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At least 19 records

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

Africa Battery Energy Storage Systems (BESS) Capacity Building Utility-Scale Storage: BESS Valuation, Tariffs, and Remuneration [Slides]

Utility-scale Battery Energy Storage Systems (BESS) are key to enhancing grid reliability, integrating renewable energy, and providing operational flexibility. Designing effective valuation, remuneration, and tariff frameworks is essential to ensure both system benefits and financial viability for developers. This presentation outlines a structured methodology for evaluating BESS projects, covering policy and legal considerations, cost and revenue analysis, benchmarking, financial sensitivity, and risk assessment, while ensuring alignment with public interest. It also explores valuation of multiple storage services - bulk energy, ancillary services, and infrastructure support - and monetization strategies through capacity payments, energy tariffs, tolling, arbitrage, and non-wires alternative payments. Technical factors, including round-trip efficiency, degradation, and storage duration, are integrated into financial and operational modeling to quantify both system-wide and project-level benefits. Through case studies and simulation-based approaches, this framework provides regulators, utilities, and developers with practical guidance for tariff design, payment structures, and investment decisions, maximizing the economic and societal value of BESS deployment.

25 ENERGY STORAGE

Real Options Analysis for Valuation of Climate Adaptation Pathways With Application to Transit Infrastructure

Climate change and sea level rise (SLR) are expected to increase the frequency and intensity of coastal flood events, posing risks to coastal communities and infrastructure. While regional climate adaptation investments can provide substantive flood protection, existing plans often neglect uncertainty in future climate conditions and adaptation performance, consequently neglecting the option value of flexibly implementing proposed projects. Addressing this gap, we develop and employ a generalizable real options analysis (ROA) valuation framework that considers how uncertainty in adaptation project costs, SLR, flood severity, and flood losses inform the full range of adaptation performance outcomes. We further propose and apply a novel, computationally efficient flood loss sampling algorithm to estimate the consequences of randomly arriving coastal flood events. We apply this ROA framework to assess the option value of flexibly timing adaptation investments over time, investigating an adaptation pathway proposed by the City of Boston from the perspective of the regional transit system manager. Our results suggest that flexible implementation can provide significant option value in the near-to mid-term(>30 years), with highest option values under low-probability, high consequence scenarios. Our results also suggest adaptation pathway performance in the latter half of the 21stcenturyis most sensitive to uncertainty in sea level rise, flood loss estimates, and flood frequency, underscoring the importance of uncertainty quantification in the long-term valuation of adaptation investments.

Michael V. Martello

Development of an Interactive Valuation Model for Distributed Energy Resource Value: Cooperative Research and Development (Final Report)

The Oklahoma Office of the Secretary of Energy and Environment (OSEE) seeks to address perceived challenges and barriers to the deployment of distributed energy generation resources (DERs), including solar and other technologies, in the state of Oklahoma. The Scope of Work (SOW) associated with CRD-18-762 covers two tasks: (1) Interactive Valuation Model Requirements Document and (2) Consumer Protection Assessment. Follow-on work was completed under a separate CRADA (CRD-19-00788).

29 ENERGY PLANNING, POLICY, AND ECONOMY

Developing a Framework for Valuation of Grid Services

The electric system is rapidly evolving and growing, raising new questions about how to define and value grid services delivered by a diverse set of resources, including customer-owned assets. This report advances a service–parameter–value framework that links what a grid service does to why it matters, and how its benefits are evidenced. We build upon prior efforts (Bender et al. 2021) and extend them to include value categories (reliability, resilience, cost & access, and security) with primary and secondary tiers, service-specific value streams that explain how benefits materialize, and metrics that make valuation traceable and comparable. We apply the framework to the six core grid services defined in (Kolln et al. 2023): Frequency Response, Regulation, Reserves, Energy, Voltage Management, and Blackstart and demonstrate it on three use cases to highlight the adaptability of these value streams. Further, we outline how the framework integrates with existing tools such as asset optimization, hosting capacity and cost-benefit analysis, and propose a path to portable qualifications and consistent stacking rules for use in tariffs and filings. Finally, we identify future pathways for research and application research needs to support standardization and decision-ready comparisons across services, assets, and architectures.

24 POWER TRANSMISSION AND DISTRIBUTION

Techno-Economic Evaluation of a 600MW Pumped Storage Hydropower Plant using the Pumped Storage Hydropower Valuation Tool

This paper presents a techno-economic evaluation of the proposed 600 MW, 8-hour Craig – Hayden pumped storage hydropower project using the U.S. Department of Energy’s Pumped Storage Hydropower Valuation Tool. The analysis integrates plant technical characteristics, regional grid conditions, and market-based operating assumptions to quantify stacked value streams from energy arbitrage, capacity, ancillary services, transmission congestion relief, and reliability. Both price taker and price influencer frameworks are applied to examine the impact of market participation and system interactions on lifecycle economic performance using Benefit - Cost Analysis and Multi - Criteria Decision Analysis. The results show that the price taker approach provides higher revenue estimates based on exogenous price signals, while the price influencer approach captures production cost savings, renewable curtailment reduction, and market price formation, yielding more conservative but system-representative outcomes. The study demonstrates the strategic value of long-duration PSH for enhancing operational flexibility, resource adequacy, and grid reliability in a high-renewable Western Interconnection.

