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DOE OSTI2018

SAM Photovoltaic Model Technical Reference 2016 Update

This manual describes the photovoltaic performance model in the System Advisor Model (SAM) software, Version 2016.3.14 Revision 4 (SSC Version 160). It is an update to the 2015 edition of the manual, which describes the photovoltaic model in SAM 2015.1.30 (SSC 41). This new edition includes corrections of errors in the 2015 edition and descriptions of new features introduced in SAM 2016.3.14, including: 3D shade calculator Battery storage model DC power optimizer loss inputs Snow loss model Plane-of-array irradiance input from weather file option Support for sub-hourly simulations Self-shading works with all four subarrays, and uses same algorithm for fixed arrays and one-axis tracking Linear self-shading algorithm for thin-film modules Loss percentages replace derate factors. The photovoltaic performance model is one of the modules in the SAM Simulation Core (SSC), which is part of both SAM and the SAM SDK. SAM is a user-friedly desktop application for analysis of renewable energy projects. The SAM SDK (Software Development Kit) is for developers writing their own renewable energy analysis software based on SSC. This manual is written for users of both SAM and the SAM SDK wanting to learn more about the details of SAM's photovoltaic model.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2022

Electric Access System Enhancement (EASE): Assessment of a Distributed Energy Resource Management System for Enabling Dynamic Hosting Capacity

The Electric Access System Enhancement (EASE) project demonstrated a scalable, interoperable, and cost-effective means of integrating high penetration of distributed energy resources (DERs). The control architecture developed leveraged a Distributed Energy Resource Management System, Distribution System Operator for transacting energy, and 3rd Party DER Aggregator platform. The project identified ways to enhance the customer interconnection process to the grid and improve access to information from DERs and optimize the usage of DERs to provide energy services in a simulated day-ahead shadow market while maintain grid reliability. By integrating these capabilities into a scalable system of systems, the DSO can effectively balance DER generation and customer demand on the distribution network. This capability allows the grid to host more DER than traditionally possible on wires alone. Hosting more DER has the added benefit of supplying increased demand growth, sometimes beyond the capacity limits of the distribution network itself. This is known as a dynamic hosting capacity, which could help utilities manage the forecasted growth in electricity demand as California switch to electric vehicles and appliances. This could help to establish energy storage and PV generation as a “pseudo firm” generation resource mix if managed appropriately and provide sufficient resource adequacy for distribution capacity upgrade deferrals.

14 SOLAR ENERGY↗
DOE OSTI2022

Cyber-Physical Dynamic System (CPDS) Modeling for Frequency Regulation and AGC Services of Distributed Energy Resources

The substantial integration of renewable energy brings significant challenges to balance the system in real time because of the variability and intermittency of renewable power. For the reliable system operation, the frequency regulation service is used to stabilize the system frequency through automatically balancing the system generation and load. On one hand, with the substantially increasing deployment of renewable energy in electricity system, the requirement of frequency regulation (FR) services increases significantly. On the other hand, the current main resource of FR services, the controllable conventional generation, is continuously decreasing in the system generation mix. This means that in the future high renewable penetration power system, additional and alternative reliable FR services providers such as distributed energy storage (DES) resources should be explored. Although the capability of utility-scale energy storage to provide FR services has been demonstrated, the integrated control and dynamic modeling of distributed energy resource (DER) providing frequency regulation grid services has been rarely explored. There are several challenges to adopt DERs to provide reliable grid services as illustrated in FERC 755. First, the distributed installation of DES requires a comprehensive cyber-physical dynamic system (CPDS) modeling to fully consider the impacts of the communication latency variability on its real time FR provision capability. Unlike the conventional generators, there are two-layer communication between DERs and system operators which increase the communication delay. Second, unlike the conventional generators whose dynamic models have been comprehensively studied, the difference among individual DER components' power-dynamic characteristic brings challenges in the accurate dynamic AGC modeling of its power-frequency relationship. Third, the temporal dependent state of charge uncertainty of DERs challenges DERs' power and frequency regulation capacities scheduling in the look-ahead generation scheduling. Therefore, the aggregator should optimize the frequency regulation provision from individual DER in real time. To overcome these challenges, this project proposes a cyber-physical dynamic system (CPDS) model to handle the uncertainty of DERs two-layer communication latency and power dynamics. The variability of DERs' communication delay and dynamic constraints will be comprehensively modeled. The DERs' AGC model with communication delay is designed to validate DESs' frequency regulation services. Like current performance-based frequency regulation evaluation, the delivery of DERs' frequency regulation will be assessed through post-analysis of the actual AGC response with respect to the AGC control signal from system operators. Consequently, the reliability improvement with DERs providing reliable frequency regulation services can be evaluated from a comprehensive perspective considering all the dynamics of communication and power.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2023

