How to Conduct a Long-Term Planning Study: Guidelines for Power System Planners
This fact sheet provides a high level, step-by-step overview to conduct a power system planning study.
Children's Investment Fund Foundation↗
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To What Extent Will Decarbonization Deepen the Conversation Between Industry and the Grid?
Decarbonization - the transition away from un-mitigated fossil fuel combustion throughout the economy - requires big changes from both power and process systems. On the power system side, those changes are expected to include large increases in variable generation, e.g., from wind and solar, which has near-zero marginal costs and at large shares can produce infrequent but consequential energy droughts. On the process systems side, industries are investigating their options for direct and indirect electrification, the latter exemplified by replacing fossil fuel inputs with zero-carbon, energy-carrying chemicals like hydrogen and ammonia produced via electrochemical processes. The economic features of these changes within the larger context of power and process systems suggest that their realization could be accompanied by a paradigm shift in how industrial facilities interact with the grid. For example, the dominant type of demand participation in power markets could change from today's focus on load reductions at peak times to a new focus on shifting electricity use, enabled in part by large-scale product storage, to take advantage of renewable energy that would otherwise be curtailed and to avoid consumption during high-price energy droughts. This talk will describe these and other possible design and operational approaches from grid and industrial economic perspectives, culminating in an enumeration of open problems that lie at the interface of today and tomorrow's power and process systems.
co-design↗
Impacts of Regional Coordination on Transmission Needs for Power System Resource Adequacy [Slides]
Resource adequacy (RA) is an important component of bulk power system reliability that addresses whether there are sufficient resources available to meet electricity demand at all times. RA analysis is used to assess whether the planned power system will provide reliable electricity to consumers while accounting for equipment outages, weather variability, and load uncertainty. Coordination between regions can enable resource sharing to meet RA needs if sufficient transmission capacity exists. Transmission's role in RA coordination can be particularly pronounced for large power systems like the U.S. electricity grid which contains geographically diverse demand and weather-dependent resources. Depending on the level of coordination desired, existing inter-regional transmission capacity may not be sufficient. This study is designed to assess optimal pathways for the development of inter-regional transmission in the U.S. under varying levels of RA coordination. Results can inform long-term grid infrastructure planning and provide insights into potential benefits of greater coordination for generation and transmission planning between regional U.S. power systems.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Climate Influences on Capacity Expansion Planning with Application to the Western U.S
Electric power system planners utilize a variety of planning tools to inform decisions concerning generation and transmission additions to the electric grid, the need for operational changes, and to evaluate potential stressors on the system. Numerous factors contribute to the planning process including projected fuel and technology costs, policy and load profiles. There is also a growing recognition of the interdependency of the electric grid with other natural and engineered systems. Here we explore how future climate change and hydropower operability might influence decisions related to electricity capacity expansion planning and operations. To do so we assemble a multi-model framework. Specifically, water resource modeling is used to simulate climate impacts on future water supply for thermoelectric and hydropower generation. Separately, temperature impacts on electricity load are evaluated. Together, these climate factors spatially constrain a capacity expansion model that projects generation and transmission additions to the grid. The projected new capacity-builds are then evaluated on their operations, reliability, and cost under average and extreme climate conditions using production cost modeling. This coupled framework is demonstrated on the electric grid in the Western U.S., supporting capacity expansion planning by WECC, the North American Electric Reliability Corporation (NERC) regional entity responsible for reliability assurance of the Western Interconnection. This region was selected in part because the West is unique in that it has high potential for renewable penetrations and is experiencing large retirements/displacements of baseload resources, primarily coal, leading to possible operational challenges in terms of changing resource mix and the need for resource flexibility. Toward this challenge, planning scenarios encompass a range of alternative energy, climate and drought futures. In this context we explore answers to two strategic questions: 1) How does changing climate influence electricity expansion planning (generation and transmission) and future operations, including type and capacity of new builds, system reliability, cost and environmental impacts? 2) How does the representation of hydropower in the modeling framework influence the evaluation of bulk power system operations? Results indicate that climate has a measurable influence on recommendations concerning the capacity, type and location of new generation and transmission additions, with up to 17 GW additional capacity needed by 2038 to meet peak loads (~6.6% increase over capacity-builds based on historical climate). The extent of additional infrastructure needs is strongly influenced by future water availability for hydropower and the potential deployment of demand response technologies. Systems designed for future climate conditions were found to maintain high system reliability under a range of electricity and water availability scenarios (including significant drought), with minimal system curtailments. Additional capacity needs due to higher load tend to increase cumulative 20-year investment and operating costs by $\$$5-$\$$17 billion and generation costs increase by 9 to 19%. Finally, changing the representation of hydropower flexibility has a relatively small influence on capacity expansion in the Western Interconnection through 2038, but hydropower flexibility impacts generation costs to a similar extent as climate.