Bhattacharyya, Arjun [ORNL] (ORCID:000900060976046

Milwaukee Urban Development: Assessing the Drivers of Urban Flood Vulnerability in Milwaukee using the Integrated Valuation of Ecosystem Services and Tradeoffs Urban Flood Risk Mitigation Model (InVEST)

Milwaukee County has experienced an increase in flooding due to climate change and urbanization. The frequency and severity of flooding vary spatially due to differences in land cover, surface permeability, and infrastructure. Marginalized communities tend to experience disproportionately high flooding and damage due to infrastructural inequalities and limited access to resources. To quantify these differences, we used the Natural Capital Project’s Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST) Urban Flood Risk Mitigation Model to calculate and create maps of runoff retention, nominal flood depth, and economic damage to buildings in Milwaukee. Our model inputs included land cover, surface permeability, and rainfall. To inform our precipitation inputs, we used NASA’s Integrated Multi-satellite Retrievals for Global Precipitation Measurement (GPM IMERG) and National Weather Service (NWS) data. We assessed the relationship between flood risk and social and environmental spatial data including redlining, racial demographics, greenspace, and community resilience. The data demonstrate that flood risk is higher in historically redlined neighborhoods, majority Hispanic and Black census block groups, areas that lack parks and trees, and areas of low community resilience as measured by the Census Bureau’s Community Resilience Estimates (CRE). These findings will support our partners, Groundwork Milwaukee and Groundwork USA, in their efforts to promote the equitable distribution of resources and support environmental health in urban spaces. The end products of this project provide our partners with tools to assess urban flooding vulnerability, guide future intervention projects, quantify the effects of environmental injustice, and improve stakeholder access to data.

Madeleine Tango

InVEST Urban Development: Incorporating Earth Observation Data into the Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST) Urban Flood Risk Mitigation Model Python API

Urban flooding poses as one of the biggest issues for cities today, as its impacts are amplified by both climate change and urbanization. The Natural Capital Project’s Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST) Urban Flood Risk Mitigation (UFRM) model, which benefits from its simplicity and robustness, is commonly used in NASA DEVELOP projects for disaster mitigation, urban planning, and environmental justice issues. While InVEST UFRM model was able to produce the surface water runoff and retention map sufficient for the scopes of past projects, the model accuracy and spatial variability need improvement. Since the current InVEST UFRM model employs constant rainfall depth for all pixels in the area of interest (AOI), the model suffers from inaccurately estimating rainfall depth, runoff volume, and flood depth. Therefore, we adapted the model so that satellite-based precipitation raster datasets (i.e., Integrated Multi-satellitE Retrievals for Global Precipitation Measurement [GPM IMERG]) can be used instead of a single constant value. We simulated the flood events on August 21st and August 22nd, 2017 in Wyandotte County, Kansas using both our modified and the original InVEST UFRM model and then compared the results after incorporating the rainfall raster into the model. Areas with developed land on the land use map predicted moderate to high flood volume in the original volume regardless of the actual amount of precipitation. The modified model considered the rainfall depth’s spatial variation achieving less overestimation of flood runoff and volume at low-to-moderate rainfall area.

Son Do

InVEST Urban Development: Incorporating Earth Observation Data into the Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST) Urban Flood Risk Mitigation Model Python API

Urban flooding poses as one of the biggest issues for cities today as its impacts are amplified by both climate change and urbanization. The Natural Capital Project’s Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST) Urban Flood Risk Mitigation (UFRM) model, which benefits from its simplicity and robustness, is commonly used in NASA DEVELOP projects for disaster mitigation, urban planning, and environmental justice issues. While the InVEST UFRM model was able to produce the surface water runoff and retention map sufficient for the scopes of past projects, the model’s accuracy and spatial variability need improvement. Since the current InVEST UFRM model employs constant rainfall depth for all pixels in the area of interest (AOI), the model suffers from inaccurately estimating rainfall depth, runoff volume, and flood depth. Therefore, we adapted the model so that satellite-based precipitation raster datasets (i.e., Integrated Multi-satellitE Retrievals for Global Precipitation Measurement [GPM IMERG]) can be used instead of a single constant value. We simulated the flood events on August 21st and August 22nd, 2017, in Wyandotte County, Kansas using both our modified and the original InVEST UFRM model and then compared the results after incorporating rainfall raster into the model. Areas with developed land on the land use map predicted moderate to high flood volume in the original volume regardless of the actual amount of precipitation. The modified model considered the rainfall depth’s spatial variation achieving less overestimation of flood runoff and volume at low-to-moderate rainfall area.

