Uncertainty Quantification in Stochastic Economic Dispatch using Gaussian Process Emulation
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Beyond Price-Taker: Multiscale Optimization of Wind and Battery Integrated Energy Systems
Integrating renewable energy into the electric grid is challenging due to the intermittency and variability of wind and other non-dispatchable resources. Integrated energy systems (IESs) combine multiple energy technologies (e.g., fossil, nuclear, renewables, storage) to reduce costs and improve flexibility and reliability. However, standard techno-economic analysis (TEA) methods often overestimate the benefits of IESs because they fail to account for energy market adjustments. This paper systematically studies the limitations of the prevailing price-taker assumption for TEA and optimization of hybrid energy systems. As an illustrative case study, we retrofit an existing wind farm in the RTS-GMLC test system (which loosely mimics the Southwest U.S.) with battery energy storage to form an IES. We show that the standard price-taker model overestimates the electricity revenue and the net present value (NPV) of the IES up to 178% and 30.4%, respectively, compared to our more rigorous multiscale optimization. These differences arise because introducing storage creates a more flexible resource that impacts the larger wholesale electricity market. Moreover, this work highlights the impact of the IES has on the market via various strategic bidding, and underscores the importance of moving beyond price-taker for optimal storage sizing and TEA of IESs. We conclude by discussing opportunities to generalize the proposed framework to other IESs, and highlight emerging research questions regarding the complex interactions between IESs and markets.
25 ENERGY STORAGE↗
Optimal operation and sizing of pumped thermal energy storage for net benefits maximization
Abstract Current trends in the modern grid are leading to the development and deployment of energy storage to help integrate increasing variable renewable energy sources into the grid. This paper studies a pumped thermal energy storage (PTES) system for multiple grid services including energy arbitrage, frequency regulation, spinning and non‐spinning reserve, and resource adequacy. Optimal dispatch methods are proposed for individual services as well as value stacking from multiple services to maximize the economic benefits. Assessment results demonstrate the superiority of value stacking. Specifically, the study shows the maximum revenue from an individual grid service with a 30‐MWh PTES system was $522,520, while the value stacking could increase the benefits to $678,477. In addition, sensitivity analyses were conducted to explore the cost‐effectiveness of a PTES system with different combinations of power transfer limits and energy capacity. It was found that the power transfer limit had a greater impact than the energy capacity on the benefits. The proposed method could help determine the optimal duration of a future PTES system.
25 ENERGY STORAGE↗
Interregional Transmission Operational Coordination (IRTOC)
This report presents a modeling and evaluation framework developed through the Inter-Regional Transmission Operational Coordination (IRTOC) project to study market-to-market (M2M) congestion management across day-ahead and real-time markets. The framework extends the Sienna platform through Sienna Decomposition, a multi-stage evaluation architecture that enables flexible representation of multiple regions and systematic assessment of alternative market coordination designs. Additional modeling capabilities include reserve deliverability constraints, High-Voltage Direct Current (HVDC) optimization for Alternating Current (AC) congestion management, and several real-time distributed coordination algorithms. Case studies using the RTS-GMLC test system and a large-scale Eastern Interconnection model demonstrate that the framework can evaluate alternative coordination structures and quantify their economic and operational impacts. The proposed framework provides a scalable platform for analyzing inter-regional coordination strategies in large-scale electricity markets.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Flexible Plant Operation and Generation Technical Program Plan for FY2023
This report presents the Technical Program Plan for Fiscal Years 2023-2027 (FY2023 to FY2027) for the U.S. Department of Energy (DOE) Light Water Reactor Sustainability Program—Flexible Plant Operation and Generation Research Pathway. The objective of this pathway is to carry out the research needed to help nuclear power plants diversify revenue generation for the life of these plants. The purpose of these research and development activities is two fold: (1) to reduce the technical and economic risks of implementing FPOG applications and (2) to provide guidance on relevant safety and environmental operating license reviews, amendments, and renewals. This pathway provides a clear understanding of the benefits of nuclear energy beyond electricity markets. A detailed description of the research and development activities that have been completed and that are planned for FY2023—FY2027 are presented in this report. These activities include completing the development of analysis tools to perform technical and economic assessments of realistic market opportunities for producing secondary energy products near nuclear power plants. They also include developing and demonstrating engineering systems and control concepts to dispatch thermal and electrical power to an industrial user. Additionally, this plan includes developing guidance for addressing potential regulatory and licensing requirements. In addition, the formation, purpose, and activities of a group referred to as the Hydrogen Regulatory Research and Review Group is discussed. An overview is also provided on the potential benefits of the Infrastructure Investment and Jobs Act (IIJA) Bill that will support the commencement of Regional Clean Hydrogen Hubs, and the Inflation Reduction Act (IRA) that provides compelling production tax credits for nuclear electricity and clean hydrogen using nuclear energy.
