SEARCH · Search NASA

Results for “operating expenditures”

Search indexed NASA NTRS and DOE OSTI research on propulsion, heat transfer, battery materials and energy systems. Follow report and document links to the original sources.

SourceResearch connectionFrom yearThrough year

Quote a phrase for an exact phrase match. Source license links do not imply unrestricted reuse.

At least 19 records

All sources NASA NTRS DOE OSTI

DOE OSTI2023

ProFAST (Production Financial Analysis Scenario Tool) [SWR-23-88]

The Production Financial Analysis Scenario Tool (ProFAST) provides a quick and convenient in-depth financial analysis for production facilities. The model uses a generally accepted accounting principles analysis framework and provides annual projections of income statements, cash flow statements, and balance sheets. ProFAST allows users to calculate the levelized cost of the produced commodity by providing an expected financial performance, or on the other hand, calculate the financial performance based on an input price. Model inputs generally capital expenditures, operating expenditures, and financing structure. The programmatic approach of ProFAST allows users to easily perform large sensitivity analyses and integrates easily with other python tools.

Kee, Jamie↗

DOE OSTI2022

Wind Energy Costs in Puerto Rico Through 2035

In 2019, Puerto Rico codified into law a 100% renewable electricity by 2050 target. Decision makers there need information about the costs and performance of wind energy technologies to incorporate into planning efforts for the future grid. After consulting with key technical stakeholders and accounting for unique conditions in Puerto Rico like increased hurricane risks, we customize NREL's Renewable Energy Potential model to calculate how capital expenditures, operational expenditures, net annual energy generation, and levelized cost of energy (LCOE) vary in time and space for wind energy projects around Puerto Rico. Wind turbines can add value by providing grid services through grid-forming inverters and complement solar energy generation with evening and nighttime electricity production, especially offshore. By 2035, we expect average costs of land-based and offshore wind energy in Puerto Rico to reach $\$$69/MWh (6.9 cents/kWh) and $\$$100/MWh (10 cents/kWh), respectively. While these projections do not include transmission system upgrade costs, they do suggest that low-cost, clean electricity is possible for Puerto Rico.

17 WIND ENERGY↗

DOE OSTI2026

A guide to performing CO 2 electrolysis in zero-gap electrolyzers

Recent advances in the technology readiness level (TRL) of low-temperature electrochemical CO 2 reduction (eCO2R) have demonstrated that the technology has potential for industrial deployment. However, industrial deployment of eCO2R still requires advances to reach cost parity with existing thermal catalytic pathways. Technoeconomic analysis of eCO2R suggests that research and development will require a decrease in both capital expenditures and operational expenditures to be cost competitive. Here, to decrease the capital expenditures of the system will require increasing the durability to >3 years, while decreasing the operational expenditures will require an increase in energy efficiency due to the cost of electricity being the driving operational cost of a unit.

Energy↗

DOE OSTI2020

Effect of Power Plant Capacity on the CAPEX, OPEX, and LCOC of the CO2 Capture Process in Pre-Combustion Applications - Abstract

Aspen Plus v8.8 was used to simulate the pre-combustion CO2 capture process from a typical fuel gas stream at different power plant capacities ranging from 54.3 to 543 MW. Polyethylene glycol polydimethyl siloxane (PEGPDMS-1) was used as a physical solvent to capture CO2 in a countercurrent packed-bed absorber containing a structured packing (Mellapak 250Y). The process pressure was 51.4 bar and the solvent temperature was varied from 10 to 40 oC. The internal diameter of the absorber ranged from 1.9 to 7 m and the packing height from 13.9 to 45.5 m. The physico-chemical properties were obtained and modeled using the Perturbed Chain-Statistical Associating Fluid Theory (PC-SAFT) Equation-of-State (EOS). Four process constraints were imposed in Aspen Plus: (1) no flooding in the absorber, (2) the absorber height to diameter ratio (H/D) is greater than or equal 6, (3) at least 90 mol% of the CO2 capture from the fuel gas stream, and (4) the CO2 stream destined to sequestration sites should contain less than 600 ppm water concentration and less than or equal 0.5 mol% of fuel gases (H2, CO, CH4). The plant lifetime was assumed to be 30 years with an annual discount rate of 10% and an annual maintenance cost of 4% of the total capital expenses. Seven power plants with different capacities were used and for each plant, the corresponding CO2 capture process was simulated. The absorber flooding was checked using the generalized pressure drop correlation (GPDC) by Leva [1] and the capital expenditure (CAPEX), operating expenditure (OPEX), and levelized costs per ton of CO2 captured (LCOC) were calculated [2-5]. Normalized by the largest power plant capacity (543 MW) used in the simulation, the results indicated that the capital and operating expenditures increased, however, the LCOC decreased with increasing plant capacity. This behavior was due to the increased annual tonnage of the CO2 captured with plant capacity as shown in Figure 1. The calculated CAPEX, OPEX, LCOC and the tonnage of CO2 captured for the 543 MW power plant were about 52 MM$, 22 MM$/year, 7.46 $/ton and 4 MM ton/year.

