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At least 19 records

Valuing the Future Electric Grid: A Bid-Based Approach

Energy storage resources (ESRs) and other zero marginal cost (ZMC) resources have unique characteristics that are not fully captured in today’s electricity planning and operations modeling tools. Because the modeling assumptions used in these tools are simplified approximations of how operations and investment decisions occur in the real-world, accurately representing cost and operational characteristics are key for determining how these resources impact price formation. Questions such as—Where should we build new transmission? Will a small modular reactor earn enough revenue to participate in the future electric grid? Is retrofitting a coal plant with carbon capture technology economically feasible?—all require accurate electricity prices, which aren’t available from today’s electricity planning and operations modeling tools. As an example, production cost models (PCMs) are heavily utilized tools that determine the cost and reliability of the electric system. However, as PCMs were developed to help thermal generators manage their fuel inventories, production cost modeling is largely based on fuel prices. Because ESRs do not incur fuel costs, they are often modeled as ZMC resources. In reality, ESRs incur opportunity costs as well as technology-specific (degradation) costs that are non-trivial to calculate but are important for price formation. In this research, we identify options to incorporate more realistic opportunity and degradation costs in ESR bidding algorithms. Expanding available bidding assumptions allows energy system modelers to develop more accurate economic valuations for ESRs, leading to more accurate price formation from leading energy system modeling tools.

24 POWER TRANSMISSION AND DISTRIBUTION

A Co-Simulation Framework for Steady-State Analyses of Multiple Droop-based MTdc Grids in Continental-Scale Systems

The growing scale and complexity of planning continental hybrid ac and multi-terminal dc (MTdc) systems require scalable steady-state modeling and analysis approaches not currently available in commercial tools. This paper presents a comprehensive multi-fidelity model-conversion framework that enables the efficient transition of MTdc grid models from production cost modeling (PCM) and approximated ac power flow to detailed ac–MTdc power flow for large-scale planning studies. The core of this framework is a scalable co-simulation approach that, for the first time, enables power flow analysis in continental-scale ac–MTdc systems. It seamlessly couples commercial ac solvers with a detailed MTdc grid model that incorporates droop-based control and current-limiting strategies of multiple meshed MTdc grids. Leveraging this capability, an evaluation framework to systematically assess and compare different MTdc power redispatch strategies under ac and dc contingencies is introduced. The proposed framework and algorithm are evaluated using a combined Western and Eastern Interconnection system with 11 MTdc grids of various sizes, showing a coherent transition from PCM to detailed ac–MTdc power flow and improved system performance in voltage regulation and line overload mitigation following typical contingencies.

Nguyen, Quan H.

Challenges and Opportunities for Electric Utility Modeling and Asset Valuation Frameworks: Case Study on Valuing New Pumped Storage Hydropower

Asset valuation by electric utilities is becoming increasingly difficult in the rapidly changing electric sector. Rapid deployment of variable generation and inverter-based storage systems along with uncertain demand growth, climate, policies, and other factors create a challenging environment for understanding the value proposition of a new potential asset. This report describes an effort between the Tennessee Valley Authority (TVA) and three U.S. Department of Energy laboratories to perform a detailed review of utility modeling and analysis practices for asset valuation and identify challenges and opportunities for advancing its methods into the future. It focuses on a case study of new potential pumped storage hydropower (PSH) because of growing interest in new PSH capacity to provide energy balancing, firm capacity, and a range of ancillary services. Staff from the DOE labs conducted systematic interviews about current practices in capacity expansion modeling, production-cost modeling, hydrological modeling, and transmission stability modeling while also discussing how scenario analysis is conducted and how models and data are integrated. The effort resulted in a set of model, integration, and scenario recommendations that could be valuable to TVA, other utilities, system operators, and other stakeholders conducting integrated grid analysis. Individual model recommendations suggest exploring computational tradeoffs with detail and resolution across spatiotemporal structure, supply- and demand-side details, transmission overlays, market interactions, and ancillary services. Automated processes to pass data between models and conduct larger scenario suites could also enhance valuation practices by enabling a more consistent study of asset value across a broader range of uncertain future grid conditions where PSH could be particularly valuable. TVA and other industry stakeholders can learn from and adapt applied research-grade methods developed by DOE laboratories and other research institutions to improve decision making and accelerate progress towards a reliable, economic, sustainable energy system.

