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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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100 records · Page 5
All sourcesNASA NTRSDOE OSTI
DOE OSTI2023

Challenges and Prospects of Sodium‐Ion and Potassium‐Ion Batteries for Mass Production

The exponential growth of the lithium‐ion (LIB) market is causing a significant disparity between the supply chain and demand for its resources. In this regard, sodium‐ion and potassium‐ion batteries are promising alternatives to LIBs due to their low cost. However, the larger sizes of Na + and K + ions create challenges that prevent them from achieving energy densities comparable to LIBs while maintaining an acceptable cycle life. Here, in this perspective, the aim is to evaluate the status of Na‐ion and K‐ion batteries and the challenges associated with them on both fundamental and commercial levels. The focus is on the structural instability arising from phase transitions during cycling, intricate chemical degradation processes, and potential avenues for enhancing their performance with a specific goal of improving their viability for grid‐scale energy storage. Materials production and abundance limitations for the chemistries of the state‐of‐the‐art materials and account for critical parameters from both the perspective of researchers and investors are analyzed. This analysis aims to provide insights into the strategic trade‐offs required to effectively implement the technology in real‐world applications, such as grid‐scale storage and other areas. Furthermore, the utilization of metals with low or no supply‐chain problems as an important aspect of these trade‐offs is considered.

25 ENERGY STORAGE↗
DOE OSTI2026

Control Room of the Future Testbed Workshop – After-Action Report

The U.S. Department of Energy’s Office of Electricity is supporting a one-year, multi-laboratory effort to define the needs and requirements for a Control Room of the Future testbed, or CROFT. The effort responds to increasing grid complexity driven by large new loads, dynamic generation resources, and the growing adoption of advanced technologies and tools, including artificial intelligence (AI) and machine learning (ML). To support safe, secure, and effective grid modernization, CROFT will focus on how emerging technologies and tools can be rigorously evaluated in realistic operational settings, with attention to human-machine interaction, cognitive load, and workforce readiness. The project team includes Argonne National Laboratory, Idaho National Laboratory, National Laboratory of the Rockies, and Pacific Northwest National Laboratory. As part of the scoping effort, the team conducted two industry-focused workshops: one at DTECH on February 5, 2026, informed by prior industry interviews, and a second on May 4, 2026, adjacent to IEEE T&D. These engagements brought together utilities, vendors, consultants, national laboratories, academia, and government stakeholders to identify and prioritize use cases, barriers, validation needs, data-sharing constraints, and near- and longer-term requirements. This feedback will directly inform CROFT’s architecture and research focus areas, ensuring the testbed is grounded in real-world operational needs and designed to evaluate emerging technologies and tools in realistic control-room environments.

artificial intelligence↗
DOE OSTI2024

Trust-Based Detection and Mitigation of Cyber Attacks in Distributed Cooperative Control of Islanded AC Microgrids

In this study, we address the challenge of detecting and mitigating cyber attacks in the distributed cooperative control of islanded AC microgrids, with a particular focus on detecting False Data Injection Attacks (FDIAs), a significant threat to the Smart Grid (SG). The SG integrates traditional power systems with communication networks, creating a complex system with numerous vulnerable links, making it a prime target for cyber attacks. These attacks can lead to the disclosure of private data, control network failures, and even blackouts. Unlike machine learning-based approaches that require extensive datasets and mathematical models dependent on accurate system modeling, our method is free from such dependencies. To enhance the microgrid’s resilience against these threats, we propose a resilient control algorithm by introducing a novel trustworthiness parameter into the traditional cooperative control algorithm. Our method evaluates the trustworthiness of distributed energy resources (DERs) based on their voltage measurements and exchanged information, using Kullback-Leibler (KL) divergence to dynamically adjust control actions. We validated our approach through simulations on both the IEEE-34 bus feeder system with eight DERs and a larger microgrid with twenty-two DERs. The results demonstrated a detection accuracy of around 100%, with millisecond range mitigation time, ensuring rapid system recovery. Additionally, our method improved system stability by up to almost 100% under attack scenarios, showcasing its effectiveness in promptly detecting attacks and maintaining system resilience. These findings highlight the potential of our approach to enhance the security and stability of microgrid systems in the face of cyber threats.

