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DOE OSTI2026

Development of a Framework and Methodology for an Advanced Reactor Materials Environmental Effects Design Guide

Advanced non-light-water reactor components may operate at elevated temperature while experiencing cyclic loading, significant neutron irradiation, and exposure to reactor coolant. ASME Boiler and Pressure Vessel Code, Section III, Division 5, provides design rules for elevated-temperature service but does not include specific procedures to account for environmental effects on material properties. This report develops an initial framework and methodology for an Environmental Effects Design Guide (EEDG) focused on neutron irradiation; coolant-environment effects are reserved for future work. The proposed approach treats irradiation as a property-based overlay on the existing Division 5 design process, with two routes: a sparse-data route applying two reduction factors — FCR on creep-rupture strength and FF on fatigue life — for the creep-fatigue evaluations that typically control the design of advanced high-temperature reactor components, and a fuller framework developing the property-to-rule chain across the four Division 5 checks (primary load, strain limits and ratcheting, creep-fatigue, and buckling), together with swelling and weldments as scope items. Both routes are scoped by an in-pile qualification that restricts the use of post-irradiation-examination-derived properties in regimes where an in-pile mechanism could control the design outcome. Illustrative outputs derived on a compiled annealed Type 316 database — FCR ≈ 0.78–0.86 and FF ≈ 0.4 — demonstrate the calculation method within that specific dataset. The framework is an initial, testable design-rule concept; it identifies a practical path for preliminary design evaluations under sparse data and the material data and testing needed to develop the framework further.

Barua, Bipul (ORCID:0000000247184113)↗

DOE OSTI2026

Advanced blade-shaped thermal energy storage device: Development and application

Thermal energy storage (TES) using phase change materials (PCMs) is a promising approach for capturing and reusing excess thermal energy, yet widespread adoption is limited by low thermal conductivity, bulky configurations, and inadequate scalability. Here, this study presents a modular, blade-shaped TES prototype designed to address these challenges. The device integrates a lightweight aluminum shell, an embedded serpentine coil for active or passive heat exchange, and a cost-effective corrugated metal mesh for enhanced PCM thermal conductivity. With thickness-to-length and thickness-to-width ratios of 0.03 and 0.08, respectively, the blade-shaped TES achieves a compact, modular form factor suitable for space-constrained applications. Experimental testing demonstrated the efficient charge and discharge behavior of blade-shaped TES, capturing PCM superheating, phase-change transitions, and subcooling dynamics, with charging and discharging efficiencies of 94.9% and 94.6%, respectively. Also, the system can potentially achieve higher energy density than that of conventional TES designs. When integrated into a household refrigerator during the study, three blade-shaped TES modules successfully shifted 100% of peak-time compressor operation to off-peak hours, reducing energy consumption while maintaining more stable compartment temperatures. The blade-shaped TES's thin geometry, modularity, and enhanced thermal performance support scalable deployment across residential, commercial, and industrial applications, providing a versatile, cost-effective solution for high-efficiency, demand-flexible thermal energy management.

Blade-shaped↗

DOE OSTI2026

A strong and ductile Super Kovar alloy via fully coherent nanoprecipitates

Emerging high-precision technologies demand materials with exceptional dimensional stability and mechanical robustness, as even microscopic thermomechanical deformation can cause functional failure. However, a fundamental trilemma exists: High strength, ductility, and low thermal expansion are mutually exclusive, as strengthening-induced lattice distortions compromise the spin-lattice coupling, which is essential for low thermal expansion. Here, we overcome this trilemma by designing “Super Kovar,” an Fe-Ni-Co-Al-Ta alloy, featuring fully coherent nanoprecipitates. It unifies a 1.0-gigapascal ultimate tensile strength and ∼39% elongation with a Kovar-grade thermal expansion of 3.81 × 10−6 K−1 (100 to 410 K). The key is a dense dispersion of L12 nanoprecipitates that form an almost strain-free coherent interface with the ferromagnetic matrix. Beyond providing precipitation strengthening, these coherent interfaces suppress intrinsic phonons of nanoprecipitates via elastic coupling while avoiding magnetic domain pinning to preserve the Invar effect of the matrix. This reduces the thermal expansion of the precipitates by 56% and achieves a fourfold enhancement in the strength-ductility product, establishing a paradigm for dimensionally stable, ultrastrong alloys.

