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Development of Energy Storage: Cost models

Energy storage technologies offer a promising solution to electric grid stability issues associated with the integration of variable renewable generators. The capability to match the electrical power output to instantaneous fluctuations in grid demand is crucial to ensure continuity of service. Including energy storage capability in an integrated energy system (IES) can provide the flexibility needed to meet variable electric demand and reduce the load following demands place on the reactor. In this report, economic data collected for energy storage (ES) technologies are described to support the objective of assessing the profitability of ES integration within the IES framework. In particular, there is a growing interest in thermal energy storage (TES) given its unique capability for long-duration storage for improving electricity reliability at a low levelized cost. It is common practice to evaluate the total lifetime cost and profitability before commercializing new technologies. In this report we identify and examine the models needed to better understand the economics of thermal energy storage. We extend the TES cost model in RAVEN in the context of a balance of plant (BOP) that incorporates thermal storage. To focus the discussion, following a general overview of the most promising TES technologies, we consider a use case that involves a sensible heat, two-tank, molten-salt system. Structural and operational details are reported to identify the source of construction capital expenditure and operation and maintenance cost. A detailed description of the different cost items is provided as well as the cost scaling with different storage capacity and power ratings for capacity optimization purpose. In addition, the capital expenditure and the recurring cost of representative two-tank, molten salt coupled with concentrated solar plants are provided for readers’ reference. The ES use case is noteworthy as it is in the pilot stage of commercialization. We identify those areas that would benefit from an increased economic focus to obtain a more complete compilation of cost data. We also describe the thermal coupling issues that arise from integration of the two-tank molten salt thermal energy storage system with a BOP, which is the subject of our current research. Some components of costs will need to be evaluated through dedicated technoeconomic analysis in future modeling activities using modeling procedures proposed in this report. With the data presented and the procedures described in this report, sufficiently accurate models can be implemented for the solution of both the power dispatch and the capacity expansion problems within the RAVEN-based HYBRID framework.

25 ENERGY STORAGE↗

Thermal Energy Storage Model Development within the Integrated Energy Systems Hybrid Repository

This publication details newly created energy storage models developed within the HYBRID Modelica repository as part of the Department of Energy Office of Nuclear Energy (DOE-NE) Integrated Energy Systems (IES) program, led by Idaho National Laboratory (INL). Model development to-date includes creation of dynamic systems-level models of concrete, latent heat, and packed-bed thermocline energy storage technologies for deployment in the IES-based HYBRID repository. Models are developed using the latest publicly available data and incorporate the possibility of control strategy inclusion for use with the existing IES modeling, analysis, and optimization toolset. Simulations showcase the abilities of each technology to cyclically charge and discharge when exposed to time-varying boundary conditions. In addition, low-level surrogate models for some of the thermal energy storage technologies were created using Python. These lower order Python files are much cheaper to run (i.e., computationally faster) and thus operate well when incorporated within the stochastic optimization problems run for the IES program. Moreover, economic data was collected for use within the INL-developed Framework for Optimization of ResourCes and Economics (FORCE). This information is incorporated within the FORCE platform. This work has resulted in creation of systems-level models for concrete, latent heat, and thermocline thermal energy storage systems with associated control systems. Now that these models are available, they can be utilized within different integrated energy park concepts to understand optimal system operation, control, and dispatching. Moreover, given the generic nature of the models, industrial partner technologies (e.g., Storworks Power, EnergyNest) can be quickly added to the repository using the existing models as a basis. Additional dynamic models for thermal energy storage concepts can be developed and added to the HYBRID repository as needed.

25 ENERGY STORAGE↗

Regional Energy Deployment System (ReEDS) Model Documentation (Version 2020)

The Regional Energy Deployment System (ReEDS) model is a capacity expansion and dispatch model that is primarily used for the contiguous U.S. electric power sector. The model relies on system-wide least cost optimization to estimate the type and location of future generation and transmission capacity. This document describes details of how the model is formulated, how it functions, and many of the key inputs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Modeling Methods for Capturing System Interactions of Combined Technologies: A Study of PV + Battery

