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At least 127 records · Page 7

Stochastic Strategic Participation of Active Distribution Networks With High-Penetration DERs in Wholesale Electricity Markets

With the increasing penetration of distributed energy resources (DERs), traditional distribution networks as load-serving entities in wholesale electricity markets, now evolve towards active distribution networks (ADNs) which can proactively participate in wholesale markets by optimally controlling the DERs in their networks. A stochastic bilevel optimization model is proposed in this paper for the strategic participation of ADNs and DERs to provide energy and grid services in wholesale electricity markets. The bilevel optimization model can capture the interactions between the ADN and the wholesale energy and ancillary service markets, considering the uncertainties of DERs in the ADN. In the upper-level model, the ADN makes optimal decisions on energy and reserve bidding considering the availability, uncertainties, and flexibility of DERs. The joint energy and reserve market-clearing of the independent system operator (ISO) is modeled as the lower-level problem. Using strong duality theory and Karush-Kuhn Tucker (KKT) conditions, the proposed bilevel optimization problem is reformulated as mathematical programming with equilibrium constraints (MPEC) problem and further converted into a computationally-solvable mixed-integer second-order-cone programming (MISOCP) model. The simulation results demonstrate the effectiveness of the model and the interactions between an ADN and wholesale electricity markets.

active distribution network↗

Characterizing US Wholesale Electricity Markets

The purpose of this report is to provide analysts seeking to conduct technoeconomic analysis studies (TEA) on energy systems in US Wholesale electricity markets with a starting point. This document provides an overview of the primary markets related to electricity generation, namely capacity markets and ancillary services markets. The report provides a summary of each of these then provides details on these markets in the context of the seven wholesale electricity markets in the US. The document also summarizes key documents, web resources, and textbooks that will provide useful data and economic understanding for the analyst conducting the TEA studies.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Zero Export Feeder Through Transactive Markets

This project is aimed at creating a transactive energy market to address the challenges faced by utility providers when increasing distributed energy resource (DER) adoption in their service area. One major challenge is mitigating export back to the grid during times of excess production. The transactive energy market operates at the distribution level and balances the supply and demand on the feeder, thus maintaining a zero-energy export at the primary feeder head. The market participants in this case are the residential customers on the feeder, who bid into the market. Building controls are then optimized based on the settled price. Market performance was demonstrated in this study by simulating different levels of DER penetration on a selected Pepco feeder. The feeder successfully achieved a zero export while providing cost-effective electricity to the participants, demonstrating that this market design can enable high DER penetration on existing feeders.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Assessing the Impact of Operational Constraints on the Near-Term Unmanned Aircraft System Traffic Management Supported Market

An economic impact market analysis was conducted for 16 leading sectors of commercial Unmanned Aerial System (UAS) applications predicted to be enabled by 2020 through the NASA UAS Traffic Management (UTM) program. Subject matter experts from seven industries were interviewed to validate concept of operations (ConOps) and market adoption assumptions for each sector. The market analysis was used to estimate direct economic impacts for each sector including serviceable addressable market, capital investment, revenue recovery potential, and operations cost savings. The resultant economic picture distinguishes the agricultural, pipeline and railroad inspection, construction, and maritime sectors of the nascent commercial UAS industry as providing the highest potential economic value in the United States. Sensitivity studies characterized the variability of select UAS sectors economic value to key regulatory or UTM ConOps requirements such as weight, altitude, and flight over populated area constraints. Takeaways from the analysis inform the validation of UTM requirements, technologies and timetables from a commercial market need and value viewpoint. This work concluded in August 2015 and reflects the state of the UAS industry and market projections at that time.

Air Traffic Management↗

Opinion dynamics in financial markets via random networks

We investigate financial market dynamics by introducing a heterogeneous agent-based opinion formation model. In this work, we organize individuals in a financial market according to their trading strategy, namely, whether they are noise traders or fundamentalists. The opinion of a local majority compels the market exchanging behavior of noise traders, whereas the global behavior of the market influences the decisions of fundamentalist agents. We introduce a noise parameter, q , to represent the level of anxiety and perceived uncertainty regarding market behavior, enabling the possibility of adrift financial action. We place individuals as nodes in an Erdös-Rényi random graph, where the links represent their social interactions. At any given time, individuals assume one of two possible opinion states ±1 regarding buying or selling an asset. The model exhibits fundamental qualitative and quantitative real-world market features such as the distribution of logarithmic returns with fat tails, clustered volatility, and the long-term correlation of returns. We use Student’s t distributions to fit the histograms of logarithmic returns, showing a gradual shift from a leptokurtic to a mesokurtic regime depending on the fraction of fundamentalist agents. Furthermore, we compare our results with those concerning the distribution of the logarithmic returns of several real-world financial indices.

