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At least 19 records

Electricity Markets Design Challenge [Slides]

Electricity markets are at a crossroads - join the U.S. Department of Energy and the National Renewable Energy Laboratory for an exclusive one-hour workshop where you'll engage directly with the project team and help shape the rules for a potential prize. This competition could redefine how electricity markets support renewables and storage resources and create innovative solutions for the challenges ahead. NREL has also issued a Request for Information (RFI) to gather feedback and gauge interest in this potential prize. Whether or not you attend the workshop, we encourage you to review the brief presentation and share your thoughts through the RFI.

16 TIDAL AND WAVE POWER

Wholesale Electricity Market Design to Support Resource Adequacy

Wholesale electricity markets are intended to incentivize system generation investments and operations outcomes that meet evolving system needs. In this work, we evaluate the effectiveness of wholesale market structures, rules and policies in achieving system resource adequacy (RA) and clean energy targets in the presence of self-interested generation investors using the Electricity Markets and Investment Suite Agent-based Simulation (EMIS-AS) model. Results highlight that both capacity markets and operating reserve demand curves (ORDCs) can help achieve a reliable system but with different RA compliance timelines and distribution of generation technologies. Structures with capacity markets tend to favor more capital-intensive peaking technologies while reducing wind and solar build-outs due to suppressed energy and clean energy market prices, particularly in the absence of strong clean energy targets. Conversely, ORDCs improve the commitment of available generation units, but this comes at the expense of higher system costs and renewable generation curtailment. We also find that well-calibrated static capacity demand curves can yield similar reliability and total cost compared to capacity market demand curves informed dynamically by resource adequacy while also yielding stable annual capacity prices. Different approaches to formulating ORDC curves can also yield key trade-offs, namely that a more efficient treatment of storage chronology results in lower ORDC curves and prices, yielding less investment and cost but at the expense of reliability. Finally, the effectiveness of wholesale electricity markets in practically achieving very high clean energy generation targets highly depends on the cost-competitiveness of clean energy technologies that can support critical balancing needs across multiple timescales.

agent based modeling

Price formation in zero-carbon electricity markets - fundamentals, challenges, and research needs

Future power systems dominated by zero-carbon generation resources may require significant revisions to electricity market designs to ensure capacity adequacy and market efficiency. Here, in this paper, we first conceptually outline key fundamentals underlying electricity market design and price formation in U.S. electricity markets. We then discuss a set of potential market design challenges related to price formation in a grid dominated by zero-carbon resources with marginal cost profiles that differ compared to traditional thermal resources. Next, we review electricity market design solutions that have been proposed in the literature to ensure market efficiency in zero-carbon systems, and the associated implications for price formation. We conclude by summarizing key observations and establishing a set of research questions that should be addressed to improve our understanding of market design, price formation, and market efficiency in zero-carbon power systems.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Wholesale Electricity Analysis via Simulation & Learning Experiments (WEASLE): Platform Development and Pilot Competition

This document reports the development of the Wholesale Electricity Analysis via Simulation and Learning Experiments (WEASLE) platform and the pilot competition that was conducted to test the platform. Due to the increasing reliance on variable renewable energy resources for bulk power, the pilot competition, called the Energy Storage Participation Algorithm Competition (ESPA-Comp), was used to test the effect of various market designs on storage utilization and market efficiency. Basic details of the platform are provided, including an overview of the market clearing engine, the battery dispatch and degradation models, electric grid topology and resource mix, and software architecture. Two market designs were tested: a two-settlement market analogous to typical ISO design today, and a multi-settlement market that allows additional forward-trading periods during the real-time market. Results from the pilot competition show that the storage bidding problem is nontrivial and is well suited for future challenges. We find that: 1) all four teams utilized different approaches to the bidding problem, 2) different methodological approaches led to substantially different offer behaviors, 3) resource profits are clustered by team and methodological approach, 4) simulated offers reduced market surplus by about 0.5%, 5) substantially different prices between two-settlement and multi-settlement markets albeit minimal difference in overall market surplus.

