Technoeconomic Studies for the Banner Mountain Energy Storage Project: Valuation Framework Test Case Study
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Balducci, Patrick↗
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Technoeconomic Studies for the Goldendale Energy Storage Project: Valuation Framework Test Case Study
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Balducci, P.↗
Understanding Resilience Valuation for Energy Systems: An Overview of the NREL-NYSERDA Research Collaboration
Energy resilience has become a national priority as Americans experience more power outages attributed to climate change, extreme weather, and cyber events. Energy system owners and operators recognize that they must prepare differently for outages today than they did in the past. Decision makers at all levels face unique challenges and opportunities in effectively and equitably executing a transition to more resilient power systems. The New York State Energy Research and Development Authority (NYSERDA) recently added resilience to its mission statement. The authority engaged with the National Renewable Energy Laboratory (NREL) in a collaborative effort to: 1) understand options for measuring and valuing resilience investment benefits, and 2) inform how resilience could be operationalized across NYSERDA initiatives and program areas.
ENERGY PLANNING, POLICY, AND ECONOMY↗
Valuing wind as a distributed energy resource: A literature review
As more distributed energy resources are deployed on electric grid systems across the world, it is important to identify, characterize, and quantify the value elements of different types of distributed energy resources so that policymakers, developers, and utilities can make informed energy deployment decisions. This paper focuses on the value of wind energy as a distributed energy resource (i.e., “distributed wind”). Because of a lack of distributed wind-specific valuation studies, in this review we document the current state of distributed energy resource valuation, analyze a wide array of distributed energy resource valuation metastudies, and identify several value elements for which we recommend developing more robust and standardized calculation methodologies for their potential inclusion in distributed wind valuation. These value elements are ancillary services and locational, resilience, reliability, and resource diversity benefits. Furthermore, this work lays the foundation for a future comprehensive framework for distributed wind valuation studies.
17 WIND ENERGY↗
Marine Algae Industrialization Consortium (MAGIC): Combining biofuel and high-value bioproducts to meet the RFS
The Marine Algae Industrialization Consortium (MAGIC) was formed to address pressing challenges in the commercialization of microalgae as a source of biofuel. The “Marine Algae Industrialization Consortium (MAGIC): Combining biofuel and high-value bioproducts to meet the RFS” project formally addressed two US Department of Energy Bioenergy Technologies Office (BETO) goals: (1) Model the sustainable supply of 1 million metric tonnes ash free dry weight (AFDW) cultivated algal biomass and (2) Demonstrate valuable co-products produced along with biofuel intermediates to increase value of algal biomass by 30%. To achieve these goals, the project demonstrated and validated high-value co-products to drive down the cost of biofuel by increasing the value of algae “co-products” towards increasing the selling price of total algae biomass as one of the key drivers of economics and adoption. This was accomplished through five core, interdependent tasks including: (1) strain selection to identify and deliver strains for mass culture, (2) mass culture using a hybrid cultivation system and following key operating parameters for downstream applications to provide algae feedstock, (3) recovery and conversion to evaluate two alternative methods to separate dry algae biomass into oil and residuals for downstream testing, (4) product assessment to determine biofuel, aquafeed or poultry feed product efficacy using algae biomass fractions as well as to provide critical performance data for valuation and (5) commercialization to use technoeconomic and life cycle assessments (TEA/LCA) as iterative design and assessment tools including consideration of target markets, competitors, and distribution channels to guide product assessment, development and valuation. A total of 46 peer-review publications, many open-access, provide detail of much of the work carried out and the results of the tasks. Additional reports and presentations provide other technical and public engagement material. At a high level, using a variety of approaches, more than 1000 marine microalgae strains were evaluated to ultimately identify the seven winners that were down-selected to be grown in mass culture. Strain selection demonstrated that there were no ‘super strains’ and that each candidate had strengths and limitations for specific products, growth conditions or operational considerations. Mass culture growth of these seven strains at >5000 L / 29 m 2 scale found that four them were suitable for product assessment. More than 250 kg of biomass was produced across hundreds of pond runs along with thousands of cultivation entries on the growth and biomass characteristics as well as environmental