Yu, Chengyi [University of Science and Technology ↗

DOE OSTI2026

A transport-based framework for solidification cracking in Ni-based superalloys processed by laser powder bed fusion

Solidification cracking remains a persistent barrier to laser powder bed fusion (LPBF) processing of solid-solution-strengthened (SSS) Ni-based superalloys and is commonly attributed to carbide formation, liquation-type failure, or elemental segregation. In this work, the cracking behavior of three SSS Ni-based superalloys—Inconel 625 (625), Inconel 617 (617), and Haynes 230 (230)—is examined under comparable LPBF conditions to evaluate the origins of their cracking susceptibility. Carbides were present in both 625 and 230, yet cracking behavior differed significantly. MC-type carbides in 625 remain discrete and preserve liquid connectivity, whereas Cr-rich M23C6 carbides in 230 form at cellular triple junctions that bottleneck the interdendritic liquid network, influencing cracking through liquid connectivity rather than as an independent cause. Alloy 617 exhibited anomalous segregation without resolvable secondary phases yet cracked mildly, indicating that extensive carbide formation is not a prerequisite for cracking. To rationalize these observations, a transport-limited framework is proposed in which cracking occurs when terminal-liquid feeding cannot accommodate solidification-induced strain; among the mechanisms evaluated, this framework is most consistent with the physical constraints imposed by LPBF solidification. Transport-based crack-susceptibility indexes incorporating permeability, viscosity, and solidification kinetics distinguish the alloy hierarchy; permeability ratios Krat increased from approximately 7 (625) to 11.5 (617) and 14.5 (230), with corresponding increases in the μ-weighted mushy zone risk index (CSIMZRM). These results are consistent with transport-limited liquid feeding as a rate-limiting contributor to solidification cracking in LPBF-processed SSS Ni-based superalloys, providing a physically grounded basis for alloy and process design.

Hyer, Holden [ORNL] (ORCID:0000000343915561)↗

DOE OSTI2024

Relithiation process for direct regeneration of cathode materials from spent lithium-ion batteries

A method for the regeneration of cathode material from spent lithium-ion batteries is provided. The method includes dissolving a lithium precursor in a polyhydric alcohol to form a solution. Degraded cathode material containing lithium metal oxides are dispersed into the solution under mechanical stirring, forming a mixture. The mixture is heat treated within a reactor vessel or microwave oven. During this heat treatment, lithium is intercalated into the degraded cathode material. The relithiated electrode material is collected by filtration, washing with solvents, and drying. The relithiated electrode material is then ground with a lithium precursor and thermally treated at a relatively low temperature for a predetermined time period to obtain regenerated cathode material.

Belharouak, Ilias↗

DOE OSTI2026

Acquisitive root exploration strategies help maintain higher peak sap flux rates during summer drought, but more root biomass does not

Roots are responsible for soil water uptake, yet little is known about how variation in fine-root traits relates to whole-tree water movement, particularly during periods of drought. By combining a 3-yr dataset monitoring sap flow rates with measures of fine-root biomass, length, and morphology across 10 tree species, we addressed hypotheses concerning the role of fine-root system size and morphology in determining tree responses to summer drought as well as potential changes in their relative importance under more severe droughts. Greater fine-root biomass and length did not enable trees to maintain high rates of sap flow during drought, whereas the morphological traits, specific root length and specific root area, were linked to sustained sap flow rates during drought. We found that all species, irrespective of root traits, progressively reduced their sap flow under more extreme drought conditions, although more acquisitive root morphology was still associated with smaller reductions. Our results run counter to long-standing assumptions that larger root systems are better able to access soil water and maintain photosynthetic activity during drought. Instead, we find evidence that root morphology at least partially determines the capacity for water uptake and movement as soil moisture declines.