The costs of solar photovoltaics (PV) have been dropping in recent years, leading to increasing installations of solar PV systems and growing interest in how the technology will impact the electric grid at higher penetrations. Additionally, as battery costs decline it becomes important to understand the benefits and limitations of battery storage for the grid as well as potential benefits of co-locating battery storage and PV, particularly within the realm of future system planning. However, it is non-trivial to capture these potential benefits within a linearized capacity expansion model (CEM). This paper presents methodological developments to more fully represent the value and limitations of coupled PV and battery systems (PV + Battery) in CEMs using the Resource Planning Model (RPM), which co-optimizes capacity investments, transmission investments, and reduced-order dispatch in the Western Interconnection of North America through 2045. We use the model to simulate the evolution of the generation and transmission system under two core scenarios - a baseline scenario and a high renewable penetration scenario - coupled with sensitivities assuming low and midline PV and battery cost projections. When incorporating PV + battery, we find that it is important for CEMs to capture the ability of the coupled technology to provide firm capacity and reduce expected curtailment, compared to independent systems. These interactions can have even more dramatic impacts at higher solar penetrations.

14 SOLAR ENERGY↗

2021 Summer Resource Adequacy in the ERCOT Region

This report is an update to the NETL report on the same topic that examined the potential system performance of the Electric Reliability Council of Texas (ERCOT) system during the summer of 2020. Anticipated reserve margins in ERCOT have risen year-over-year from the 10.7 percent reported in ERCOT’s Final Seasonal Assessment of Resource Adequacy (SARA) for Summer 2020 to 15.7 percent for Summer 2021 in ERCOT’s Capacity, Demand and Reserves [CDR] report published in December 2020 and 2021 Summer Preliminary SARA published in March 2021. Using data from ERCOT’s 2021 Summer SARA, CDR, and historical performance data, six economic dispatch scenarios using PROMOD were developed to assess the risk to ERCOT of a load shedding event for Summer 2021. The results suggest that ERCOT could make it through the summer season without a loss of load event, as long as the weather remains normal. However, through a combination of scenarios, including increased demand, increased forced outages, and low wind output, ERCOT is likely to find itself operating in emergency conditions.

24 POWER TRANSMISSION AND DISTRIBUTION↗

CSP Gen3: Liquid-Phase Pathway to SunShot

The United States Department of Energy (DOE) established the Concentrating Solar Power Generation 3 (CSP Gen3) program to promote the development of advanced CSP systems capable of producing electricity at a levelized cost of energy (LCOE) less than $60/MWh, based on criteria published in the CSP Gen3 Roadmap and a subsequent funding opportunity announcement (Gen3 FOA). This report documents the progress and potential of the “Liquid Pathway” to meet these objectives. The Liquid Pathway proposes the use of low-cost molten chloride salts for energy storage, mated with an operationally flexible solar receiver that employs liquid-metal sodium for heat capture and transfer to the storage salt. This approach leverages molten-salt technology from the current state-of-the-art CSP power towers embodied by plants such as Gemasolar, Crescent Dunes, Noor III, and the DEWA 700 CSP project. Furthermore, the design builds on the knowledge gained over decades of use of liquid-metal sodium as a high-temperature heat transfer fluid (HTF) in solar tests and nuclear-power applications. The commercial representation of the proposed Gen3 design incorporates a high-efficiency sodium receiver operating at ~740°C, with a liquid-liquid heat exchanger feeding a two-tank, molten-chloride salt storage system. Chloride salt is dispatched to a supercritical CO 2 (sCO 2 ) power cycle to provide electric power to the grid. The design integration is a conceptual match for the current sodium receiver → solar salt storage → steam-Rankine power cycle promoted by developer Vast Solar, which may facilitate commercial acceptance and development.

14 SOLAR ENERGY↗

Microgrid Fast Charging Station (MFCS) Design Platform Project (Summary Report)

This report documents the important steps and outcomes of the Microgrid Fast Charging Station (MFCS) Design Platform project, executed by XENDEE Corporation and its testing and validation by Idaho National Laboratory (INL). This final summary report builds on the first summary released on April 30th, 2021 and adds the final results from the Hardware in the Loop (HIL) simulations and tests, which have been completed July 14th 2021. With this report XENDEE Corporation and Idaho National Laboratory conclude the first version of the Microgrid Fast Charging Station (MFCS) Design Platform as well as all related tests and validations for two in-depth case studies for islanded and non-islanded operation. The platform itself utilizes XENDEE’s advanced modeling systems and INL’s HIL system to ensure project viability and technical feasibility. It also intelligently maps all cables, transformers, and distributed technology interactions to anticipate and mitigate problems during peak usage or adverse conditions. Finally, the system is designed to optimize dispatch and generation at each time step of the day allowing the Microgrid to take advantage of energy sales to the utility and best manage the charging of an electrical fleet. This allows operators to reliably build bankable Microgrid systems and to operate them to reach the maximum efficiency even under the dynamic needs of electric vehicle fast charging

