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Botterud, Audun

Publications and source records attributed to Botterud, Audun.

Deployment Pathways for Long Duration Energy Storage

We apply a least-cost generation expansion model of the continental United States to assess how optimal investments in long-duration energy storage (LDES) technologies are impacted by changes in system generation portfolios and technology costs, assessing 369 capacity expansion scenarios in total. The expansion model considers 8,760 h of chronological operations for the entire target year, 2040. We find that low-cost LDES technologies can reduce generation investments and system costs. Specifically, once the costs for 24- and 100-h storage reach $38/kWh and $14/kWh, respectively, substantial deployments are observed. The distribution of storage investments across durations is strongly influenced by the system generation portfolio. We also demonstrate that a high-fidelity temporal representation is required to capture the value of LDES in generation expansion. Finally, we conduct a regression analysis of our capacity expansion results and find that LDES deployments are positively correlated with the combined wind and solar capacity share and negatively correlated with peaking and baseload shares.

Levin, Todd↗

Planning and Operations in Electricity Markets Under System Transformation

United States electricity markets, planning mechanisms, and operational procedures are currently evolving in concert with three key trends. First, a range of new resources—solar, wind, energy storage, hybrid co-located storage, and distributed energy—are coming online and require new solutions to ensure they are efficiently integrated into existing systems. Second, consumers now face more opportunities to participate in markets by providing demand response and engaging in two-way interactions with the grid. Third, there is an increasing need for enhanced coordination between generation and transmission planning as well as across transmission and distribution systems.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Planning and Operations in Electricity Markets Under System Tansformation: Key Findings

This report summarizes a set of key findings that have been developed through a set of interconnected research activities performed by five institutions between January 2020 and December 2023. The project team, comprising Argonne National Laboratory, the National Renewable Energy Laboratory, Lawrence Berkeley National Laboratory, the Electric Power Research Institute, and Johns Hopkins University, collective engaged with the North American Independent System Operators and Regional Transmission Operators (ISO/RTOs) to identify the key challenges they are facing and opportunities for the project team to provide technical assistance in several prioritized challenge areas.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Research Priorities and Opportunities in U.S. Wholesale Electricity Markets: Market Design under Deep Decarbonization

This report contributes to the body of literature by reviewing key challenges for competitive wholesale electricity market design in deeply decarbonized power systems and establishing potential solutions and associated research needs. We provide a long-term perspective on ways in which competitive wholesale electricity markets can evolve to ensure that they still operate efficiently throughout the transition to a deeply decarbonized future. In this report, we use the term “deep decarbonization” to refer broadly to systems that generate nearly all their electricity from zero-carbon or carbon-neutral resources, while recognizing that there are many potential configurations of such systems. We also stress that many of these issues will arise to varying degrees as systems move toward full decarbonization, even if they are not truly 100% carbon-free.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Research Priorities and Opportunities in U.S. Wholesale Electricity Markets: Market Design under Deep Decarbonization

This report provides a comprehensive review of challenges, research needs, and potential solutions for competitive wholesale electricity market design in deeply decarbonized power systems. We provide context regarding how competitive wholesale electricity markets can evolve in a longer-term perspective to ensure that they still operate efficiently throughout the transition to a deeply decarbonized future. We organize the discussion across seven topics: operational reliability, emerging technology integration, adequacy and resilience, price formation, interactions across transmission and distribution systems, transmission planning, achieving clean energy objectives, and challenges associated with cost-effectively achieving clean energy objectives. In each section we first identify key associated challenges before proposing a set of corresponding solutions and research needs.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Power market models for the clean energy transition: State of the art and future research needs