Ashkanani, Husain↗

DOE OSTI2024

MADWEC Techno-Economic Analysis: Cooperative Research and Development Final Report

The objective of this project was for the facility to conduct a techno-economic assessment of the Maximal Asymmetric Drag Wave Energy Converter (MADWEC), developed by the University of Massachusetts Dartmouth (UMass Dartmouth), used for powering remote monitoring and AUV charging systems compared to other existing power supply options. The assessment estimates capital expenditures (CapEx), operational expenditures (OpEx), and power performance for 18 scenarios with the purpose of identifying key cost drivers, comparing total system cost, and comparing the power performance of the power supply options in terms of required installed capacity and estimated theoretical annual energy performance. The scenarios include two end-uses: (1) AUV charging and (2) offshore remote monitoring); three power sources: (1) MADWEC), (2) photovoltaic (PV) solar buoy, (3) and traditional battery swapping); and three locations; (1) nearshore, (2) far-offshore, and (3) high-latitude). In addition, other project goals included developing high level installation, operation, and maintenance plans for each scenario.

16 TIDAL AND WAVE POWER↗

DOE OSTI2024

TEAMER: MADWEC Techno-Economic Analysis

The objective of this project was for the facility to conduct a techno-economic assessment (TEA) of the Maximal Asymmetric Drag Wave Energy Converter (MADWEC), developed by the University of Massachusetts Dartmouth (UMass Dartmouth). MADWEC is used for powering remote monitoring and Autonomous Underwater Vehicle (AUV) charging systems compared to other existing power supply options. The assessment estimates capital expenditures (CapEx), operational expenditures (OpEx), and power performance for 18 scenarios with the purpose of identifying key cost drivers, comparing total system cost, and comparing the power performance of the power supply options in terms of required installed capacity and estimated theoretical annual energy performance. The 18 assessed scenarios include two end-uses: 1) AUV charging and 2) offshore remote monitoring); three power sources: 1) MADWEC), 2) photovoltaic (PV) solar buoy, 3) and traditional battery swapping); and three locations; 1) nearshore, 2) far-offshore, and 3) high-latitude). In addition, other project goals included developing high level installation, operation, and maintenance plans for each scenario. The techno-economic model, created in Microsoft Excel, estimates CapEx, OpEx, and the power performance of each power supply source. The model has a dynamic format that allows custom inputs to accommodate future changes to the systems being assessed. This is a TEA for the MADWEC project, TEAMER RFTS 7 (request for technical support) program.