drought↗

DOE OSTI2023

Electron Microscopy Studies of Soft Nanomaterials

This review highlights recent efforts on applying electron microscopy (EM) to soft (including biological) nanomaterials. We will show how developments of both the hardware and software of EM have enabled new insights into the formation, assembly, and functioning (e.g., energy conversion and storage, phonon/photon modulation) of these materials by providing shape, size, phase, structural, and chemical information at the nanometer or higher spatial resolution. Specifically, we first discuss standard real-space two-dimensional imaging and analytical techniques which are offered conveniently by microscopes without special holders or advanced beam technology. The discussion is then extended to recent advancements, including visualizing three-dimensional morphology of soft nanomaterials using electron tomography and its variations, identifying local structure and strain by electron diffraction, and recording motions and transformation by in situ EM. On these advancements, we cover state-of-the-art technologies designed for overcoming the technical barriers for EM to characterize soft materials as well as representative application examples. Here, the even more recent integration of machine learning and its impacts on EM are also discussed in detail. With our perspectives of future opportunities offered at the end, we expect this review to inspire and stimulate more efforts in developing and utilizing EM-based characterization methods for soft nanomaterials at the atomic to nanometer length scales in academic research and industrial applications.

Imaging↗

DOE OSTI2025

Interaction of magnetic fields with spinons in a fractionalized state

The 4d-electron trimer lattice Ba₄Nb₁₋ₓRu₃₊ₓO₁₂ exhibits either a quantum spin liquid (QSL) or a heavy-fermion strange metal (HFSM) phase, depending on Nb content. In the QSL state, itinerant spinons act as effective heat carriers, enhancing thermal conductivity. Strikingly, applying a magnetic field up to 14 T causes an abrupt, up-to-5000% increase in heat capacity below 150 mK, disrupting the linear temperature dependence typical of both phases. Meanwhile, AC susceptibility and electrical resistivity remain nearly unchanged, while thermal conductivity drops by up to 40% below 4 K. These results suggest spinons, despite being charge-neutral, are highly sensitive to magnetic fields at low temperatures. We propose that the magnetic field could induce Anderson localization of spinons, creating emergent non-magnetic two-level systems responsible for the Schottky-like anomaly in heat capacity. These findings point to a previously unexplored regime of spinon dynamics, potentially governed by field-induced localization and distinct from conventional magnetic or transport signatures.

Condensed-matter physics↗

DOE OSTI2026

Atomic faulting drives exceptional toughness in low thermal expansion chromium alloys

Endowing functional properties with mechanical responses in traditional metals has been a frontier topic, akin to transforming base metal into gold. Chromium and its alloys, with their functional deficiencies and limited ductility, serve as typical examples. Herein, we report a Cr96Fe4Ge1.3B1 alloy that unifies low thermal expansion (LTE, αl = 1.79 × 10-6 K-1, 200 − 315 K) with exceptional toughness (240.2 J·cm-3). The enhancement in mechanical responses is primarily attributed to layered Cr2B intermetallic precipitates, which ameliorate interfacial cohesion and simultaneously refine the grain structure. The weakened interlayer interactions within the Cr-B layers facilitate the nucleation and movement of numerous tiny stacking faults in precipitates, efficiently alleviating strain energy and resulting in marked work-hardening ability. Additionally, antiferromagnetic fluctuations in the BCC matrix contribute to the unique LTE behavior. This paves the way for the design of high-performance alloys featuring layered-symmetry precipitates.