Computer Science↗
DOE OSTI2026

Scaling Demand Flexibility: Building on 30 Years of Energy Efficiency Success

With electricity consumption across the United States (US) and Canada anticipated to grow, energy efficiency program administrators have a key role to play in helping to ensure energy affordability and reliability in support of the broader economic systems utilities and grid support. Connected, demand side load balancing solutions, such as load shifting heating, ventilation and air conditioning (HVAC) systems and managed charging for electric vehicles (EVs), can dynamically manage energy, allowing for more volumetric electricity consumption without incurring the expense of upgraded transmission and distribution capabilities. When combined, or aggregated, many small loads can be managed to have meaningful impact on energy demand on the grid. Utilities and their partners have an opportunity to leverage decades of experience and the infrastructure needed to assess, design, implement, and measure programs to scale up the adoption of equipment with built-in load flexibility capabilities. Current efforts among a wide variety of electricity system service providers, utilities, standards agencies, regulators, national labs and private industry stakeholders aim to identify common standards, metrics, and methodologies for valuing grid services offered by demand side equipment. By combining those efforts with decades of proven energy efficiency resources, utilities are poised to effectuate a scaling up of equipment with energy management capabilities installed in homes and businesses across the US and Canada. This paper will provide an overview of how utilities are approaching this era of load growth and new peak demands across the United States and Canada. It will highlight the specific strategies that program administrators are employing to advance market transformation for grid-enabled products and devices that have the greatest potential to reduce energy use and increase load flexibility.

Grant, Peter↗
DOE OSTI2026

Coordinated Natural Gas and Electric Planning: Case Studies of Current Approaches and Practices

This paper examines how natural gas and electric utilities across eight U.S. states and two Canadian provinces are beginning to coordinate historically separate planning processes in response to growing system interdependencies, policy mandates, aging infrastructure, and changing customer energy choices. Electricity planning has long relied on robust integrated resource planning frameworks that weigh numerous objectives, risks, and costs. Natural gas planning, on the other hand, is typically less transparent and more narrowly focused on safety and system integrity. As economic, reliability, and policy drivers place new and shared demands on both systems, jurisdictions and utilities are experimenting with approaches such as coordinated forecasting, non pipeline alternatives, and combined planning pilots. A few have issued regulatory or statutory directives for greater data sharing and methodological alignment. Case studies from British Columbia, California, Colorado, Illinois, Massachusetts, Minnesota, New York, Québec, Rhode Island, and Washington illustrate a wide range of approaches to rethinking siloed planning. The paper identifies several common themes across the jurisdictions examined. It provides observations on the methods, processes, and organizational steps that may be needed in the future to address the challenges being faced by states and utilities. Lastly, it identifies some initial steps that states and utilities can consider if they would like to pursue more integrated, cost-effective, policy-aligned energy system planning.

03 NATURAL GAS↗
DOE OSTI2026

Adaptation of virtual synchronous generators to dynamic conditions in power grids

Virtual synchronous generators (VSGs) are widely adopted as grid-forming controls for inverter-based resources. However, when grid conditions vary significantly as characterized by changes in short-circuit ratio (SCR) and the reactance-to-resistance (X/R) ratio, fixed-gain designs and the commonly used P–Q decoupling assumption can become inaccurate. Such conditions can degrade transient power performance, leading to oscillations, prolonged settling, and overshoot, particularly in stiff-grid operating points. This paper quantifies how grid strength and impedance-dependent coupling affect the active–reactive power dynamics of a conventional VSG over a broad range of SCR and X/R values. An adaptive VSG tuning framework is then developed by combining (i) a coupling-explicit, impedance-parameterized state-space model to enable systematic controller synthesis, (ii) a full-state-feedback law designed via pole placement to meet prescribed damping and settling-time specifications, and (iii) a physics-informed neural network (PINN)–based online grid-impedance estimator that updates controller gains in real time as grid conditions vary. Offline simulations in MATLAB/Simulink and real-time validation on an OPAL-RT platform show that the proposed method preserves consistent damping and settling behavior with reduced overshoot across wide SCR and X/R ranges, compared with fixed-gain VSG baselines.

Adaptive control↗
DOE OSTI2026

Distributed quantum approximate optimization algorithm on a quantum-centric supercomputing architecture

