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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.

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DOE OSTI2021

Pumped Storage Hydropower Valuation Guidebook: A Cost-Benefit and Decision Analysis Valuation Framework

As an energy storage technology, pumped storage hydropower (PSH) supports various aspects of power system operations. However, determining the value of PSH plants and their many services and contributions to the system has been a challenge. While there is a general understanding that PSH resources provide many services and benefits for the operation of power systems, estimating the value of these services—and especially the monetary value of some of those services—has been a challenge. The objective of this project, funded by the U.S. Department of Energy’s (DOE’s) Water Power Technologies Office (WPTO), is to advance the state of the art in assessing the value of PSH plants and their contributions to the power system. The specific goal is to develop detailed, step-by-step valuation guidance that PSH developers, plant owners or operators, and other stakeholders can use to assess the value of existing or potential new PSH plants and their services. The specific goals of this project are: (1) to develop comprehensive and transparent valuation guidance that will support consistent valuation assessments and comparisons of PSH projects or project design alternatives, (2) to test the PSH valuation guidance and its underlying methodology by applying it to two selected PSH projects, and (3) to transfer and disseminate the PSH valuation guidance to the hydropower industry, PSH developers, and other stakeholders. The authors believe that the application of a consistent, transparent, and repeatable valuation process will advance valuation assessments and allow stakeholders to compare valuation analyses performed for different PSH projects or design alternatives. It will also increase the acceptance of valuation results and enable better understanding of the true value that PSH technology brings to the grid.

13 HYDRO ENERGY↗
DOE OSTI2018

An Approach to Uncertainty Identification in the Valuation of Transactive Energy Systems

Valuation of transactive energy (TE) systems should be supported by a structured and systematic approach to uncertainty identification, assessment, and treatment in the interest of risk-informed decision making. The proposed approach, a variation of fault tree analysis, is anticipated to support valuation analysts in analyzing conventional and transactive system scenarios. This approach allows for expanding the entire tree up to the level of minute details or collapsing them to a level sufficient enough to get an overview of the problem. Quantification scheme for the described approach lends itself for valuation. The method complements value exchange analysis, simulation, and field demonstration studies. The practicality of the proposed approach is demonstrated through uncertainty assessment of the smart grid interoperability panel peak heat day scenario.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2022

A review of water valuation metrics: Supporting sustainable water use in manufacturing

In the manufacturing sector, water has been often considered too cheap to conserve. Such thinking relies on water valuations that limit the value of water to the price paid. Using such simple methods, the share of water cost to total manufacturing cost is significantly small, <3%. As a result, conserving water and enabling technology uptake is difficult to justify economically and slow to advance, hindering progress toward sustainable water use. However, the value of water to a manufacturer is far greater than the price paid. Valuations such as the true cost of water consider the additional in-plant treatment and energy costs and have been gaining greater traction in the manufacturing sector. However, true cost alone still undervalues water by not accounting for economic and social costs related to scarcity and environmental externalities. This paper makes the case and presents a framework for valuing manufacturing water beyond the price paid and the true cost. The proposed fuller valuation of manufacturing water takes into account the internal and opportunity costs associated with the realization of water risks. The paper follows with a review of a wide range of water valuation metrics, both at the specific industry level and regional/economy-wide level. The use of various valuation metrics incorporating the relationship between the change in value with change in water use, such as marginal value of water, shadow price, and elasticity at the specific industry level, has been limited in the U.S. manufacturing sector. Further, a limited number of studies exist on data-intensive subjective evaluation techniques such as computable general equilibrium modeling and input-output modeling for regional water valuation. After reviewing water value metrics, several recent case studies from manufacturers from the literature are presented to illustrate both the promise and challenges of a fuller valuation of water as proposed here. Some large multinational corporations have moved toward assessing the value of water via supply chain sustainability initiatives, environmental profit and loss accounting, estimating risk-adjusted values of water, hydro-economic modeling, natural capital asset valuation, and developing value chain indices. This paper provides policymakers and technology developers a framework for monetizing water value beyond its true cost and current metrics. If adopted, such fuller water valuations can help make the business case for the development and deployment of cost-effective water-conserving technologies, thereby improving the sustainability of the manufacturing sector with respect to water.