97 MATHEMATICS AND COMPUTING↗

Platinum Group Metals Global Economics Market Supply

Due to uncertainty in the transition away from internal combustion engines (and more importantly, the catalytic convertors these automobiles use), there is large uncertainty in the future of the PGM market. However, proton exchange membrane (PEM) electrolyzers could be a new demand application for PGMs. Therefore, a model was developed which utilizes the system dynamics approach to predict supply and prices for specific demand scenarios. Results indicated that the total PGM market value sees a decline in the late 2020s due to changing automotive application demand. Market decline was due to decreasing internal combustion engine (ICE) vehicle demand resulting in less PGMs supplied for automotive applications. Compounding market decline was an increase in secondary supply of PGMs as more ICE automotives reach their EOL pushing PGM prices down as secondary supply increases while demand simultaneously decreases. Following the market decline, an increase in market value in the early 2030s was observed due to deployment of hydrogen fuel cell technologies and subsequent increase in PGM demand

Kulkarni, Sameer (0000000227573592)↗

Land-Based Wind Market Report: 2021 Edition

The U.S. Department of Energy's 2021 edition of its land-based wind market report provides an overview of key trends in the U.S. wind power market, with a focus on 2020. You can find a report, data file and presentation on the Files tab, below. Additionally, several data visualizations are available on the Visualizations tab. Highlights of this year’s update include: -Wind comprises a growing share of electricity supply: U.S. wind power capacity grew at a record pace in 2020, with 25 billion dollars invested in 16.8 GW of capacity. Wind energy output rose to account for more than 8% of the entire nation’s electricity supply, and is more than 20% in 10 states. At least 209 GW of wind are seeking transmission interconnection; 61 GW of this capacity are offshore wind and 13 GW are hybrid plants that pair wind with storage or PV. -Wind project performance has increased over time: The average capacity factor among recently built projects was over 40%, considerably higher than projects built earlier. The highest capacity factors are seen in the interior ‘wind belt’ of the country. -Turbines continue to get larger: Improved plant performance has been driven by larger turbines mounted on taller towers and featuring longer blades. In 2010, no turbines employed blades that were 115 meters in diameter or larger, but in 2020, 91% of newly installed turbines featured such rotors. Proposed projects indicate that total turbine height will continue to rise. -Low wind turbine pricing has pushed down installed project costs over the last decade: Wind turbine prices are averaging 775–850 dollars/kW. The average installed cost of wind projects in 2020 was 1,460 dollars/kW, down more than 40% since the peak in 2010, though stable for the last three years. The lowest costs were found in Texas and the (non-ISO) West. -Wind energy prices remain low, around 20 dollars/MWh in the interior of the country: After topping out at 70 dollars/MWh for power purchase agreements (PPAs) executed in 2009, the national average price of wind PPAs has dropped. In the interior ‘wind belt’ of the country, recent pricing is around 20 dollars/MWh. In the West and East, prices tend to average 30 dollars/MWh or more. These prices, which are possible in part due to federal tax support, fall below the projected future fuel costs of gas-fired generation. -Wind PPA prices are often attractive compared to wind’s grid-system market value: The value of wind in wholesale power markets is affected by the location of wind plants, their hourly output profiles, and how those characteristics correlate with real-time electricity prices and capacity markets. The market value of wind declined in 2020, following natural gas prices lower and averaging under 15 dolalrs/MWh in ERCOT, MISO, NYISO and SPP; higher values were seen in CAISO, ISO-NE and PJM. -The average levelized cost of wind energy is down to 33 dollars/MWh: Levelized costs, which exclude the impacts of federal tax incentives, vary across time and geography, but the national average stood at 33 dollars/MWh in 2020—down substantially historically, though consistent with the previous two years. Levelized costs were lowest in ERCOT, SPP, and the (non-ISO) West. -The health and climate benefits of wind in 2020 were larger than its grid-system value, and the combination of all three far exceeds the current levelized cost of wind: Wind generation reduces power-sector emissions of carbon dioxide, nitrogen oxides, and sulfur dioxide. These reductions, in turn, provide public health and climate benefits that vary regionally, but together are economically valued at an average of 76 dollars/MWh-wind nationwide in 2020. -The domestic supply chain for wind equipment is diverse: For wind projects recently installed in the U.S., domestically manufactured content is highest for nacelle assembly (>85%), towers (60-75%), and blades and hubs (30-50%), but is much lower for most components internal to the nacelle.