Environmental and Economic Implications of Emerging Plastic Recycling Technologies

Recycling will play a crucial role in mitigating plastic pollution and promoting a circular economy for polymers. Quantitative analysis can help guide the optimization and implementation of these plastic management strategies, enabling increased circularity while minimizing costs, energy use, greenhouse gas emissions, and other environmental impacts. This talk will outline the Bio-Optimized Technologies to keep Thermoplastics out of Landfills and the Environment (BOTTLE) Consortium's approach to analysis-guided plastic recycling research. Stringent process modelling, life cycle assessment, and techno-economic analysis are used to benchmark the technical feasibility, environmental impacts, and costs of chemical and biological recycling technologies in comparison to conventional fossil fuel-based plastic manufacturing. Across emerging recycling strategies, several key challenges become apparent - including plastic feedstock pretreatment requirements, high energy or chemical use, and recycled plastic yields and quality - highlighting opportunities for future innovation. Through this consistent and in-depth analysis approach, BOTTLE aims to provide the plastics community with key metrics and insights to drive plastic recycling innovation towards a more sustainable and circular economy.

circular economy↗
DOE OSTI2014

System Dynamics Modeling of the Colorado Basin for Optimizing Operations, Reducing Risk, and Increasing Resiliency

This paper is the output from SNL’s involvement in the Western Area Power Administration (WAPA), the Colorado River Energy Distributors Association (CREDA), and the Upper Colorado River Commission’s (UCRC) sponsored Phase II work to establish market and non-market values (NMV’s) of water and hydropower associated with Glen Canyon Dam (GCD) operations and the Colorado River ecosystem. It describes the purpose and need to develop a systems model for the Colorado River Basin that includes valuations in the economic, hydrologic, environmental, social, and cultural sectors. It outlines the benefits and unique features associated with such a model and provides a roadmap of how a systems model would be developed and implemented. While not meant to serve as a full development plan, the ideas and concepts herein represent what the Sandia National Laboratories (SNL) research team believes is the most impactful and effective path forward to address an ever increasing complex set of problems that occur at the basin-scale and beyond.

13 HYDRO ENERGY↗
DOE OSTI2014

Efficient Algorithm for Locating and Sizing Series Compensation Devices in Large Transmission Grids: Model Implementation (PART 1)

We explore optimization methods for planning the placement, sizing and operations of Flexible Alternating Current Transmission System (FACTS) devices installed to relieve transmission grid congestion. We limit our selection of FACTS devices to Series Compensation (SC) devices that can be represented by modification of the inductance of transmission lines. Our master optimization problem minimizes the l 1 norm of the inductance modification subject to the usual line thermal-limit constraints. We develop heuristics that reduce this non-convex optimization to a succession of Linear Programs (LP) which are accelerated further using cutting plane methods. The algorithm solves an instance of the MatPower Polish Grid model (3299 lines and 2746 nodes) in 40 seconds per iteration on a standard laptop—a speed up that allows the sizing and placement of a family of SC devices to correct a large set of anticipated congestions. We observe that our algorithm finds feasible solutions that are always sparse, i.e., SC devices are placed on only a few lines. In a companion manuscript, we demonstrate our approach on realistically-sized networks that suffer congestion from a range of causes including generator retirement. In this manuscript, we focus on the development of our approach, investigate its structure on a small test system subject to congestion from uniform load growth, and demonstrate computational efficiency on a realistically-sized network.