54 ENVIRONMENTAL SCIENCES↗
DOE OSTI2018

Distributed Generation Valuation and Compensation

This white paper can help guide a state as it considers issues associated with distributed generation valuation and compensation. States may address a common set of questions and issues in the valuation process, but differences in market expectations, policy priorities, and regulations result in different responses. Key issues include: Context is important. Valuations and compensation strategies will vary based on goals and objectives they are being designed to achieve. Goals and objectives should be made clear up front and will drive the perspective used in performing valuations and how outcomes are applied. Utilities and stakeholders can have different interpretations of how value elements should be calculated. In some states, the objective of standardized calculators and methods is to reduce ambiguity and inconsistencies in how valuations are performed. Certain value elements are difficult or impossible to quantify and most efforts to establish workable value of solar or value of distributed energy resource tariffs are emerging and nascent. Assessing locational and temporal value of distributed generation and applying that in compensation schemes is a new and emerging field of study, being explored by a handful of research organizations and advanced states and utilities. The most advanced states, such as California, are using demonstration projects to test valuation and compensation methodologies or are applying valuation and compensation strategies to a subset of customer projects, such as for community solar projects (e.g., Oregon and New York) before rolling out programs to the full customer base. A variety of states are moving away from full net metering, in many cases substituting avoided cost rates (sometimes with an adder) in lieu of full retail rate compensation, instead of pursuing valuation of distributed energy resource approaches. For example, in Indiana a 25% adder is applied to average wholesale electricity prices and in Mississippi a 2.5 cents/kWh adder is applied to avoided cost rates. These adders appear to have been established through policy directives rather than a comprehensive cost of service valuations.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2018

Simulation-Based Valuation of Transactive Energy Systems

Transactive Energy (TE) has been recognized as a promising technique for integrating responsive loads and distributed energy resources as well as advancing grid modernization. To help the industry better understand the value of TE and compare different TE schemes in a systematic and transparent manner, a comprehensive simulation-based TE valuation method is developed. The method has the following salient features: 1) it formally defines the valuation scenarios, use cases, baseline and valuation metrics; 2) an open-source simulation platform for transactive energy systems has been developed by integrating transmission, distribution and building simulators, and plugin TE and non-TE agents through the Framework for Network Co-Simulation (FNCS); 3) transparency and flexibility of the valuation is enhanced through separation of simulation and valuation, base valuation metrics and final valuation metrics. In conclusion, a valuation example based on the Smart Grid Interoperability Panel (SGIP) Use Case 1 is provided to demonstrate the developed TE simulation program and the valuation method.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2021

Software Tools for Energy Storage Valuation and Design

Abstract Purpose of Review As the application space for energy storage systems (ESS) grows, it is crucial to valuate the technical and economic benefits of ESS deployments. Since there are many analytical tools in this space, this paper provides a review of these tools to help the audience find the proper tools for their energy storage analyses. Recent Findings There are many software tools for valuating ESS. These tools can be classified into two groups: (1) power system simulation and planning tools for analyzing the technical contributions of ESSs, and (2) techno-economic analysis tools for valuating the economic benefits of ESS deployment and specifying the optimal design of energy systems that include ESSs. While many of the tools, developed by the national laboratories, are free to use, the commercial tools are also of great importance in meeting the customers’ specific needs. Summary This paper provides a review of software tools for ESS valuation and design. A review of analysis tools for evaluating the technical impacts of energy storage deployments is also provided, as well as a discussion of development trends for valuation and design tools.