As power systems around the world are rapidly evolving to achieve decarbonization objectives, it is crucial that power system planners and operators use appropriate models and tools to analyze and address the associated challenges. This paper provides a detailed overview of the properties of power market models in the context of the clean energy transition. We review common power market model methodologies, their readiness for low- and zero-carbon grids, and new power market trends. Based on the review, we suggest model improvements and new designs to increase modeling capabilities for future grids. The paper highlights key modeling concepts related to power system flexibility, with a particular focus on hydropower and energy storage, as well as the representation of grid services, price formation, temporal structure, and the importance of uncertainty. We find that a changing resource mix, market restructuring, and growing price uncertainty require more precise modeling techniques to adequately capture the new technology constraints and the dynamics of future power markets. In particular, models must adequately represent resource opportunity costs, multi-horizon flexibility, and energy storage capabilities across the full range of grid services. Moreover, at the system level, it is increasingly important to consider sub-hourly time resolution, enhanced uncertainty representation, and introduce co-optimization for dual market clearing of energy and grid services. Likewise, models should capture interdependencies between multiple energy carriers and demand sectors.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

The impact of market design and clean energy incentives on strategic generation investments and resource adequacy in low-carbon electricity markets

Well-designed electricity markets play a crucial role in maintaining reliable electric power systems, which are critical in modern society. Here, this study examines the impact of different electricity market designs and clean energy incentive schemes on supporting renewable energy integration and achieving clean energy goals. To this end, we utilize a game-theoretical generation expansion planning model where generation companies make investment and retirement decisions to maximize their expected profit. The model is structured as an equilibrium problem with equilibrium constraints (EPEC) and solved using a diagonalization approach combined with progressive hedging. We analyze three types of electricity market designs: an energy-only market, a capacity market, and a clean energy market, and consider a wide range of market parameters resulting in 14 total scenarios. Wind and solar capacity comprise the majority of new investments in all considered scenarios, but the resultant system planning reserve margin (PRM) can differ significantly depending on market parameters. We also find that profit-driven investments lead to lower PRMs than a traditional system cost minimization approach. These individual scenario results further demonstrate how different market designs and clean energy incentive schemes may influence investor decision-making and impact resource adequacy throughout the clean energy transition.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Hydropower Scheduling Toolchains: Comparing Experiences in Brazil, Norway, and USA and Implications for Synergistic Research

While hydropower scheduling is a well-defined problem, there are institutional differences that need to be identified to promote constructive and synergistic research. We study how established toolchains of computer models are organized to assist operational hydropower scheduling in Brazil, Norway, and the United States’ Colorado River System (CRS). These three systems have vast hydropower resources, with numerous, geographically widespread, and complex reservoir systems. Although the underlying objective of hydropower scheduling is essentially the same, the systems are operated in different market contexts and with different alternative uses of water, where the stakeholders’ objectives clearly differ. This in turn leads to different approaches when it comes to the scope, organization, and use of models for operational hydropower scheduling and the information flow between the models. Here, we describe these hydropower scheduling toolchains, identify the similarities and differences, and shed light on the original ideas that motivated their creation. We then discuss the need to improve and extend the current toolchains and the opportunities to synergistic research that embrace those contextual differences.

13 HYDRO ENERGY↗

Price Formation in Zero-Carbon Electricity Markets: The Role of Hydropower

In April 2019, Water Power Technologies Office (WPTO) launched the HydroWIRES Initiative to understand, enable, and improve hydropower and pumped storage hydropower’s (PSH’s) contributions to reliability, resilience, and integration in the rapidly evolving U.S. electricity system. The unique characteristics of hydropower, including PSH, make it well suited to provide a range of storage, generation flexibility, and other grid services to support the cost-effective integration of variable renewable resources. The U.S. electricity system is rapidly evolving, bringing both opportunities and challenges for the hydropower sector. While increasing deployment of variable renewables such as wind and solar have enabled low-cost, clean energy in many U.S. regions, it has also created a need for resources that can store energy or quickly change their operations to ensure a reliable and resilient grid. Hydropower (including PSH) is not only a supplier of bulk, low-cost, renewable energy but also a source of large-scale flexibility and a force multiplier for other renewable power generation sources. Realizing this potential requires innovation in several areas: understanding value drivers for hydropower under evolving system conditions, describing flexible capabilities and associated tradeoffs associated with hydropower meeting system needs, optimizing hydropower operations and planning, and developing innovative technologies that enable hydropower to operate more flexibly.