08 HYDROGEN↗
MPC-based double-layer real-time conditional cSelf-restoration for interconnected microgrids
In this report, we propose a novel model predictive control(MPC)-based real-time conditional self-restoration energy management system (CSR-EMS) for interconnected microgrids (IMGs) integrated with renewable energy sources (RESs) and energy storage systems (ESSs). Superior to the existing IMG self-restoration methods, the “conditionality” of the proposed CSR-EMS can economically realize self-restoration and grid-assisted restoration during energy deficiency or faults, in both islanded and grid-connected modes. Cost minimization is implemented as the objective function to judge in real-time which restoration mode is economically preferred. The proposed CSR-EMS comprises two layers–the lower layer operates locally to eliminate electricity fluctuations created by RESs and ensure economic effectiveness within an MG, whereas the upper layer oversees the real-time operational status of the IMG system and determines power exchange among microgrids (MGs) during abnormalities. In detail, when a microgrid inside the IMG system experiences an energy deficiency, the CSR-EMS, on an MPC basis, intelligently optimizes power production from each dispatchable distributed generator (DG), ESS, power imported from the main grid, and power exchange among the IMGs to maintain the demand–supply balance, while considering system recovery cost, state of charge (SoC) of ESSs and operation modes of the IMGs (i.e., grid-connected or islanded mode). Simulation results and comparisons with existing IMG self-healing EMSs demonstrate the economic efficacy of the proposed CSR-EMS strategy during normal and abnormal operations, which can be used as an energy control framework for modern power systems with multiple interconnected microgrids.
24 POWER TRANSMISSION AND DISTRIBUTION↗
Optimal Sizing and Dispatch of Solar Power with Storage
Designers of utility-scale solar plants with storage, seeking to maximize some aspect of plant performance, face multiple challenges. In many geographic locations, there is significant penetration of photovoltaic generation, which depresses energy prices during the hours of solar availability. An energy storage system affords the opportunity to dispatch during higher-priced time periods, but complicates plant design and dispatch decisions. Solar resource variability compounds these challenges, because determining optimal system sizes requires simultaneously considering how the plant will be operated under the imposed market and weather conditions. We develop an approach to analyze the economic performance of hybrid and single-technology solar power plants, which incorporates optimal dispatch, and considers the expected electricity market and weather conditions. We utilize the System Advisor Model software package to simulate the operation of multiple renewable generation and energy storage technologies, in conjunction with hourly-fidelity generation decisions determined by a revenue-maximizing, mixed-integer linear program. We show that, under our assumed market and weather conditions, the lifetime benefit-to-cost ratio can be improved by 6 to 19 percent, relative to a baseline design without optimizing, and that a concentrating solar power with thermal energy storage design produces significantly more energy per year, but is less profitable under our cost assumptions.
black-box optimization↗
Real-time Implementation of Grid Code Compliant Grid Edge Energy Management System
Integrated distributed energy resources (DER) in a distribution system need to follow grid codes to avoid violations that result in DER/circuit segment disconnection. To comply with grid code requirements at the grid edge level, network constrained grid edge energy management system (EMS) can be deployed. The objective of grid edge EMS is to provide economic solution for active and reactive power DER setpoints at each dispatch interval and ensure voltage regulation to support secure interconnection of the grid edge segment to the distribution system with multiple inverter based DER units. In this work, real-time simulation of grid code compliant grid edge EMS is deployed in a realistic feeder circuit segment. For real-time simulation, communication between the grid edge EMS and DERs is done exploiting IEC 61850-7-420. It enables interoperability among different DERs and grid edge EMS. No prior art has deployed IEC 61850-7-420 GOOSE communication protocol for grid edge EMS. Conversion of IEC 61850 GOOSE messages to Modbus communication protocol is also performed to communicate with grid edge EMS in commodity-off the shelf embedded boards in this work. The real-time simulation in OPAL-RT real-time digital simulator shows the out-performance of grid edge EMS by reducing the voltage violation in the distribution circuit.