parameters. In the process, dozens of standard operating procedures were generated as was custom software to process and analyze cultivation data. Recovery and conversion of algae biomass demonstrated that a hexane solvent based extraction protocol was most effective at recovering oil (biocrude) from algae and four strains were processed to produce oil and lipid extracted algae (residuals) for downstream testing. Membrane-based oil separation was less successful, but may still be applicable to other commercial applications in the future. Product testing demonstrated that algae biocrude is of high quality and hydrotreating generated numerous fractions of high quality composition for fuel and lubricate based applications. Aquafeed studies performed at a variety of scales showed that both whole and defatted (lipid extracted algae) microalgae were suitable as a feed ingredient, but that the specifics of the fed animal and biochemical composition of the algae are critical factors when determining formulation. Similarly, poultry studies on whole and defatted microalgae generally showed positive outcomes on animal growth and health, with some microalgae providing enhanced nutritional composition of the animal product. Economic and life cycle assessments covered a wide range of possible commercialization and sustainability scenarios. Replacement value, improved product value added, consumer values marketing added valuation and improved animal health were considered as alternatives for microalgae valuation. Using the open pond system, algae productivity was identified as the key driver of commercialization economics, but combination of co-products (e.g. animal feed) with biofuel production substantially increased the total selling price of algae. Modeled microalgae selling price exceeded $\$$1500/tonne and could generate competitive biofuel selling prices below $\$$5 gallon gas equivalents using realistic algal productivities. Short (process scale) and longer (decadal trends) sustainability assessments show that marine microalgae can enhance the sustainability of energy production and lead to other realized benefits in water, fertilizer and land use for other sectors (e.g. agriculture). This project successfully demonstrated all of the components of an end-to-end process from mass microalgae cultivation and dewatering, to recovery and conversion of algae biomass components, to final product demonstration and process valuation; the combined results provide a framework for future commercialization of algae based biofuels.
09 BIOMASS FUELS↗
Quantifying Value with Effective Complexity
We present a new economic theory of value based on complexity theory. For simplicity, we call this theory ‘complexalism’ (a portmanteau of ‘complexity’ and ‘capitalism’). Complexalism is a framework that establishes valuations by quantifying the present and future complexities of objects and their surroundings. This framework reparameterises questions of economic value into more objectively addressable subcomponents. First, we motivate the importance of developing alternative frameworks for value. Next, we discuss a novel three-dimensional framework to analyse value and the use of effective complexity as a proxy metric of economic value. Finally, we propose explicit methods for quantifying complexity and simulating valuations. The resulting valuations may serve to benchmark prices and can be used in evaluating the market rules of engagement.
97 MATHEMATICS AND COMPUTING↗
Determining Utility System Value of Demand Flexibility From Grid-interactive Efficient Buildings
This report focuses on ways current methods and practices that establish the value to electric utility systems of distributed energy resource (DER) investments can be enhanced to determine the value of demand flexibility in grid-interactive efficient buildings that can provide grid services. The report introduces key valuation concepts that are applicable to demand flexibility that these buildings can provide and links to other documents that describe these concepts and their implementation in more detail.The scope of this report is limited to the valuation of economic benefits to the utility system. These are the foundational values on which other benefits (and costs) can be built. Establishing the economic value to the grid of demand flexibility provides the information needed to design programs, market rules, and rates that align the economic interest of utility customers with building owners and occupants. By nature, DERs directly impact customers and provide societal benefits external to the utility system. Jurisdictions can use utility system benefits and costs as the foundation of their economic analysis but align their primary cost-effectiveness metric with all applicable policy objectives, which may include customer and societal (non-utility system) impacts.This report suggests enhancements to current methods and practices that state and local policymakers, public utility commissions, state energy offices, utilities, state utility consumer representatives, and other stakeholders might support. These enhancements can improve the consistency and robustness of economic valuation of demand flexibility for grid services. The report concludes with a discussion of considerations for prioritizing implementation of these improvements.