24 POWER TRANSMISSION AND DISTRIBUTION↗

Converter-Interfaced CHP Plant for Improved Grid-Integration, Flexibility and Resiliency

GE Research and its partner GE Renewables have proposed the use of an interface converter solution to increase the penetration of small to medium-sized CHP (1MWe to 20MWe) into distribution grids and improve their flexibility and grid support capability. Indeed, the proposed interface converter solution thanks to presence of the grid-ready inverter, allows to streamline the compliance to grid codes requirements, reduce the interconnection delays and costs and ultimately one of the main barriers for CHP adoption by commercial and industrial facilities. An additional benefit provided by the interface converter is the use of the grid-ready inverter for reactive power which eliminates the need of sizing the generator for that capability. These two benefits highly favor the economic feasibility of converter-interfaced CHP. Five user cases, each in one of the leading U.S states for CHP potential reported by the DOE in its estimation of the U.S Technical Potential of CHP, were selected to compare the economic performances of converter-interfaced CHP as compared with directly-coupled. They include a college campus in California, a hospital in New York, a water reclamation plant in Texas, a hotel in Minnesota, and a large office building in Pennsylvania. Results showed that, the presence of the interface converter allows to increase the return on investment (ROI) by 0.5 to 2 percentage points in most of the cases (4 of 5). Indeed, the interface converter by shortening the interconnection process allows to accelerate revenues while reducing interconnection costs. Added to the reduced cost of the required generator these savings trade favorably the capital cost of the converter. The analysis also showed that the profitability of the converter-interfaced CHP is highly sensitive to the energy price, interconnection delay, and converter cost. However, it appears that if the interface converter can shorten the interconnection process by at least 6 months, adopting this solution will be more economically viable than directly-coupled configuration in almost all the +23,000 sites of the U.S Technical Potential CHP. The evaluation of the benefits of a converter-interfaced CHP also showed that it enables higher ROI when coupled with other distributed energy resources (DER) such as battery energy systems (BESS) or solar photovoltaic (PV). Indeed, in those scenario, the grid-ready inverter included in the interface converter eliminates the need of separate inverters if DC-coupling is used. On the technical performance, it has been verified that the presence of the interface converter allows to reduce by 70% to 80% the CHP short-circuit contribution to grid faults. This not only reduces the mechanical and thermal stresses exposed to the CHP electrical components but also increases the grid hosting capacity which ultimately enables higher penetrations CHP. Another key benefit of the interface converter validated with hardware-in-the-loop simulations and testing is its superior capability for reactive power support. Indeed, using a power hardware testbed with two +700kW inverters configured in back-to-back, a microgrid controller and actual facilities loads it was demonstrated that the presence of the interface converter can help maintain a power factor near ~1 or regulate the voltage to ~1.0pu at the point of common coupling. This benefit can be highly valuable if in the future, due to higher penetration of renewable distributed energy resources (DER), utilities start billing demand charge based on kVA instead of kW as currently. It was also validated that converter-interfaced CHP can dispatch heat and power commands and seamlessly switch between the two modes while consistently controlling the power factor or voltage at PCC. Indeed, the power hardware testing showed that grid-connected converter-interfaced CHP can follow either the power or heat demand while maintaining a unity power factor at converter output. This research proved that the adoption of an interface converter as the solution for interconnection of CHP system into the distribution grid can greatly improve the economic feasibility of small to medium-sized CHP as well as the plant power quality, flexibility and resiliency. Additionally, it allows increased penetrations of CHP into the distribution grid, extends their grid support capability, and facilitates the integration of BESS and PV DER by streamlining their collocation within the same facilities. This ultimately provides an opportunity for commercial and small industrial facilities in the U.S to accelerate their energy transition thanks to the high energy efficiency of CHP systems and its reliable, flexible, and resilient microgrid operation when interconnected with an interface converter.