13 HYDRO ENERGY↗
The Hawaii Meteorology, Energy and Transmission (MET) Toolkit
Reliable long-term resource adequacy and grid planning in Hawaii require precise, multi-decadal meteorological records. This paper introduces the Hawaii Meteorology, Energy and Transmission (MET) Toolkit, a 26-year (2000-2025) high-fidelity atmospheric dataset developed by the National Laboratory of the Rockies (NLR). We present a validation study of the underlying WRF model configurations, comparing the legacy MYNN PBL scheme against an alternative YSU formulation. Using vertical lidar profiles and surface buoy data, our analysis identified a foundational geometric distortion in the legacy NOW-23 Hawaii dataset caused by an incorrect grid projection. When evaluated on a corrected, zero-distortion grid, the YSU scheme demonstrated superior performance in bias and cRMSE compared to the legacy setup. To address these findings, the MET Toolkit has been re-produced as a unified 26-year record using the optimized YSU setup and corrected geometry. This dataset offers the Hawaii power sector a robust, validated, and homogenous reference for future grid resilience and energy integration.
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Failure Probability Constrained AC Optimal Power Flow
Despite cascading failures being the central cause of blackouts in power transmission systems, existing operational and planning decisions are made largely by ignoring their underlying cascade potential. This paper posits a reliability-aware AC Optimal Power Flow formulation that seeks to design a dispatch point which has a low operator-specified likelihood of triggering a cascade starting from any single component outage. By exploiting a recently developed analytical model of the probability of component failure, our Failure Probability-constrained ACOPF (FP-ACOPF) utilizes the system's expected first failure time as a smoothly tunable and interpretable signature of cascade risk. Here, we use techniques from bilevel optimization and numerical linear algebra to efficiently formulate and solve the FP-ACOPF using off-the-shelf solvers. Extensive simulations on the IEEE 118-bus case show that, when compared to the unconstrained and N-1 security-constrained ACOPF, our probability-constrained dispatch points can significantly lower the probabilities of long severe cascades and of large demand losses, while incurring only minor increases in total generation costs.
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Energy storage planning for enhanced resilience of power systems against wildfires and heatwaves
Extreme weather events pose significant risks to power grid stability due to their severe consequences and potential for widespread failures. Energy storage systems hold great potential for enhancing grid resilience against such events by providing reliable power during peak demand periods. However, accurately quantifying the size, location, and investment costs of new energy storage assets is a complex task, as energy storage planning decisions depend on the investment choices of other generation technologies and the integration of new transmission projects. Here, this paper presents a novel capacity expansion planning framework that simultaneously optimizes investments in energy storage, generation, and transmission, determining their optimal size, location, and type, while incorporating extreme weather events into long-term planning. More specifically, our stress-event-informed planning framework integrates the impact of heatwaves and wildfires into the planning process, identifying least-cost investment solutions that comply with policy goals and enhance grid resilience. The proposed framework employs machine-learning-based modeling to project heatwave-induced loads and performance-based risk assessment to evaluate wildfire-driven transmission line derates. Using industry-standard datasets to accurately represent the transmission topology of the Western Interconnection (WI) system, the proposed framework is applied to the WI 40-zone system, with investment decisions reported for the years 2030, 2035, and 2040. Simulation results reveal that with just a 10% increase in investment costs, resilience against extreme events can be significantly improved, with investment decisions heavily favoring energy storage, particularly 4-hour energy storage systems.
