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At least 19 records

Power sector impacts of the Inflation Reduction Act of 2022

Abstract The Inflation Reduction Act (IRA) is regarded as the most prominent piece of federal climate legislation in the U.S. thus far. This paper investigates potential impacts of IRA on the power sector, which is the focus of many core IRA provisions. We summarize a multi-model comparison of IRA to identify robust findings and variation in power sector investments, emissions, and costs across 11 models of the U.S. energy system and electricity sector. Our results project that IRA incentives accelerate the deployment of low-emitting capacity, increasing average annual additions by up to 3.2 times current levels through 2035. CO 2 emissions reductions from electricity generation across models range from 47%–83% below 2005 in 2030 (68% average) and 66%–87% in 2035 (78% average). Our higher clean electricity deployment and lower emissions under IRA, compared with earlier U.S. modeling, change the baseline for future policymaking and analysis. IRA helps to bring projected U.S. power sector and economy-wide emissions closer to near-term climate targets; however, no models indicate that these targets will be met with IRA alone, which suggests that additional policies, incentives, and private sector actions are needed.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Modeling Variable Renewable Energy and Storage in the Power Sector

The emergence of variable renewable energy and battery storage technologies have fundamentally transformed the electric power sector and generated demand for analysis to understand their roles in future energy systems. Although unique characteristics of these resources are well-recognized and require more sophisticated methodologies to capture effectively, guidance is limited on best practices and research gaps. This paper selectively reviews recent literature and draws upon our collective modeling experience to offer recommendations to analysts and consumers of model outputs on approaches for modeling variable renewable energy and storage in long-term electric sector models. We focus on regional- and national-scale models with technological, temporal, and spatial detail given their prevalence in planning and policy analysis, though insights are applicable in other settings. The review highlights how the research frontier has advanced in representing renewables and energy storage over the past decade; however, given the many considerations involved with appropriately capturing salient economic and operational characteristics of renewables, there is a gap between commonly used models and state-of-the-art methods. Model simplifications can materially impact policy analysis associated with power sector decarbonization and high renewables deployment, and improving model representations of variable renewables can enhance insights for policymakers and other stakeholders. This review can point the way for improved methods for established models and designs for emerging ones.

energy and environmental policy↗

Nuclear Energy in Long-Term System Models: A Multi-Model Perspective

Long-term energy system models–including electric sector capacity expansion models–are widely used tools for informing planning, technology assessment, and policy analysis. Recent decarbonization goals and rapid technological change have increased the need to appropriately represent economic characteristics and technical details of energy system resources, including variable renewable energy, energy storage technologies, carbon-capture-equipped capacity, and nuclear energy. Nuclear power represents about 20% of electricity generation and 50% of carbon-free electricity in the United States as of 2021. However, there are many perspectives on the role of existing and new nuclear in the future U.S. energy system, which is reflected in the broad range of potential contributions reported in the literature. This project aims to understand how issues central to nuclear energy are represented in long-term energy models. Building on earlier collaborations that focused on variable renewable energy and energy storage, this project convenes four modeling teams that use national-scale long-term energy system models from the Electric Power Research Institute, the National Renewable Energy Laboratory, the U.S. Energy Information Administration, and the U.S. Environmental Protection Agency to share methods and data, update models, run coordinated scenarios, and identify research needs. Improving tools can provide more insightful analyses and ensure that methods are more transparent.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Energy Storage in Long-Term System Models: A Review of Considerations, Best Practices, and Research Needs

Technological change and policy support have heightened expectations for the role of energy storage in power systems, creating a need to enhance representations of energy storage in long-term models to inform decision-making. Energy storage technologies have complex and diverse cost, value, and performance characteristics that make them challenging to model, but there is limited guidance about best practices and research gaps for energy storage analysis. This paper reviews the literature and draws upon our collective experience to provide recommendations to analysts on approaches for representing energy storage in long-term electric sector models, navigating tradeoffs in model development, and identifying research gaps for existing tools and data. The review focuses on national-scale models with technological, temporal, and regional detail given their prevalence in planning and policy, though many insights are transferable to other modeling contexts. It also offers guidance to consumers of model outputs on proper use and interpretation based on model strengths and limitations. In particular, this review demonstrates the importance of capturing how the values of energy storage and other resources change as the system composition changes (e.g. with different levels of storage, renewables deployment, and emissions outcomes). These considerations require model detail like high spatiotemporal resolutions and endogenous investments that global integrated assessment models and price-taker frameworks do not typically resolve. Research gaps include linking tools of different resolutions, developing reduced-form representations of value streams, incorporating hybrid energy storage and renewable systems, and representing longer-duration energy storage technologies.