24 POWER TRANSMISSION AND DISTRIBUTION↗
Valuing Resilience for Microgrids: Challenges, Innovative Approaches, and State Needs
The United States depends on the delivery of reliable, affordable, clean, and safe electricity. Electric utilities invest billions of dollars each year in generation, transmission, and distribution assets to meet this need. However, experiences with recent natural disasters of increasing frequency and duration demonstrate the shortcomings of this approach in the face of modern threats. Further, as customers rely on electricity for a broader range of important needs, such as transportation, as well as critical life-saving services and mission critical facilities such as water treatment, medical care, shelters, telecommunications, and more, the need to minimize the likelihood and impacts of outages grows. Against this backdrop, resilience has emerged as a key consideration to guide electricity spending, whether from utilities, customers, or taxpayers. Although reliability has been defined and measured for decades with broadly accepted metrics that measure how many customers lose power and at what frequency and duration, resilience considers the electricity system’s response to a disruption and its subsequent impacts on customers. Developing tools and methods to accurately assess the costs and benefits of resilience investments is a critical step toward the goal of mitigating the impacts of outages on customers and society. Today, electric system resilience is largely treated as an externality due to challenges estimating the costs of long-duration outages, impacts of outages on society, and increasing reliance on electricity for a growing set of interdependent services. These interdependencies include the water, wastewater, telecommunications, natural gas, and health sectors. Without knowing how much a given resilience investment will benefit customers or society more broadly, investors, policymakers, and regulators are less likely to make or approve such investments, and less able to prioritize those investments. State Energy Offices and public utility commissions (PUCs) lead the development of state-level energy policy and utility regulation, respectively, and each has interests in encouraging appropriate public and private investments in resilience. To this end, the National Association of State Energy Officials (NASEO) and National Association of Regulatory Utility Commissioners (NARUC), with the support of the U.S. Department of Energy (DOE) Office of Electricity (OE), formed a joint Microgrids State Working Group to explore the costs and benefits of microgrids, barriers to broader deployment of microgrids to meet resilience and other objectives, and policy and regulatory strategies to optimize investments in resilience, including but not limited to microgrids. Although no universally accepted valuation tool for resilience exists, National Laboratories, utilities, researchers, and state and federal agencies have collaborated to develop, apply, and improve a number of approaches to quantify resilience, several of which are still in progress at the time this report is published. This report seeks to share these important advances by discussing current definitions of resilience (Section 1), how microgrids are defined and used to meet resilience objectives (Section 2), new approaches to valuing resilience (Section 3), steps State Energy Offices and PUCs have taken to further resilience valuation efforts (Section 4), and finally, considerations and suggested next steps for State Energy Offices and PUCs (Section 5). Relevant examples of specific microgrid projects and resilience valuation efforts are included throughout the report. While this report is written specifically for NASEO and NARUC members, it may be useful for utilities, local governments, and individual customers interested in improving the way public and private dollars are spent to achieve resilience outcomes.
24 POWER TRANSMISSION AND DISTRIBUTION↗
Hydropower Cybersecurity Value-at-Risk Framework
Hydropower remains one of the strongest forms of renewable energy generation methods. It is crucial to address the increasing risks associated with the rapid digitization. The push towards decarbonization also factors in the need to ensure security and resilience for grid-connected renewable energy resources. This report summarizes the U.S. Department of Energy's Water Power Technologies Office's effort to develop a cybersecurity valuation methodology that assists hydropower stakeholders in assessing risks associated with plan operations and gathers valuation guidance through a web-based application. The Hydropower Cybersecurity Value-at-Risk Framework delivers a platform for industry members to perform self-assessments and make informed decisions on their cybersecurity investments.
13 HYDRO ENERGY↗
Optimal, centralized dynamic curbside parking space zoning
In this paper we formulate a dynamic mixed integer program for optimally zoning curbside parking spaces subject to transportation policy-inspired constraints and regularization terms. First, we illustrate how given some objective of curb zoning valuation as a function of zone type (paid parking, bus stop, etc.), dynamically rezoning involves unrolling this optimization program over a fixed time horizon. Second, we implement two different solution methods given an example curb zoning valuation. In the first method, we solve long horizon dynamic zoning problems via approximate dynamic programming. In the second method, we employ Dantzig-Wolfe decomposition to break-up the mixed-integer program into a master problem and several sub-problems that can be solved in parallel. This speeds up the computational solve-time of the MIP considerably. We present simulation results and comparisons of the different employed techniques on vehicle arrival-rate data obtained for a neighborhood in downtown Seattle, Washington, USA.