Energy management system↗
Automation of FARM from Alpha Phase to Beta Phase
Integrated energy systems (IES) combine different energy technologies in synergistic ways to achieve a more secure and economical energy supply. The RAVEN-based HYBRID framework and the RAVEN plugin for grid and capacity optimization (HERON) are used to find the optimal installed capacity and the optimal economical dispatch of each component of the IES, by respecting the limits on the production variables and the corresponding rates of variation (explicit constraints). Besides, there are other process variables whose evolution needs to be bounded to avoid damaging the components (e.g., condensers, heat exchangers, steam generators, etc.) or degrading the process efficiency (e.g., electrolysis in the hydrogen production process). To avoid violating these latter limits (implicit constraints), a proof-of-concept HERON validator based on Feasible Actuator Range Modifier (FARM-Alpha) was developed by Argonne National Laboratory in January 2021. This FARM-Alpha validator calculates the evolution of process variables on whom the implicit constraints are placed, and then provides feedback to HERON dispatcher to adjust the power setpoints of three IES components, i.e., Balance of Plant, Secondary Energy Source, and Thermal Energy Storage, so as to meet both the explicit and implicit constraints. FARM-Alpha was designed to assess the performance of FARM as a HERON validator only, i.e., the list of components and implicit operational constraints were hard-coded within the source code. The lack of flexibility of the corresponding software structure does not allow the deployment in production environment. This report describes the development and the implementation of an enhanced version of the FARM-based validator (FARM-Beta), which ensures more flexibility for the end user in modeling multiple IES configurations and scenarios. Several test cases of the power dispatch problem were then selected to demonstrate the capabilities offered by FARM-beta. The test cases illustrate the efficiency of the closed-loop optimization scheme and the capability to calculate set-point trajectories satisfying both explicit and implicit constraints.
24 POWER TRANSMISSION AND DISTRIBUTION↗
Leveraging concentrating solar power plant dispatchability: A review of the impacts of global market structures and policy
Concentrating solar power (CSP) integrated with thermal energy storage delivers flexible and dispatchable power, which is an increasingly valuable quality as electricity systems integrate growing penetrations of variable renewable energy. Valuing and compensating CSP's dispatchability and flexibility requires electricity market structures and policies that appropriately remunerate generation during high-value portions of the day. In this paper, we review previous analyses of CSP economics and deployment, and we find that continued CSP growth will require valuation mechanisms that appropriately compensate for CSP's flexibility during both plant design and plant operation. We then review market structures that drive CSP operations and dispatch in jurisdictions where CSP is being developed, with perspectives from Spain, Chile, Australia, Morocco, South Africa, the United States, China, and the United Arab Emirates (Dubai). Despite broad agreement that CSP's dispatchability provides value to electricity grids, countries' policies for remunerating and leveraging such dispatchability varies widely. As deployment of CSP and variable renewable energy grows, it will be increasingly important to redesign current integration policies to signal the delivery of CSP's grid services more appropriately.
14 SOLAR ENERGY↗
Evaluating grid stress and reliability in future electricity grids across a range of demand, generation mix, and weather trends
The reliability of power grids in the future will depend on how system planners account for the integration of new technologies, extreme weather events, and uncertainties in demand growth from increased electrification and data centers. This study introduces an open-source, multisectoral, multiscale modeling framework that projects grid stress and reliability trends between 2020 and 2055 in the Western Interconnection of the United States. The framework integrates global to national energy-water-land dynamics with power plant siting and hourly grid operations modeling. We analyze future wholesale electricity price shocks and unserved energy events across eight scenarios spanning a range of population growth and economic change, generation mixes, and weather conditions. Our results show future grids with high percentage of non-renewable generation and strong economic growth are characterized by higher reliability and lower wholesale electricity prices than lower growth scenarios because of larger reliance on dispatchable generators and lower fossil fuel extraction costs. Scenarios with high percentage of renewable resources have lower median but more volatile wholesale electricity prices as well as more frequent and severe unserved energy events compared to scenarios relying more on dispatchable generators. These events occur because higher proportion of solar and wind energy causes net demand curves to deepen during midday (duck curves get progressively severe), exacerbating the challenge of meeting demand during summer evening peaks. This study suggests that robust and co-optimized transmission and energy storage planning could help maintain low wholesale electricity prices and high reliability levels in future electricity grids across uncertainties in generation mixes.