25 ENERGY STORAGE↗
DOE OSTI2013

Preliminary Scaling and controls Analysis of an FHR-HTSE System Idaho National Laboratory Summer 2013 Final Report

For new nuclear reactor system designs to be approved by regulatory agencies like the Nuclear Regulatory Commission (NRC), the details of system operation must be validated with respect to standards of safety, control, and output. A scaled experiment that replicates certain properties of the system can be used to validate compliance with regulatory standards, while avoiding the prohibitive cost and labor required to develop a fully functional prototype system; therefore, designing such an experiment is of special interest to current efforts to develop hybrid energy systems (HES) that integrate small modular reactors (SMRs), renewable energy systems, and industrial process applications such as hydrogen production and desalination. In addition, a scaled experiment can be an economical method of analyzing the interconnections between HES components and understanding the time constants associated between inter-component energy and information flows. This report discusses the results of a preliminary scaling analysis done for the primary loop of a 300 MWth Fluoride-Salt-Cooled High Temperature Reactor (FHR) that is coupled with a High-Temperature Steam Electrolysis system (HTSE), as well as the basic control logic that governs the primary components and the necessary hardware to achieve optimal functionality. The scaled facility will be a 1 MWth system that uses Dowtherm A as the simulant fluid for Flibe (the coolant of choice for the primary loop of molten salt reactors), and can validate the heat transfer and steady-state operational requirements of the 300 MWth prototype. The scaled facility matches the Prandtl and Reynolds numbers associated with steady-state operation of the FHR-HTSE’s primary loop without having to deal with very high temperatures, flow rates, or power inputs. This will allow the facility to run experiments that analyze various thermophysical and fluid-dynamic properties that characterize reactor operation, such as pressure drops, radial temperature distribution, heat exchanger conditions. The facility also has potential to integrate additional components of the prototype system, such as intermediate thermal-hydraulics loops, real-time grid-demand data, energy storage, and HTSE.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2018

Derived Optimal Linear Combination Evapotranspiration (DOLCE): a global gridded synthesis ET estimate

Accurate global gridded estimates of evapotranspiration (ET) are key to understanding water and energy budgets, in addition to being required for model evaluation. Several gridded ET products have already been developed which differ in their data requirements, the approaches used to derive them and their estimates, yet it is not clear which provides the most reliable estimates. This paper presents a new global ET dataset and associated uncertainty with monthly temporal resolution for 2000–2009. Six existing gridded ET products are combined using a weighting approach trained by observational datasets from 159 FLUXNET sites. The weighting method is based on a technique that provides an analytically optimal linear combination of ET products compared to site data and accounts for both the performance differences and error covariance between the participating ET products. We examine the performance of the weighting approach in several in-sample and out-of-sample tests that confirm that point-based estimates of flux towers provide information on the grid scale of these products. We also provide evidence that the weighted product performs better than its six constituent ET product members in four common metrics. Uncertainty in the ET estimate is derived by rescaling the spread of participating ET products so that their spread reflects the ability of the weighted mean estimate to match flux tower data. While issues in observational data and any common biases in participating ET datasets are limitations to the success of this approach, future datasets can easily be incorporated and enhance the derived product.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2022

Building and Executing Aggressive Research Plans in a Large National Laboratory Consortium: Insights from the Co-Optimization of Fuels and Engines Initiative

This report describes lessons learned in the establishment, execution and termination of a large, multi-institutional consortium, derived from the Co-Optimization of Fuels and Engines experience. The decision to form a consortium comes with benefits (in advancing challenging multidisciplinary research) and costs (in time and additional management funds). Once the decision is made, key elements to a strong start include establishing a shared vision and goals; engaging an experienced project manager early; instituting feedback and oversight mechanisms to ensure relevance, strong performance, and situational awareness. Once a consortium is up and running, DOE and leadership should strike the right balance between competition and collaboration; foster an environment that builds trust; and adjust the organizational structure as needed to maintain collaboration. Finally, DOE and the labs can plan effectively for a smooth transition as a consortium winds down. This report provides some additional lessons and details on these lessons that we hope future DOE and lab leaders will find useful as they contemplate standing up new consortia.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2024

Decarbonization of heat pump dual fuel systems using a practical model predictive control: Field demonstration in a small commercial building

In the transition from fossil fuel to electrified heating, a concerning trend is emerging in certain regions of the US. Owners of buildings with gas-based systems leave them in place after adding heat pumps (HPs). Existing control solutions for these hybrid (dual fuel) systems are rudimentary and fall short of realizing the full carbon reduction potential of these systems. Model predictive control (MPC) is often regarded as the benchmark for achieving optimal control in integrated systems. However, in the case of small-medium commercial buildings (SMCBs), the control and communication infrastructure required to facilitate the implementation of such advanced controls is often lacking. This paper presents a field implementation of easy-to-deploy MPC for a dual fuel heating system consisting of HPs and a gas-fired furnace (GF) for SMCBs. The control system is deployed on an open-source middleware platform and utilizes low-cost sensor devices to be used for real SMCBs without major retrofits. Here, we demonstrated this MPC in a real office building with 5 HPs and 1 GF for 2 months. The test results showed that MPC reduced 27% of cost while completely eliminating GF usage by shifting 23% of the thermal load from occupied-peak time to non-occupied-non-peak times.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2022