Quantum approximate optimization algorithm (QAOA) has shown promise in solving combinatorial optimization problems by providing quantum speedup on near-term gate-based quantum computing systems. However, QAOA faces challenges for high-dimensional problems due to the large number of qubits required and the complexity of deep circuits, limiting its scalability for real-world applications. In this study, we present a distributed QAOA (DQAOA), which leverages distributed computing strategies to decompose a large computational workload into smaller tasks that require fewer qubits and shallower circuits than are necessary to solve the original problem. These sub-problems are processed using a combination of high-performance and quantum computing resources. The global solution is iteratively updated by aggregating sub-solutions, allowing convergence toward the optimal solution. We demonstrate that DQAOA can handle considerably large-scale optimization problems (e.g., 1000-bit problem), achieving a high solution quality and short time-to-solution, outperforming existing strategies. Furthermore, we realize DQAOA on a quantum-centric supercomputing architecture, paving the way for practical applications of gate-based quantum computers in real-world optimization tasks. To extend DQAOA’s applicability to materials science, we further develop an active learning algorithm integrated with our DQAOA (AL-DQAOA), which involves machine learning, DQAOA, and active data production in an iterative loop. We successfully optimize photonic structures using AL-DQAOA, indicating that solving real-world optimization problems using gate-based quantum computing is feasible. We expect the proposed DQAOA to be applicable to a wide range of optimization problems and AL-DQAOA to find broader applications in material design.

Kim, Seongmin [ORNL] (ORCID:0000000159063004)↗
DOE OSTI2026

Expanding the horizon of bio-naphtha beyond gasoline blend: property characterization and conversion opportunity assessment through technoeconomic and life-cycle analyses

Bio-naphtha, a common by-product of biorefineries, is expected to experience substantial growth in supply due to increasing demands for renewable diesel and synthetic aviation fuel (SAF). However, demand for bio-naphtha itself as a gasoline blendstock is limited because of the electrification of light-duty vehicles. This work investigated valorization opportunities for bio-naphtha from catalytic fast pyrolysis, hydrothermal liquefaction, Fischer–Tropsch synthesis, and hydrotreated esters and fatty acids pathways. These opportunities include producing polymer-grade olefin via steam cracking, SAF via steam cracking followed by olefin oligomerization, and renewable aromatics benzene, toluene, and xylene (BTX) and hydrogen via catalytic reforming. Process models were developed in Aspen Plus V14 and Aspen HYSYS V14 to calculate the mass and energy balances for each conversion step. Technoeconomic assessment and life-cycle analysis were conducted to evaluate the minimum fuel/product selling price, conversion cost, and life-cycle CO2 equivalent (CO2e) emission reduction. Technoeconomic assessment results suggest a minimum fuel/product selling price as low as $1.9/kg of olefins, $6.30/gal of gasoline-equivalent SAF, and $1.2/kg of BTX without any incentives. For all pathways, these prices are dominated by bio-naphtha feedstock costs, which account for at least 76% of the total cost. Compared with petroleum baselines, bio-naphtha-derived SAF, olefins, and BTX can achieve significant CO2e emission reductions from the use of renewable carbon resources. The results of life-cycle analysis and subsequent technoeconomic assessment, incorporating carbon credits, indicate the economic viability of using bio-naphtha for polymer-grade olefin and BTX production, with product costs comparable to market prices.

Xu, Shuang↗
DOE OSTI2026

End-To-End Decentralized Transmission Line Protection in IBR-Dominated Weak Grids Using Interpretable Data-Driven Methods

Traditional transmission line protection relies on predictable synchronous-based fault signatures, which frequently fail under the non-standard, current-limited fault characteristics of Inverter-Based Resources (IBRs). This study investigates how to achieve secure, communication-free fault isolation in IBR-dominated weak grids without relying on opaque, computationally heavy "black-box" machine learning algorithms. To address this, we propose a novel, standalone, and inherently interpretable data-driven protection framework. Unlike centralized methods requiring multi-terminal communication, this decentralized approach relies solely on local measurements using a hierarchical linear-kernel Support Vector Machine (SVM). The methodology decomposes the protection task into four sequential stages that mimic traditional protection elements: fault detection and fault direction identification, fault type classification, zone classification, and location estimation. This multi-stage architecture allows for specialized feature engineering at each stage, combining high computational efficiency with logic traceability. The framework's end-to-end performance was validated via C-code and PSCAD/EMTDC co-simulation, utilizing a real-world utility network and an OEM black-box IBR model. The proposed relay achieves 97.2% overall accuracy and provides a reliable trip decision within a 2.5-cycle window. The results confirm 100% accuracy in fundamental fault detection, reliable zone selectivity across low to moderate fault resistances, and robust security against non-fault transients, proving its immediate viability for integration into commercial numerical relays.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2025

Evaluation of Howard A. Hanson Dam Juvenile Fish Passage and Survival Study: Downstream Passage and Survival (Acoustic Telemetry) (Task Final Report)

