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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

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

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

Stepping into the Midwest Bioeconomy: Stakeholder Engagement and Geospatial Tools to Assist in Perennial Bioenergy Crop Decision Making and Entrepreneurship

This project, “Ecosystem Services and Farm Entrepreneurship Technical Assistance,” was a three-year project originally planned for FY22–FY24. Due to a late start and a few extensions, it is being completed in early FY25. This project explored opportunities to support the deployment of a bioeconomy with a circular, more sustainable supply chain. Using a tool developed by Argonne to identify agricultural areas suitable for use in the bioeconomy, we sought to create opportunities in the bioeconomy as biomass producers, bioenergy users, and environmental entrepreneurs. We proposed to focus at the beginning on enhancing the tool’s capabilities, while engaging with key stakeholders to improve and expand the tool’s functionality for all potential stakeholders in the bioeconomy. We believe that expanding our tools and technologies, coupled with conversations in agricultural spaces, will be needed as we continue to explore how best to offer farmers whole-of supply-chain opportunities to participate in the bioeconomy. Through this project we have continued to gain a better understanding of the ways in which farmers, landowners, bioenergy users, and environmental entrepreneurs may approach the bioeconomy. In addition, as we improve our analytic toolkit, we can continue to refine our communication and the ways in which we can valuate the bioeconomy. Refining these tools allows us to dive deeper into conversations around plausible policies and drivers for future bioeconomy investment and engagement by stakeholders. By working with farmers and agricultural landowners to enable a sustainable bioeconomy business model, enhance their energy options, and recover resources from their waste streams, this project directly responds to the Bioenergy Technology Office’s (BETO) priorities of building a resilient energy economy. It addresses BETO’s focus on fostering the development and adoption of energy technologies that enable the conversion of waste to energy, efficient land use, and robust job creation. By establishing a technical assistance program that develops capabilities and practices in agricultural areas to implement a bioeconomy future, this program will develop an important linkage between technology being developed at U.S. Department of Energy national laboratories and the agricultural communities of the Midwest. This project focuses on farmers with lower productivity farmland. Because less productive lands create a more difficult revenue stream for conventional crops, these farmers may therefore be more open to alternative agricultural land management regimes. Consequently, the technical assistance program and the methodologies for targeting perennial bioenergy crop application on marginal land provide a distinct opportunity to engage with and invest in the bioeconomy in these economically stressed areas. Stakeholders in this project include farmers and landowners, local conservation organizations (NRCS, SWCS, etc.), universities, non-profit environmental and agricultural entities, farm consultants, environmental regulators, and industry, including the industries working on conversion technologies, anaerobic digestion, pyrolysis, and biochar generation, and the companies interested in trading or purchasing/supporting the valuation of ecosystem services (ES).

09 BIOMASS FUELS

Framework for Quantitative Evaluation of Resilience Solutions: An Approach to Determine the Value of Resilience for a Particular Site

This paper describes an approach to obtaining a dollar value for the improvement in the resilience of projects for a particular site. The paper provides an approach to valuing resilience to provide justification for hardening cyber facilities that can be used by expert users/economists in undertaking investment-grade valuations to validate the appropriateness of funding for resilience mitigation projects.

resilience, valuation, cyber security

A tri-level distribution locational marginal price-based demand response framework

Here, in this paper, we propose a tri-level, nested, two-stage price-based demand response (PBDR) framework that considers distribution locational marginal price (DLMP) as DR enabler between load-serving entities (LSE), demand response providers (DRPs), and customers in the day-ahead distribution market. It enables LSE and customer interactions by using multiple DRPs, positioned in-between, and independently optimizes their objectives. The problem is formulated using linear power flow with approximated power losses and its application in DLMP as DR pricing. The tri-level problem is solved using a nested reformulation & decomposition (R&D) method and tested on the real Indian-108 bus distribution system under various dynamic pricings. Further, the temporal–spatial variations in DLMPs are assessed using fairness criteria. Numerical analyses demonstrate that DLMP applications can effectively improve economic efficiency, and transparency in DR programs valuation with a favorable fairness margin. The results show that DLMP as DR pricing signal induces (0-2) % variation in DLMP for DR participation up to 10 %. Further, it gives over 90 % fairness over temporal–spatial variation for all the customers.

