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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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All sourcesNASA NTRSDOE OSTI
DOE OSTI2025

Benefits of Dual Fuel Heat Pump Grid-responsive Control: A Model-based Control Optimization Approach Using Building and Equipment Co-simulation

Conventional dual fuel heat pumps lack the intelligent control mechanisms to efficiently manage the switch between heat pump and furnace, leading to sub-optimal energy usage and, in some cases, increased operating costs. To resolve this gap, this study applies optimized control on hybrid heat pumps. With a focus on equipment control strategies, we compare the performances of five spacing heating equipment, including a conventional heat pump (HP), a conventional furnace, a dual fuel heat pump (DFHP) with conventional control, a dual fuel heat pump with smart control, and a novel seamlessly fuel flexible heat pump (SFFHP). While DFHP runs on either gas or electricity at any given moment, SFFHP concurrently consumes gas and electricity by continuously optimizing the proportion of each. In this research, a co-simulation framework is developed by integrating a building envelope model with a physics-based heat pump simulation model to analyze the benefits of grid-responsive controls of DFHP and SFFHP. The model-based optimal controls adjust the operation of the heat pump and gas furnace based on utility price signals and marginal grid emission to minimize utility cost and CO 2 emissions for multiple climate zones, different utility tariffs, and marginal grid emission scenarios. Case studies in Chicago and Los Angeles demonstrate that SFFHP and DFHP, with model-based optimal control, can deliver significant reductions in peak demand, utility cost, and CO 2 emission. In Chicago, SFFHP and smart controlled DFHP yield up to 64.7% and 61.7% utility cost reduction and up to 15.7% and 8.5% CO 2 emission reduction compared to the gas furnace. In Los Angeles, SFFHP and smart controlled DFHP achieve up to 43.6% and 40.1% utility cost reduction and up to 13.8% and 14.1% CO2 emission reduction compared to conventional heat pumps. In conclusion, by leveraging the fuel flexibility nature of dual fuel heat pumps, the model-based control optimization approach makes dual fuel heat pump an attractive option for demand response programs.

Control↗
DOE OSTI2024

Multifunctional Heat Pump with Energy Storage Capability

Replacing gas furnaces with heat pumps on a large scale can pose challenges to the electrical grid. It will significantly increase the demand, strain the electrical grid, especially during peak usage times. To ensure that heat pumps contribute to reducing emissions, it's essential to increase the share of renewable energy in the grid. However, the supply of renewable energy is unstable. Large scale of electrification must address the concern of grid resilience to meet necessary heating/cooling demands and shift peak electric load. All these require future heat pumps having energy storage capability. These systems can store excess energy during low-demand periods and release it during high-demand periods, reducing stress on the grid. This paper will introduce an innovative configuration, control, and laboratory investigations of a multifunctional packaged heat pump. In addition to the original indoor and outdoor air coils, the heat pump has a parallel hydronic loop with a brazed plate heat exchanger (BHP). The hydronic loop circulates hot/chilled water to store heating/cooling energy in phase change material (PCM). It is capable of space cooling, space heating, cooling energy storage/defrosting, water heating/heating energy storage with outdoor air source or indoor air source, and cooling/heating energy free discharge. The laboratory studies and breadboard unit are presented. Additionally, building energy simulation demonstrates utility cost reduction potential via charging PCM panels/ceilings during off-peak hours and releasing the energy during peak hours to mitigate the peak power consumption.

Shen, Bo↗
DOE OSTI2024

Assessing the impacts of air-sealing on the sizing, operation, and economic feasibility of ground-source heat pumps for electrifying single-family houses in the US

According to recent studies and reports, in single-family houses (SFHs), air-sealing can significantly lower the thermal loads for space heating and cooling. Thus, air-sealing in SFHs could reduce the required size and cost of ground source heat pump (GSHP) systems for electrifying SFHs. Here, this study investigated the costs and benefits of integrating air-sealing with GSHPs for retrofitting existing SFHs when compared with air-source heat pumps. A whole building energy simulation tool integrated with an advanced design tool for modeling ground heat exchangers was used to calculate changes in required GSHP capacity, total borehole length, and building energy consumption with and without air-sealing in SFHs in 16 US climatic regions. The results from this study showed that reducing outdoor air infiltration from 0.8 air changes per hour (ACH) to the minimum ventilation requirement (0.35 ACH) can significantly reduce borehole length (up to 55 %), GSHP capacity (up to 48 %), and total heating electricity reduction, especially in cold climates (up to 44 %). The results also showed that for airtight homes (0.03 ACH infiltration) with a direct outdoor air system, the minimum required borehole length, GSHP capacity, and total heating electricity consumption can be reduced up to 70 %, 68 %, and 67 %, respectively, when compared with SFHs with 0.8 ACH infiltration. Moreover, the life cycle cost analysis showed that air-sealing in conjunction with a GSHP is more profitable than replacing the existing system with an air-source heat pump, even without any incentives for most climatic regions in the US (except for some hot regions).