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State Spotlight on Resilience: The Washington Utilities and Transportation Commission’s Wildfire Mitigation Plans
Wildfires present a significant risk to critical infrastructure, endangering energy systems by damaging transmission lines and imposing a variety of costs on utilities and their customers. Wildfires have increased nationally in both extent and intensity as vegetation conditions become drier and wind patterns become more turbulent. Aging infrastructure may also cause transmission lines to ignite vegetation.
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Deep Cyber-Physical Situational Awareness for Energy Systems: A Secure Foundation for Next-Generation Energy Management
This document provides the final report for the CYPRES project. The purpose is (1) to highlight and summarize its major accomplishments and (2) to provide guidance on how its outcomes have informed and can inform important additional research and technology transfer. The goal of CYPRES was the research, development, and demonstration of a security-oriented next generation cyber-physical EMS for electric power systems that detects malicious and abnormal events through the fusion of cyber and physical data. To achieve this, the CYPRES project team researched, developed, and built a prototype of the solution, referred to as the CYPRES EMS. The CYPRES EMS is a proof-of-concept cyber-physical platform that demonstrates the management of the energy system, communications, security, and cyber-physical grid modeling and analytics. As part of the capabilities of the CYPRES EMS, the team designed and developed a suite of power system applications for monitoring, risk analyses, detection, and control that are inherently cyberaware. At its core, the project aimed to research, develop, and demonstrate a security-oriented next-generation cyber-physical Energy Management System (EMS) capable of detecting malicious and abnormal events through the innovative fusion of cyber and physical data. This approach represents a fundamental shift from traditional EMS, reimagining how critical infrastructure can be protected through unified cyber-aware and physics-aware secure data flow pipelines. The project’s cornerstone deliverable, the CYPRES EMS, serves as a proof-of-concept cyber-physical platform that revolutionizes the management of energy systems, communications, security, and cyber-physical grid modeling and analytics. This prototype implements a comprehensive suite of power system applications for monitoring, risk analyses, detection, and control, all designed with inherent cyber awareness. The system’s architecture extends from end-devices in the field through to control center applications, establishing a secure and resilient control framework that addresses the challenges posed by diverse devices of unknown trustworthiness connecting to modern power systems. Through this innovative approach to deep cyber-physical situational awareness, the CYPRES project not only advances the state-of-the-art in energy infrastructure protection but also establishes a new paradigm for how EMS can be designed, deployed, and operated in an increasingly complex threat landscape. The findings and developments from this project provide crucial insights for stakeholders across the energy sector, offering a blueprint for enhancing the reliability and resilience of our nation’s critical energy infrastructure in the face of evolving cyber threats.
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Modeling investment decisions from heterogeneous firms under imperfect information and risk in wholesale electricity markets
Not Available
Anwar, Muhammad Bashar (ORCID:0000000291846700)↗
A-LEAF
A-LEAF is an electricity market simulation framework. It includes models for short-term market operations and long-term investment planning of generation, storage, and transmission. Model formulations include least cost and two-stage market equilibrium. Simulations can be flexibly structured over one or more years, including options for periodic samples or jumping to a single future year. Years can be simulated as 365 consecutive days at hourly or 5-minute sample rates, or they can be subsampled using a representative day group selection algorithm.