17 WIND ENERGY↗

Reassessing the Market—Computation Interface to Enhance Grid Security and Efficiency

The goal of this project is to reconsider core market and reliability processes that can potentially yield to transformative advances in power grid security, reliability, and efficiency. Current electric power market designs are strongly a function of computing capabilities and limitations that were available in the mid-to-late 1990s, circa deregulation. This includes constructs such as: (1) a 2-tiered day-ahead/real-time market construct; and (2) linearized (“DC”) real power flow approximations in dispatch and pricing. At that time, state-of-the-art computational capabilities could at the limit address deterministic mixed-integer programming formulations of unit commitment (UC) and linear programming formulations of economic dispatch (ED) at limited fidelity and scale. Such constraints forced limited look-ahead time-horizons, crude approximations of AC power flow physics and operations, and artificial partitioning between day-ahead markets, hour(s)-ahead reliability processes, and real-time markets. Consequently, these limitations have resulted in limited security and reliability with increasing out-of-market payments, particularly as uncertainty associated with renewables and distributed energy resources grows.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Land-Based Wind Market Report: 2022 Edition

The U.S. Department of Energy's 2022 edition of its Land-Based Wind Market Report provides an overview of key trends in the U.S. wind power market, with a focus on 2021. You can find a report, data file and presentation on the Files tab, below. Additionally, several data visualizations are available on the Visualizations tab. Despite ongoing supply chain challenges, wind energy in 2021 continued to see strong growth, technology improvements, and low prices in the U.S. Key highlights include: Wind comprises a growing share of electricity supply: U.S. wind power capacity grew at a strong pace in 2021, with the 13.4 GW of new additions representing a $\$20$ billion investment and 32% of all newly added U.S. generation capacity. Wind energy output rose to account for more than 9% of the entire nation’s electricity supply. At least 247 GW of wind are seeking transmission interconnection; 77 GW of this capacity are offshore wind and 19 GW are hybrid plants that pair wind with storage or solar PV. Wind project performance has increased over the decades: The average capacity factor among recently built projects was nearly 40%, considerably higher than projects built earlier. The highest capacity factors are seen in the interior ‘wind belt’ of the country. Turbines continue to get larger: Improved plant performance has been driven by larger turbines mounted on taller towers and featuring longer blades. In 2011, no turbines employed blades that were 115 meters in diameter or larger, but in 2021, 89% of newly installed turbines featured such rotors. Proposed projects indicate that total turbine height will continue to rise. Low wind turbine pricing has pushed down installed project costs over the last decade: Wind turbine prices averaged $\$800$–$\$950$/kW in 2021, a 5% to 10% increase from the year prior but substantially lower than in 2010. The average installed cost of wind projects in 2021 was $\$1,500$/kW, down more than 40% since the peak in 2010, though relatively stable in recent years. The lowest costs were found in Texas and the (non-ISO) West. Wind energy prices are on the rise, but generally remain low, around $\$20$/MWh in the interior of the country with higher prices in the West and East. After topping out above $\$75$/MWh for power purchase agreements (PPAs) executed in 2009, the national average price of wind PPAs has dropped—though supply-chain pressures have resulted in increased prices in recent years. In the interior ‘wind belt’ of the country, recent pricing is around $\$20$/MWh. In the West and East, prices tend to average above $\$30$/MWh. These prices, which are possible in part due to federal tax support, fall below the projected future fuel costs of gas-fired generation. Wind PPA prices are often attractive compared to wind’s grid-system market value: The value of wind in wholesale power markets is affected by the location of wind plants, their hourly output profiles, and how those characteristics correlate with real-time electricity prices and capacity markets. The market value of wind increased in 2021, averaging $\$16$/MWh in MISO, $\$19$/MWh in SPP, $\$23$/MWh in NYISO, $\$31$/MWh in ERCOT, $\$33$/MWh in PJM, $\$44$/MWh in ISO-NE, and $\$48$/MWh in CAISO. The average levelized cost of wind energy was $\$32$/MWh for plants built in 2021: Levelized costs, which exclude the impacts of federal tax incentives, vary across time and geography. The national average stood at $\$32$/MWh in 2021—down substantially historically, though relatively stable in recent years. Levelized costs were lowest in ERCOT, SPP, and the (non-ISO) West. The health and climate benefits of wind in 2021 were larger than its grid-system value, and the combination of all three far exceeds the current levelized cost of wind: Wind generation reduces power-sector emissions of carbon dioxide, nitrogen oxides, and sulfur dioxide. These reductions, in turn, provide public health and climate benefits that vary regionally, but together are economically valued at an average of over $\$90$/MWh-wind for plants built in 2021.