15 GEOTHERMAL ENERGY↗
DOE OSTI2026

From models to reality: a systematic review on simulated and measured residential heat pump energy savings

High-performance HVAC solutions are central to residential energy management. A substantial share of these are electric, reversible-cycle systems, with heat pumps representing the largest portion of current and near-term adoption. This review synthesizes peer-reviewed and grey literature on residential space heating and cooling heat pumps. The academic literature is dominated by modeling (73.8%), with limited field measurement (13.1%). Grey literature from United States serve as a supplemental resource providing measured savings. Conversions from electric-resistance heating consistently show the largest site energy reductions, while oil/propane baselines yield moderate savings, and gas baseline scenario often deliver small and region-dependent savings. This study cross-checks the grey literature measured data with simulation data filtered from the ResStock dataset. The comparison indicates a discrepancy between simulations and measured data: simulated site EUIs are typically lower than measured EUIs, but percentage energy savings fall in similar ranges, implying simulations capture directional effects while underestimating energy use. Factors associated with variability and model–measurement differences include system characterization and control representation (e.g., backup heat engagement, thermostat/setpoint strategies, commissioning/installation quality), occupant behavior, weather normalization, metering scope, and envelope characterization. This paper also outlines the proposed methodology for comparing simulation and measured data for heat pumps. It emphasizes the metrics used for comparison and units harmonization, building characteristics matching, and compact metadata are needed for simulations to match measured data. The proposed methodology is expected to improve the credibility of simulated savings as measured evidence grows.

Yu, Lili↗
DOE OSTI2024

Overview of Building Electrification Technologies and Market Opportunities

This report provides an overview of building electrification drivers and select building electrification technologies and their markets and performance. Covered topics: Building Electrification Drivers and Context; Heat Pumps for Space Conditioning; Heat Pump Market Opportunities; Life Cycle GHG Emissions Impacts of Heat Pump Space Conditioning Technologies; Heat Pump Water Heaters; Electrification of Gas Loads: Commercial and Residential; Residential Panel Capacity; Electric Vehicle Impacts and Connections to Buildings; and Building Envelope Improvements and Thermal Energy Storage (TES) Opportunities.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2024

Simulation & Analysis of the Hydronic Shell Retrofit System as a Solution for Deep Energy Retrofits and Electrification of Large Multifamily Housing Communities in Cold Climate

According to the 2020 residential energy consumption survey, there are 32 million multi-family buildings in the United States, and approximately 42% of these have poor or no insulation (US EIA 2020). Electrification of buildings with heat pump is one of the key strategies to achieve the goal of 90% reduction of greenhouse gas emissions in buildings by 2050 (U.S. Department of Energy 2024a). Building electrification will also enable greater penetration of variable renewable energy sources. However, replacing the natural gas dominated heating system by electrical appliance will increase the electrical load in heating dominated climate. It is crucial to well-insulate the building envelope to mitigate the stress in the grid from electrification. The hydronic shell (HS) system discussed next can achieve dual objective of envelope retrofit with space heating system electrification.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2024

A Preliminary Investigation on the Performance of a Dual-Source Heat Pump using both the Air and the Ground

Air source heat pumps (ASHPs) and ground source heat pumps (GSHPs) are the two most common types of electric-driven heat pumps in the marketplace to replace fossil fuel-based heating systems. However, the performance and efficiency of ASHPs depend on the ambient air conditions. Therefore, ASHPs usually are equipped with electric resistance heaters to provide supplemental heating when the ambient temperature is low, and the heating demand is high. The electric resistance heaters could result in high power draws when they are turned on. On the other hand, due to the relatively steady temperature of the ground, GSHPs are more energy efficient than ASHPs when providing space heating and cooling to the buildings. However, the adoption of GSHP is hindered by its high initial cost, mostly due to the cost of drilling boreholes for installing ground heat exchangers (GHE). To solve the above issues, our study investigates the performance of dual-source heat pumps (DSHPs) with respect to that of ASHPs and GSHPs. The DSHP will use ambient air when its temperature is favorable for the efficient operation of the heat pump. When the ambient temperature is too hot or too cold, the ground source will be utilized to retain the high-efficiency operation of the heat pump. Because the cumulative thermal load of the GHE is shared with the ambient air, the size of the GHE could be smaller than those of the conventional GSHPs. The study will model the DSHP and simulate its performance in providing heating and cooling for a typical single-family house in regions with hot, mild, or cold climates. In addition, the required GHE size of the DSHP system will be determined through annual simulations and compared with that of conventional GSHPs.