13 HYDRO ENERGY

Evaluating the Impacts of Coordination for Cascaded Hydropower Plants on the Mid-Columbia

The Mid-Columbia region in the U.S. Pacific Northwest includes seven large, cascaded hydropower plants with a combined nameplate capacity of nearly 14 GW. These plants have several different operators, and there is currently limited coordination among the operators. We develop a detailed model of the Mid-Columbia system that captures both river flow constraints and power system operations. We then place this detailed model within a production cost model of a 2030 system of the Western Interconnection to evaluate how coordination of the Mid-Columbia hydropower plants might impact operations throughout the interconnection. We find that coordination of the Mid-Columbia plants leads to more generation from the Mid-Columbia plants and increased revenues for the Mid-Columbia operators. This benefit is achieved primarily through better utilization of the storage reservoirs and decreased spill through the cascade. We also evaluate the impacts of look-ahead on production costs and find that longer look-ahead values result in lower system-wide production costs.

13 HYDRO ENERGY

A Comprehensive Comparison of Methods for Evaluating Dispatch of Long-Duration Energy Storage in Power Systems Models

Long-duration energy storage (LDES) could play a pivotal role in the transformation of electricity grids with high shares of variable renewable energy (VRE) such as solar and wind. However, the weather-dependent nature of VRE introduces challenges for grid balancing and stability, which LDES - along with short-duration energy storage (SDES) - can help address. However, modeling LDES in production cost models (PCMs) is particularly challenging due to the need for high temporal resolution over extended optimization windows while preserving chronology, which ensures the alignment of energy storage operations with VRE generation over multi-day periods. This report compares traditional dispatch methods with advanced LDES dispatch strategies, such as the extended horizon approach, across different PCM platforms and examines tradeoffs and scalability. The comparison reveals that the traditional 1-day optimization horizon within the PCM leads to inefficient utilization of LDES. In contrast, extending the optimization horizon as much as possible significantly reduces curtailment and improves storage dispatch, especially in renewable-dense systems. There is also promise in using state-of-charge or end volume targets set by an external model, however this requires an additional modeling set and generally increases computational burden. This paper presents a comparison of these various methods in a number of power systems, showing algorithms initially in small test systems and scaling up to large, country-wide simulations. Overall, the research presents the trade-offs of various computational methods and illustrates how LDES may play an essential role in power systems of the future.

14 SOLAR ENERGY

Decarbonization and technology cost drivers: considerations for potential future thermoelectric water use in the power sector

The power sector is currently undergoing significant changes, driven by a combination of factors, including decarbonization and technology innovation. This study aims to assess implications of these drivers on U.S. power sector technology futures and the associated water and environmental implications for cooling thermoelectric power plants. Specifically, we evaluate four decarbonization scenarios for the contiguous United States that vary in assumptions concerning demand growth and technology costs, with technology costs driving alternative outcomes that prioritize either technologies that require low amounts of water (such as wind, solar, and battery) or high amounts of water (such as nuclear and carbon capture and storage). These scenarios are executed in a power sector capacity expansion model and compared to two reference scenarios that assume status quo with policy and cost drivers. Our analysis indicates that future U.S. thermoelectric water withdrawals could decrease by 25%–60%, but water consumption could more than triple in some scenarios. These changes are driven by a combination of retirement of some power facilities, shifts in cooling technologies, and new technology deployment. The water use patterns vary across the United States, with the eastern regions demonstrating a lot more variability in water consumption across scenarios than western regions. However, local concerns can influence these possible investments, since increased water consumption can exacerbate water scarcity, leading to conflicts among competing users and affecting regional social, environmental, and economic dynamics. Future work should consider possible costs associated with alternate water sources, as well as improve the representation of water constraints within simulations. Inclusion of extreme events and alternate modeling platforms (e.g. production cost modeling and resource adequacy) may also be warranted to further stress test the robustness of these possible technology futures. Such assessments will be critical for ensuring decarbonization and other infrastructure-oriented investments lead to a reliable and resilient power grid.