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Variable Renewable Energy Participation in U.S. Ancillary Services Markets: Economic Evaluation and Key Issues

Variable renewable energy (VRE) is not yet meaningfully participating in U.S. ancillary services (AS) markets. VRE participation in AS markets could provide a new source of revenues for VRE resource owners to offset declining energy and capacity values and a new tool for power system operators to address emerging system constraints. This paper uses a price-taker dispatch model and historical prices to estimate the economic value of standalone and hybrid (battery-paired) VRE participation in AS markets, from resource owner and electricity system perspectives, in each of the seven U.S. independent system operator and regional transmission organization (ISO/RTO) markets. Across ISO/RTO markets, average (2015-2019) simulated incremental revenues from regulation market participation were $\$$0.0-2.9/MWh (+0-15% of revenue without participation) for standalone VRE owners and $\$$1-33/MWh (+1-69%) for hybrid VRE owners. However, ISO/RTO reserve markets are relatively thin and have the potential to become saturated by energy storage projects that are currently in ISO/RTO interconnection queues. In most markets, standalone and hybrid VRE were able to provide regulation reserves during periods with high regulation prices, suggesting that VRE participation in AS markets could have high system value. The analysis highlights the value of separate upward and downward regulation products and suggests that ISOs/RTOs might consider initially focusing on enabling hybrid VRE provision of AS.

14 SOLAR ENERGY↗

Net-Zero Carbon Microgrids

The microgrid concept has been effective in creating aggregations of distributed energy resources—generation, storage and loads—for resiliency, in the form of energy security. The success of microgrids in bringing energy security to a wide range of customers—from individual residences to commercial and industrial installations to military bases—has been exemplified during power disruptions and extended outages due to extreme weather events, cybersecurity attacks, and equipment failures. Now microgrids have an opportunity to meet the challenges of climate change and contribute to a carbon-free power delivery system. The transition to net-zero starts within microgrids themselves. In fact, today’s microgrids are largely dominated by generators using fossil fuels, natural gas and diesel, with high greenhouse gas emissions. In short, the transition to net-zero means replacing fossil fueled generators with renewable generation in microgrids. This transition is extended by including new dispatchable generation technologies that are 100% carbon-free and that offer additional advantage of a more-dependable and sustainable source of energy and power. Basically, the decarbonization of microgrids requires three elements: 1) maximizing generation from renewable energy resources, 2) management of storage and flexible loads to balance the variability and intermittency of renewable energy resources, and 3) introducing new clean power sources, including hydrogen-based generation and small modular reactors. This report affirms a need for specific focus by governmental agencies at national, regional, and local levels to establish technology, policy, and investment in this area. The intention of the Net-Zero Microgrid (NZM) Program is to inform these constituencies with cross-cutting research and tools for the reduction of GHG in microgrids – to net-zero in the near term eventually to zero in the longer term. The NZM Program is committed to achieving decarbonization for resiliency and for providing clean energy at the local or distribution level, from remote communities to underserved communities, and large industrial and military facilities. The NZM Planning and Design Platform is a core tool to be developed as an early deliverable of the NZM Program because only a fully integrated microgrid-design approach will ensure maximum carbon reduction in energy production.

13 HYDRO ENERGY↗

Modeling and Optimizing Pumped Storage in a Multi-stage Large Scale Electricity Market under Portfolio Evolution

To leverage the fast-ramping capability of resources to provide great value to the grid, electricity system operators such as the Midcontinent Independent System Operator (MISO) continue to evolve their approaches for integrating energy storage resources, including pumpedstorage hydro (PSH), into the electricity markets. However, new challenges arise in modeling and optimizing these energy-limited resources across multiple market clearing processes and planning studies with uncertainties and imperfect information. For instance, current market practices of PSH owners specifying pumping/generating hours can result in sub-optimal generation dispatch. Letting grid operators optimize PSH with the consideration of multiple operating modes and energy limitation constraints can potentially bring economic benefits to both the system and the PSH owners. However, in multi-stage clearing process of electricity markets, utilizing the PSH flexibility to deal with realized uncertainties can cause deviation in the multi-stage scheduling processes. The resulting financial risks from the schedule deviation may not be acceptable to PSH owners. In addition, to effectively utilize this energy limited resource, the state of charge (SOC) constraints of PSH needs to be continuously optimized and the marginal cost of deviation need to reflect the expected cost to purchase or sell energy at future times to compensate for deviations. This project aims to develop a prototype enhanced PSH model and improved price signals in the multi-stage market clearing process with proper consideration of the unique characteristics of PSH, in order to better align underlying PSH capabilities with evolving grid needs, particularly including the needs for more frequent and larger cycling to manage variability and uncertainty from renewables.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Opportunities and Challenges to Capturing Distributed Battery Value via Retail Utility Rates and Programs