Anees, Fady↗
DOE OSTI2025

Validation of a Co-Optimized, Smart Hybrid Heat Pump Control

This study examines a residential dual fuel (DF) heating system that integrates heat pump and gas furnace technology with a home’s forced-air distribution ducts. Specifically, it explores a retrofit where an “add-on” heat pump replaces the air conditioning (A/C) system and is combined with the home’s existing furnace and air handler. The research team developed and validated an innovative control scheme for this integrated DF system that selected the more economical heating source (furnace or heat pump) while maintaining comfort in the home. The project’s field study and subsequent modeling analysis show that this control scheme can decrease energy use, cost, and emissions compared to a furnace-only system. As homes in mixed and cold climates transition to more electric space heating, furnace-to-dual fuel system retrofits offer a solution that can alleviate the retrofit costs, energy cost concerns, and peak load impacts of full electrification.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2024

Design And Control of Thermal Storage for Ventilative Cooling in Multifamily Buildings (Final Report)

The concept of natural ventilation is to provide a heat sink for cooling the building during the occupancy periods at night and improve indoor thermal comfort during the daytime without or with minimal need for mechanical cooling. Commonly, natural ventilation through the window or mechanical circulation of the air through the ventilation ducts are two key methods used to achieve night ventilation. Due to the increasing electric need for space heating and cooling, renewable energies combined with energy storage systems are receiving attention worldwide nowadays. When designed and controlled properly, this strategy can reduce energy use for cooling, reduce the size of mechanical cooling equipment, reduce peak electrical demand for cooling, and better enable demand flexibility for mechanical cooling equipment. In some cases, ventilative cooling can eliminate the need for mechanical cooling altogether. For these reasons, California’s Building Energy Efficiency Standards have recently added prescriptive requirements that all new single-family residences (in most California climates) must include ventilative cooling systems (aka: “whole house fans”). However, the current standards do not address multifamily buildings because market-available ventilative cooling products are designed for single-family residences and are physically incompatible with many multifamily building archetypes. The results from the study show that the combination of thermal energy storage on building walls along with nighttime ventilation cooling assisted with nighttime ventilation can save total building energy usage by up to 9% and peak load by 16% in moderate climate zones. The controlled nighttime ventilation cooling (activate ventilation only when outdoor conditions are favorable) can also provide total electricity savings of up to 5% and 7% in hot and cold climates, respectively. In the case of moderate climates, kitchen exhaust-assisted nighttime ventilation cooling can eliminate the need for cooling during overnight hours. This can also significantly assist in reducing carbon emissions.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2026

Geothermal-integrated thermally anisotropic building envelope for energy and peak-demand reduction

Buildings consume large amounts of energy for heating and cooling, while peak electricity demand places significant stress on the power grid. This paper presents a reduced-order co-simulation framework and load-oriented supervisory control strategy for a geothermal-integrated thermally anisotropic building envelope with a ground loop (TABE+GL). In TABE+GL, a hydronic loop embedded in the building envelope is directly coupled with a geothermal ground loop, allowing for bidirectional heat exchange between the envelope, the ground, and the indoor environment. A hybrid co-simulation framework was established by coupling a reduced-order resistor–capacitor (RC) thermal network model with EnergyPlus augmented with GHEDesigner modules. The RC model generated feasible heat flux options under three operating modes, and EnergyPlus predicted sensible loads, energy use, and pump energy demand. At each simulation step, a supervisory control algorithm selected the optimal loop configuration and duty factor that maximizes useful TABE geothermal utilization without exceeding the predicted sensible load, thereby avoiding overheating or cooling. Case studies were conducted for Los Angeles, California, Charleston, South Carolina, and Denver, Colorado. Results showed that the proposed framework reduced HVAC electricity consumption by 43%–67%, natural gas use for space heating by 11%–38%, and peak electricity demand by 43%–88%. These results highlight the potential of combining reduced-order envelope modeling, direct geothermal coupling, and load-oriented supervisory control to improve whole building energy performance and reduce peak demand across diverse weather conditions.