45 MILITARY TECHNOLOGY, WEAPONRY, AND NATIONAL DEF↗

Opportunities and Implications for Low-Cost Hydrogen Production from Water Electrolysis in a Decarbonizing Power Sector

Increased deployment of renewable power generation such as wind and solar photovoltaics along with electrification of transportation and other sectors are driving changes in the operation and economics of the electric power sector. Simultaneously, efforts to decarbonize other sectors of the economy such as steelmaking and heavy duty transportation will require significant amounts of electricity to drive electrons to molecules processes. Hydrogen production via water splitting electrolysis is a key near-term technology for decarbonization that interfaces between the power sector and decarbonization efforts in industrial sectors. This poster examines the implications for increased deployment of water electrolyzers in a rapidly evolving energy system. The economic opportunities for low-cost hydrogen production from electrolysis that are facilitated by highly renewable grids will be examined and discussed. Durability, cost, and operational strategies for electrolyzers interacting in these future energy systems are key to enabling hydrogen at scale. This poster will overview these considerations and ongoing work within the U.S. Department of Energy’s H2NEW consortium that is focused on addressing them.

electrolysis↗

Decarbonization of the Electric Power Sector and Implications for Low-Cost Hydrogen Production from Water Electrolysis

Increasing development of wind and solar generation in the power sector can create economic opportunities for the deployment of water electrolyzers that produce hydrogen. Temporal variation in the marginal cost of energy in future decarbonized grids can make it favorable for electrolyzers to dispatchably ramp hydrogen production up and down in response to low- and high-cost times. Using this strategy, low-cost hydrogen production is enabled by electrolyzers that are low-capital cost and tolerant to frequent on/off cycling. Ramping down hydrogen production to a designated turndown ratio can avoid performance degradation caused by on/off cycling by not shutting the electrolyzer completely off. This comes with a slight cost penalty which can be minimized if the turndown ratio is low (i.e., the system ramps down hydrogen production to close to zero). These results suggest that electrolyzers integrated into future power systems are likely to benefit from the ability to ramp operation up and down quickly and operate in a standby mode. This analysis forms a basis for comparative tradeoffs between electrolyzer capital cost, operating strategy, and system durability and demonstrates the importance of considering all three factors in technoeconomic analysis.

capital cost↗

Global anthropogenic emissions (CAMS-GLOB-ANT) for the Copernicus Atmosphere Monitoring Service simulations of air quality forecasts and reanalyses

Anthropogenic emissions are the result of many different economic sectors, including transportation, power generation, industrial, residential and commercial activities, waste treatment and agricultural practices. Air quality models are used to forecast the atmospheric composition, analyze observations and reconstruct the chemical composition of the atmosphere during the previous decades. In order to drive these models, gridded emissions of all compounds need to be provided. This paper describes a new global inventory of emissions called CAMS-GLOB-ANT, developed as part of the Copernicus Atmosphere Monitoring Service (CAMS; https://doi.org/10.24380/eets-qd81, Soulie et al., 2023). The inventory provides monthly averages of the global emissions of 36 compounds, including the main air pollutants and greenhouse gases, at a spatial resolution of 0.1° × 0.1° in latitude and longitude, for 17 emission sectors. The methodology to generate the emissions for the 2000–2023 period is explained, and the datasets are analyzed and compared with publicly available global and regional inventories for selected world regions. Depending on the species and regions, good agreements as well as significant differences are highlighted, which can be further explained through an analysis of different sectors as shown in the figures in the Supplement.

54 ENVIRONMENTAL SCIENCES↗

Storage Futures Study: Economic Potential of Diurnal Storage in the U.S. Power Sector

We model the evolution of the U.S. electricity sector from 2020 through 2050 and find significant market potential (>125 GW) for diurnal energy storage across all 19 scenarios considered. Most of this storage has 4-6 hours of duration. We find that storage deployment is driven primarily by the combination of capacity value and energy time-shifting value, and that the combination of these value streams is needed for optimal storage deployment to be realized. We also find a strong correlation of PV penetration and storage market potential. Cost and performance metrics in this study focus on Li-ion batteries because the technology has more market maturity than other emerging technologies but results from this study can be generalized to any technologies that meet the cost and performance projections assumed.