24 POWER TRANSMISSION AND DISTRIBUTION

Incorporating Local Extreme Weather Events into Reliability Assessments

Presentation discussing modeling extreme weather effects on the Bulk power system. Using a Production cost model to analyze weather related demand increases, generator outages, transmission outages, and fuel supply constraints. These results can be analyzed to inform on system reliability effects of extreme weather. This presentation was developed for the 2026 NERC Probabilistic Assessment Forum at EPRI in Charlotte NC.

24 POWER TRANSMISSION AND DISTRIBUTION

Hydropower Flexibility and Environmental Tradeoffs Analysis

The importance of hydropower increases as the power grid evolves with the higher variable renewable contribution. As conventional thermal power plants are retired, the importance of hydropower contribution increases to balance the variability of solar and wind generation. However, reservoir water resources are constrained by multiple constraints, and variability of water inflow to the reservoirs creates limitations to dam water releases for power grid needs. Coordinating multiple tools, including water resources, ecological, and technical and economic power grid modeling, informs dam water releases. The case study, the Columbia River Basin multipurpose reservoir project, is operated for hydropower production and many other purposes considering the aquatic habitat of the river basin. Specifically, the river basin fish population is a vital element for the tribal community of the river basin. We integrated a production cost model, a water resource model, and decades of tribal knowledge to analyze the fish-friendly way of operating Columbia hydropower scheduling and grid impacts. We measure power grid impacts for various water resources planning scenarios in terms of total system operating cost, system reliability indicators, changes in wind and solar generation and curtailments, local marginal prices, and revenue for hydropower producers. The study results inform reservoir operating rules decisions from hydropower power producers, system operators, other water users, tribes, environmentalists, and other stakeholders.

Columbia River

Impacts of Alternative Operations and Renewable Energy Deployment on Columbia River Hydropower

The Columbia River Treaty Tribes in the Pacific Northwest - the Nez Perce, Umatilla, Warm Springs, and Yakama - hold treaty-reserved fishing rights for the Columbia River, one of the world's most productive salmon rivers and a critical resource for these tribes. However, the tribes have expressed that current operating regimes of hydropower dams throughout the Columbia River Basin (CRB) do not fully account for tribal fishing rights and have negatively impacted fish populations. Four tribes acting together through the Columbia River Inter-Tribal Fish Commission (CRITFC)'s 2022 Energy Vision stated that current power system models often do not fully account for the many constraints faced by hydropower facilities in the CRB. As the deployment of variable renewable energy (VRE) like solar and wind continues to increase, power system flexibility will become increasingly important. As a result, there is a growing need to better understand the true capabilities of the hydropower generation fleet while accurately accounting for ecological constraints (Northwest Power and Conservation Council 2022). Understanding hydropower's role in a future grid with a higher share of VRE can inform water resources planning to address ecological needs. The goal of this study is to examine the impacts of alternative hydropower operation rules and weather variability on hydropower generation and grid operations in VRE and transmission infrastructure deployment scenarios. The study evaluates how hydropower scheduling practices can reduce ecological impacts to the region's salmon populations. More specifically, the study examines the impact of today's dam water release rules (called "adjusted base water rules" in this study) and new, ecologically informed water release rules (called "ecosystem water rules" in this study) on two VRE scenarios (current renewable energy levels and higher renewable energy levels) using six weather years for each scenario (2008-2013). CRITFC developed the ecosystem water rules, which capture a portion of the changes they recommend for CRB hydropower operations. These analyses use a water resource planning model (OASIS) and a production cost model (PLEXOS) to simulate CRB reservoir cascade and Western Interconnection power grid operation.