Howard, Daniel [Southern Adventist University]↗
DOE OSTI2025

The Interplay Between Climate and Urban Expansion on Building Energy Demand in Morocco

Understanding building energy demand is critical for addressing climate uncertainty challenges and ensuring sustainable urban growth. This study develops a building energy demand (BED) model to explore how climate variation and urban expansion affect residential and commercial space heating and cooling demands in Morocco for three scenarios, namely, 2005, 2018, and 2018 + 1.5 °C. The results show that coastal cities have lower heating and cooling needs due to the oceanic influence, while interior cities require significantly higher heating demand per-unit-floorspace. Between 2005 and 2018, urban growth increased total heating and cooling demand by 218.8 GWh, particularly in northern and coastal regions, despite per-unit-floorspace reductions in milder climates and improved building efficiency in 2018. Residential heating remains the dominant energy use, though commercial demand is significant in urban centers. Under the 2018 + 1.5 °C hypothetical scenario, heating demand across Morocco declines by 335.8 GWh compared to 2018, with urban areas amplifying this trend. Meanwhile, cooling demand increases slightly by 44.4 GWh, with major cities experiencing relative increases of up to 50%. These findings highlight a trade-off where reduced winter heating needs are partly offset by increased summer cooling demands in densely urbanized areas. In conclusion, the study identifies key urban hotspots for targeted interventions, emphasizing the need for energy-efficient building designs, climate-adaptive urban planning, and resilient energy management strategies to sustainably address shifting seasonal energy patterns.

Morocco↗
DOE OSTI2025

Experimental study of a tri-functional propane hydronic heat pump

This study investigates the performance of a propane hydronic heat pump system for space cooling, heating, and water heating applications, focusing on various operational conditions, with a total refrigerant charge below 1200 g. Cooling performance was evaluated at different outdoor temperatures, compressor stages (capacity levels), and water flow rates. The results showed that the coefficient of performance (COP) for cooling was higher at lower outdoor temperatures, with peak values exceeding 5.0 under low-stage operation and lower water flow rate. The cooling capacity increased with higher flow rates and compressor stages, reaching 12 kW. Space heating performance, evaluated at ambient temperatures ranging from −8.3 °C to 16.7 °C, revealed a decrease in COP with lower temperatures. However, high-stage operation maintained higher heating capacities even at low temperatures. The system demonstrated high Heating Seasonal Performance Factors (HSPF), exceeding 10.0. For water heating, the COP decreased with lower ambient temperatures and higher supply water temperatures. The system efficiently heated an 189-L water tank, outperforming conventional water heaters, with process COPs exceeding 4.0 under cooling-season conditions. Despite some efficiency loss due to defrosting at low temperatures, the propane heat pump consistently delivered strong performance. Seasonal energy efficiency ratios (SEER) and seasonal heating COP values indicated significant overall efficiency. The study concludes that propane is a promising refrigerant for heat pump systems, with future research needed to future reduce total system charge and optimize system performance through advanced controls and heat exchanger designs.

Hu, Yifeng [ORNL] (ORCID:0000000242875185)↗
DOE OSTI2026

Parametric optimization of PCM-enhanced underground thermal energy storage for buildings in moderate cold climates

This study presents a novel underground thermal energy storage (UTES) system designed for space heating in buildings located in moderate cold climates. The proposed UTES features a borehole with a depth of 25 ft. (7.62 m) and a diameter of 3 ft. (0.91 m), containing two helical pipe loops-one for discharge fluid and another for recharge fluid-and a thermally enhanced phase change material (PCM) layer that provides high energy storage capacity. The system requires daily thermal recharging using a low-grade heat source for a few hours and delivers continuous heating at a nearly constant discharge rate without significant performance degradation over a 24-h period. This study demonstrates that the optimized UTES, when recharged with hot fluid at an inlet temperature of 40 degrees C for 6 h daily, can provide a continuous heat discharge rate of approximately 2.9 kW for 24 h or 3.4 kW if operated under a shorter discharge period of 15 h (17:00-08:00). With a round-trip efficiency of 72-97%, the proposed UTES offers an efficient and reliable solution for short- and long-duration thermal energy storage technology, making it a promising technology for cold climates.