16 TIDAL AND WAVE POWER↗

DOE OSTI2022

Development of an innovative process for post-combustion CO 2 capture to produce high-value NaHCO 3 nanomaterials

An innovative post-combustion process using aqueous sodium glycinates solutions (SGS) for CO 2 capture from a split flue gas stream emitted from the 600 MWe coal power plant, used in the Wolverine Clean Energy Venture (WCEV) project, was developed in Aspen Plus v.10. The flue gas flow rate used in the process was 12.43 kg/s (at 353.15 K and 101.33 kPa) and contained 0.0023 and 13.33 mol% of SO 2 and CO 2 , respectively. The overall process includes 5 main units designed to remove all SO 2 and capture more than 90 mol% of CO 2 in the flue gas stream, while producing high-value, salable sodium bicarbonate (NaHCO 3 ) nanomaterials to offset the total process costs. The hydraulics, mass transfer characteristics, and process performance obtained using Aspen Plus were discussed. Also, the capital expenditure (CAPEX), operating expenditure (OPEX), and Levelized cost of CO 2 capture (LCOC) were calculated to assess the feasibility of this process. Further, the hydraulics in the SO 2 washing and CO 2 capture units showed a pressure drop of 12 and 1 kPa, respectively, and the behaviors of the liquid holdup and normalized packing specific wetted surface area were similar in both units. The gas-side mass transfer coefficients were orders of magnitude greater than the liquid-side mass transfer coefficients. The process was able to capture 2.352 kg/s of CO 2 and produce 4.486 kg/s of valuable NaHCO 3 nanomaterials. Also, the calculated CAPEX, OPEX, and LCOC of the process for a 30-year plant lifetime were ($\$ $4,450,552), (233.00 $\$ $/h) and (35.49 $\$ $/ton of CO 2 captured), respectively.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗

DOE OSTI2022

TEA of a Unique Two-Pathways Process for Post-Combustion CO 2 Capture

A unique two-Pathways process using aqueous sodium glycinate for CO 2 capture from a split flue gas stream emitted from 600 MWe post-combustion coal power plant was developed in Aspen Plus v.10. The split gas flow rate used was 44.75 ton/h and contained 0.0023 mol% SO 2 and 13.33 mol% CO 2 . The process includes a washing unit, a CO 2 absorption unit, a reverse osmosis unit, and a solvent regeneration unit or an ultrafiltration unit. The washing unit uses deionized water to completely remove SO 2 and the CO 2 absorption unit uses SGS to capture at least 90 mol% of the CO 2 in the split flue gas stream. Upon CO 2 and SGS reactions, the resulting liquid products exhibit phase-separation into CO 2 -lean phase and CO 2 -rich phase, allow two distinct pathways. Pathway (i) is to regenerate mostly the CO 2 -rich phase, collect the released CO 2 , and compress it for sequestration purposes. Pathway (ii) is to send the liquid stream from the CO 2 absorption unit to the ultrafiltration unit to separate the solid nanomaterials. The hydraulics and mass transfer characteristics in the washing and CO 2 absorption units were obtained; and techno-economic analysis (TEA) for Pathways (i) and (ii), including Capital Expenditure (CAPEX), Operating Expenditure (OPEX), and Levelized Cost of CO 2 Captured (LCOC), were calculated and compared. The simulation results revealed that the CAPEX, OPEX, and LCOC for Pathway (i) were ($\$12,039,251$), (261 dollar/h), and (54.01 dollar/ton-CO 2 captured), respectively, and those for Pathway (ii) were ($\$5,908,000$), (237.2 dollar/h), and (39.90 dollar/ton-CO 2 captured), respectively. Moreover, in Pathway (ii), 8.19 ton/h of CO 2 were captured to produce 15.62 ton/h NaHCO 3 nanomaterials, which were sold to offset the overall process cost. The LCOC values indicate that Pathway (ii) is more cost-effective than Pathway (i) because LCOC values for Pathway (ii) are much lower than those for Pathway (i).COC values for Pathway (ii) are much lower than those for Pathway (i).

20 FOSSIL-FUELED POWER PLANTS↗

DOE OSTI2023

WAVES (Wind Asset Value Estimation System) [SWR-23-81]

The Wind Asset Value Estimation System (WAVES) model is a coupling framework for core NREL techno economic analysis software models to estimate capital expenditures (ORBIT), operational expenditures (WOMBAT), and energy production (FLORIS) for offshore wind power plants. Existing workflows to couple the three models for lifecycle performance and cost estimation require a large amount of manual and error-prone setup to combine both shared inputs and dependent outputs, as such WAVES's primary functionality is to wrap the core logic for running standard modeling workflows to ensure shared settings and entangled results are correctly and efficiently combined every time. SEE ALSO: https://pypi.org/project/WAVES/