13 HYDRO ENERGY

Impact of Glen Canyon Generation Loss

Colorado River Basin hydropower generation has faced challenges due to droughts and ecological and social water requirements. Specifically, Glen Canyon hydropower generation fluctuates substantially with recent extreme weather trends. Further, the western grid evolves with higher wind and solar share, and Glen Canyon hydropower's contribution to grid flexibility services is essential. The Western Area Power Administration (WAPA) markets and schedules electricity production at GCD, and the loss of this power could have significant financial consequences for the WAPA Colorado River Storage Project's (CRSP) Office because it may need to purchase relatively large amounts of energy to serve its firm electrical obligations. In addition, GCD provides grid reliability services for the WAPA Colorado-Missouri (WACM) balancing authority (BA). Both WAPA and DOE's Water & Power Technology Office (WPTO) are interested in researching how these drier hydrological conditions will impact federal electrical energy production, the Western Electricity Coordinating Council (WECC) power grid, and the value of hydropower in the face of lower production. We study multiple hydrologic and power grid scenarios to understand the grid impacts of the loss of Glen Canyon generation. The study uses a production cost model, water resources planning models, water-centric grid models, and various data analytic techniques. The study progress presentation discusses the selection of probable CRSP' hydropower scenarios and power grid scenarios to understand the impacts of Glen Canyon generation, which includes technologies that compensate the Glen Canyon energy and ancillary services contributions, transmission availability, and energy local marginal prices at interested grid locations of WAPA operation.

droughts

LDES-Sizing-and-siting-model (Power grid test cases for long-duration energy storage (LDES) siting) [SWR-25-75]

This repository contains code and data for performing a siting analysis of long-duration energy storage (LDES) in the 5-bus and RTS systems using the Sienna suite developed by the National Renewable Energy Laboratory for production cost modeling (PCM). This analysis involves moving the LDES component to different buses in the system, running a simulation, and considering the production cost of the simulation. Different system configurations are also analyzed with these scripts (such as moving load or renewable dispatch generators to different buses) to observe the impacts the system configuration has on optimal siting. This repository contains three sub directories discussed below. Both the 5-bus and RTS systems have two different initial configurations for the renewable energy components in them, one that is predominantly PV-driven and one that is predominantly wind-driven. Sienna suite can be found here: https://github.com/NREL-Sienna

Cole, David [University of Wisconsin]

Market participation strategy of hybrid energy resources: A New York ISO case study

Drawing on existing market designs with independent resource participation in electricity markets, this study analyzes participation models for hybrid resources combining renewable generation and storage. Two models are considered: in the first, the components operate independently, with the Independent System Operator (ISO) managing the storage state of charge (SoC); in the second, the hybrid resource acts as an integrated unit, submitting offers as a “black box” and managing its SoC internally. Using a production cost model for the zonal New York Bulk Power System, we evaluate trade-offs in system reliability, market efficiency, and asset profitability. Our results provide several key insights for policymakers, showing that the ISO-managed granular model enhances social welfare through explicit SoC management, while the simpler integrated model is more computationally efficient, but may cause more real-time violations and lower overall profits.