15 GEOTHERMAL ENERGY↗
DOE OSTI2025

High-performance windows improve thermal survivability of occupants during cold snaps

Exposure to low indoor air temperature is a major contributor to temperature-related mortality during extreme cold events, especially when power outages disrupt operation of space heating systems. This study explores the impact of high-performance windows on the thermal resilience of residential buildings during extreme cold weather and grid power outages, as well as their long-term benefits through energy efficiency and reduced risk of property damage. Building performance simulations were conducted for reference residential buildings in three construction vintages and two major U.S. cities located in cold climate zones, considering two types of extreme cold events: short and severe, and long and milder. Our research found that even houses compliant with current energy codes struggle to maintain safe indoor temperatures for more than a few hours during power outages, necessitating rapid evacuations. High-performance windows can extend the thermal survivability time by up to 3.8 days within a 7-day cold snap and significantly reduce risk of bursting frozen water pipes, depending on the building’s insulation and infiltration level, cold event severity, and occupant vulnerability. This extended thermal safety time is crucial in scenarios where reduced mobility complicates emergency responses in senior housing. In addition to boosting thermal resilience, upgrading older homes with high-performance windows can reduce heating energy consumption by over 18% and cooling energy by 15%. Our findings highlight the need to incorporate thermal resilience assessments into new designs or major retrofits, including the use of typical and extreme weather scenarios and advanced technologies like high-performance windows.

Krelling, Amanda F↗
DOE OSTI2024

Grid Planning for Building Electrification: A Report by the Energy Systems Integration Group’s Grid Planning for Building Electrification Task Force

The increased electrification of buildings across the United States is being driven by technical advancements, cost reductions for some building technologies, consumer preferences, and policy goals for decarbonization. However, the effects of this load growth on the electric distribution system are often only a minor consideration in policymaking and long-term planning studies. The long lead time and useful life of power system equipment means that the decisions taken today are expected to support our society well into the 2060s and beyond. Distribution planning stakeholders can take steps today to establish a grid foundation that captures the new challenges presented by building electrification. This report focuses on building electrification for the residential and commercial sectors, focusing most heavily on space heating, as this end use stands to most strongly impact demand.1 Across all end uses, building electrification could require somewhere between 10% and 70% more electricity generation capacity than exists today depending on technology adoption and energy efficiency.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2025

Highly Resolved Reference Projections of Building Energy Use for the Contiguous United States: Building Sector Energy Baselines, Projection Methods, and Results

This report describes one methodology of projecting energy consumption of the US residential and commercial building sectors using NREL's ResStock™ and ComStock™ as well as growth rates derived from EIA's Annual Energy Outlook (AEO). The impetus for this work is to provide an intermediate method for compiling demand-side sectoral energy projections that is suitable for grid-scale analysis, such as NREL's Standard Scenarios. ResStock and ComStock are physics-based and statistically representative building stock models of the US residential and commercial sector, respectively. Using the 2012 actual meteorological year (AMY) weather data, the sectoral energy baselines are simulated and then segmented along key dimensions (e.g., geography, dwelling/building type). The segmented results are then scaled using the corresponding annual growth rates derived from the 2021 AEO reference case to produce energy projections out to 2050. The compiled result is a demand-side grid model (dsgrid) data set suitable for use in NREL's large-scale grid models, such as the Regional Energy Deployment System (ReEDS). This simple projection method does not endogenously represent how the building stock could evolve through time. Most notably, it does not reflect large-scale electrification, for example, the conversion of space heating, water heating, clothes drying, and cooking from primary fossil fuels to electricity, as this is not part of AEO's reference case assumptions. Nonetheless this approach is more resolved and potentially extensible compared to the current method used by Standard Scenarios's reference case, which augments a sector's total load based on a single growth rate from AEO.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2025