Hammond, Robert↗

DOE OSTI2023

Engineering Study of Svante’s Solid Sorbent Post-Combustion CO 2 Capture Technology at a Linde Steam Methane Reforming H 2 Plant

An initial engineering design study was performed for an advanced post combustion CO 2 capture (PCC) technology to be installed at a commercial-scale steam methane reforming (SMR) hydrogen plant located in the US Gulf Coast. The PCC process integrated the VeloxoTherm™ structured adsorbent technology from Svante for the CO 2 separation and CO 2 compression and purification and balance of plant systems provided by Linde. This pre-FEED equivalent study included following: (1) design basis, (2) basic engineering, including development of process flow diagrams and heat & material balances, (3) inside the battery limit (ISBL) equipment and systems specification, (4) balance of plant outside the battery limit (OSBL) equipment and systems specifications, (5) technology maturation plan, (6) hazard identification (HAZID) review, (7) environmental, health and safety (EH&S) assessment and environmental permitting analysis, (8) constructability review, (9) ISBL and OSBL EPC cost estimation, and (10) commercial-scale techno-economic analysis including capital expenditures (CAPEX) and operating expenditures (OPEX) and CO 2 capture cost estimates.

03 NATURAL GAS↗

DOE OSTI2020

Zeolite Membrane Reactor for Pre-Combustion Carbon Dioxide Capture (Final Scientific/Technical Report)

Water-gas shift (WGS) reaction followed by carbon dioxide (CO 2 ) separation is a critical step in the integrated gasification combined cycle (IGCC) process for fossil-fuel-fired electrical power generation with CO 2 capture. To intensify the IGCC process hydrogen-permselective zeolite membrane reactor offers promise to replace the conventional energy-intensive fixed-bed reactors and solvent-based CO 2 capture units. The objectives of this project were to develop a bench-scale zeolite membrane reactor (total membrane area: 932 cm 2 for a 21-tube membrane bundle) for the water-gas-shift reaction of raw syngas from an oxygen-blown coal-gasifier for H 2 production with simultaneous CO 2 separation at the capability of about 2 kilograms H 2 per day (equivalent to 2 kW IGCC power plant) and to demonstrate significant progress toward achieving overall performance goal of 90% CO 2 capture rate with 95% CO 2 purity at the cost of electricity 30% less than the baseline carbon capture approaches. This report summarizes results obtained in this project on scaling up the zeolite membrane reactor by a factor of 200 in membrane area, tests of the bench-scale zeolite membrane reactor for the water-gas-shift reaction at high temperature and high-pressure, and techno-economic analysis of the integration of the zeolite membrane reactor in IGCC power plant for the electrical generation with CO 2 capture. With effective pore modification by catalytic cracking deposition of MDES (methyldiethoxysilane), fabrication of MFI-type zeolite membranes was successfully scaled-up from a lab-scale disk type to bench-scale multiple-tube bundles on low-cost alumina supports. A Co-Mo based sour shift catalyst was evaluated and used in the zeolite membrane reactors for water-gas-shift reaction. The reaction kinetic and gas-permeation equations were developed and employed in mathematic models to guide/predict experiments/performance of zeolite membrane reactors for water-gas shift reaction. Multiple-tube zeolite membrane bundles and reactors were designed, fabricated and tested for gas separation and water-gas-shift reactions with real raw syngas from a coal-fired gasifier operated at high temperature and pressure. The zeolite membrane reactors demonstrated good long-term thermal and chemical stability and constant H 2 permeance (>300 GPU) together with a Knudsen selectivity (~4.7) for H 2 over CO 2 in the field test (cumulative time >28 hours) with high-sulfur coal-derived syngas. The zeolite-membrane-reactor integrated IGCC process was designed using the performance experimentally measured by the University of Cincinnati team with a single-tube zeolite membrane reactor that offers a CO conversion >98% with more than 90% of CO 2 and H 2 captured. With the above integrative approaches, a techno-economic analysis for a cost-benefit comparison was performed to uncover features that determine the power output, capital expenditure, operating expenditure, cost of electricity and cost of CO 2 capture in a 550-MW zeolite-membrane-reactor integrated IGCC process. The integration of the zeolite membrane reactor in IGCC could provide a significant reduction of 80% and 27% in the power consumption for Selexol™ Acid Gas Removal and CO 2 compression, respectively, which lowers the total auxiliary power consumption by 12.5%. However, the low pressure required at permeate stream for maintaining the driving force of hydrogen permeation through the zeolite membrane costs a huge power in permeate compressor, compensating the power consumption reduction achieved with the membrane reactor. Thus, for coal-fired IGCC for electricity generation with 90% CO 2 captured, the integration of the membrane reactor could provide a CO conversion ~99% and a significant drop in cost-of-electricity using zeolite membrane with H 2 permeance >600 GPU and the H 2 /CO 2 selectivity over 70.