25 ENERGY STORAGE↗

The Health and Climate Benefits of Economic Dispatch in China’s Power System

China’s power system is highly regulated and uses an “equal-share” dispatch approach. However, market mechanisms are being introduced to reduce generation costs and improve system reliability. Here, we quantify the climate and human health impacts brought about by this transition, modeling China’s power system operations under economic dispatch. We find that significant reductions in mortality related to air pollution (11%) and CO 2 emissions (3%) from the power sector can be attained by economic dispatch, relative to the equal-share approach, through more efficient coal-powered generation. Additional health and climate benefits can be achieved by incorporating emission externalities in electricity generation costs. However, the benefits of the transition to economic dispatch will be unevenly distributed across China and may lead to increased health damage in some regions. Our results show the potential of dispatch decision-making in electricity generation to mitigate the negative impacts of power plant emissions with existing facilities in China.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Evolution of Electric Sector Water Use Under Alternative Electricity Futures

Increasing competition for water resources in the United States could create future challenges for allocating and using thermal cooling water in the U.S. electric power sector. While thermal power plant retirements and the growth of wind and solar technologies can reduce national aggregate power sector cooling water use, local water constraints and growing demand for agricultural or municipal supply could create greater needs for higher-cost alternative water supplies such as groundwater or recycled wastewater. For some regions, these incentives could change future electricity planning and operational decisions. These relationships and impacts are studied here using the National Renewable Energy Laboratory (NREL) Regional Energy Deployment System (ReEDS), a national electric sector planning model that has recently been upgraded to include a highly detailed representation of thermal cooling water demand and supply. Thermal power technologies are differentiated by both cooling technology and water source type to track and constrain thermal cooling water use in a way that incorporates both physical and legal water considerations in the United States. This capability is exercised under a range of electricity sector futures with alternative technology costs, fuel prices, and water constraints to illustrate ways that U.S. electric sector water use could evolve under uncertain future electric sector drivers. In exploring changes to regional generation and transmission planning and operation, water requirements, and cost, we highlight the environmental and economic impacts of future power sector water decisions.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

The Electrification Futures Study

This presentation explores widespread electrification in the future energy system of the United States, examining electric technology cost and adoption for end-uses across all economic sectors, electricity consumption growth and profiles, power system infrastructure development and operations, and the economic and environmental implications of electrification.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Water & Energy Interdependencies Across Economic Sectors of the United States

The motivation of the Integrated Water Power Resilience Project is to identify and develop opportunities for improving resilience in the water and power sectors through coordinated planning, investment, and operations and thereby provide benefits to power and water utilities, consumers, and the environment. Water and power systems are interdependent, subject to many of the same natural and manmade hazards, and are critical for the well-being of communities and society. Because of the interconnectedness of water and power systems, there are substantial economic, social, and environmental benefits to co-managing the market sectors for resilience instead of managing them separately. To support this initiative and future research in this area, a county level water and energy flow dataset was developed to build, calculate, and visualize interconnections in water and energy between various sectors. This report presents county and regional water and energy visualizations across nine economic sectors of the United States: agriculture, commercial, electricity generation, industrial, mining, public water supply, residential, transportation, and wastewater treatment.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Techno-economic analysis of synthetic fuel production from existing nuclear power plants across the United States

Abstract Low carbon synfuel can reduce dependence on fossil fuels like diesel and jet fuel, and, with large-scale cost-effective production, contribute to global transportation sector decarbonization, Simultaneously, nuclear power plants are struggling economically due to falling wholesale electricity prices. Converting existing nuclear plants for synfuel production could preserve these low-carbon assets and enable large-scale synfuel production, yet no comprehensive technoeconomic analysis exists. This study evaluates the potential of integrating synthetic fuel production with five US nuclear plants, considering electricity and fuel markets and carbon dioxide source access. Such integration could enhance nuclear plant profitability by up to $792 million and offer a 10% return on investment over 20 years. The hydrogen production tax credit from the 2022 Inflation Reduction Act is crucial, comprising 75% of revenues on average. Carbon feedstock transportation has the highest cost at 35%, followed closely by synfuel production capital costs. Incentive policies are thus key for the decarbonization of the transportation sector and the economic importance of the geographic location of Integrated Energy Systems.

