications due to its high safety and capacity retention, while maintaining a reasonable 160 mAhg-1 reversable capacity and composition of relatively abundant materials. (1) Specifically, LTO has a high working voltage which helps to prevent Li dendrite formation, improving safety. Furthermore, LTO also has negligible lithiation-based volume change, leading to less mechanical pulverization, or loss of active material, upon cycling. For the cathode, materials with little or no Co are of high interest due to the high cost and low abundance of Co. LiMn2O4 (LMO) has been paired with LTO for BTMS applications in the past due to its safety, low cost (abundancy), and reasonably high operating voltage. (2-4) However, the low capacity of LMO limits energy density and specific energy. While not the highest priority for BTMS applications, increasing energy density will enable deployment in space constrained BTMS applications and decrease total cost. LiNi0.9Mn0.1O2 (LN-MO) is a recently developed material with promise due to its high operating voltage and relatively low price. (5) However, Ni-rich layered oxides, including LNMO, tend to struggle with capacity retention during high-voltage cycling due to mechanical pulverization, irreversible phase transitions, and unstable solid-electrolyte interphase. The study presented here focuses on building an understanding of how electrolyte solvent and varied cutoff potentials will impact the cycle life of LTO/LN-MO cells. Specifically, a comparison is provided between ethylene carbonate (EC), ethyl methyl carbonate (EMC), fluoroethylene carbonate (FEC), and Gen2 electrolyte solvents with 1M Lithium hexafluorophosphate (LiPF6) salt, cycling to two upper termination potentials, 2.6V and 2.7V. Electrochemical testing and diagnostics (e.g., differential capacity analysis, area specific impedance, constant voltage hold, and rate capability) and post-mortem characterization will be used to understand the aging behavior and failure mechanisms of the 8 cell combinations (four electrolytes and two voltage cutoffs). Cells with FEC electrolyte showed a lower initial capacity compared to cells with Gen2, EMC, and EC cycling at both voltages; however, the cells with FEC showed consistent trends in capacity retention with 2.6V and 2.7V termination potentials, while the cells with the other electrolytes showed much higher rates of capacity loss when cycling to the higher voltage. These results indicate that FEC may play a role in improving durability of high-voltage, Ni-rich electrode systems for use in high-cycle applications, such as BTMS.

electrolyte↗
DOE OSTI2021

Unveiling damage mechanisms of chromium-coated zirconium-based fuel claddings at LWR operating temperature by in-situ digital image correlation

Here, we investigate the coupled thermomechanical fracture mechanisms of coated nuclear fuel claddings at Light Water Reactor (LWR) operating temperatures. These coated claddings are a highly attractive, near-term solution, which addresses the demands for accident-tolerant fuel systems and provide greater oxidation resistance. However, the fracture mechanisms of these coatings, which may create channels for oxidation ingression, must be fully understood prior to implementation. Thus, high-temperature expanding plug experiments were conducted on coated cladding specimens at a temperature of 315 °C, consistent with the operating environment of LWRs. Furthermore, in-situ thermomechanical deformation was measured with stereo digital image correlation during heating and mechanical testing to separately resolve contributions of thermal and mechanical strain. Digital image correlation, supported by acoustic emissions (AE) detection, was also leveraged to track cracking activity during loading. Coating fracture was found to initiate at total hoop strains of 0.34%. The thermal deformation of the coated claddings was investigated via finite element simulations, revealing a bidirectional stress-state within the coating with axial and circumferential strains of 0.026 and 0.031%. This bidirectional stress-state was attributed with the generation of off-axis fracture pattern within the coating as identified via post-experiment scanning electron microscopy. Thus, this study unveiled critical, coupled thermomechanical mechanisms governing the coating fracture of coated claddings at LWR temperatures.