Nguyen, Tu A. (ORCID:0000000181148063)↗
DOE OSTI2022

Energy Storage Valuation: A Review of Use Cases and Modeling Tools

An enticing prospect that drives adoption of energy storage systems (ESS) is its ability to be used in a diverse set of use cases and the potential to take advantage of multiple unique value streams. The Energy Storage Grand Challenge (ESGC) technology development pathways for storage technologies draw from a set of use cases in the electrical power system, each with their own specific cost and performance needs. In addition to the need for cost and performance improvements for storage technologies, there a need for robust valuation methods to enable effective policy, investment, business models, and resource planning. There are numerous storage valuation tools available to the public, many of which can analyze the value of an ESS project with inputs and characteristics that reflect a specific storage use case. To effectively reach ESS stakeholders that may be interested in learning about valuation models, this report will draw from publicly available tools developed by the Department of Energy (DOE) and frame their functionalities and capabilities within the context of three distinct use case families. This report examines three of the ESGC use case families in depth and provides a methodology in which interested stakeholders can determine which DOE modeling tool is best suited to value ESS for their specific case. The high-level objectives for this report include: (1) Provide specific sub use-cases for each use case family for further characterization; (2) Provide technical parameters and relevant data for three example use cases that could be used in a valuation tool; (3) Identify a list of publicly available DOE tools that can provide energy storage valuation insights for ESS use case stakeholders; (4) Provide information on the capabilities and different options in each modeling tool; (5) Make conclusions on which are best suited for valuing certain functional/performance requirements and which tools might be applicable to other use cases; and (6) Show the methodology that informs a Model Selection Platform (MSP) framework that educates stakeholders on different DOE models and provides a streamlined way to choose the right model that most closely matches their needs.

25 ENERGY STORAGE↗
DOE OSTI2021

Development of an Interactive Valuation Model for Distributed Energy Resource Value

The Oklahoma Secretary of Commerce & Tourism (OSCT) 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) outlines follow-on tasks related to the previous CRADA # CRD-18-762. The first task will finalize the Interactive Valuation Model Requirements Document, the final draft of which was provided in June 2018. The second task includes the building, validation, and finalization of the interactive valuation model for expressing distributed energy resource value based on user inputs to be completed by June 30, 2019. Training for how to prepare the data inputs and use the model will also be provided. 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 work under this CRADA will: 1) finalize the draft Interactive Valuation Model Requirements Document delivered in June 2018; 2) finish building and validating the interactive valuation model for expressing DER value based on user inputs, and 3) provide training for use of this model.

14 SOLAR ENERGY↗
DOE OSTI2019

A Valuation Framework for Informing Grid Modernization Decisions: Summary

Across the electric power industry, a diverse stakeholder community applies a variety of methodologies to assess the value of courses of actions, ranging from investments in generation, transmission or distribution assets; to compensation mechanisms for distributed technologies; to a multitude of other policies related to projects in the electricity sector. The resulting value assessments often vary widely for the same or similar types of projects. As an example, two studies addressing the value of rooftop solar photovoltaic (PV) installations came to significantly different conclusions; the studies chose different valuation metrics and analysis methods. This example is not unusual: often valuation studies are not comparable or repeatable because of differences in assumptions with respect to economic and engineering inputs; time, geographic, and power system scales; the closed-source inner workings of modeling tools and analysis methodologies employed for the valuation; stakeholder-specific choices of the key metrics or grid attributes that are the focus of the valuation; and/or choices of which grid investment, design or operation alternatives to compare. Investment decisions and policy options are reviewed and interpreted by multiple stakeholders, who have different motivations, interests, and obligations.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2021

Energy Storage Financing: Project and Portfolio Valuation

This study investigates the issues and challenges surrounding energy storage project and portfolio valuation and provide insights in to improving visibility into the process for developers, capital providers, and customers so they can make more informed choices. Energy storage project valuation methodology is typical of power sector projects through evaluating various revenue and cost assumptions in a project economic model. The difference is that energy storage projects have many more design and operational variables to incorporate, and the governing market rules that control these variables are still evolving. This makes project valuation for energy storage more difficult. As the number of operating projects grow, portfolios of these projects are being developed, garnering the interest of larger investors. Valuation challenges of these portfolios can be even more challenging as market role and geographical diversity can actually exacerbate the variability, not mitigate it. By proposing additional visibility of key factors and drivers for industry participants, the US DOE can reduce investment risk, expanding both the number and types of investors, plus helping emerging energy storage technology into sustained commercialization.