24 POWER TRANSMISSION AND DISTRIBUTION

Prospective markets and design concepts for civilian remotely piloted aircraft

This paper summarizes a study that examines the technical, economic, and environmental aspects of remotely piloted vehicles (RPVs) in the civil environment. A market survey was conducted in which 35 civil applications of RPVs were identified. For a number of these uses, vehicle and system concepts were defined, benefit and cost comparisons were made with present methods, and the influence of safety and environmental implications was assessed. The results suggest a sizable potential demand for the use of RPVs in the civil sector, and some of the applications show promising cost savings over established methods. A focussed technology effort could provide the safety assurances needed for routine civilian operation of RPVs.

Nelms, W. P., Jr.

A fuzzy set preference model for market share analysis

Consumer preference models are widely used in new product design, marketing management, pricing, and market segmentation. The success of new products depends on accurate market share prediction and design decisions based on consumer preferences. The vague linguistic nature of consumer preferences and product attributes, combined with the substantial differences between individuals, creates a formidable challenge to marketing models. The most widely used methodology is conjoint analysis. Conjoint models, as currently implemented, represent linguistic preferences as ratio or interval-scaled numbers, use only numeric product attributes, and require aggregation of individuals for estimation purposes. It is not surprising that these models are costly to implement, are inflexible, and have a predictive validity that is not substantially better than chance. This affects the accuracy of market share estimates. A fuzzy set preference model can easily represent linguistic variables either in consumer preferences or product attributes with minimal measurement requirements (ordinal scales), while still estimating overall preferences suitable for market share prediction. This approach results in flexible individual-level conjoint models which can provide more accurate market share estimates from a smaller number of more meaningful consumer ratings. Fuzzy sets can be incorporated within existing preference model structures, such as a linear combination, using the techniques developed for conjoint analysis and market share estimation. The purpose of this article is to develop and fully test a fuzzy set preference model which can represent linguistic variables in individual-level models implemented in parallel with existing conjoint models. The potential improvements in market share prediction and predictive validity can substantially improve management decisions about what to make (product design), for whom to make it (market segmentation), and how much to make (market share prediction).

Turksen, I. B.

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

Long-Duration Energy Storage Grid Integration-Valuation Framework and Incentive Gaps

Given these challenges and current modeling gaps on Long Duration Energy Storage (LDES), enhancing the structure and design of existing planning, operations, and organized wholesale markets can better characterize the value of LDES to the power system. To more thoroughly assess the gaps and barriers to LDES investment and readiness for integration into a future grid, we conducted stakeholder outreach through an online survey, interviews with individual independent system operators/regional transmission organizations, and a literature review. Based on this assessment, we identified a set of opportunities for LDES focused development, including a framework to quantify the contributions of LDES on resource adequacy, reliability, and resiliency. Specifically, we identify the potential demand for and benefits of an open-source, LDES-centric evaluation framework that can guide future planning, operations, market design, and policy reforms.

24 POWER TRANSMISSION AND DISTRIBUTION

ASEAN Technical Exchange Workshop for System Operators, Regulators, and Policymakers

This presentation provides an in-depth exploration of power system planning, cross-border electricity trading, and battery energy storage systems (BESS), offering actionable insights for system operators, regulators, and policymakers. The first section delves into power system planning and analysis, focusing on capacity expansion models and resource adequacy studies, including their role in optimizing system efficiency, managing emissions, and addressing system reliability risks. Key considerations, such as integration of transmission into generation planning and the forecasting versus optimization of customer distributed energy resources (DER) technologies, are explored. The session highlights critical trade-offs in spatial granularity and model runtimes, as well as the feasibility of aligning distribution investments with capacity expansion efforts. The second section examines cross-border electricity trading, with an emphasis on resource adequacy concepts such as reliability targets, loss of load expectation (LOLE), and planning reserve margins (PRM). Case studies on reserve market design and coordination across US regions provide insights into improving reserve deliverability and managing interregional power balance and congestion. This section also addresses market-to-market congestion management, including advanced strategies for high-voltage direct current (HVDC) optimization and ancillary service delivery. Finally, the presentation covers the rapid evolution of Battery Energy Storage Systems (BESS), highlighting their operational growth, regulatory frameworks, and use cases in grid flexibility, energy storage, and reliability. The discussion focuses on the benefits of BESS for system stability, resilience, and integration of renewable energy, offering insights into its role as a vital component in the transition toward a more sustainable and flexible grid. Key performance parameters, such as throughput, round-trip efficiency, and state of charge, are also examined.