Distributed battery deployment is increasing with advanced metering, control, and communication technologies, leaving electric utilities with an under-utilized, flexible grid resource in aggregate. Rates can reflect locational and temporal prices while utility incentive-based programs allow DERs to provide direct grid services. However, utilities must balance accurately reflecting dynamic grid conditions versus simple and feasible design that encourages customer participation. Currently, most rates and incentive-based programs are simple, but as penetration of DER and advanced controls increase, dynamic designs could become prevalent. Utilities could encourage providing multiple services to optimize distributed battery dispatch and value streams, however, challenges persist when stacking services across distribution and bulk systems. A DER committed to multiple discrete services concurrently necessitates coordination between operators and a clear hierarchy of commitments. One way to address this is to separate commitments by time or capacity. For services that follow cyclic, predictable patterns, or those that are peak driven with predictability, an operator could ensure sufficient state of charge for participation, leaving time where a distributed battery could otherwise provide different services by segmenting participation temporally. To provide continuous or unexpected services, a battery operator may use state of charge management to reserve some percentage of the battery and segment participation by capacity. Macroeconomic trends, load patterns, generation profiles, and grid configurations drive variation in value and the subsequent implications for utility offerings and how a customer might participate. As distributed battery adoption increases, both regulators and utilities will need to ensure no adverse grid impacts and encourage provision of societal value beyond the customer domain.

24 POWER TRANSMISSION AND DISTRIBUTION↗

A Short-Term Solar Forecasting Platform Using a Physics-Based Smart Persistence Model and Data Imputation Method

Electrical energy plays vital role in our socio-economic activity and therefore ensuring the reliability of the electric grid, from the generation, transmission and distribution level is critical. In order to maintain the power system parameter viz., frequency, voltage, etc., optimally, balancing of generation and consumption is very much essential. However, solar energy is infirm power by nature this is due to cloud cover / other local phenomena. Hence, Photovoltaic (PV) power generation brings a significant challenge to the grid operator due to the variability of the solar energy. The complexity of this challenge in terms of planning and dispatch ability of PV resources, aggravates with the high penetration of solar energy into the electric grid. In this setting, reliable solar radiation forecasting models based on accurate and quality input data become essential. In order to develop a suitable model for predicting solar radiation, quality historical / real time measurement is also needed. Under this study NIWE and NREL jointly developed / tested short-term solar forecasting frameworks using a smart persistence and physics-based smart persistence models for intra-hour forecasting of solar radiation (PSPI) and benchmarked 9 different data imputation techniques in 15 Solar Radiation Resource Assessment (SRRA) stations, located at different parts of India. During any measurement campaign, due to various technical reasons, we may miss few observations. However, the missing observation often reduce the performance of any forecasting model. Therefore, suitable data imputation method would assist us to obtain continuous observation of solar radiation. A station-by-station and method-by-method analysis was carried out to understand the performance of each model. Based on our analysis, among all the data imputation methods, the Kalman data imputation method is better for Indian Weather condition. In addition, Kalman StructTS, Linear, Stine and Arima methods yield slightly inferior accuracy compared to Kalman, but outperform the other methods. The extended solar radiation data are used by solar forecasting models to provide the prediction of solar radiation at 15 SRRA stations. As far as short term forecasting model is concerned, the PSPI model outperforms the Smart Persistence model. However, the forecast error is increases with the forecasting horizon.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Federated Architecture for Secure and Transactive Distributed Energy Resource Management Solutions (FAST-DERMS)

This document provides system-level specifications for a federated architecture for secure and transactive distributed energy resource management solutions (FAST-DERMS), presents a solution, and describes operational concepts for the proposed solution. FAST-DERMS enables the provision of reliable, resilient, and secure transmission and distribution (T&D) grid services through the scalable aggregation and near-real-time management of utility-scale and small-scale distributed energy resources (DERs). We first present the principles and objectives of FAST-DERMS. Then, after discussing important system concepts, we present the specifications for FAST-DERMS and a solution that employs a distributed and federated control methodology in which the DERs connected to a single point of common coupling with the rest of the system, such as individual substations, are optimized coordinately to provide system-level grid services. FAST-DERMS aims to aggregate and coordinate the operations of DERs to support T&D grid operations. The key optimization and control component of this FAST-DERMS reference implementation is a flexible resource scheduler (FRS) that aggregates the DERs within a substation service area. These FRSs operate at the substation level and perform constrained economic dispatch of DERs, either directly or through a transactive market or aggregator, as shown in Figure ES-1. An FRS Coordinator at the distribution system operator (DSO) level aggregates distribution substations operated by FRSs and interfaces with the transmission system operator (TSO) to provide transmission services. FAST-DERMS also allows for the integration of the FRS Coordinator with an existing distribution utility management system that could be employed by the DSO to enhance distribution grid operations.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Wind and Solar Hybrid Power Plants for Energy Resilience