01 COAL, LIGNITE, AND PEAT↗

DOE OSTI2024

BioC2G Tool v1

The BioC2G tool provides an interface for running technoeconomic analyses and life-cycle assessments of biofuel and bioproduct production pathways. Models for the pathways are currently built into the tool: limonene, limonane, bisabolene, bisabolane, ethanol, isoprenol, DMCO, and HEFA. Additionally, a "Custom" option is available for analyzing a bioproduction pathway not included among the built-in examples. Users must supply key product properties and process parameters. Three types of model runs are available in the tool: minimum selling price (MSP), water consumption, and greenhouse gas (GHG) emissions. Running the MSP model yields a breakdown of MSP by major process stage of production, along with a a table of estimated capital expenditures (CAPEX) and annual operating expenditures (OPEX). Running the water consumption and GHG models yields a breakdown of water consumed and carbon emissions respectively, per unit of end product. A breakdown of these metrics by major process stage is also provided. Model run results can be viewed in the web interface numerically and graphically, as well as downloaded in CSV format. Detailed documentation on model methodology and assumptions is also available for download.

Huntington, Tyler↗

DOE OSTI2021

Specialty chemicals production case study: Economic analysis of modular chemical process intensification versus conventional stick‐built approaches

Abstract The beneficial synergies of chemical process intensification and plant modularization present a unique step‐wise advancement opportunity for many chemical manufacturers, but economic case studies are needed to raise awareness of such opportunities. The primary objective of this case study is to better understand the business case economics of a specialty chemical plant using modular chemical process intensification (MCPI), by comparing it with that of a conventional stick‐built (CSB) plant that produces the same product at the same production capacity. When comparing MCPI against CSB approaches for a plant project strategy decision, analysts should thoroughly understand and model the differences and similarities in scope bases. The MCPI approach for this case study benefitted from dramatic reductions in capital expenditures (CAPEX). A sizeable reduction in plant spatial volume likely explains some of these reductions. Sizeable operational expenditure (OPEX) reductions with the MCPI plant appear to be associated with the reduced operator staffing required from converting a labor‐intensive batch process into an automated, continuous flow process. Traditional project investment economic measures strongly favored the MCPI case for the design, construction, and operation of the specialty chemical plant. The net present value for the MCPI case was nearly twice that for the CSB case over a ten‐year period, and the payback period for the CSB case was nearly five times longer than that of the MCPI case. The opinion‐based perspective of the study participant identified significant contributors to superior MCPI economic performance for this case study. With the two conditions of low MCPI CAPEX and high product profit margin, economic analysis indicates that incorporation of a backup MCPI train, for operational redundancy when downtime occurs, is a very beneficial strategy.

O'Connor, James T.↗

DOE OSTI2026

ENPAX (ENergy Platform — Automated eXpenditures) [SWR-26-053]

ENPAX (ENergy Platform — Automated eXpenditures) is an open-source Python library that provides modular, bottom-up capital and operating expenditure (CAPEX/OPEX) models for energy technologies. Cost estimates are derived using system design characteristics, site specific details, power system considerations and infrastructure assumptions.