Urban flooding

Swing Contract-Based Valuation for Distributed Energy Resources in Transactive Energy Systems: A Reinforcement Learning Approach

With the proliferation of distributed energy resources (DERs) and power grids with high fractions of renewable energy, market constructs are evolving to allow DERs to participate in multiple possible markets, at different levels of grid hierarchy. The effective participation of DERs in market environments is aided by swing contract-based pricing mechanisms, whereby DERs have a two-part compensation structure – one for their reservation/commitment and another for performancedriven ex-post payment for their actual mobilization during dispatch. In this paper, we propose a reinforcement learningbased (Q-learning) approach that allows a rational DER agent to select the market it wants to participate in within a composite market environment where individual markets are coordinated by possibly different actors. The proposed Q-learning framework aids DERs in their self-valuation by implicitly maximizing their own payoff through market participation, assuming a swing contract-based compensation structure. We complement our work through simulation-based investigations where factors affecting the DER decision making process, such as parametric uncertainties in market (and grid) environments, are studied.

Naqvi, Syed Ahsan Raza

Hydropower Cybersecurity Risk Management and Valuation

Advancements to DOE WPTO funded Hydropower Cybersecurity Value-at-Risk Framework application allows stakeholder to translate risk-based assessments to quantitative scores allowing to better decision making for cybersecurity investments.

13 HYDRO ENERGY

Valuation of Anode Materials for High-Performance Lithium Batteries: From Graphite to Lithium Metal and Beyond

Lithium-ion batteries have revolutionized energy storage, yet advanced technologies such as electric vehicles and eVTOLs demand even higher performance and safety. Anodes, the negative electrodes, are crucial in enhancing batteries’ safety, lifespan, and fast-charging capabilities. This review paper comprehensively evaluates the progression of anode materials from traditional graphite to advanced anodes like lithium metal. Graphite anodes, with a capacity of 372 mAh g −1 , enabled the first commercial lithium-ion batteries, but future applications require higher energy densities and fast-charging capabilities. Emerging anode materials, including alloying, and conversion types, as well as lithium metal, offer significantly higher capacities, with lithium metal offering a theoretical capacity of 3 860 mAh g −1 . However, these advanced anodes face challenges such as volume expansion, high surface reactivity, sluggish Li+ kinetics, and unstable lithium deposition morphologies. Here, this review critically examines the electrochemical performance, interfacial properties, mechanical attributes, and stability issues of various anode materials. It further discusses solid electrolyte interphase (SEI) formation, strategies for enhancing interface stability, and the requirements of anodes for solid-state batteries. Additionally, the review explores potential solutions for limitations with each anode type, highlights innovative anode-free architectures, and evaluates the current and future trends of battery anode industries. Ultimately, this paper aims to guide the development of high-performance anode materials, paving the way for the next generation of efficient, reliable lithium batteries.

Alloying anodes

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

The Valuation of Scientific and Technical Experiments

Rational selection of scientific and technical experiments for space missions is studied. Particular emphasis is placed on the assessment of value or worth of an experiment. A specification procedure is outlined and discussed for the case of one decision maker. Experiments are viewed as multi-attributed entities, and a relevant set of attributes is proposed. Alternative methods of describing levels of the attributes are proposed and discussed. The reasonableness of certain simplifying assumptions such as preferential and utility independence is explored, and it is tentatively concluded that preferential independence applies and utility independence appears to be appropriate.

Williams, F. E.

General Aviation Pilots' Perceived Usage and Valuation of Aviation Weather Information Sources

Aviation suffers many accidents due to the lack of good weather information in flight. Existing aviation weather information is difficult to obtain when it is most needed and is not well formatted for in-flight use. Because it is generally presented aurally, aviation weather information is difficult to integrate with spatial flight information and retain for reference. Efforts, by NASA's Aviation Weather Information (AWIN) team and others, to improve weather information accessibility, usability and decision aiding will enhance General Aviation (GA) pilots' weather situation awareness and decision-making and therefore should improve the safety of GA flight. Consideration of pilots' economic concerns will ensure that in-flight weather information systems are financially accessible to GA pilots as well. The purpose of this survey was to describe how aviation operator communities gather and use weather information as well as how weather related decisions are made between flight crews and supporting personnel. Pilots of small GA aircraft experience the most weather-related accidents as well as the most fatal weather related accident. For this reason, the survey design and advertisement focused on encouraging participation from GA pilots. Perhaps as a result of this emphasis, most responses, 97 responses or 85% of the entire response set, were from GA pilots, This paper presents only analysis of these GA pilots' responses. The insights provided by this survey regarding GA pilots' perceived value and usage of current aviation weather information. services, and products provide a basis for technological approaches to improve GA safety. Results of this survey are discussed in the context of survey limitations and prior work, and serve as the foundation for a model of weather information value, guidance for the design of in-flight weather information systems, and definition of further research toward their development.

Latorella, Kara