Bansal, Rajni Kant

IM3 Data Center Driven Grid Stress Dataset for the U.S. Western Interconnection

This dataset provides projected grid stress and reliability results (including all model inputs and outputs from an open-source grid operations modeling framework - GO), for the Integrated Multisector, Multiscale Modeling (IM3) project, under varying levels of data center demand growth between 2025 and 2035 in the U.S. Western Interconnection. The scenarios and sensitivity experiments are combinations of different data center demand growth rates and energy, weather, population and economic pathways. Data center demand growth projections were sourced from the Electric Power Research Institute (EPRI). The data center demand growth projection names are: Low (3.71% annual data center demand growth) Moderate (5% annual data center demand growth) High (10% annual data center demand growth) Higher (15% annual data center demand growth) Energy, weather, population and economic pathways are informed by two Shared Socioeconomic Pathways (SSP3 and SSP5) and two Representative Concentration Pathways (RCP4.5 and RCP8.5) following the hotter general circulation model (GCM) forcing group from a set of perturbed thermodynamics simulations. The resulting pathway names are: rcp45hotter_ssp3 rcp45hotter_ssp5 rcp85hotter_ssp3 rcp85hotter_ssp5 The main scenarios and sensitivity experiments are detailed below. Reference scenario: The projected grid stress and reliability results for the U.S. Western Interconnection from a previous study. This scenario does not consider data center demand growth explicitly. Data center scenario: Building on the reference scenario, this scenario considers various data center growth rates and how they impact the U.S. Western Interconnection. Data center loads are modeled as flat 8760-hr profiles. This scenario does not consider new generation and transmission capacities specifically designed to meet the new data center demands. The related folder is named "flat". Delayed generator retirements sensitivity experiment: Building on the data center scenario, this experiment explores the impact of different levels of natural gas and nuclear generator retirement delays. The resulting scenario names are: (1) postponing 100% nuclear retirements; (2) postponing 100% nuclear and 25% natural gas retirements; (3) postponing only 50% natural gas retirements; (4) postponing 100% nuclear and 50% natural gas retirements; (5) postponing 100% nuclear and 75% natural gas retirements; and (6) postponing 100% nuclear and 100% natural gas retirements. The related folder names are: no_gen_retire_0_gas, no_gen_retire_25_gas, no_gen_retire_50_gas, no_gen_retire_50_gas_only, no_gen_retire_75_gas, and no_gen_retire_100_gas. Demand response through curtailment sensitivity experiment: Building on the data center scenario, this experiment explores the impact of different participation and compensation levels of data center demand response. The resulting scenario names are: (1) 5% demand available for curtailment with 750 $/MWh compensation; (2) 5% demand available for curtailment with 500 $/MWh compensation; (3) 5% demand available for curtailment with 250 $/MWh compensation; (4) 15% demand available for curtailment with 750 $/MWh compensation; (5) 15% demand available for curtailment with 500 $/MWh compensation; and (6) 15% demand available for curtailment with 250 $/MWh compensation. The related folder names are: dr_cost_250_drup_0_drdown_5, dr_cost_250_drup_0_drdown_15, dr_cost_500_drup_0_drdown_5, dr_cost_500_drup_0_drdown_15, dr_cost_750_drup_0_drdown_5, and dr_cost_750_drup_0_drdown_15. Combination of delayed generator retirements and demand response through curtailment sensitivity experiment: The impact of combining postponing 100% nuclear and 25% natural gas retirements with 5% demand available for curtailment with 750 $/MWh compensation is simulated. The related folder is named "dr_cost_750_drup_0_drdown_5_nuc_100_gas_25". Please refer to the README file for a detailed description of the dataset including individual files and references.

Artificial Intelligence

Integrated System Planning: Emerging Software Requirements in the Power Industry

Power system planning software remains fragmented across organizational boundaries, with specialized tools for capacity expansion, production cost modeling, power flow, and dynamic analysis operating on incompatible data models and assumptions. This article argues that the fragmentation is not merely a technical problem but a predictable consequence of Conway's law: software architectures mirror the departmental structures within which they are developed. Regulatory milestones like Federal Energy Regulatory Commission (FERC) Order 888 formalized these divisions, but the roots trace back to the distinct engineering disciplines-mechanical, chemical, and electrical-that staffed generation and transmission planning departments in vertically integrated utilities. As the industry moves toward integrated system planning (ISP) that coordinates generation, transmission, and distribution investment decisions, the software ecosystem must evolve accordingly. We identify five categories of software requirements to enable this transition: coherent data inputs decoupled from individual applications, unified and extensible data schemas, modular component representations that support multiple abstraction levels, lifecycle management of planning datasets, and well-defined application programming interface (API) contracts that separate data exchange from algorithmic control. We examine how these requirements interact with three common workflow patterns-serial gate clearing, sequential multiapplication, and convergence oriented-and discuss the interface design principles each demands. We then outline a vision for platform-based planning architectures where specialized analytical services compose through standardized interfaces and where artificial intelligence (AI)/machine learning (ML) tools augment decision support within a disciplined software infrastructure. The practices proposed here offer a path from today's siloed tool collections toward collaborative planning ecosystems capable of handling the complexity of modern power system transformation.