The Downstream Passage and Survival (Acoustic Telemetry) task was one of several tasks for the Evaluation of Howard A. Hanson Dam (HAHD) Juvenile Fish Passage and Survival study. For this task, a juvenile fish passage and survival study was conducted at HAHD from March 10, 2024 through June 27, 2024 for arrays in the HAHD Reservoir and Green River, and through July 9, 2024 for the arrays in the Duwamish River. Fish releases occurred over four times from March through May. Active tag (acoustic telemetry) technology was used to provide biological baseline information for the passage and survival of juvenile Puget Sound (PS) Chinook salmon (Oncorhynchus tshawytscha). Results will be used by biologists, engineers, resource managers, and regional decision-makers to inform the engineering design of the new fish passage facility (FPF) at HAHD. However, hatchery sub-yearling PS Chinook salmon of the appropriate size for tag implantation during the study period (> 95 mm in fork length, Geist et al. 2018) were unavailable. Therefore, yearling Coho salmon (O. kisutch) were used as a surrogate species for this acoustic telemetry study.

13 HYDRO ENERGY↗
DOE OSTI2026

Joint scheduling of energy, fast and primary frequency response reserves in integrated transmission–distribution networks

Inverter-based distributed energy resources (DERs) connected to distribution networks (DNs) can provide fast frequency support, but their reserve deliverability depends on feeder constraints and differs from synchronous primary frequency response (PFR). Existing transmission–distribution coordination studies usually treat reserve generically or neglect feeder-level feasibility, while frequency-security scheduling studies rarely represent distribution feeders explicitly. This paper develops a bi-level day-ahead scheduling framework for integrated transmission–distribution networks that jointly clears energy, transmission-side PFR, and distribution-side fast frequency response (FFR) under exogenous hourly inertia and largest-loss inputs from an external unit commitment (UC) schedule. The transmission problem is modeled with DC-optimal power flow (OPF) and closed-form second-order cone (SOC) frequency-security constraints, whereas each DN is represented by a reserve-aware branch-flow AC-OPF so that scheduled fast reserves remain deliverable during activation. The bi-level problem is reformulated through Karush–Kuhn–Tucker (KKT) conditions into a mixed-integer SOC program, and a penalty term is used to tighten the distribution-network relaxation. In the reduced test system, lower exogenous inertia increased the required primary response from 179.64 MW to 191.08 MW, distribution-side fast response reduced total frequency-response procurement by up to 4.9%, and neglecting distribution constraints overstated the combined distribution-side energy and reserve award by up to 18%. In the expanded study, the largest case was solved in 2.02 s with a 0.00% optimality gap. Time-domain simulations kept the frequency nadir above 59.0 Hz in all tested hours. These results demonstrate the value of fast-response modeling and distribution-feasible reserve delivery in coordinated market clearing.

Noh, Seung-Gil↗
DOE OSTI2026

ClassNMSW- a real-time classification approach for non-recycled municipal solid waste using hyperspectral imaging

Real-time classification of non-recycled municipal solid waste (NMSW) is essential for efficient valorization. This study introduces ClassNMSW, a comprehensive framework for classifying 22 NMSW subclasses under industrial constraints by using hyperspectral imaging (HSI). A primary innovation of this work is the development of a variance-controlled spectral extraction algorithm. Unlike traditional methods that rely on simple averaging, this approach systematically investigates the extent of pixel extraction to minimize the loss of critical chemical information while maximizing data reduction thus ensuring high spectral fidelity with low computational cost. The approach developed in this work integrates automated, computer-vision-based background removal, eliminating the need for the manual thresholding common in current literature. To resolve ambiguities among chemically similar subclasses, a tiered classification and multi-camera fusion strategy (NIR17 and NIR22) is implemented. Results demonstrate that ClassNMSW achieves an object-wise weighted accuracy of 98.70% for single-sensor configurations and 100% under sensor fusion. A novel rolling-window strategy satisfies desired end-to-end latency of <2 s, satisfying the strict deterministic requirements of high-speed industrial sorting environments. The ClassNMSW framework provides a scalable foundation for advancing circularity and resource recovery in large-scale waste valorization operations.