25 ENERGY STORAGE↗
DOE OSTI2021

Visual Modeling for Complex System Valuation: Implementation Guidance

Within the Transactive Systems Program (TSP) at Pacific Northwest National Laboratory (PNNL) the need to incorporate a valuation analysis design early within the research process of transactive energy systems led to development of a valuation methodology. This methodology allows the modeling of economic exchanges within a complex system and supports the evaluation of individual stakeholder economic outcomes in addition to systemwide costs and benefits. The use of visual modeling practices enables the research team to reach common understanding and agreement on the analysis design within the complex system. While this methodology was developed for the valuation of transactive energy systems, it can be applied to any complex system where a granular economic analysis is desired. It allows for the inclusion of equity analyses and ties individual activities and microeconomic outcomes with the systemwide macroeconomic impacts. This document serves as implementation guidance for analysts planning to deploy the methodology within a research study. The appendixes provide specific guidance on how this methodology is deployed within the TSP at PNNL for analysts seeking guidance for deployment within that context.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2019

Impacts of the consumer heterogeneity in fuel economy valuation on compliance with fuel economy standards

This study quantified the significance of assuming heterogeneity in consumer valuation of fuel economy on the estimated compliance with fuel economy standards, with two approaches. One is mathematical derivation on how the heterogeneity affects the estimated market acceptance of high-efficiency vehicles. The other is a consumer choice based simulation method to analyze the heterogeneity impacts on the compliance with the fuel economy standards for the entire light duty vehicle fleet in the United States. Our findings suggest that the direction of the impact of heterogeneity assumption depends on market positions of high-efficiency vehicles: (1) with the “Likely-Accept” condition, where high-efficiency vehicles sell well and higher achieved fuel economy is expected, the heterogeneity assumption can add additional risks to the compliance; and (2) with the “Likely-Reject” condition where the fuel economy standards may have difficulty in compliance, the heterogeneity can reduce the risks and improve the compliance outcome. It is concluded that consideration of fuel economy valuation heterogeneity is important in fuel economy standard analysis. In conclusion, it is hoped that such consideration may provide a framework to reconcile the different views on consumer valuation of fuel economy.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2026

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↗
DOE OSTI2021

Valuation of Distributed Wind in an Isolated System

Remote communities are increasingly adopting renewable energy, such as wind, as they transition away from diesel energy generation. It is important to understand the benefits and costs of wind energy to isolated systems so that decision-makers can optimize their choices in these communities. There are few examples of valuation of wind energy as a distributed resource and numerous differences in valuation approaches, especially in the inclusion of environmental and economic impacts. We apply a distributed wind valuation framework to calculate the benefits and costs of wind in St. Mary’s, Alaska, to the local electric cooperative and to society, finding that the project does not have a favorable benefit-to-cost ratio unless societal benefits are included, in which case the benefit-to-cost ratio is nearly double. Government funding is important to reducing the initial capital expenditures of this wind project and will likely be the case for projects with similar characteristics. Additional fuel savings benefits are potentially possible for this project through technological additions such as energy storage and advanced controls.

17 WIND ENERGY↗
DOE OSTI2017

Valuation Diagramming and Accounting of Transactive Energy Systems

Transactive energy (TE) systems support both economic and technical objectives of a power system including efficiency and reliability. TE systems utilize value-driven mechanisms to coordinate and balance responsive supply and demand in the power system. Economic performance of TE systems cannot be assessed without estimating their value. Estimating the potential value of transactive energy systems requires a systematic valuation methodology that can capture value exchanges among different stakeholders (i.e., actors) and ultimately estimate impact of one TE design and compare it against another one. Such a methodology can help decision makers choose the alternative that results in preferred outcomes. This paper presents a valuation methodology developed to assess value of TE systems. A TE use-case example is discussed, and metrics identified in the valuation process are quantified using a TE simulation program.