Yu, Chengyi [University of Science and Technology ↗

DOE OSTI2026

Thermal Reservoir Networks for Modularly Expandable Thermal Microgrids

The Department of Defense (DoD) faces the substantial challenge of cost-effectively retrofitting one to two installations per month, each comprising approximately 1,000 buildings, to improve resilience, reduce energy consumption, and enhance energy supply security. Achieving these objectives requires optimal system selection and effective risk mitigation during system integration. To address this need, we introduce Platform-Based Design (PBD), a structured, hierarchical methodology adapted from other industrial sectors to the domain of energy system retrofits. We demonstrate the effectiveness of PBD through a techno-economic feasibility study comparing geothermal-coupled thermal energy networks (TENs) with conventional energy systems for heating, cooling, and powering 17 buildings at Joint Base Andrews (JBA) in Maryland. Our analysis illustrates that the PBD approach enables rigorous, data-driven, sequential decision making, resulting in a family of Pareto-optimal systems, among which the TEN emerged as the most promising solution. The selected TEN design integrates geothermal borefields, heat recovery heat pumps, photovoltaic (PV) arrays, and battery storage. Compared to the baseline system – gas heating combined with air-source chillers – the proposed TEN reduces annual imported energy by 74% and peak electricity demand by 45%, achieves a levelized cost of energy of $\$0.210$/kWh, and substantially enhances resilience. Life-cycle costs increase by approximately 6%, and initial investment costs are about 2.5 times higher than the baseline. However, if central plant infrastructure, district loops, and utility-scale PV and battery systems are privately funded and operated, the initial investment would fall below the baseline system cost. Critical to achieving these significant performance improvements were detailed nonlinear dynamic simulations coupling geothermal heat transfer, energy system operation, and realistic feedback control logic. These simulations identified essential design modifications and control strategy refinements that substantially reduced energy use, peak demand, and compressor shortcycling, thereby improving durability and reliability—issues that would have been significantly more expensive to resolve during operation. Additionally, the verification step highlighted sensitivities to key design parameters that could reduce initial investment by approximately $\$2$ million and reduce annual life-cycle costs more than $\$300,000$. We recommend adopting the PBD methodology for future feasibility studies and TEN pilot projects to gain valuable operational experience. Furthermore, we recommend that DoD invest in transferring and scaling the PBD methodology to other installations. This entails developing standardized computational frameworks and component libraries as well as training industry in conducting PBD. Such investments would enable rapid, robust, reliable, and cost-effective retrofits, supporting DoD’s ambitious energy system modernization goals.

Wetter, Michael [Lawrence Berkeley National Labora↗

DOE OSTI2026

Integrating AI Data Centers with the Power Grid

The rapid expansion of artificial intelligence (AI) has triggered an unprecedented surge in electricity demand, with US data center energy use projected to double or triple 2023 levels by 2028. This exponential growth places strain on grid infrastructure, which can hinder timely construction of desired computing capacity. To bridge this supply-demand gap, utilities and AI developers are increasingly turning to demand flexibility, a strategy that incentivizes shifting or reducing power use during peak periods of grid stress. Data centers are uniquely equipped for flexible operations due to their digital workloads, built-in redundancy, and onsite energy assets. This article outlines four primary mechanisms to enable data center flexibility: computational load flexibility (shifting tasks temporally or geographically), flexible use of core facility infrastructure adjustments, energy storage utilization, and onsite electricity generation. To encourage adoption, utilities are deploying new tariff designs, including voluntary interruptible service riders, mandated flexibility requirements, and streamlined interconnection processes for flexible loads. For the highly capitalized and rapidly growing AI industry, the primary motivators for embracing these strategies are expediting facility interconnection, satisfying emerging regulatory mandates, and mitigating community resistance. While demand flexibility cannot substitute the long-term need for new bulk power generation, it serves as an essential, immediate solution for enabling near-term deployment. By transforming data centers from grid stressors into stabilizing assets, flexible operations can ensure reliable grid integration, ease market pressures, and support a resilient power system.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2026

The 10 September 2025 M w 4.1 Earthquake in Northeastern Utah, United States: An Archetypal Continental Mantle Event

The 10 September 2025 M w 4.1 earthquake in northeastern Utah, United States, had a focal depth 68 km beneath sea level, which is ∼20–25 km greater than estimates of local crustal thickness, making it a rare example of a continental mantle earthquake (CME). The focal depth is well resolved from arrival-time inversion (nearest station ∼13 km away) and moment tensor inversion of regional waveforms. Similar to other CMEs in the Intermountain West, there were no obvious aftershocks or foreshocks, and the waveforms were enriched in high-frequency energy. Spectral modeling gives a stress drop of ∼80 MPa and a radiation efficiency of ∼0.08, albeit with large uncertainties. The high stress drop and low radiation efficiency are consistent with a dissipative source process such as thermal runaway. Also similar to previous Intermountain West CMEs, the event occurred along the boundary of the Archean Wyoming craton, where pressure–temperature conditions favor ductile deformation. We hypothesize that edge-driven or regional-scale mantle convection produces increased strain rates near the craton boundary that make either conventional brittle failure or thermal runaway feasible at relatively high pressure–temperature conditions. High conductivity inferred around the edge of the craton may suggest that fluids also contribute to CME occurrence.