99 - GENERAL AND MISCELLANEOUS↗
DOE OSTI2026

Used Nuclear Fuel Management Using the Next Generation System Analysis Model

The U.S. Department of Energy (DOE) is leading the National effort to manage the back end of the nuclear fuel cycle, encompassing the safe transportation, storage/staging, and/or eventual disposal of used nuclear fuel (UNF) and high-level radioactive waste. The Next Generation System Analysis Model (NGSAM) is DOE’s discrete-event, agent-based simulation tool designed to model the full life cycle of UNF from reactor discharge to final disposal. NGSAM supports the DOE Office of Spent Fuel and High-Level Waste Disposition by enabling a detailed, scenario-based analysis of logistics, infrastructure, and shipping strategies. NGSAM replaces legacy models with a modern, flexible platform built on Repast Simphony and enhanced by the Process Analysis Tool. NGSAM simulates the movement and interaction of individual fuel assemblies with system components such as canisters, casks, railcars, and facilities. The model integrates with the Java Transportation Operations Model to plan and execute transportation scenarios, supporting both constrained and unconstrained resource allocation. Key features include customizable allocation and acceptance algorithms, detailed facility-level operations, and a Quick Edit tool for rapid scenario adjustments. NGSAM supports multimodal transportation modeling (e.g. rail, road, barge) and provides comprehensive cost, schedule, and infrastructure data. NGSAM utilizes data from sources such as DOE’s STANDARDS UNF database and DOE’s Stakeholder Tool for Assessing Radioactive Transportation, while also allowing user-defined inputs for scenario customization. NGSAM enables stakeholders to evaluate complex UNF management strategies, assess system performance under varying assumptions, and inform decision making for future infrastructure investments. Its modular architecture and integration with other Integrated Waste Management System tools make it a critical asset for planning the safe and efficient disposition of the Nation’s growing UNF inventory.

Craig, Brian [Argonne National Laboratory (ANL)]↗
DOE OSTI2026

Envelope-driven comfort risk in residential demand response

Residential demand response (DR) is a valuable resource for grid reliability, but remains challenging because the highly heterogeneous residential building stock leads to widely varying and hard-to-predict load and comfort responses during DR events. Although prior research has estimated the technical potential of DR-capable technologies for achieving energy demand savings, little is known about how they affect thermal comfort. In particular, it remains unclear how indoor thermal conditions due to DR depend on the thermal envelope characteristics of the housing stock. To address this gap, this study provides a systematic, location-specific assessment of indoor thermal performance during DR-events across the US housing stock using both typical DR weather data and detailed building metadata. We evaluate how envelope characteristics influence indoor temperatures during realistic simulated summer and winter DR events across 37 US locations, applying both temperature threshold and rate of temperature change criteria to estimate region-level probabilities of discomfort. Additionally, we show the impact of distinct weather patterns that intensify or abate thermal stress on comfort outcomes. Results show a near-universal overheating risk in summer DR events, where comfort outcomes are strongly influenced by rapid risk of comfort violations. In contrast, overall winter DR discomfort risk is lower, risk escalation is more gradual and shows greater sensitivity to event duration. These findings offer a data-driven quantification of comfort risk across diverse climates and building envelopes, demonstrating the need for region-specific DR scheduling and discomfort mitigation strategies tailored to local weather patterns and the performance of existing residential buildings.

Demand response↗
DOE OSTI2026

Reducing experimental uncertainty in the calculation of cavity swelling in a transmission electron microscope through crystallographically aided void volume tracking

Accurate measurement of cavity swelling in a transmission electron microscope is essential to define material performance under irradiation, and the conventionally applied spherical assumption for the calculation of cavity volumes in irradiated materials can result in errors ranging between a 25% underestimation and 72% overestimation of volume purely based on the assumption of shape. This assumption is undeniably expedient for calculation but does not sufficiently account for the 3D nature of polyhedral cavities and their shape projection in the transmission electron microscope, and therefore presents too large of an associated uncertainty in swelling determination for faceted cavities. This uncertainty has been defined for many common cavity shapes in FCC and BCC crystal systems, and has been tabulated across the cubic fundamental region. A revised methodology for crystallographically aided void volume tracking, or CAVV-T, is presented and demonstrated on a specimen of neutron irradiated Ni. In-depth discussion on the application of this technique is provided along with resources to allow for conversion between the spherical assumption and this revised method. This work seeks to increase experimental confidence in the characterization and quantification of critical aspects of irradiation damage in materials by applying a crystallographically-resolved approach for cavity swelling calculation.