Mulas Hernando, Daniel [National Laboratory of the↗

DOE OSTI2026

Storage Field Development Plan: One Earth Energy

This Storage Field Development plan presents the Storage Complex characterization results, construction, monitoring, and operational plans, and costs associated with the proposed One Earth Sequestration Carbon Capture and Storage (OES-CCS) site in McLean County, Illinois, near Gibson City. The proposed storage complex, known as the Mt. Simon Storage Complex, comprises the Cambrian Mt. Simon Sandstone reservoir and the primary seal, the Cambrian Eau Claire Formation. The lowermost Underground Source of Drinking Water (USDW) identified for the site is the Ordovician St. Peter Sandstone. Geologic characterization of the Mt. Simon Storage Complex at the OES-CCS site was performed by the Illinois Storage Corridor CarbonSAFE Phase III project, which also prepared and submitted three UIC Class VI applications to construct three injection wells; the permit applications were submitted and are in the federal EPA review process. A characterization well, OEE #1, was drilled to collect site-specific data. These data were analyzed and used to develop the UIC Class VI applications. The OEE #1 well will be converted to an in-zone monitoring (IZM) well for the injection phase. The proposed buildout for the OES-CCS site includes (1) three injection wells (OES #1, OES #2, and OES #3), (2) two IZM wells, (3) two above confining zone (ACZ) monitoring wells, one of which will be used to monitor the lowermost USDW, (4) capture and compression facilities, and (5) transportation facilities, i.e., pipelines. A pre-operational testing program was proposed in the Class VI permit application and will be employed at the site pending approval. Additional pre-injection (baseline), syn-injection, and post-injection monitoring and site care procedures will be followed by OES to ensure that injection activities are protective of human health and the environment. Injection is scheduled to begin in 2025, distributed across the three injection wells in accordance with the permit operating conditions. One Earth Sequestration intends to inject up to 90 million tonnes of CO 2 over a period of approximately 20 years. Injection will begin at approximately 0.5 million tonnes of CO 2 annually and ramp up to a maximum of 4.5 million tonnes annually. Daily injection rates are expected to range from 1,400 to 1,500 tonnes per day initially and reach a maximum of approximately 4,225 tonnes per day, depending on site geology and injectivity at each injection well location, and CO 2 availability. The costs associated with the OES-CCS project include pre-operational costs (e. g. additional seismic data acquisition and well drilling), capture and transportation facility and equipment costs, predicted field operating expenditures (OpEx), and decommissioning and post-injection site care (PISC) costs. The risks associated with project activities, such as site construction, injection operations, and verification of secure storage were evaluated, and mitigation strategies proposed to alleviate those risks.

09 BIOMASS FUELS↗

DOE OSTI2024

Can section 45Q tax credit foster decarbonization? A case study of geologic carbon storage at Acid Gas Injection wells in the Permian Basin

Carbon capture, utilization, and storage (CCUS) is an important pathway for meeting climate mitigation goals. While the economic viability of CCUS is well understood, previous studies do not evaluate the economic feasibility of carbon capture and storage (CCS) in the Permian Basin specifically regarding the new Section 45Q tax credits. We developed a technoeconomic analysis method, evaluated the economic feasibility of CCS at the acid gas injection (AGI) wells, and assessed the implication of Section 45Q tax credits for CCS at the AGIs. We find that the compressors, well depth, and the permit and monitoring costs drive the facility costs. Compressors are the predominant contributors to capital and operating expenditure driving the levelized cost of CO 2 storage. Strategic cost reduction measures identified include 1) sourcing of low-cost electricity and 2) optimizing operational efficiency in well operations. In evaluating the impact of the tax credits on CCS projects, facility scale proved decisive. We found that facilities with an annual injection rate exceeding 10,000 MT storage capacity demonstrate economic viability contingent upon the procurement of inputs at the least cost. The new construction of AGI wells were found to be economically viable at a storage capacity of 100,000 MT. The basin is heavily focused on CCUS (tax credit – $\$$65/MT CO 2 ), which overshadows CCS ($\$$85/MT CO 2 ) opportunities. Balancing the dual objectives of CCS and CCUS requires planning and coordination for optimal resource and pore space utilization to attain the basin's decarbonization potential. We also found that CCS on AGI is a lower cost CCS option as compared to CCS on other industries.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2026