Nazir, Mohammad Nawaf↗
Stepping into the Midwest Bioeconomy: Stakeholder Engagement and Geospatial Tools to Assist in Perennial Bioenergy Crop Decision Making and Entrepreneurship
This project, “Ecosystem Services and Farm Entrepreneurship Technical Assistance,” was a three-year project originally planned for FY22–FY24. Due to a late start and a few extensions, it is being completed in early FY25. This project explored opportunities to support the deployment of a bioeconomy with a circular, more sustainable supply chain. Using a tool developed by Argonne to identify agricultural areas suitable for use in the bioeconomy, we sought to create opportunities in the bioeconomy as biomass producers, bioenergy users, and environmental entrepreneurs. We proposed to focus at the beginning on enhancing the tool’s capabilities, while engaging with key stakeholders to improve and expand the tool’s functionality for all potential stakeholders in the bioeconomy. We believe that expanding our tools and technologies, coupled with conversations in agricultural spaces, will be needed as we continue to explore how best to offer farmers whole-of supply-chain opportunities to participate in the bioeconomy. Through this project we have continued to gain a better understanding of the ways in which farmers, landowners, bioenergy users, and environmental entrepreneurs may approach the bioeconomy. In addition, as we improve our analytic toolkit, we can continue to refine our communication and the ways in which we can valuate the bioeconomy. Refining these tools allows us to dive deeper into conversations around plausible policies and drivers for future bioeconomy investment and engagement by stakeholders. By working with farmers and agricultural landowners to enable a sustainable bioeconomy business model, enhance their energy options, and recover resources from their waste streams, this project directly responds to the Bioenergy Technology Office’s (BETO) priorities of building a resilient energy economy. It addresses BETO’s focus on fostering the development and adoption of energy technologies that enable the conversion of waste to energy, efficient land use, and robust job creation. By establishing a technical assistance program that develops capabilities and practices in agricultural areas to implement a bioeconomy future, this program will develop an important linkage between technology being developed at U.S. Department of Energy national laboratories and the agricultural communities of the Midwest. This project focuses on farmers with lower productivity farmland. Because less productive lands create a more difficult revenue stream for conventional crops, these farmers may therefore be more open to alternative agricultural land management regimes. Consequently, the technical assistance program and the methodologies for targeting perennial bioenergy crop application on marginal land provide a distinct opportunity to engage with and invest in the bioeconomy in these economically stressed areas. Stakeholders in this project include farmers and landowners, local conservation organizations (NRCS, SWCS, etc.), universities, non-profit environmental and agricultural entities, farm consultants, environmental regulators, and industry, including the industries working on conversion technologies, anaerobic digestion, pyrolysis, and biochar generation, and the companies interested in trading or purchasing/supporting the valuation of ecosystem services (ES).
09 BIOMASS FUELS↗
Energy Resilience Reference Guide Chapter One: Developing A Shared Definition of Energy Resilience
The NARUC Resilience Reference Guide is envisioned as a one-stop primer for state public utility commissions (PUCs) to assist in the development of a shared language, valuation framework, and educational tool on the topic of energy resilience. The resilience of the energy system has increasingly become part of commissions’ regulatory scope so informed decisions are made regarding how to best enhance system resiliency. Several states have already established evaluative resilience criteria (via legislative statute or regulatory directive). This guide is intended to summarize many of the critical topic areas within energy resilience and to facilitate adoption of resilience valuation frameworks by which PUCs can weigh investment decisions regarding energy system resiliency.
24 POWER TRANSMISSION AND DISTRIBUTION↗
Energy Resilience Reference Guide Chapter Two: Developing a Shared Framework to Value Resilience Investments
The NARUC Resilience Reference Guide is envisioned as a one-stop primer for state public utility commissions (PUCs) to assist in the development of a shared language, valuation framework, and educational tool on the topic of energy resilience. The resilience of the energy system has increasingly become part of commissions’ regulatory scope so informed decisions are made regarding how to best enhance system resiliency. Several states have already established evaluative resilience criteria (via legislative statute or regulatory directive). This guide is intended to summarize many of the critical topic areas within energy resilience and to facilitate adoption of resilience valuation frameworks by which PUCs can weigh investment decisions regarding energy system resiliency.
24 POWER TRANSMISSION AND DISTRIBUTION↗
Energy Resilience Reference Guide, Chapter Three: Climate Resilience Strategies for Regulators
The NARUC Energy Resilience Reference Guide is envisioned as a one-stop primer for state public utility commissions (PUCs) to assist in the development of a shared language, valuation framework, and educational tool on the topic of energy resilience. The resilience of the energy system has increasingly become part of commissions’ regulatory scope so informed decisions are made regarding how to best enhance system resilience. Several states have already established evaluative resilience criteria (via legislative statute or regulatory directive). This guide is intended to succinctly summarize many of the critical topic areas within energy resilience and to facilitate adoption of resilience valuation frameworks by which PUCs can weigh investment decisions regarding energy system resiliency.
24 POWER TRANSMISSION AND DISTRIBUTION↗
The Cybersecurity Value-at-Risk Framework
Hydropower remains one of the strongest forms of renewable energy generation methods. It is crucial to address the increasing risks associated with the rapid digitization. The push towards decarbonization also factors in the need to ensure security and resilience for grid-connected renewable energy resources. This report summarizes the U.S. Department of Energy's Water Power Technologies Office's effort to develop a cybersecurity valuation methodology that assists hydropower stakeholders in assessing risks associated with plan operations and gathers valuation guidance through a web-based applicaiton. The Hydropower Cybersecurity Value-at-Risk Framework delivers a platform for industry members to perform self assessments and make informed decisions on their cybersecurity investments.