Wind-solar-storage hybrid power plants represent a significant and growing share of new proposed projects in the United States (U.S.). Their uptake is supported by increasing renewable energy market share, technical abilities for dispatch and control, and decreasing wind, solar, and battery storage costs. Simultaneously, generation and storage resources are increasingly used in distributed power systems. While concerns around the reliability of the aging, transforming U.S. electric grid are growing, diversifying energy resources through hybridization or spatial distribution provides an opportunity to enhance power system resilience compared to single-source generation. Understanding where to build hybrids for resilience value, rather than bulk power supply, has not been fully explored in previous studies. Therefore, in this study, we complete a national complementarity analysis to identify areas in the U.S. that are particularly suited for wind-solar hybrid power plant development. We show the importance of seasonal and diurnal patterns in assessing complementarity, and identify that regions in the Great Plains, Midwest, and Southeast are particularly suited for hybrid power plants. We demonstrate the resilience value of hybridization for a reference system based near Memphis, Tennessee, and show optimal sizing of wind, solar, and storage assets given 1.0 and 0.9 critical load factors. Results indicate that pairing wind and solar assets better meet constant load demand and reduce storage requirements compared to solar alone. These results enable future work integrating complementarity metrics in resilience frameworks and indicate a need for more finer resolution of local resource, demand, and hazard data.

14 SOLAR ENERGY↗

DSO+T: Integrated System Simulation (DSO+T Study: Volume 2)

This report summarizes an integrated co-simulation model used by the Distribution System Operator with Transactive (DSO+T) study to represent an electrical generation, delivery, and end-load systems for the purposes of assessing the viability and value proposition of transactive energy coordination of flexible assets versus a business-as-usual case. The integrated co-simulation model includes the bulk generation and transmission system, including the day-ahead and real-time scheduling and dispatch of thermal generators. Forty distribution system operators were modelled in detail, including tens of thousands of residential and commercial buildings and their flexible end-loads. These included HVAC systems, residential water heaters, electric vehicles, and stationary, behind-the-meter, batteries. Both wholesale market and end-load results for the business-as-usual case are presented and compared to actual ERCOT system data to assess the accuracy and representativeness of the resulting model.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Water and Climate Impacts on ERCOT Long-Term Systems Assessment

Water and climate change pose many potential challenges to the electric power system. Substantial water is withdrawn every day to support thermoelectric power generating unit operations, and changes to water supply have the potential to affect generation dispatch. Climate change can accelerate growing demand for electricity, which can necessitate additional generating capacity, often in locations with limited water supply. Drought conditions also threaten thermoelectric power plant operations due to streamflow and reservoir levels dropping below intake structures, or water temperatures exceeding a power plants' permitted operating conditions. Here we explore how future climate change might influence decisions related to electricity capacity expansion planning in Electric Reliability Council of Texas (ERCOT) using a multi-model framework. Specifically, water resource modeling is used to simulate climate impacts on the future water supply for thermoelectric and hydropower generation for four future climate projections. Separately, temperature impacts on electricity load are evaluated for these scenarios. These climate impacts are applied to five alternative electricity futures in an electricity capacity expansion model that projects future generation and transmission capacity additions in ERCOT. Results indicate that climate has a measurable influence on future generation and transmission capacity needs, with temperature-driven increases in peak and average load resulting in 5-15 GW additional generating capacity and up to 1 GW additional transmission capacity. Additional capacity is a diverse mix of PV, natural gas, and wind, depending on the makeup of economic, policy and technology assumptions. Climate impacts increase total system costs 2-5%, while the marginal cost of energy and emissions are not affected substantially by climate change effects.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Transitioning Coal Power Plants to Nuclear Power

Most large U.S. power companies are setting zero-carbon-emission goals and is a reflection of utility commitments to carbon reduction and policies at the Federal and State levels. Increasing the rate of coal power plant (CPP) retirements has been seen across the industry. Previous transitions of coal to gas fuel are becoming less desirable as having zero carbon emissions become ever more import. As CPPs are retired, a reliable and affordable zero-emission power replacement is desired. Nuclear power plants (NPP) is the only existing dispatchable and clean source of energy that can directly replace a CPP. The report covers different factors that affect CPP to NPP projects.

20 FOSSIL-FUELED POWER PLANTS↗