36 MATERIALS SCIENCE↗
DOE OSTI2021

BETO 2021 Peer Review - Biochemical Process Modeling and Simulation (BPMS)

The Biochemical Process Modeling and Simulation project aims to reduce the cost and time of research by applying theory, modeling, and simulation to the most relevant bottlenecks in the biochemical process. We use molecular modeling, quantum mechanics, metabolic modeling, fluid dynamics, and reaction-diffusion methods in close collaboration with pretreatment, hydrolysis, upgrading, and TEA. The project's outcomes are increased yields and efficiency of the biochemical process, added value to products, and reduced price of fuels by specifically targeting catalytic efficiency, reactor design, enzyme efficiency, and microbial design.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2022

6.26 Low Cost Basalt Fiber for Automotive Applications

Vehicle lightweighting is an essential component to the automotive industry to improve fuel economy of internal combustion engine (ICE) vehicles to meet ever improving emission standards and to improve the range of electric vehicles (EV). Composite materials offer high specific modulus and specific strength, which makes them appealing for these light weighting efforts. Sheet molding compounds (SMC) are particularly interesting from an automotive perspective because of the relatively low cost and high volume of producing SMC parts. Traditionally, composite materials for automotive application are glass fiber reinforced because of the attractive price - performance ratio, but basalt fibers are a cost and recycling competitive reinforcement alternative in this market. The aim of this project was to examine the feasibility of utilizing basalt fiber for automotive applications. More specifically, an effort was made to examine different fiber sizings on basalt fiber combined with vinyl-ester (VE) resin, and their performance as part of an SMC process. In addition to offering vehicle lightweighting with fiber reinforced polymer composites, basalt fiber is a fully recyclable material and thus supports the IACMI technical goal of: Demonstrate that the technology is capable at a sufficient scale for >80% recyclability or reuse of fiber reinforced polymer composites in five years into useful components with projected cost and quality at commercial scale competitive with virgin materials on a pathway to 95% recyclability or reuse starting in ten years. Three different fiber sizings were applied to a continuous roving of basalt fiber and compared to a traditional Electrical/Chemical Resistance (E-CR) glass fiber that is typically used in these types of applications. Fiber tows were examined for Loss on Ignition percentage (LOI%), Tex, and tow strength. Some sizings clearly outperformed others, and the ability to process these fibers on a pilot scale SMC line was demonstrated. A test plan for the manufacturing and mechanical testing of SMC panels was developed. This work continues outside the time frame allocated for this project. When this work is completed, it will be added to this report and posted as Appendix C. Glass fiber reinforced SMC materials have already proven feasible as a light weighting method for traditionally steel parts like the Volkswagen (VW) Atlas lift-gate (Figure 1); this project team is seeking the feasibility of basalt fiber as a drop-in replacement for glass fiber reinforced SMC. Sizing development for basalt fibers has proven that the mechanical properties are better than E-glass and closer to S-glass, which makes it an interesting material for SMC applications. Better mechanical properties translate to less material needed to achieve load case requirement for target applications. The business case has already been demonstrated for 100,000 parts per year of glass fiber reinforced SMC Atlas lift-gates compared to traditional steel manufacturing processes. Reduced overhead and assembly costs are offset by glass fiber SMC higher cost per kg beyond 100,000 parts per year, which is still a relatively low volume for the automotive industry. For basalt fiber reinforced SMC to become feasible for automotive applications, the price-performance ratio has to be precisely determined. Based on the mechanical performance it is possible to establish a range of applications and technical solutions in which the potential of basalt SMC can be utilized, while the price of the material can be used to compile the business case for such applications. Based on these business cases and the sustainability indicators, glass fiber reinforcement (or other) materials can be directly substituted. Volkswagen’s commitment to reducing carbon emissions cannot be understated. Basalt fiber shows promise of reducing the carbon footprint in SMC materials, especially if sizing optimizations can be made with thermoplastic based SMC. To fully realize the value of basalt fiber reinforced materials, a lifecycle cost analysis should be performed on basalt’s production and recycling, and then compared against E-glass. From this assessment, a true judgement can be made on the commercialization potential of this material. Figure 1. Example of Fiber Reinforced Polymer Composite Liftgate As a conclusion, we can state that Mafic basalt fiber is not a direct replacement for E-glass or E-CR glass based on price, but should be considered a technical solution when E-glass does not provide adequate performance in a composite design and S-glass, aramid and carbon fibers are too costly. Mafic basalt fiber can be placed on the high-performance fiber spectrum next to S-glass for performance but at one third the price. It should be considered for more technically challenging structural designs wherein the performance can demonstrate 20-25% performance enhancement over E-glass to elicit more strength or a weight reduction. Both Michelman and Mafic produce thermoplastic sizings which, in combination with Nylon and polypropylene resin and fibers, can further advance high speed composite implementations while maintaining an eco-friendly manufacturing process.