24 POWER TRANSMISSION AND DISTRIBUTION

Metrics for quantifying the efficiency of atmospheric CO 2 reduction by marine carbon dioxide removal (mCDR)

Abstract Marine carbon dioxide removal (mCDR) is gaining interest as a tool to meet global climate goals. Because the response of the ocean–atmosphere system to mCDR takes years to centuries, modeling is required to assess the impact of mCDR on atmospheric CO 2 reduction. Here, we use a coupled ocean–atmosphere model to quantify the atmospheric CO 2 reduction in response to a CDR perturbation. We define two metrics to characterize the atmospheric CO 2 response to both instantaneous ocean alkalinity enhancement (OAE) and direct air capture (DAC): the cumulative additionality ( α ) measures the reduction in atmospheric CO 2 relative to the magnitude of the CDR perturbation, while the relative efficiency ( ϵ ) quantifies the cumulative additionality of mCDR relative to that of DAC. For DAC, α is 100% immediately following CDR deployment, but declines to roughly 50% by 100 years post-deployment as the ocean degasses CO 2 in response to the removal of carbon from the atmosphere. For instantaneous OAE, α is zero initially and reaches a maximum of 40%–90% several years to decades later, depending on regional CO 2 equilibration rates and ocean circulation processes. The global mean ϵ approaches 100% after 40 years, showing that instantaneous OAE is nearly as effective as DAC after several decades. However, there are significant geographic variations, with ϵ approaching 100% most rapidly in the low latitudes while ϵ stays well under 100% for decades to centuries near deep and intermediate water formation sites. These metrics provide a quantitative framework for evaluating sequestration timescales and carbon market valuation that can be applied to any mCDR strategy.

Yamamoto, Kana (ORCID:0009000731519234)

The health, climate, and equity benefits of freight truck electrification in the United States

Abstract Long-haul freight shipment in the United States relies on diesel trucks and constitutes ∼3% of U.S. greenhouse gas emissions and a significant share of local air pollution. Here, we compare the climate and air pollution-related health damages from electric versus diesel long-haul truck fleets. We use truck commodity flows to estimate tailpipe emissions from diesel trucks and regional grid emissions intensities to estimate charging emissions from electric trucks under various grid scenarios. We use a reduced complexity air quality model combined with valuation of air pollution-related premature deaths (using two hazard ratios (HRs)) and quantify the distributional health impacts in different scenarios. We find that annual health and climate costs of the current diesel fleet are $195–$249/capita compared to $174–$205/capita for a new diesel fleet, and $156–$177/capita for an electric fleet, depending on the HR. We find that freight electrification could avoid $6.2–8.5 billion in health and climate damages annually when compared to a fleet of new diesel vehicles (with even higher benefits when compared to the current diesel fleet). However, the Midwest and parts of the Gulf Coast would experience an increase in health damages due to vehicles charging using electricity from coal power plants. If old coal power plants (operating in 1980 or earlier) are replaced with zero-emission generation, electrification of all U.S. freight would result in $32.3–39.2 billion in avoided damages annually and health benefits throughout the U.S. Electrifying transport of consumer manufacturing goods (including electronics, transport equipment, and precision instruments) and food, beverage, and tobacco products would provide the largest absolute health and climate benefits, whereas mixed freight and manufacturing goods would result in the largest benefits per tonne-km. We find small variations in health damages across race and income. These results will help policymakers prioritize electrification and charging investment strategies for the freight transportation sub-sector.

Hennessy, Eleanor M. (ORCID:0000000294715765)

Techno-Economic Analysis of Data-Driven and Transactive Approaches for Resilience Enhancement

As extreme weather events lead to more frequent power outages, understanding and enhancing grid resilience is critical to mitigating economic losses and non-energy impacts from service disruptions. Here, this study introduces a novel techno-economic analysis framework for evaluating resilience enhancement mechanisms. The framework combines grid response modeling with a co-simulation approach and valuation methodology to provide a comprehensive assessment. We apply this framework to a realistic case study of the Texas grid during Winter Storm Uri in February 2021. Two advanced resilience strategies are analyzed: a data-driven rolling outage mechanism and a transactive energy (TE) based allocation scheme. The rolling outage scheme selectively serves customers based on real-time curtailment needs, while the TE scheme allows customers to trade energy allocations according to their preferences. Our findings show that both the rolling outage and TE schemes significantly outperform conventional methods (i.e. controlled outages) by reducing the amount of energy not supplied to customers by 41% and 64%, respectively. These approaches also enhance flexibility and customer satisfaction, while improving energy utilization for greater resilience. Additionally, they maintain thermal comfort about 3.5 times better and substantially lower customer risk exposure. A key contribution of this study is addressing both utility and customer perspectives while considering both energy and non-energy impacts. The techno-economic analysis indicates that implementing these resilience enhancement strategies would incur an additional 1.1Bto1.6B in utility costs but has the potential to avoid 17.3Bto18B of customer losses as compared to existing solutions, thereby underscoring the value of investing in advanced resilience, as it provides significant societal benefits to customers.

42 ENGINEERING

Mbin v1.0

The Mbin software, is a software toolkit that implements the IMG metagenome binning pipeline. The software allows the user to process input metagenome contigs, and produces metagenome assembled genomes (metagenome bins) and valuation metrics per bin including completion and contamination estimates, quality assignment, predicted lineage and eukaryotic potential. It is currently packed as a portable docker container and provides the advantage of running the process of binning and analysis of the bins generated, using a suite of tools run sequentially with controls in place to capture errors and optional arguments to run a modified version depending on individual needs and capabilities.

Varghese, Neha