25 ENERGY STORAGE

Market Implications of Alternative Operating Reserve Modeling in Wholesale Electricity Markets

Pricing and settlement mechanisms are crucial for efficient resource allocation, investment incentives, market competition, and regulatory oversight. In the United States, Regional Transmission Operators (RTOs) adopts a uniform pricing scheme that hinges on the marginal costs of supplying additional electricity. This study investigates the pricing and settlement impacts of alternative reserve constraint modeling, highlighting how even slight variations in the modeling of constraints can drastically alter market clearing prices, reserve quantities, and revenue outcomes. Focusing on the diverse market designs and assumptions in ancillary services by U.S. RTOs, particularly in relation to capacity sharing and reserve substitutions, the research examines four distinct models that combine these elements based on a large-scale synthetic power system test data. Our study provides a critical insight into the economic implications and the underlying factors of these alternative reserve constraints through market simulations and data analysis.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Bridging Control and Deployment: A Cross-Layer Analysis of Scalable Building Cluster Control

Building cluster control has emerged as a promising approach for enabling flexible and coordinated operation of distributed building systems, yet its transition from pilot demonstrations to routine grid-interactive operation remains limited. This paper argues that this gap cannot be explained by control algorithms alone. Instead, it arises from interacting barriers in communication infrastructure, data and semantic interoperability, uncertainty management, stakeholder participation, market design, and policy support. Accordingly, the paper reviews both technical and non-technical barriers to building cluster control. Technical challenges include heterogeneous devices and protocols, communication latency and reliability, distributed decision-making, and uncertainty propagation across aggregated loads. Non-technical barriers include user participation, stakeholder coordination, incentive allocation, and data governance. Existing solution approaches are synthesized, including semantic interoperability frameworks, edge and hierarchical communication architectures, distributed and transactive control strategies, uncertainty-aware optimization, policy mechanisms, and market reforms. Based on this analysis, two research directions are identified: testing infrastructures that can evaluate control performance under realistic multi-building conditions, and abstraction methods that allow building clusters to interact with other energy sectors through standardized flexibility representations. Overall, the paper provides a structured review of how building cluster control can move from isolated demonstrations toward reproducible, market-compatible, and grid-relevant implementation.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI

Virtual Power Plant Profiles and Inventory

Increased adoption of distributed energy resources (DERs), growing quantities of renewable energy on the grid, and load growth from buildings, industry, and data centers are driving the need for increased demand flexibility and solutions to reliably and cost-effectively balance electricity supply and demand. In order to deploy DERs on a similar scale as conventional supply-side resources, utilities and state decision-makers are exploring a range of programmatic approaches and market designs, including Virtual Power Plants (VPP). Based on interviews with more than twenty subject matter experts on VPPs, the Insights into Scaling Virtual Power Plants report and appendix outlines actions that utilities and regulators can take to expand VPPs, organized around successful VPP designs, deployment, and operation. The companion report, Virtual Power Plant Profiles and Inventory describes three conceptual profiles that can be used as a starting point to facilitate clear discussions among regulators, utilities, solution providers, and stakeholders about various VPP strategies. It also includes details on more than 790 demand response programs and net energy metering solar plus battery programs, and 180 VPP programs. The Inventory is provided below as a separate file.

24 POWER TRANSMISSION AND DISTRIBUTION

Satellite services system analysis study. Volume 2, part 2: Study results

The development of an effective satellite services system was investigated. Satek Satellite user market, design reference missions, satellite service functions, service equipment, and cost estimates are discussed. Extensive program plans for a satellite service system implementation are included.