36 MATERIALS SCIENCE↗
DOE OSTI2024

Design and optimization of flexible decoupled high-temperature gas-cooled reactor plants with thermal energy storage

Advanced nuclear power plants are well-positioned for future zero-carbon grids, however, the need for flexible power generation will be required over the traditional emphasis on baseload generation for meeting historical demands. To achieve such flexibility, this work examines viable configurations for coupling nuclear energy production with thermal energy storage. Previous designs on nuclear-thermal energy storage configurations for advanced reactor designs, which utilized reactor steam as the heat source for charging the thermal energy storage, are restricted by the heat diversion ratio and efficiency losses, thus their impacts can be limited. In this context, this study proposes configurations for fully decoupling the nuclear reactor from the power cycle and positioning the storage as an intermediate loop, thereby achieving an unconstrained heat diversion ratio and improved efficiency. Compared with a standard high-temperature gas-cooled reactor’s power cycle, steady-state thermodynamic modeling and dispatch optimizations quantify the benefits of a steam reheat cycle within the fully decoupled thermal energy system to separate the plant cycle from the high-pressure primary side. These benefits are further detailed, compatible with required high-temperature and high-pressure conditions, through (1) open-source dynamic transient models that examine the impact of off-design operation on the systems, (2) the investigation of components design and costing and finally (3) sizing and dispatch optimization. The fully-decoupled design achieves a cycle efficiency of 43.1%, an enhancement over the vendor’s standard efficiency of 42.2% (Xe-100 design). Here, the proposed design offers strengthened physical barriers from the nuclear island as well as superior operational flexibility and power boosting. Dispatch optimization and market analysis reveal that thermal energy storage size is highly dependent on the peak patterns of electricity prices and the minimum generation level constraint imposed on the balance of plant. Evaluation of off-design operation demonstrates that the full decoupling design with the suggested fail-safe control mechanisms ensures a minimal impact on reactor parameters, even during rapid power ramping.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗
DOE OSTI2022

Proactive demand-side participation: Centralized versus transactive demand-Supply coordination

The active participation of demand-side flexible resources in the wholesale market price formation and load dispatch process is crucial to encouraging demand-side participation. This calls for a joint supply-demand coordination mechanism to fully take advantage of the flexible resources in distribution systems, including distributed energy resources (DERs) and responsive loads (RLs). Here this paper aims at comparing and evaluating the centralized and transactive distribution-level market coordination mechanisms. We introduce the centralized and transactive demand-supply coordination mechanisms for the distribution-level market and elaborate on the structural difference between the two frameworks. Relevant metrics and test scenarios are proposed for a meaningful comparison. The key observations of the comparative study are generalized from the perspective of different entities in the market: fixed loads, flexible loads, DERs, and conventional generators. It is observed that while the centralized approach leads to socially optimum solutions, the transactive approach by allowing for competitive bidding at the distribution-level, results in clearing higher flexible demand, and thus higher electricity cost at the transmission-level. As a result, DERs and fixed loads receive a higher surplus in the centralized approach, while conventional generators and flexible loads are more profitable in the transactive approach.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2024

Flexible Ramping Product Procurement in Day-Ahead Markets

Flexible ramping products (FRPs) emerge as a promising instrument for addressing steep and uncertain ramping needs through market mechanisms. Initial implementations of FRPs in North American electricity markets, however, revealed several shortcomings in existing FRP designs. Here, in many instances, FRP prices failed to signal the true value of ramping capacity, most notably evident in zero FRP prices observed in a myriad of periods during which the system was in acute need for rampable capacity. These periods were marked by scheduled but undeliverable FRPs, often calling for operator out-of-market actions. On top of that, the methods used for procuring FRPs have been primarily rule-based, lacking explicit economic underpinnings. In this paper, we put forth an alternative framework for FRP procurement, which seeks to set FRP requirements and schedule FRP awards such that the expected system operation cost is minimized. Using real-world data from U.S. ISOs, we showcase the relative merits of the framework in (i) reducing the total system operation cost, (ii) improving price formation, (iii) enhancing the the deliverability of FRP awards, and (iv) reducing the need for out-of-market actions.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