24 POWER TRANSMISSION AND DISTRIBUTION

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

IM3 Projected U.S. Western Interconnection Grid Stress Dataset

This dataset provides projected grid stress and reliability results (including all model inputs and outputs from GO WEST and TEP) for Integrated Multisector, Multiscale Modeling (IM3) Phase 2 simulations across eight different scenarios for the U.S. Western Interconnection through 2055. The scenarios include combinations of two Shared Socioeconomic Pathways (SSP3 and SSP5) with four high-resolution climate projections specific to the United States from a set of Thermodynamic Global Warming (TGW) simulations. These climate projections include "hotter" and "cooler" variants for two Representative Concentration Pathways (RCP4.5 and RCP8.5). The resulting eight simulations are: rcp45cooler_ssp3 rcp45cooler_ssp5 rcp45hotter_ssp3 rcp45hotter_ssp5 rcp85cooler_ssp3 rcp85cooler_ssp5 rcp85hotter_ssp3 rcp85hotter_ssp5 GO WEST is an open-source power grid modeling framework for the U.S. Western Interconnection, which allows users to tailor the model depending on their research study and science questions. It covers 28 balancing authorities (BAs) and 12 states in U.S. Western Interconnection. GO WEST allows users to select different number of nodes and come up with a simplified network by utilizing 10,000 nodal topology of the U.S. Western Interconnection (ACTIVSg10k). Users can select different number of nodes, mathematical formulations (linear programming vs. mixed-integer linear programming), transmission line limit scaling factors, and hurdle rate scaling factors. GO WEST offers a unit commitment and economic dispatch (UC/ED) module to simulate grid operations on an hourly scale. In this sense, users can calibrate and validate their model versions by comparing model outputs to historical datasets. TEP is an open-source transmission capacity expansion model, built on the GO WEST framework. It utilizes linear programming to optimize transmission capacity addition investment on existing lines within the GO WEST framework. The TEP model only increases the thermal capacity of existing transmission lines and does not add new lines to the system, which leaves the topology preserved. In order to use TEP model, users need to create scenarios with the GO WEST framework. Please refer to README file for a detailed description of the dataset including individual files and references.

Capacity Expansion Model

Beyond Price-Taker: Multiscale Optimization of Wind and Battery Integrated Energy Systems

Integrating renewable energy into the electric grid is challenging due to the intermittency and variability of wind and other non-dispatchable resources. Integrated energy systems (IESs) combine multiple energy technologies (e.g., fossil, nuclear, renewables, storage) to reduce costs and improve flexibility and reliability. However, standard techno-economic analysis (TEA) methods often overestimate the benefits of IESs because they fail to account for energy market adjustments. This paper systematically studies the limitations of the prevailing price-taker assumption for TEA and optimization of hybrid energy systems. As an illustrative case study, we retrofit an existing wind farm in the RTS-GMLC test system (which loosely mimics the Southwest U.S.) with battery energy storage to form an IES. We show that the standard price-taker model overestimates the electricity revenue and the net present value (NPV) of the IES up to 178% and 30.4%, respectively, compared to our more rigorous multiscale optimization. These differences arise because introducing storage creates a more flexible resource that impacts the larger wholesale electricity market. Moreover, this work highlights the impact of the IES has on the market via various strategic bidding, and underscores the importance of moving beyond price-taker for optimal storage sizing and TEA of IESs. We conclude by discussing opportunities to generalize the proposed framework to other IESs, and highlight emerging research questions regarding the complex interactions between IESs and markets.

25 ENERGY STORAGE