Source record

Advanced short haul systems in high density markets

The design requirements, performance, economics, and noise aspects of STOL and VTOL conceptual aircraft developed for short haul air transportation are reviewed, along with the characteristics of areas of high-density annual passenger flow in which the aircraft are intended to operate. It is shown that aircraft of 100 to 200 passenger capacity provide the best return on investment in high density markets. The various STOL propulsive lift concepts have the same general trends with field length; their wing loadings are 20 to 30 pounds per square foot higher than the nonpropulsive lift concepts. A comparison of the aircraft under consideration shows that no one aircraft concept will be optimum for all future operational environments.

Galloway, T. L.

High speed civil transport

This report discusses the design and marketability of a next generation supersonic transport. Apogee Aeronautics Corporation has designated its High Speed Civil Transport (HSCT): Supercruiser HS-8. Since the beginning of the Concorde era, the general consensus has been that the proper time for the introduction of a next generation Supersonic Transport (SST) would depend upon the technical advances made in the areas of propulsion (reduction in emissions) and material composites (stronger, lighter materials). It is believed by many in the aerospace industry that these beforementioned technical advances lie on the horizon. With this being the case, this is the proper time to begin the design phase for the next generation HSCT. The design objective for a HSCT was to develop an aircraft that would be capable of transporting at least 250 passengers with baggage at a distance of 5500 nmi. The supersonic Mach number is currently unspecified. In addition, the design had to be marketable, cost effective, and certifiable. To achieve this goal, technical advances in the current SST's must be made, especially in the areas of aerodynamics and propulsion. As a result of these required aerodynamic advances, several different supersonic design concepts were reviewed.

Source record

Distribution System Behind-the-Meter DERs: Estimation, Uncertainty Quantification, and Control

This paper summarizes the three-year technical activities of the IEEE Task Force (TF) on behind-the-meter (BTM) distributed energy resources (DERs): estimation, uncertainty quantification, and control. The potential grid services from BTM DERs are discussed in detail. The paper also reviews the state-of-the-art for BTM DERs visibility, uncertainty quantification, and, optimization and control. Furthermore, different aspects of the market structures associated with BTM DERs are covered, including emerging market and business models. Finally, needs and recommendations are provided for additional areas such as system protection, computing capabilities, algorithm development, market structure design, cyberinfrastructure and security, and hardware and software developments.

behind-the-meter

Central station market development strategies for photovoltaics

Federal market development strategies designed to accelerate the market penetration of central station applications of photovoltaic energy system are analyzed. Since no specific goals were set for the commercialization of central station applications, strategic principles are explored which, when coupled with specific objectives for central stations, can produce a market development implementation plan. The study includes (1) background information on the National Photovoltaic Program, photovoltaic technology, and central stations; (2) a brief market assessment; (3) a discussion of the viewpoints of the electric utility industry with respect to solar energy; (4) a discussion of commercialization issues; and (5) strategy principles. It is recommended that a set of specific goals and objectives be defined for the photovoltaic central station program, and that these goals and objectives evolve into an implementation plan that identifies the appropriate federal role.

Source record

Aircraft Design Software

Successful commercialization of the AirCraft SYNThesis (ACSYNT) tool has resulted in the creation of Phoenix Integration, Inc. ACSYNT has been exclusively licensed to the company, an outcome of a seven year, $3 million effort to provide unique software technology to a focused design engineering market. Ames Research Center formulated ACSYNT and in working with the Virginia Polytechnic Institute CAD Laboratory, began to design and code a computer-aided design for ACSYNT. Using a Joint Sponsored Research Agreement, Ames formed an industry-government-university alliance to improve and foster research and development for the software. As a result of the ACSYNT Institute, the software is becoming a predominant tool for aircraft conceptual design. ACSYNT has been successfully applied to high- speed civil transport configuration, subsonic transports, and supersonic fighters.

Source record