The Energy in Modular (EMOD) Buildings Method: A Guide to Energy-Efficient Design for Industrialized Construction of Modular Buildings

Industrialized construction has immense potential to address the growing need globally to build and upgrade the building stock to be affordable, energy-efficient, and resilient. It can also help achieve the United States' goal of a 50% reduction in U.S. greenhouse gas (GHG) emissions by 2030. Despite this potential, and the ever-increasing push for electrification and decarbonization of households in the United States, industrialized construction has not yet been leveraged specifically to help address these challenges and accelerate the pathway to meet these goals. The National Renewable Energy Laboratory (NREL) aims to claim this missed opportunity by focusing on delivering affordable, grid-efficient net-zero energy (NZE) modular buildings for underserved communities to ensure an equitable transition to the future of clean energy, accelerate decarbonization of the built environment, and support the development of a high-productivity construction and energy efficiency workforce. The Energy in Modular (EMOD) method is our approach to designing, producing, and delivering affordable, net-zero energy, low-carbon, and healthier buildings at scale. The following energy efficiency strategies are part of the scope of this guide: envelope thermal control, envelope infiltration control, mechanical, electrical, and plumbing systems, smart controls, and solar plus storage. We draw synergies between design for manufacturing and assembly, process optimization, retrofit technologies, and digitization. Our goal is to influence the improvement and production of buildings to increase performance, enhance energy efficiency, and reduce GHG emissions. This guide documents the research and development efforts initiated by a set of design objectives to "modularize" a set of energy efficiency and low-carbon strategies into a housing unit while preserving and enhancing energy efficiency benefits and decarbonization pathways. This guide is intended to serve as a framework for housing developers, housing agencies, architects, energy experts, and process engineers or factory operator personnel who are critical to today's modular builder teams. This guide focuses on specific energy efficiency strategies, decarbonization pathways, and associated processes as part of NREL's research efforts. Stakeholders may substitute other means, methods, and technologies for the ones evaluated in this study.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2019

An Overview of the U.S. Department of Energy's GeoVision Report: Preprint

The U.S. Department of Energy's (DOE's) Geothermal Technologies Office (GTO) engaged in a multiyear research collaboration among national laboratories, industry experts, and academia to identify a vision for growth of the domestic geothermal industry across a range of geothermal energy types. The effort, called the GeoVision analysis, assessed opportunities to expand geothermal energy deployment by improving technologies, reducing costs, and mitigating barriers. The analysis also evaluated the economic and environmental impacts of such deployment - including industry growth, consumer energy prices, water use, and air emissions - and investigated opportunities for desalination, mineral recovery, and hybridization with other energy technologies for greater efficiencies and lower costs. The GeoVision analysis used a suite of modeling tools and scenarios to evaluate the performance of geothermal technologies relative to other energy technologies. The assessment included evaluating the potential role of existing and future geothermal deployment in both the electric sector and the heating and cooling sector. In the electric sector, the GeoVision analysis considered electricity generation from existing conventional (hydrothermal) geothermal resources as well as unconventional geothermal resources, such as enhanced geothermal systems (EGS). In the heating and cooling sector, the analysis modeled geothermal heat pumps (GHPs, also called ground source heat pumps) and district-heating systems using both conventional and EGS resources. The analysis culminated in a summary report, GeoVision: Harnessing the Heat Beneath Our Feet (DOE 2019), as well as eight supporting task force reports (Lowry et al. 2017, Doughty et al. 2018, Wendt et al. 2018, Augustine et al. 2019, Liu et al. 2019, McCabe et al. 2019, Millstein et al. 2019, Young et al. 2019). Among other results, key findings of the analysis indicate that optimized permitting could potentially double geothermal capacity by 2050; technology improvements could increase geothermal power generation nearly 26-fold from today; and increased geothermal deployment can provide economic and environmental benefits to the United States. The analysis also concludes that GHPs can provide heating and cooling solutions to the equivalent of 28 million households and geothermal district-heating systems could experience exponential growth - from 21 installations today to 17,500 nationwide. In addition to summarizing analytical results about geothermal energy opportunities, the report includes a Roadmap of actionable items on which the stakeholder community can engage to achieve the outcomes of the analysis. The GeoVision Roadmap is a comprehensive call to action to encourage and guide stakeholders toward the shared goal of realizing the deployment levels and resulting benefits identified in the GeoVision analysis.