Haag IV, James V. [Pacific Northwest National Labo↗
DOE OSTI2026

PACT Center: Perovskite PV Accelerator for Commercializing Technologies (Final Technical Report)

The Perovskite PV Accelerator for Commercializing Technologies (PACT) center was established in July 2021 as a national resource to accelerate the commercialization of perovskite photovoltaic (PV) technology in the United States. Since its inception, PACT has been led by Sandia National Laboratories (Sandia) in partnership with the National Laboratory of the Rockies (NLR), formerly known as NREL. From FY20-FY23, Los Alamos National Laboratory (LANL), CFV Labs, Black & Veatch (B&V), and the Electric Power Research Institute (EPRI) were part of the project team. LANL brought expertise in perovskite PV device designs and processing, CFV Labs (now GroundWork Renewables) provided initial indoor and outdoor measurement hardware technology, B&V led the initial effort on perovskite PV bankability, and EPRI worked on reviewing testing standards, identifying commercialization gaps, and helping to run PACT’s Industry Advisory Board, a group including representatives from commercial testing labs, independent engineering firms, insurance companies, state regulators, and electric utilities. To source perovskite PV module samples, PACT contracted with the University of North Carolina (UNC), the University of Toledo, the University of Washington, and SLAC/Stanford University to provide a steady stream of research-grade perovskite mini modules, enabling protocol development in advance of commercial module availability. The project period ran from July 1, 2021, through December 31, 2025, including a No Cost Extension. Starting in FY25, the project was continued as a Core Capability in the Lab Call portfolio and continues at a reduced budget with only Sandia and NLR as funded recipients. Notably, starting in FY25 PACT expanded its scope beyond MHP modules to accept all emerging PV mini module technologies for testing, including organic PV (OPV) and all-thin-film tandems, with the aim of supporting commercialization across the broader emerging PV ecosystem. With this change in scope the program was renamed the PV Accelerator for Commercializing Technologies, dropping perovskite from the name.

14 SOLAR ENERGY↗
DOE OSTI2024

Landmark Publications in Analytical Atomic Spectrometry: Fundamentals and Instrumentation Development

The almost-two-centuries history of spectrochemical analysis has generated a body of literature so vast that it has become nearly intractable for experts, much less for those wishing to enter the field. Authoritative, focused reviews help to address this problem but become so granular that the overall directions of the field are lost. This broader perspective can be provided partially by general overviews but then the thinking, experimental details, theoretical underpinnings, and instrumental innovations of the original work must be sacrificed. In the present compilation, this dilemma is overcome by assembling the most impactful publications in the area of analytical atomic spectrometry. Each entry was proposed by at least one current expert in the field and supported by a narrative that justifies its inclusion. The entries were then assembled into a coherent sequence and returned to contributors for a round-robin review. A total of 48 scientists participated in this endeavor, contributing a combined list of 1055 individual articles spanning 17 sub-disciplines of spectrochemical analysis into what the current community views as “key” publications. Of these cited articles, 60 received nominations from four or more scientists, establishing them as the most indispensable reading materials. The outcome of this collaborative effort is intended to serve as a valuable resource not only for current practitioners in atomic spectroscopy but also for present and future students who represent coming generations of analytical atomic spectroscopists.

Instruments & Instrumentation↗
DOE OSTI2026

Storing Affordability: Battery Storage as an Asset to Reduce Data Center Cost Shifts

This report examines how battery energy storage systems (BESS) can help utilities accommodate large load growth while protecting affordability for existing ratepayers. Rapid growth in electricity demand from artificial intelligence (AI) data centers is straining the U.S. grid. Furthermore, many new data centers are entering rural markets, which could offer economic benefits but may also pose implementation challenges for smaller utilities. At the same time, retail electricity prices are increasing faster than inflation, elevating customer affordability as a key challenge. While data centers have not been the primary driver of increases in residential prices to date, they have pushed wholesale energy and capacity prices higher in several markets. Fundamental utility cost-allocation principles show that data center growth can be rate-positive for existing customers only if new peak demand grows faster than the costs a utility must incur to serve it. Several factors, including a utility’s degree of wholesale market exposure, forecast uncertainty and stranded-asset risk, and tariff design can determine the outcome of load growth on retail rates. Energy storage can make several affordability contributions in the face of this landscape of uncertainty and market volatility, including deferral of higher-cost grid investments through improved utilization of existing assets and flexibility of new large loads, insulation from volatile wholesale prices through peak shaving, and reliability support to address grid risks stemming from the behavior of AI data center loads. Different potential BESS deployment pathways—utility-scale front-of-the-meter systems, aggregated small-scale storage installations, and data center-sited behind-the-meter storage—are compared against each other and against conventional capacity alternatives. This framework is intended as a conceptual resource to utilities, particularly smaller public utilities with rural service territories, who may be considering the role that energy storage can play in insulating existing ratepayers from data center cost shifts.

25 ENERGY STORAGE↗