17 WIND ENERGY↗

Beyond Price-Taker: Multiscale Optimization of a Wind-Battery Integrated Energy System within the Wholesale Electricity Market

This work presents the optimization of a wind-battery IES using the multiscale optimization framework proposed in our previous work to quantify errors from the price-taker assumption. The framework, built over Prescient (an open-source package for solving production cost models), is applied to the RTS-GMLC dataset, an open-source dataset that is representative of the southwest U.S. wholesale electricity market. The framework provides detailed bidding, market clearing, and control processes of an IES, and it can quantify how the IES interacts with the market. In this work, we use the retrofit of a wind farm with a battery storage system as an example to show the difference in the market outcomes and revenues obtained from both price-taker and multiscale optimization approaches. Our work goes beyond price-taker and deep dives into quantifying IES-market interaction in optimizing IES. This framework enables users to explore how different design and operation decisions of energy systems interact with the market and provides a more accurate evaluation than the price-taker assumption.

Chen, Xinhe↗

Revenue Analysis of Stationary and Transportable Battery Storage for Power Systems: A Market Participant Perspective

The power system faces a growing need for increased transmission capacity and reliability with the rising integration of renewable energy resources. To tackle this challenge, Battery Energy Storage Systems (BESSs) prove effective in enhancing grid capacity and relieving transmission congestion. This paper focuses on the PJM market, conducting a thorough revenue analysis to identify and characterize highly profitable nodes for BESS market participants. A comparison between stationary and transportable BESSs reveals that the transportable BESSs can generate higher potential revenue in energy and regulation markets. Based on these findings, we propose an optimal placement algorithm to support market participants in selecting strategic sites for BESS installation, validated with real PJM market data. This paper provides valuable insights for navigating market-based power system participants and promoting the effective integration of BESSs.

25 ENERGY STORAGE↗

Longitudinal Study of the Market Penetration of Cockpit Weather Information Systems

The purpose of the longitudinal research of the market penetration of cockpit weather information systems (CWIS) is to contribute to the body of knowledge on modeling advanced technology feasibility in aviation by tracking and analyzing the market adoption of CWIS over a three year period. This research takes advantage of a previous study, conducted by Dr. Paul Kauffmann in 2000, which demonstrated an integrated and cost effective approach to evaluate advanced technology feasibility, examining the feasibility of CWIS in five market segments: transport, commuter, general aviation, business, and rotorcraft. The longitudinal research consists of two consecutive studies and produced two reports. The first report was submitted in August 2003 and included general market analysis about the CWIS products in the market at the time, identified their characteristics and examined developing market dynamics.