Koper, Keith D. [Univ. of Utah, Salt Lake City, UT↗

DOE OSTI2024

Cross-scale interaction between microturbulence and meso-scale reversed shear Alfvén eigenmodes in DIII-D plasmas

Abstract This paper reports global nonlinear gyrokinetic simulations that couple meso-scale reversed shear Alfvén eigenmodes (RSAEs) driven by energetic particles (EPs) and ion temperature gradient (ITG) microturbulence driven by thermal plasma, using equilibrium and profiles from DIII-D discharge #159243. In simulations focusing only on the ITG, electrostatic ITG drives a huge thermal ion heat transport, which is reduced by a factor of 10 to a level close to the experimental value in electromagnetic simulation due to finite β effect. In the simulations coupling the RSAE and ITG, ITG can scatter the resonant EP nonlinearly trapped by the RSAE and damp the zonal flows generated by the RSAE. The regulation of the RSAE by the ITG greatly reduces the initial saturation amplitude of the RSAE but increases the RSAE amplitude and associated EP transport to experimental levels in the quasi-steady state. The RSAE effects on the ITG, specifically the stronger zonal flows generated by the RSAE and the RSAE frequency modulation of the ITG-induced thermal ion heat transport, in turn, leads to a reduction of the thermal ion heat transport by more than a factor of 2 . For a stronger background ITG, the regulation of the RSAE by the ITG is stronger, while the RSAE effects on the ITG are weaker. This work highlights the importance of cross-scale coupling in the dynamics of the AE turbulence and EP transport.

Physics↗

DOE OSTI2026

Application of Ibuprofen Sodium Dihydrate for Thermochemical Energy Storage

Thermochemical energy storage (TCES) offers a transformative approach to address grid instability by harnessing reversible chemical reactions for efficient heat storage and release. Here, we introduce pharmaceutical organic salt hydrates as a class of materials with exceptional performance for low-grade waste heat recovery. We demonstrate ibuprofen sodium dihydrate (ISD) as an example organic hydrate exhibiting a dehydration temperature range of 60-110 °C and a remarkable dehydration enthalpy of up to 59.5 kJ/mol of water, ideally suited for capturing industrial and residential waste heat. Using rigorous multimodal characterization, including thermogravimetric analysis, differential scanning calorimetry, in-situ FTIR, in-situ PXRD, and NMR, we demonstrate ISD's superior thermal, chemical, and structural stability over 150 hydration-dehydration cycles, achieving an unprecedented cycling efficiency of ~99.9%. Compared to conventional inorganic salt hydrates like strontium chloride hexahydrate and calcium oxalate monohydrate, ISD showcases enhanced durability without deliquescence or pulverization, even under high-humidity conditions. In-situ analyses confirm the transition from ISD to ibuprofen sodium anhydrous (ISA) proceeds with structural reorganization, thereby combining the dehydration mechanism with phase transitions, resulting in higher energy storage capacity. Microstructural analyses reveal that repeated water intercalation and structural transitions aid in creating significant porosity that enhances water transport kinetics, further improving the hydration/dehydration performance. By combining the phase change and chemical dehydration mechanisms, ISD paves the way for designing a new class of organic salt hydrates, offering tunable properties to meet diverse thermal energy storage demands and supporting sustainable grid resilience.

Thangaraj, Kavin C.↗

DOE OSTI2018

Tracing Phase Transformation and Lattice Evolution in a TRIP Sheet Steel under High-Temperature Annealing by Real-Time In Situ Neutron Diffraction

Real-time in situ neutron diffraction was used to characterize the crystal structure evolution in a transformation-induced plasticity (TRIP) sheet steel during annealing up to 1000 °C and then cooling to 60 °C. Based on the results of full-pattern Rietveld refinement, critical temperature regions were determined in which the transformations of retained austenite to ferrite and ferrite to high-temperature austenite during heating and the transformation of austenite to ferrite during cooling occurred, respectively. The phase-specific lattice variation with temperature was further analyzed to comprehensively understand the role of carbon diffusion in accordance with phase transformation, which also shed light on the determination of internal stress in retained austenite. These results prove the technique of real-time in situ neutron diffraction as a powerful tool for heat treatment design of novel metallic materials.