Garrouste, Marisol (ORCID:0000000168388644)↗

Intelligent Manufacturing for Extreme Environments Conference Proceedings

The Intelligent Manufacturing for Extreme Environments (IMEE) workshop was held at the Center for Advanced Energy Studies (CAES) in Idaho Falls, Idaho, May 2–3, 2023, in support of the United States (U.S.) National Science Foundation (NSF) Established Program to Stimulate Competitive Research: Workshop Opportunities (EPSCoR-WO) program. This workshop featured keynote speakers, panels, and breakout sessions with 58 participants. Nuclear reactors need to operate under extreme service conditions, such as high temperatures, corrosive environments, and high-radiation doses. Hence, reactor components must be able to withstand those conditions. The participants envision a future where on demand manufacture of components for small modular reactors (SMRs), microreactors, and other advanced reactor designs are possible. In this future, regulatory bodies accept validated manufacturing processes and standardized feedstocks, thus eliminating the need for individual component testing. However, the necessary technologies and regulatory policies needed for this future do not exist today. Successful innovation would revolutionize the nuclear power sector, enable fast commercial development, create economic opportunities in the U.S., reduce the carbon footprint and associated risks, and promote a skilled and highly competitive workforce. The objective of the workshop was to convene world-class experts, researchers, educators, and students to identify gaps and envision solutions for five interrelated challenges for intelligent manufacturing in extreme environments. The key outcomes of the conference were: (1) to take the opportunity for researchers and educators to network and form collaborations; and (2) to produce a full report to inform policy-makers, industry, and the academic community of various challenges and opportunities in the nuclear energy sector.

36 MATERIALS SCIENCE↗

Powering Post-COVID-19 Resilient Recovery with Green Stimulus

As the coronavirus disease (COVID-19) pandemic spread globally in early 2020, many governments enacted lockdown measures as an initial containment response. These lockdowns, while effective in slowing infection rates, have also had substantial economic consequences. A series of supply and demand shocks, workforce and supply chain disruptions, and other impacts of the pandemic and ensuing lockdowns have upended the livelihoods for much of the world's population. This quick read spotlights how green stimulus plans and other recovery measures can support near-term recovery and enable longer-term power system resilience against future threats. The term “green stimulus” encompasses fiscal measures (i.e., governmental tax and spending actions) that support short-term economic activity that enhances environmental and natural resource quality over a longer term. The deployment of energy efficiency (EE) and renewable energy (RE) technologies, as well as associated initiatives (e.g., grid modernization, electrification of transport, and so on) have been demonstrably effective in providing this kind of short-run economic boost while simultaneously strengthening the resilience of the power sector. Along with green stimulus packages, concurrent action on the regulatory side—for example, the development of green building codes, updating grid interconnection standards, creating programs and marketplaces for demand-side efficiency, and others—can be a force multiplier in ensuring that public spending achieves maximum impact in near-term recovery and long-term power sector transformation

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Impacts of climate change, population growth, and power sector decarbonization on urban building energy use

Climate, technologies, and socio-economic changes will influence future building energy use in cities. However, current low-resolution regional and state-level analyses are insufficient to reliably assist city-level decision-making. Here we estimate mid-century hourly building energy consumption in 277 U.S. urban areas using a bottom-up approach. The projected future climate change results in heterogeneous changes in energy use intensity (EUI) among urban areas, particularly under higher warming scenarios, with on average 10.1–37.7% increases in the frequency of peak building electricity EUI but over 110% increases in some cities. For each 1 °C of warming, the mean city-scale space-conditioning EUI experiences an average increase/decrease of ~14%/ ~ 10% for space cooling/heating. Heterogeneous city-scale building source energy use changes are primarily driven by population and power sector changes, on average ranging from –9% to 40% with consistent south–north gradients under different scenarios. Across the scenarios considered here, the changes in city-scale building source energy use, when averaged over all urban areas, are as follows: –2.5% to –2.0% due to climate change, 7.3% to 52.2% due to population growth, and –17.1% to –8.9% due to power sector decarbonization. Our findings underscore the necessity of considering intercity heterogeneity when developing sustainable and resilient urban energy systems.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