Stough, Harry Paul, III↗

LMI Automated Air Cargo Operations Market Research and Forecast

Air cargo companies and aircraft manufacturers are making significant investments to enable the movement of cargo via various levels of automated aircraft, such as aircraft with simplified operations requiring a pilot, remotely monitored or piloted aircraft, and fully autonomous aircraft. These investments will enable greater utilization of aircraft while unlocking new air markets traditionally served by ground transportation only. Many cargo companies and aerospace experts envision an operating environment where a single pilot can remotely pilot numerous aircraft for significant increases in aircraft utilization. The future operating environment is also expected to include air cargo companies flying smaller aircraft from airports and distribution centers outside of major U.S. cities directly to city centers, avoiding congested roads and increasing the velocity of cargo shipments, particularly those that are high-value, time-sensitive, and security sensitive (e.g., pharmaceuticals). These are just a few benefits and use cases cargo companies and aerospace experts see with the advancement of automated aircraft. To better understand industry’s direction, NASA asked the LMI team to research the forecasted market, timeline, risks, and opportunities for integrating unmanned air cargo vehicles into the National Airspace System (NAS) for the development and prioritization of the NASA Air Traffic Management Exploration’s research portfolio. To begin the market assessment, we gathered data via numerous interviews with key stakeholders and subject matter experts and literature reviews. We then incorporated the data into a custom-developed systems dynamics model and visualization dashboard. The systems dynamics model classifies the size of the market (e.g., overall fleet size of automated aircraft) for four distinct use cases over the next 20 years. The model projects the year in which various types of automated aircraft will enter the commercial cargo market based on our team’s collective research on when the aircraft will become viable due to manufacturing and certification timelines and the lifespan of current, traditional aircraft in service, to name a few factors. While this report defines our team’s estimated timeline of entry and growth, the model is dynamic—it enables NASA users to change variables based on future-year events. If the necessary technology does not mature in accordance with our assumptions, then NASA can change the entry of service point to a future year to evaluate the changes in market size in the out years. This flexibility will be key to deciding when and how NASA should invest in various areas.

air traffic management↗

Modeling the Strategic Behavior of an Active Distribution Network in the ISO Markets

With increasing integration of distributed energy resources (DERs), active distribution networks (ADNs) can actively participate in the electricity markets by dispatching their DERs, which can change the existing electricity market paradigm. It is essential to investigate the strategic behaviors of ADNs and their DER dispatch when they participate in the wholesale market as price-makers. This paper proposes a bi-level optimization model to study the strategic behavior of an ADN in both energy and reserve markets. The optimal scheduling of DERs in the ADN is modeled as the upper level problem and the joint energy and reserve market-clearing of the ISO is modeled as the lower-level problem. The two-level optimization models exchange bidding information and energy/reserve prices with each other. The proposed bi-Ievel optimization problem is converted to a mathematical programming with equilibrium constraints (MPEC) by using Karush-Kuhn Tucker (KKT) conditions and strong duality theory. Further, the MPEC problem is reformulated as a computationally-solvable mixed integer second order cone programming (MISOCP) model. The simulation results on an illustrative case demonstrate the impact of the strategic bidding of the ADN on the day-ahead energy and reserve market prices.

Xue, Yaosuo↗

An ERCOT test system for market design studies

An open source test system is developed that permits the dynamic modeling of centrally-managed wholesale power markets operating over highvoltage transmission grids. In default mode, the test system models basic operations in the Electric Reliability Council of Texas (ERCOT): namely, centrally-managed day-ahead and real-time markets operating over successive days, with congestion handled by locational marginal pricing. These basic operational features characterize all seven U.S. energy regions organized as centrally-managed wholesale power markets. Modeled participants include dispatchable generators, load-serving entities, and non-dispatchable generation such as unrmed wind and solar power. Users can congure a broad variety of parameters to study basic market and grid features under alternative system conditions. Users can also easily extend the test system's Java/Python software classes to study modied or newly envisioned market and grid features. Finally, the test system is integrated with a high-level simulation framework that permits it to function as a software component within larger systems, such as multi-country systems or integrated transmission and distribution systems. Finally, detailed test cases with 8-bus and 200-bus transmission grids are reported to illustrate these test system capabilities.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Expanding market opportunities: cogeneration strategies for integrated PWR and thermal energy storage systems