Yu, Dunji [ORNL] (ORCID:0000000189467851)↗

DOE OSTI1988

Nuclear Safety [Vol. 29, No. 1, January-March 1988]

Nuclear Safety is a review journal that covers significant developments in the field of nuclear safety. Its scope includes the analysis and control of hazards associated with nuclear energy, operations involving fissionable materials, and the products of nuclear fission and their effects on the environment. Primary emphasis is on safety in reactor design, construction, and operation; however, the safety aspects of the entire fuel cycle, including fuel fabrication, spent-fuel processing, nuclear waste disposal, handling of radioisotopes, and environmental effects of these operations, are also treated. Table of Contents for this issue follows. THE CHERNOBYL ACCIDENT: 1 Core History and Nuclide Inventory of the Chernobyl Core at the Time of Accident by Gerald Kirchner and Cornelius C. Noack; GENERAL SAFETY CONSIDERATIONS: 6 Nonprescriptive Nuclear Safety Regulation: The Example of Loss of Offsite Power by M. W. Golay, V. P. Manno, and C. Vlahoplus, Jr., 20 Nuclear Power Safety Goals in Light of the Chernobyl Accident by C. Whipple and C. Starr; ACCIDENT ANALYSIS: 29 Containment Loads from Severe Accidents—U.S. Program by W. Kerr and M. K. Dey; PLANT SAFETY FEATURES: 36 Safety Characteristics of Modern High-Temperature Reactors: Focus on German Designs by W. Kröger, H. Nickel, and R. Schulten; ENVIRONMENTAL EFFECTS: 49 Radiation Hormesis and Nuclear Safety by C. C. Congdon; OPERATING EXPERIENCES: 58 Evaluation of Nonradiological Water Chemistry at Power Reactors by Harvey Zibulsky, James J. Kottan, Walter J. Pasciak, Mary Ann Castrogivanni, and Sujit Banerjee, 64 Reactor Shutdown Experience Compiled by J. W. Cletcher, 67 Operating U.S. Power Reactors Compiled by E. G. Silver; RECENT DEVELOPMENTS: 85 General Administrative Activities Compiled by E. G. Silver, 94 Reports, Standards, and Safety Guides by D. S. Queener, 100 Status of Power-Reactor Projects Undergoing Licensing Review Compiled by E. G. Silver, 103 Proposed Rule Changes as of Sept. 30, 1987; ANNOUNCEMENTS: 5 Northwestern University Short Course on Radiation Safety, 28 International Approach to Nuclear Safety (After Three-Mile Island and Chernobyl), 57 RPI Short Course on Modern Developments in Boiling Heat Transfer and Two-Phase Flow, 107 20th DOE/NRC Nuclear Air Cleaning Conference, 110 Third International Topical Meeting on Nuclear Power Plant Thermal Hydraulics and Operations, 108 The Authors, 111 Indexes to Nuclear Safety, Volume 28.

11 NUCLEAR FUEL CYCLE AND FUEL MATERIALS↗

DOE OSTI2025

Recrystallization, cracking, and erosion of dispersoid-strengthened tungsten materials during exposure to divertor plasmas

In this study, we investigated the effects of combined intense particle and heat flux exposure on advanced tungsten plasma-facing materials within the DIII-D fusion facility. Our test matrix included two types of dispersoid-strengthened tungsten (containing either 100 nm diameter TiO 2 or Ni particles), along with high-purity polycrystalline tungsten as a reference. This experiment relied on a sample geometry angled at 15° relative to the divertor surface, thereby allowing the surfaces to intercept steady-state perpendicular heat fluxes (q ⟂ ) ranging from 10.1 to 19.6 MW/m 2 . During each shot, the samples were exposed to 42 Hz edge-localized modes (ELMs), allowing us to test the material response to transient heating. We correlated the exposure conditions with extensive post-test surface composition analysis and microscopy to determine how the plasma modified each surface. The angled specimens closest to the strike point received the highest combined heat and particle flux and melted midway through the experiment. EBSD analysis revealed they were completely recrystallized throughout, with an average grain size >100 µm. On the other hand, the specimens that received a lower steady state heat flux survived with more superficial surface damage. Whereas the high-purity polycrystalline tungsten exhibited a higher surface roughness, the dispersoid-strengthened material exhibited more extensive shallow inter-granular cracking. In addition, the surface was depleted of dispersoids following plasma exposure, possibly because of evaporation and/or sputtering. The results described here provide insights into the performance of these materials in a fusion environment which can guide further optimization for use in long-pulse devices.

Kolasinski, Robert D. [Sandia National Laboratorie↗

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↗