15 GEOTHERMAL ENERGY↗
DOE OSTI2017

Potential Arbitrage Revenue of Energy Storage Systems in PJM

The volatility of electricity prices is attracting interest in the opportunity of providing net revenue by energy arbitrage. We analyzed the potential revenue of a generic Energy Storage System (ESS) in 7395 different locations within the electricity markets of Pennsylvania-New Jersey-Maryland interconnection (PJM), the largest U.S. regional transmission organization, using hourly locational marginal prices over the seven-year period 2008–2014. Assuming a price-taking ESS with perfect foresight in the real-time market, we optimized the charge-discharge profile to determine the maximum potential revenue for a 1 MW system as a function of energy/power ratio, or rated discharge duration, from 1 to 14 h, including a limited analysis of sensitivity to round-trip efficiency. We determined minimum potential revenue with a similar analysis of the day-ahead market. We presented the distribution over the set of nodes and years of price, price volatility, and maximum potential arbitrage revenue. From these results, we determined the breakeven overnight installed cost of an ESS below which arbitrage would be profitable, its dependence on rated discharge duration, its distribution over grid nodes, and its variation over the years. We showed that dispatch into real-time markets based on day-ahead market settlement prices is a simple, feasible method that raises the lower bound on the achievable arbitrage revenue.

25 ENERGY STORAGE↗
NASA NTRS1990

ECLSS Integration Analysis: Advanced ECLSS Subsystem and Instrumentation Technology Study for the Space Exploration Initiative

In his July 1989 space policy speech, President Bush proposed a long range continuing commitment to space exploration and development. Included in his goals were the establishment of permanent lunar and Mars habitats and the development of extended duration space transportation. In both cases, a major issue is the availability of qualified sensor technologies for use in real-time monitoring and control of integrated physical/chemical/biological (p/c/b) Environmental Control and Life Support Systems (ECLSS). The purpose of this study is to determine the most promising instrumentation technologies for future ECLSS applications. The study approach is as follows: 1. Precursor ECLSS Subsystem Technology Trade Study - A database of existing and advanced Atmosphere Revitalization (AR) and Water Recovery and Management (WRM) ECLSS subsystem technologies was created. A trade study was performed to recommend AR and WRM subsystem technologies for future lunar and Mars mission scenarios. The purpose of this trade study was to begin defining future ECLSS instrumentation requirements as a precursor to determining the instrumentation technologies that will be applicable to future ECLS systems. 2. Instrumentation Survey - An instrumentation database of Chemical, Microbial, Conductivity, Humidity, Flowrate, Pressure, and Temperature sensors was created. Each page of the sensor database report contains information for one type of sensor, including a description of the operating principles, specifications, and the reference(s) from which the information was obtained. This section includes a cursory look at the history of instrumentation on U.S. spacecraft. 3. Results and Recommendations - Instrumentation technologies were recommended for further research and optimization based on a consideration of both of the above sections. A sensor or monitor technology was recommended based on its applicability to future ECLS systems, as defined by the ECLSS Trade Study (1), and on whether its characteristics were considered favorable relative to similar instrumentation technologies (competitors), as determined from the Instrumentation Survey (2). The instrumentation technologies recommended by this study show considerable potential for development and promise significant returns if research efforts are invested.