We assess the economic viability of nuclear cogeneration by investigating three different modes—fixed dispatch, fully flexible dispatch, and flexible dispatch with minimum heat supply requirements. The analysis focuses on an existing pressurized water reactor (PWR) integrated with thermal energy storage (TES). Heat production costs are estimated under these modes for two U.S. electricity markets: the Electric Reliability Council of Texas (ERCOT) and the Pennsylvania–New Jersey–Maryland Interconnection (PJM). A sensitivity analysis examines profitability at varying heat market prices. Results indicate that fixed heat dispatch inflates heat production costs, often rendering projects economically feasible only at higher heat price levels. Fully-flexible dispatch lowers heat production costs by an average of 43 % compared to fixed dispatch. However, the current 30 % thermal dispatch limit may be insufficient to serve high baseline industrial demands cost‐effectively; higher maximum dispatch rates could enhance project economics. Markets with higher and more volatile electricity prices (e.g., ERCOT) offer greater total energy sales potential (i.e., heat and electricity), but also increase opportunity costs when heat production scheduling restrictions are imposed. In contrast, lower-price, less volatile markets (e.g., PJM) experience smaller impacts from such constraints and provide greater flexibility in accommodating varying cogeneration modes. In conclusion, these findings provide a framework to guide nuclear plant operators in aligning cogeneration strategies with industrial process requirements and electricity market conditions.

22 - GENERAL STUDIES OF NUCLEAR REACTORS↗

A Study of Emerging Ancillary Service Markets in Non-Restricted Regions of the Western Power Grid (CRADA Final Report)

Rising penetrations of renewable energy generation in the Western United States pose new requirements for ancillary services, which are the services required, in addition to energy service, in order to maintain the system reliability. This project combines the research capabilities of the National Renewable Energy Laboratory (NREL) and the University of Colorado at Boulder (CU-Boulder) to provide more accurate information to market participants and regulators about the present and future size and composition of ancillary service markets in the non-restructured regions of the West. This information would provide market participants and state and federal regulators with a more transparent view of future ancillary service markets, and allow for more efficient system planning in both the private and public sectors of the electricity market.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Multiscale simulation of integrated energy system and electricity market interactions

Accelerating the deep decarbonization of the world's electric grids requires the coordination of complex energy systems and infrastructures across timescales from seconds to decades. Here, we present a new multiscale simulation framework that integrates process- and grid-centric modeling paradigms to better design, operate, and control integrated energy systems (IESs), which combine multiple technologies, in wholesale energy markets. Traditionally, IESs are analyzed with a process-centric paradigm such as levelized cost of electricity (LCOE) or annualized net revenue, ignoring important interactions with electricity markets. This framework explicitly models the complex interactions between an IES's bidding, scheduling, and control decisions and the energy market's clearing and settlement processes, while incorporating operational uncertainties. Through two case studies, we show the importance of understanding and quantifying complex resource-grid interactions. In case study 1, we demonstrate that optimized bidding from one resource shifts the profit distribution for all energy systems in the market. This result suggests new and more flexible IES technologies can disrupt the economics of all market participants, possibly leading to accelerated retirements of less flexible resources. Interestingly, the optimized bidding has little impact on grid-level aggregate statistics, such as total generation costs and renewable penetration rate. While aggregate modeling strategies may remain valid under some IES adoption scenarios for analysis focused on regional outcomes, direct comparisons of IES technologies at specific locations without considering these interactions may lead to misleading or incorrect conclusions. In case study 2, we consider the design and flexible operation of IESs that hybridize conventional generators with energy storage. Through a sensitivity analysis, we find that as the size of the storage system increases, the total number of start-ups for coal- and natural gas-based IESs reduced by 25% and 33.6%, and the total thermal generator ramping (i.e., mileage) reduced by 86.5% and 62.5%, respectively. This shows the primary benefit of storage may not be reduced operational costs (which do not change significantly) but fewer start-ups and less ramping, which may greatly simplify the design, operation, and control of carbon capture systems. The new modeling and optimization capabilities from this work enable the coupling of rigorous, dynamic process models with grid-level production cost models to quantitatively identify the nuanced interdependencies across these vast timescales that must be addressed to realize clean, safe, and secure energy production. Moreover, the proposed general multiscale simulation framework is applicable to all IES technologies and can be easily extended to consider other energy carriers (e.g., hydrogen, ammonia) and energy infrastructures (e.g., natural gas pipelines).

24 POWER TRANSMISSION AND DISTRIBUTION↗