CVF↗
Understanding the Value of Energy Storage for Power System Reliability and Resilience Applications
Abstract Purpose of Review The need for energy storage in the electrical grid has grown in recent years in response to a reduced reliance on fossil fuel baseload power, added intermittent renewable investment, and expanded adoption of distributed energy resources. While the methods and models for valuing storage use cases have advanced significantly in recent years, the value of enhanced resilience remains an open research question. Recent Findings The findings of the recent research indicate that energy storage provides significant value to the grid, with median benefit values for specific use cases ranging from under $10/kW-year for voltage support to roughly $100/kW-year for capacity and frequency regulation services. While the value of lost load is used widely to estimate the benefits of mitigating short-duration outages, reaching as high as $719/kilowatt-year, there is no consensus when it comes to monetizing the value of improving grid resilience. Summary This paper presents a use case taxonomy for energy storage and uses the taxonomy to conduct a meta-analysis of an extensive set of energy storage valuation studies. It reviews several approaches for monetizing reliability and resiliency services and presents a proposed approach for valuing resiliency for energy storage investments.
25 ENERGY STORAGE↗
Modeling the effect of habitat availability and quality on endangered winter-run Chinook salmon ( Oncorhynchus tshawytscha ) production in the Sacramento Valley
Reconciliation between water uses and sustaining aquatic species populations requires an effort to identify and quantify essential habitat characteristics for ecosystem health and valuation methods to predict ecosystem response to restoration actions. This process is particularly challenging for anadromous fish species such as California's Sacramento River winter-run Chinook salmon, due to their limited geographic range and diverse life history habitat requirements. Tools, such as life-cycle models, are needed to manage population dynamics and quantify the composite effects of processes across space and time. Nevertheless, complex institutions can hinder result interpretation and communication, and limit model use in decision-making. This paper focuses on the federally endangered and endemic Sacramento River winter-run Chinook (Oncorhynchus tshawytscha) by developing a Winter-Run Habitat-based Population Model (WRHAP). Additionally, WRHAP is a conceptual, freshwater rearing stage model that includes alternative rearing habitats reported in the literature (e.g., floodplains, off-channel and tributaries), defines rules of habitat use based on instream conditions, and incorporates a juvenile growth module that combines bioenergetics modeling with empirical growth rates. Model outputs reasonably follow observed out-migration patterns and provide a realistic smolt size distribution arriving at the San Francisco Bay. This effort demonstrates the importance of currently “non-critical” habitats (as defined by the Endangered Species Act) for juvenile development, with floodplain habitat contributing to a quarter of out-migrating biomass (despite < 18% availability and <10% of total rearing days), and off-channel growth being one of the most sensitive parameters (explaining ~13% of average juvenile weight variance). The model shows the utility of a simple population model to explore relationships between habitat quality/quantity and juvenile development, and to assist water/environmental management and decision-making processes focused on species recovery.
54 ENVIRONMENTAL SCIENCES↗
FY 2021 Isolated Grids and Grid-Connected Turbine Reference Systems; Microgrids, Infrastructure Resilience, and Advanced Controls Launchpad (MIRACL)
For individuals, businesses, and communities focused on building resilient electrical grid infrastructure, wind energy can provide an affordable, accessible, and compatible distributed energy resource option that also enhances the capabilities of local grid operations. The Microgrids, Infrastructure Resilience, and Advanced Controls Launchpad (MIRACL) project is a multi-year distributed wind research effort, driven through a partnership between four Department of Energy National Laboratories and industry to develop and improve the planning, design, and operation of wind-centered microgrids to complement solar, energy storage, and other distributed energy resources for grid-tied and isolated operation (U.S. Department of Energy, 2021). This report documents the application of methods developed through the initial three years of the MIRACL project to two real-world distributed wind reference systems. Specifically, the methods demonstrated in this report include 1) a market valuation framework to comprehensively value the services distributed wind can provide and 2) a resilience framework that enables stakeholders to characterize distribution system resilience and compare grid investment decisions from a resilience perspective. Additional methods mentioned in this report include distributed hybrid system design methods for grid resilience, advanced control co-simulation platforms, and power hardware-in-the-loop (PHIL) models. Preliminary results from these additional methods are presented in this report and will be demonstrated and/or applied to the reference systems in the coming year. The purpose of applying these methods to reference systems is to drive technology transfer of the theories, methodologies, and technologies developed under the MIRACL project and increase the number of referenceable case studies available to stakeholders interested in additional value-added capabilities of wind systems beyond bulk energy supply (i.e. kilowatt-hours).
17 WIND ENERGY↗