Electric grid reliability↗
An Evaluation of the Economic and Resilience Benefits of a Microgrid in Northampton, Massachusetts
Recent developments and advances in distributed energy resource (DER) technologies make them valuable assets in microgrids. This paper presents an innovative evaluation framework for microgrid assets to capture economic benefits from various grid and behind-the-meter services in grid-connecting mode and resilience benefits in islanding mode. In particular, a linear programming formulation is used to model different services and DER operational constraints to determine the optimal DER dispatch to maximize economic benefits. For the resiliency analysis, a stochastic evaluation procedure is proposed to explicitly quantify the microgrid survivability against a random outage, considering uncertainties associated with photovoltaic (PV) generation, system load, and distributed generator failures. Optimal coordination strategies are developed to minimize unserved energy and improve system survivability, considering different levels of system connectedness. The proposed framework has been applied to evaluate a proposed microgrid in Northampton, Massachusetts that would link the Northampton Department of Public Works, Cooley Dickenson Hospital, and Smith Vocational Area High School. The findings of this analysis indicate that over a 20-year economic life, a 441 kW/441 kWh battery energy storage system, and 386 kW PV solar array can generate $2.5 million in present value benefits, yielding a 1.16 return on investment ratio. Results of this study also show that forming a microgrid generally improves system survivability, but the resilience performance of individual facilities varies depending on power-sharing strategies.
25 ENERGY STORAGE↗
2022 FORCE Development Status Update
Integrated energy systems (IESs) are essential for decarbonizing electricity and industrial sectors and fully exploiting these systems requires sophisticated planning, scheduling, and dispatching tools to maximize their socio-economic benefits. The Framework for Optimization of Resources and Economics (FORCE) is a tool suite developed at Idaho National Laboratory and is dedicated to making robust analyses of IESs easier for analysts and researchers. The report summarizes the improvements and updates to FORCE during the most recent development cycle. Particularly, we demonstrate improvements to user accessibility, stochastic time-series analysis, and vertical integration with the software tools provided in FORCE.
97 MATHEMATICS AND COMPUTING↗
Economic Evaluation of a Coupled Nuclear Power Plant and Hydrogen Production Facility: A Case Study
This study optimized the design sizes and operation of a power-to-hydrogen-to-power integrated energy system to allow a baseload power plant to operate flexibly in the energy market. In collaboration with a utility industry partner, the system, consisting of an electrolyzer, compressors, storage tank, and fuel cell, was optimized under conditions specific to the proposed project at the site of a nuclear power plant. The Design Integration and Synthesis Platform to Advance Tightly Coupled Hybrid Energy Systems (DISPATCHES) maximized net present value by optimizing sizing of components and dispatch decisions. Revenues included sale of electricity, capacity payments typical of the New York Independent System Operator, and the section 45V hydrogen production tax credit of the Inflation Reduction Act of 2022 (the tax credit was assumed to be available to legacy plants in the absence of clear guidance at present). Under default assumptions which excluded many capital expenditures, the base case optimized solution had a net present value of $\$$1.4 million over a 30 year lifetime, with a 0.365 MW fuel cell operating nearly continuously and 85% of revenues supplied by the hydrogen production tax credit (which was counted as a revenue regardless of profit, thus assuming credit monetization or offset of taxes within the larger firm was possible in all years). Beyond the base case, a sensitivity study elucidated drivers of the economics as capacity payment rate and hydrogen production tax credit rate vary. Additional sensitivity studies also extended results to variation of other, previously fixed parameters, including the fuel cell capital cost, and to imposition of further constraints. Optimization was also repeated for the default assumptions but recognizing tax credits upon use of hydrogen rather than upon its production, producing no change in the optimal solution. Most notably, capacity payments above $\$$15/kW-month drove optimal fuel cells multiple times larger than those with the default estimated capacity payment of $\$$2.5/kW-month (approaching 11 vs. 0.365 MW), and these larger fuel cells operated rarely (capacity factors of ~0.03). Furthermore, when the hydrogen production tax credit was provided for only 10 years, under the specific assumptions of this study (e.g., neither site preparation costs nor electrolyzer capital cost counted), the optimal solution avoided economic loss by ceasing system operation after the 10th year. Viewed broadly, this study demonstrated the capabilities of DISPATCHES, which can be user-adapted to serve other industrial case studies.
08 HYDROGEN↗
Using energy storage systems to extend the life of hydropower plants
Despite their advantages, distributed energy resources (DERs) bring inherent uncertainty and variability into the landscape of modern power systems. As DER penetration grows, conventional generators like hydropower plants have to respond more often to arrest the imbalance in the net load. Hydropower turbines provide their best operational performance with minimal wear and tear when operating at regions of maximum efficiency. However, the current needs for hydropower plants require them to operate under varying load conditions and thus sub-optimal operating points leading to additional stress. To relieve the hydropower plants, this paper proposes a hybridization strategy where a hydropower unit is paired with an energy storage system (ESS) to increase operational flexibility and mitigate damage to the hydro plant. Models are developed to represent the operation of the hybrid system, quantify degradation, and assess economic benefits. Moreover, an innovative controller disaggregates the market dispatch signal into separate control setpoints for the ESS and hydropower unit. In case studies performed on a real-world hydropower facility, it was found that the ESS-based hybridization can extend the life of the hydropower plant by 5% on average. Notably, the economic benefits from reduced maintenance and deferred investment are estimated to be around $3.6 million.