MANN, WILLIAM↗
Management of Risk and Uncertainty Through Optimized Co-Operation of Transmission Systems and Microgrids With Responsive Loads (Final Report)
The evolution of the power system to the reliable, efficient and sustainable system of the future will involve development of both demand- and supply-side technology and operations. Ambitious national and state-level goals around the decarbonization of electricity relies on the integration of very high levels of renewable resources, most of which are variable and intermittent. The use of demand response is an ideal approach to counterbalance the intermittency of renewable generation and brings the consumer into the spotlight. Though individual consumers are interconnected at the low-voltage distribution system, these resources are typically modeled as variables at the transmission network level. Demand-side participation cannot be leveraged effectively without explicitly including the distribution system dynamics in the optimization-based wholesale market operations. This project grew from a vision for co-optimized interaction of distribution systems, or microgrids, with the high-voltage transmission system. In this framework, microgrids encompass consumers, distributed renewables and storage. The energy management system of the lower voltage system (distribution or microgrid) can also sell (buy) excess (necessary) energy from the transmission system. Until recently, very little research had been conducted on the co-optimization of these two systems due to computational limitations. However, advances in computational capabilities, and the judicious use of decomposition methods and innovative approximation methods for high-dimension dynamic programming made this goal a viable objective for this project, leading to a fundamental shift in the ability to integrate and fully utilize demand-side resources. To this end, the modeling framework developed introduces a novel co-optimization framework, to include the operations of both the transmission and distribution systems (or microgrids) in operational decision making. This framework was used to analyze renewable and distributed generation along with responsive demand and to compare the capability of co-optimized systems to perform with higher levels of variable renewables. An ideal microgrid is defined as an electric entity capable of operating in both interconnected (with the high-voltage grid) and islanded mode. As such, the microgrid should incorporate generating units (traditional units and intermittent) and if needed, exchange power with the high-voltage grid. The interplay between the microgrid and high-voltage grid motivated the development of the co-optimization approach to ensure efficient performance of the interconnected network. Results show that the use of a bi-level optimization approach is an appropriate structure, capable of co-optimizing a transmission system with multiple distribution systems and microgrids. While increasing the number of connected systems provides increasing flexibility for renewables integration this can also the economic benefits to the low-voltage subsystems with each additional system connected. Comparison of a traditional single-level decision structure with the co-optimization approach illustrates a reduction in overall system cost under co-optimization, while specific cost allocations to transmission and distribution systems are changed.
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Modeling Distributed Generation in California
In support of analysis for the biennial Integrated Energy Policy Report, the California Energy Commission and the National Renewable Energy Laboratory have partnered to study the growth of distributed energy resources in California. This study involves the use of National Renewable Energy Laboratory's Distributed Generation Market Demand model, available at https://www.nrel.gov/analysis/dgen/, to project statewide adoption of distributed photovoltaics and paired storage. Key outcomes of the collaboration include: • Improved representation of California building stock, load profiles, historical adoption, and tariffs, including the net billing tariff, in the dGen model; • Trained CEC staff members to use and adapt the dGen model for their specific needs; • Developed a methodology for representing emerging consumer segments to potentially adopt distributed energy resources, including low-income, multifamily, and renter-occupied buildings; • Forecasted solar photovoltaic and paired storage growth in California using a common set of modeling parameters. This report describes the multiyear effort, which includes a discussion of: • Methodology and data employed in adapting the Distributed Generation Market Demand model for California to forecast solar photovoltaic and storage statewide through 2040; • Steps taken to modify the base model to forecast solar photovoltaic adoption in emerging market segments such as multifamily or renter-occupied homes or both; • Future enhancements of the model.
14 SOLAR ENERGY↗
Modeling the Least-Cost Operation of Bangladesh's Electricity Grid with Higher Levels of Renewable Energy [Slides]
This study uses production cost modeling to assess the impacts of higher levels of wind and solar in the Bangladesh electricity grid. It builds off the renewable energy zones (REZ) analysis for Bangladesh, and contains several key takeaways to support grid integration of renewable energy and transmission expansion in the country.