Experimental Characterization of High-Surface Area Thermal Energy Storage

There is growing interest in energy storage technologies due to the expansion of renewable energy sources that are inherently intermittent and the increasing frequency of extreme weather events that disturb the power grid. Power consumption in buildings makes up approximately 76% of all electricity usage on the grid and is primarily used for thermal applications such as space conditioning, hot water, and cooking. This makes thermal energy storage (TES) an ideal solution for many of these applications. Many TES technologies rely on latent energy storage, which utilizes the melting/solidification of phase change materials (PCM) to store energy. Typically, TES designs suffer from low power density due to their low inherent thermal conductivity. This limitation makes the deployment of TES in active applications difficult as the ease of access to energy is essential for effective use. Common routes for improving power density include high thermal conductivity additives or extended features such as fins that increase cost. This study presents an alternative approach to improving performance through increasing the overall surface area to volume ratio of the device, to increase the available area for convection to occur between the working fluid and PCM. In the study a commercial PCM was selected with a transition temperature ideal for space heating applications. The heat exchanger design utilizes a unique application of triply periodic minimal surfaces (TPMS) for macro-encapsulation of the PCM. The use of TPMS for heat exchangers has been growing in interest due to their high-surface area to volume ratios, which were previously unmanufacturable until the development of additive manufacturing. A modular system was designed and manufactured with a stereolithography resin printing system that is then backfilled with PCM. An experiment test set-up is designed to test the charge and discharge performance of the thermal storage using a conditioned air stream. The pressure drop of the design is tested across a variety of flow rates. When compared to existing experimental data within literature, there is excellent agreement based on the Reynolds number at similar hydraulic diameters. Several inlet temperatures are tested at consistent temperature differences from the phase change temperature for both charging and discharging. Additionally, the volumetric flow rate is varied for each temperature set point. It was found that increasing flow rate had diminishing returns in reducing the overall charge time of the TES. The temperature delta from the melting temperature was the primary contributor to the change in average heat flux with limited variation in average heat transfer rate between charging and discharging at similar inlet temperatures and flow rates. The TPMS heat exchanger design has a high air-side pressure drop but it provides high heat transfer rates. This helps maintain a high outlet temperature during discharge, which is important to thermal comfort applications. The design, manufacturing, and experimental characterization of the TES device will be presented as part of this study.

25 ENERGY STORAGE↗
DOE OSTI2026

California Price Response Potential Study

California's energy landscape is undergoing a significant transformation, driven by the increasing integration of renewable energy sources, the increased adoption of distributed energy resources, the electrification of end-use loads, and the growing need for grid efficiency. To address these challenges, recent revisions to the State’s Load Management Standards (LMS) require all of California’s large utilities and community choice aggregators (CCAs) to offer dynamic electricity pricing options to customers by 2027. Dynamic pricing, which involves varying electricity rates based on real-time supply and demand conditions, offers a promising solution for optimizing grid operations, reducing costs, and incentivizing efficient use of grid capacity. Effective implementation of dynamic pricing requires understanding the potential impacts on customer bills, system load, and the cost-effectiveness of automation technologies. This study aims to evaluate the load response of various end-use devices to hourly dynamic prices. The end-uses studied here are space cooling, space heating, water heating, crop irrigation, pool and spa pumps, and electric vehicle (EV) charging, all for both residential and commercial applications, except for crop irrigation. In 2030, these end uses are forecasted to account for 18% of annual electricity demand in the state, but 40% of demand in the peak net load hour. By modeling possible price-responsive load dispatch algorithms and assessing the resulting impacts on both individual bills and the overall grid, we seek to inform policymakers and utilities about the potential benefits and challenges associated with dynamic pricing, and considerations for the design of dynamic pricing tariffs. Additionally, we will explore the cost effectiveness of adopting automation technologies to enable devices to respond more effectively to real-time price signals. This study considers a range of price profiles, accounting for differences across utilities and customer classes, and presents scenarios for dynamic price design via variation in the percentage of total customer electric costs that are allocated dynamically (versus constituting a fixed portion of the hourly volumetric price). We present results focused primarily on 2030, forecasting electricity prices under both low and high-cost scenarios, to inform longer-term tariff design considerations. We design tariffs by starting with 2019 prices that were calculated according to CalFUSE guidance (CPUC, 2022) and that have been used in recent studies; these prices are all-in volumetric rates that vary by utility and are revenue-neutral to each customer class. They are developed by considering six electricity cost components that are allocated hourly based on system load indicators (gross and net load, and wholesale prices). These prices are forecasted to 2030 for low and high cost scenarios, considering recent trends in total electricity costs with and without years of substantial wildfire mitigation investments. These tariffs, which allocate all costs on an hourly basis, are considered our “Full” dynamic tariff design scenario, while two additional scenarios explore allocating a portion of costs as a flat volumetric charge: the “Medium” scenario allocates 50% of revenue dynamically (and keeps 50% flat), while the “Mild” scenario allocates 20% of revenue dynamically. The 20% dynamic allocation on the Mild scenario aims to represent a case where only the marginal operating costs of the grid are included in the dynamic price.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