Electric Utility Distribution Costs: Scoping Study on Trends, Drivers, and Possible Response Strategies [Slides]

This scoping study synthesizes information that will help stakeholders understand the scope, scale, and drivers of recent increases in investor-owned utility (IOU) expenditures on local distribution power grids, while providing regulators and other decision-makers with potential strategies to keep electricity bills down. The study includes five distinct components. Drawing first on data from FERC Form 1, it summarizes key trends in past and recent IOU distribution costs. Next, through a review of a sample of distribution-system plans, it characterizes material drivers of planned distribution expenditures. Ultimately, regulators must approve cost recovery for IOU expenditures, including those for the distribution system. The study therefore also: examines trends in utility requests and regulatory approvals related to changes in retail rates and return on equity; identifies areas where utility shareholder and customer incentives may be misaligned; and develops a menu of options that state regulators might consider to optimize distribution system expenditures. Some of the key findings include: - IOU distribution spending at a national level has grown by 6%/yr since 2014 in real dollar terms, 4x faster than in the prior 20 years and consisting mostly of capital (not operating) expenditure. - On a per-kWh basis, increases in IOU distribution costs since 2014 represent over 30% of the overall national-average increase in retail electricity rates. - Regional spending growth has ranged from 2-8%/yr, with larger estimated rate impacts in CAISO, then NYISO & ISO-NE, and then the Southeast, MISO & PJM (see figure). - Some utilities are planning for significantly increased distribution system spending. Planned spending on managing the existing system (asset replacement, safety & reliability, and resilience are all important drivers) exceeds that for capacity expansion. - IOU rate increase requests ($18 billion in 2025) and public utility commission (PUC) approval levels (average of 64% of requested amounts from 2021-2025) have recently hit multi-decadal highs. - PUCs in New England and the Southeast have recently approved a greater fraction of rate requests (>75%, on average) than in ther regions, while PUCs in California and the Southeast have generally authorized higher equity returns than in other regions. - Regulators have many tools to tackle potential misalignments between utility and customer interests and, more specifically, to optimize and reduce distribution costs. Shorter-term options include those related to return on equity, capital structure, depreciation, trackers, construction work in progress, and securitization. Longer-term options include performance-based regulation and a wide variety of planning-related requirements. All options embed important tradeoffs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2024

Carbon Capture, Transport, And Storage (CTS) Cost Modeling Of The Onshore Gulf Coast

The onshore Gulf of Mexico region presents significant opportunities for CO2 capture, transport, and storage due to its numerous CO2 sources, such as power plants, refineries, and its substantial CO2 storage potential. However, operators face critical decisions in designing an efficient and cost-effective CO2 pipeline network. This study examines the economic implications of two primary strategies: constructing a trunkline with excess initial capacity versus developing dedicated pipelines incrementally as new CO2 sources come online. Building a trunkline first offers the advantage of future-proofing the network, allowing for the accommodation of increased CO2 volumes from various sources over time. However, this approach incurs higher upfront costs and risks underutilizing the transport capacity in the initial stages, potentially resulting in economic inefficiencies. Conversely, constructing dedicated pipelines for each new CO2 source as it becomes operational may avoid the initial overcapacity issue but fails to capitalize on the economies of scale. This could lead to higher overall costs due to the duplication of infrastructure and increased complexity in network management. This research employs a comprehensive cost-benefit analysis, integrating factors such as capital expenditure, operational costs, projected CO2 volumes, and potential economies of scale. Through this analysis, we aim to provide operators with insights into the most economically viable strategy for CO2 pipeline network design in the region. The findings underscore the importance of strategic planning and highlight the trade-offs between immediate capacity utilization and long-term cost savings, ultimately guiding stakeholders towards informed decision-making in the development of CO2 transport infrastructure. Presented at the 41st USAEE/IAEE North American Conference, 3-6 November 2024, Baton Rouge, LA, United States.

Shih, Chung Yan↗