14 SOLAR ENERGY↗
Leveraging ARM Data to Improve Models for Predictive Understanding of Energy and Security Challenges
Extreme weather and natural hazards can disrupt the energy sector, affecting demand, generation, transmission, distribution, consumption and operational planning at regional and national scales. These disruptions stem from a broad range of atmospheric phenomena, including winter storms, freezing rain, wet snow loading, severe convection, flooding and landslides, wildfires, prolonged heat, and drought. Many of these same phenomena can also affect national security through impacts to transportation and infrastructure. To support the U.S. Department of Energy (DOE) focus on energy resilience and national security, the Atmospheric Radiation Measurement (ARM) User Facility is uniquely positioned to contribute measurement data, analyses, and modeling frameworks that can significantly improve predictive understanding of these hazards to mitigate their effects. To explore this opportunity, ARM convened a two-part virtual workshop in November 2025. The workshop engaged interdisciplinary experts in atmospheric science, energy systems, modeling, and operations. The goal of the meeting was to engage with these interdisciplinary experts to address three questions: • What are examples of atmospheric processes that represent significant risks to energy security or national security and where are those risks greatest? • What measurements or measurement strategies would improve ARM’s capacity to address these issues? • How can ARM and users of the ARM facility better work with the Energy Exascale Earth System Model (E3SM) and multi-sector modeling communities to apply ARM data to improving E3SM simulations of these phenomena? Participants were asked to submit white papers ahead of the meeting to initiate thinking on these themes and to help organize discussions. Workshop sessions were then organized around themes identified in the white papers. First from the white papers and then through subsequent discussions, workshop participants identified many examples that address the three questions listed above. Participants called out energy system vulnerabilities to weather phenomena such as the impact of freezing rain, strong winds, and excessive heat on power grids. They also noted the effects that weather phenomena could have on energy demand or supply (e.g., through effects of extreme temperatures). They called out security vulnerabilities such as impacts to crops from aerosol-borne pathogens and risks to industry due to melting permafrost in the Arctic. In all, over a dozen meteorological phenomena were linked to energy or security vulnerabilities. For many of the identified phenomena, participants pointed out where ARM was well poised to address issues (e.g., through measurements of cloud microphysics to inform studies of freezing rain) but also noted needs for additional measurements or modified measurement strategies. For example, adaptive scanning of severe weather would be valuable for probing winter storms or severe convection. Participants pointed out the value in integrating external observations with ARM measurements and with applying artificial intelligence (AI) to ARM observation analysis and they advocated for using model simulations to help optimize measurement strategies through Observing System Simulation Experiments (OSSEs). It was clear from the workshop that there are many ways that ARM observations can be used to mitigate energy and security concerns, but meeting participants were also asked to identify what they considered to be the greatest opportunities by ranking issues pertaining to the three workshop questions. This was accomplished through a survey administered to participants between the two virtual sessions. The highest-priority phenomena identified were winter storms, severe convection, and arctic processes. Discussion in the second session, therefore, focused primarily on these three areas, which were most fully developed in exploring ARM opportunities. Nevertheless, it was also clear that ARM has opportunities to contribute to all the identified topics. This report describes the workshop, including input from discussion and white papers (Sections 2 and 3) and a list of priority recommendations (section 4). Many other ideas for ARM contributions are discussed in individual white papers (Appendix D).
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Designing Resilience for Advanced Energy Systems
Advancements in energy technologies are making the grid more powerful, more efficient, and cleaner. As these promising innovations flourish across our communities, it is essential that our nation's infrastructure also becomes more resilient. Natural disasters, cyberattacks, user error, and a changing climate all present risks that could have devastating consequences. Individual emergencies are unique, but holistic planning and proactive measures can harden the grid and help anticipate and respond to any number of threats. The National Renewable Energy Laboratory (NREL) is at the forefront of this transition, establishing a vision for resilient energy systems today, and in the future.
energy disruption↗
NREL Planning Resources for States
This presentation summarizes some NREL resources and capabilities that states might want to access to help with decarbonization planning. It describes three types of resources: already-available, public datasets describing technology costs and future grid evolution; jurisdiction-specific integration studies that require directly partnering with NREL; and an envisioned new data product comprising state-specific standard scenarios that could be collaboratively funded by the states.
annual technology baseline↗
Distribution Transformer Demand: Understanding Demand Segmentation, Drivers, and Management Through 2050
The National Renewable Energy Laboratory (NREL) has been working closely with the U.S. Department of Energy's Office of Electricity (OE) to understand the critical drivers and potential means of managing distribution transformer demand through 2050. This effort has consulted with utility representative organizations and transformer manufacturers to understand the problem, characterized the in-service assets, and modeled future demand. Distribution transformers, or service transformers, range from 10 to 5,000 kilovolt-amperes (kVA), have a high-side voltage of less than 34.5 kilovolts, and have step-down power delivery for customer end use. This research will help the manufacturing sector understand production requirements and better inform utility strategies for managing their demand.
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