13 HYDRO ENERGY↗
A Multi-objective Microgrid Assessment and Sizing Framework for Economic and Resilience Benefits
This paper presents an innovative multi-objective assessment and sizing framework for battery energy storage system paired with photovoltaics for a cost-effective and resilient microgrid. In the proposed framework, we simultaneously consider i) economic benefits from bundling grid services in grid-connected mode and ii) enhanced resilience by operating the microgrid in island mode upon outages of the main grid. Instead of simply treating resilience as another monetary value stream, this paper models resilience and economic benefits as two separate objectives. Multi-objective optimization is developed to explore different sizing and dispatch options and generate the Pareto front to assist decision-making in system design. Case studies on a real-world microgrid project in Puget Sound Energy system are presented to illustrate the proposed modeling and sizing methods.
Battery energy storage, Microgrid, Optimal Sizingp↗
Improved PV System Control Strategies to Reduce Power Management Costs in Nanogrids
An improved PV system control method is proposed to reduce nanogrid operation costs in this paper. A model including it various components such as photovoltaic (PV) systems, energy storage systems (ESSs), gateways, and household loads is considered with the constraints of the ESS, PV irradiance from real data, and household load. We designed an optimal economic dispatch strategy with an improved PV system control method. Combining the proposed optimal economic dispatch and PV system control strategies, it can improve the control performance for both transient and steady-state responses thereby enabling the maximum power to be extracted from the PV. Consequently, the PV power is maximized, which allows the ESS to use less power and sell the surplus to external power sources, which means the proposed method decreases the nanogrid operation costs. Furthermore, this performance is verified via nanogrid simulations and PV experimental kit.
PV system control↗
Operating Strategies for Dispatchable PEM Electrolyzers that Enable Low-Cost Hydrogen Production
Hydrogen is a pathway to enabling decarbonization across multiple economic sectors that cannot be directly decarbonized with electricity including heat for industrial operations, medium- and heavy-duty transportation applications, long-duration energy storage, and as a feedstock for chemical synthesis. Producing hydrogen at low costs and carbon footprint is likely essential to economically decarbonize these otherwise "hard to decarbonize" sectors. Low-temperature polymer electrolyte membrane (PEM) electrolysis produces hydrogen from water and electricity and is a rapidly developing pathway towards making hydrogen at the scales required for decarbonization applications. The levelized cost of electrolytic hydrogen is dependent on the capital cost, efficiency, and durability of the electrolyzer system as well as the price of electricity supplied to the electrolyzer and the annual utilization of the electrolyzer (capacity factor). Electricity price and capacity factor depend on the source of energy that the system uses and impact other economic factors. Electricity price and capacity factor and the connections between other aspects of hydrogen production via PEM electrolyzers are the focus of this work. PEM electrolyzers have conventionally been operated at high capacity factors using electricity purchased from utilities with a constant price throughout the year. To achieve lower effective electricity prices, recent work has investigated opportunities for electrolyzers to purchase electricity in wholesale markets, where the cost of electricity varies hourly. This option can lead to lower electricity costs when the electrolyzer is a controllable load that ramps up and down rapidly and turns on and off frequently. This configuration and operating strategy capitalizes on times of low wholesale electricity prices and results in lower hydrogen levelized costs than constant operation due to reduced electricity costs even though the reduced capacity factor increases the cost of recovering the capital investment. Cycling on and off frequently also has implications for electrolyzer durability. An electrolyzer configuration where it is directly connected to renewable generation such as wind or solar, only running when the generator is producing energy, has similar implications on operating strategy, hydrogen levelized cost, capacity factor, and durability. This work provides insight into the relationships between dispatchable electrolyzer operating strategies and the cost of producing hydrogen from these systems, outlining strategies and opportunities to minimize production costs while minimizing operations that are likely to negatively impact system durability and efficiency. We find strategies that minimize electrolyzer cycling and the resulting durability impacts while increasing the hydrogen levelized cost only slightly above the minimum. We also find opportunities for batteries to minimize the number of cycles in systems directly connected to renewable generation. These findings outline key opportunities for future electrolyzer deployments and the synergistic benefits between electrolyzers and increased deployment of renewable energy generation like wind and solar. They also inform research and development that is reducing electrolyzer capital cost while managing durability impacts.
electricity markets↗