Makhmalbaf, Atefe↗
DOE OSTI2021

Resilience Service Framework Using Transactive Systems Valuation Methodology

Recent outage events have spurred national and international interest in improving grid resilience. Actions to make the grid more resilient must be valued against their costs and benefits. This is the goal of this report. We explore a resilience valuation framework, where the services procured by the utility are arranged such that the values associated with them are pinpointed. This is demonstrated by utilizing various diagrams developed in Pacific Northwest National Laboratory’s Transactive System Program, called the Transactive Systems Valuation Methodology (TSVM). We show that TSVM can be utilized to guide traditional valuation methodologies such as integrated resource planning so that resilience considerations can be embedded. This report demonstrates this using a three-step procedure: (1) a use case is developed to define functional requirements, (2) value identification of the utility and the actors with which it interacts (both inside and outside its internal functions), and (3) value tracking of activity performed by actors interacting with the utility while services are procured to enable a resilient grid.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2024

A valuation framework for customers impacted by extreme temperature-related outages

Extreme temperature outages can lead to not just economic losses but also various non-energy impacts (NEI), such as increased mortality rates, property damage, and reduced productivity, due to significant degradation of indoor operating conditions caused by service disruptions. However, existing resilience assessment approaches lack specificity for extreme temperature conditions. They often overlook temperature-related mortality and neglect the customer characteristics and grid response in the calculation, despite the significant influence of these factors on NEI-related economic losses. This paper aims to address these gaps by introducing a comprehensive framework to estimate the impact of resilience enhancement not only on the direct economic losses incurred by customers but also on potential NEI, including mortality and the value of statistical life during extreme temperature-related outages. The proposed resilience valuation integrates customer characteristics and grid response variables based on a scalable grid simulation environment. This study adopts a holistic approach to quantify customer-oriented economic impacts, utilizing probabilistic loss scenarios that incorporate health-related factors and damage/loss models as a function of exposure for valuation. The proposed methodology is demonstrated through comparative resilient outage planning, using grid response models emulating a Texas weather zone during the 2021 winter storm Uri. The case study results show that enhanced outage planning with hardened infrastructure can improve the system resilience and thereby reduce the relative risk of mortality by 16% and save the total costs related to non-energy impacts by 74%. In conclusion, these findings underscore the efficacy of the framework by assessing the financial implications of each case, providing valuable insights for decision-makers and stakeholders involved in extreme-weather related resilience planning for risk management and mitigation strategies.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2022

DSO+T: Valuation Methodology and Economic Metrics (DSO+T Study: Volume 4)

This report summarizes a rigorous valuation analysis methodology used by the Distribution System Operator with Transactive (DSO+T) study to estimate the financial benefits and costs of adopting Transactive Energy coordination of distributed energy resources for key stakeholders (for example distribution system operators and customers). This was achieved by modeling the value exchanges between stakeholders and determining the annualized costs and revenues experienced by stakeholders, enabling the evaluation of overall impact on stakeholder’s annualized cash flow. Extensive work was conducted developing methods to estimate the operating costs of distribution system operators at a level of granularity that would allow the financial impact of implementing a transactive energy approach to be estimated. This work included developing parametric models for labor and software costs, distribution system capital and maintenance costs, growth rates, and factors to determine annualized costs of capital investments. Simulation results were used to calculate wholesale energy costs and revenues from retail sales. Valuation analysis methods were also developed for other stakeholders including customers, the transmission system operator, independent system operator, and generators. The resulting capability allows a complete mapping of the flow of financial value between stakeholders that can be directly integrated with the results of demand flexibility simulations. Example results are provided for a business-as-usual case and compared to a transactive energy case as well as to actual cost data.

24 POWER TRANSMISSION AND DISTRIBUTION↗