Source record↗
DOE OSTI2020

Switch Opening and Exchange Method for Stochastic Distribution Network Reconfiguration

The purpose of distribution network reconfiguration (DNR) is to determine the optimal topology of an electricity distribution network, which is an efficient measure to reduce network power losses. Electricity load demand and photovoltaic (PV) output are uncertain and vary with time of day, and will affect the optimal network topology. Single-hour deterministic DNR is incapable of handling this uncertainty and variability. Therefore, this paper proposes to solve a multi-hour stochastic DNR (SDNR). Existing solution methods for DNR are either inaccurate or excessively time-consuming, and are therefore incapable of solving multi-hour SDNRs for large distribution networks. In this regard, a switch opening and exchange (SOE) method is proposed. Starting from a looped network with all switches closed, the SOE consists of three steps. The first step is to sequentially open the switches until all of the loops are opened. The second and third steps modify the status of branches obtained in the first step to obtain better radial topologies. Five test systems are used to validate the accuracy and fast solution speed of the SOE and the superiority of multi-hour SDNR over single-hour deterministic DNR.

distribution network reconfiguration↗
DOE OSTI2018

Distribution System V1G PEV Charging Impacts Report

Plug-in Electric Vehicles (PEVs) are a clean form of transportation that will require a new control paradigm between the energy supply and the transportation sectors as PEV adoption continues to grow. Meeting the projected PEV energy demands will require implementing PEV / grid integration methods beyond charging PEVs at incentivized times. MATLAB was used to simulate the daily vehicle trip demands and charging processes of hundreds of PEVs. The National Household Travel Survey (NHTS) data was used as the source of vehicle travel data, and EV Project provided measured PEV charging data to calibrate the PEV population models. GridLAB-D analyses used a prototypical feeder and PEV population models to evaluate residential PEV V1G (unidirectional) charging in multiple locations, V1G PEV distribution feeder impacts, Time-Of-Use (TOU) rate effects on PEV charging, and charging control methods. The key findings were: optimized charging using California TOU rates could result in savings of over $20 per month for non-TOU program participants; non-TOU participants consume 30-40% of PEV charging energy; about 50% of PEV drivers have their transportation fuel bill reduced by 50 dollars per month; 6.6kW charging will cause distribution transformer power limits to be exceeded on prototypical feeders if the household PEV adoption rate reaches 0.75 PEVs per home; distribution feeder loading is proportional to PEV charging rate; a method was devised to remotely identify when residential transformer overloads occur using changes in PEV charging rate; and the low-cost TOU period is composed of a distribution of PEVs needing small, medium and larger energy needs that can be more effectively shifted as groups to mitigate the TOU peak power and enable a higher PEV adoption rate per household without overloading distribution transformers.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2017

Life Prediction Model for Grid-Connected Li-ion Battery Energy Storage System

Lithium-ion (Li-ion) batteries are being deployed on the electrical grid for a variety of purposes, such as to smooth fluctuations in solar renewable power generation. The lifetime of these batteries will vary depending on their thermal environment and how they are charged and discharged. To optimal utilization of a battery over its lifetime requires characterization of its performance degradation under different storage and cycling conditions. Aging tests were conducted on commercial graphite/nickel-manganese-cobalt (NMC) Li-ion cells. A general lifetime prognostic model framework is applied to model changes in capacity and resistance as the battery degrades. Across 9 aging test conditions from 0oC to 55oC, the model predicts capacity fade with 1.4% RMS error and resistance growth with 15% RMS error. The model, recast in state variable form with 8 states representing separate fade mechanisms, is used to extrapolate lifetime for example applications of the energy storage system integrated with renewable photovoltaic (PV) power generation.

25 ENERGY STORAGE↗
DOE OSTI2021

Impact of operating reserve rules on electricity prices with high penetrations of renewable energy

In competitive wholesale electricity markets, significant effort is devoted to designing markets that set efficient prices for maintaining supply-demand balance. One factor that can impact prices is administratively-set scarcity pricing, which sets prices to a preset level when the market is not able to meet operating reserve or energy requirements. When energy and operating reserves are co-optimized, assumptions surrounding operating reserve requirements and scarcity pricing can impact system-wide price outcomes for both operating reserves and energy. This study uses production cost modeling of an ERCOT-like system to evaluate the impact of operating reserve eligibility, scarcity pricing, and quantity rules on electricity prices, and therefore also on generator revenues. Results reveal economic and operational benefits with allowing open participation in reserve markets, as this enables greater access to the full set of capable resources at lowest cost. Furthermore, both energy and reserve prices are strongly impacted by reserve scarcity pricing events, which reveals that reserve scarcity pricing assumptions can impact price outcomes even for units not providing reserves. This study highlights the importance of operating reserve scarcity pricing rules because of the strong coupling between energy and reserve prices and because these rules serve as proxies for true price responsive demand.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