13 HYDRO ENERGY↗

Energy-Storage Modeling: State-of-the-Art and Future Research Directions

Given its physical characteristics and the range of services that it can provide, energy storage raises unique modeling challenges. This paper summarizes capabilities that operational, planning, and resource-adequacy models that include energy storage should have and surveys gaps in extant models. Existing models that represent energy storage differ in fidelity of representing the balance of the power system and energy-storage applications. Modeling results are sensitive to these differences. The importance of capturing chronology can raise challenges in energy-storage modeling. Some models ‘decouple’ individual operating periods from one another, allowing for natural decomposition and rendering the models relatively computationally tractable. Energy storage complicates such a modeling approach. Improving the representation of the balance of the system can have major effects in capturing energy-storage costs and benefits.

25 ENERGY STORAGE↗

Research Priorities and Opportunities in United States Wholesale Electricity Markets

The power system is currently undergoing a number of changes, including a rapidly evolving resource mix, growth of distributed energy resources (DERs), more active consumer participation, increased deployment of energy storage and hybrid resources, and more advanced communication and control requirements. These changes in the power system present numerous technical, economic, implementation, and policy challenges and research opportunities for power system operators. To help address these challenges, a collaboration among five research institutions—Argonne National Laboratory, the National Renewable Energy Laboratory, Lawrence Berkeley National Laboratory, the Electric Power Research Institute, and Johns Hopkins University—has been established to provide technical assistance to the seven U.S. Independent System Operators (ISOs) and Regional Transmission Organizations (RTOs). The 3-year project aims to leverage the advanced methods, tools, datasets, and resources of the collaborators to provide robust analytical support to address the high-priority market challenges that will be faced in the 2- to 10-year time horizon.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Pumped Storage Hydropower FAST Commissioning Technical Analysis

This report is designed to address barriers and solutions to modern pumped storage hydropower (PSH) development by establishing baseline project development knowledge, defining key aspects of project development, and identifying opportunities to reduce project timelines, costs, and risks. This report’s scope includes post-licensing activities and excludes factors related to permitting or licensing. The U.S. PSH fleet is composed of 43 projects providing the majority (95%) of utility-scale electricity storage in the US. However, only one new PSH facility has become operational in the past 20 years. Several factors contribute to diminishing PSH growth in the US, including the magnitude of project costs and financing interest during development and construction; the length of time from project investment until project revenue; permitting challenges and construction risks; competition from other storage technologies; and unrecognized energy storage valuation. Although innovative PSH concepts (including underground, small, and modular systems) have been investigated, widespread application has yet to occur. In short, the time, cost, and risk associated with modern PSH development has resulted in limited recent growth in the United States, despite the rising energy storage demand from increased deployment of variable renewable technologies. To address these challenges, the US Department of Energy’s (DOE) Water Power Technologies Office initiated the PSH Furthering Advancements to Shorten Time to (FAST) Commissioning project, aimed at catalyzing new solutions, designs, and strategies to accelerate PSH development. This report uses available data from previous license applications, ongoing project cost data, and other global PSH project information based on a typical closed-loop PSH project.

13 HYDRO ENERGY↗

Probabilistic Zonal Reserve Requirements for Improved Energy Deliverability with Wind Power

In power systems with high penetration of renewable energy resources, uncertainty and variability of these stochastic resources introduce additional challenges for the operation of power systems. To improve the power system's reliability in the face of uncertainty, reserves are required as additional generation capacity to rebalance the power system following random disturbances. However, reserve deliverability is not guaranteed, because it may encounter potential transmission line congestion. Zonal reserve requirements can address this issue, but operators lack efficient ways to allocate reserves to zones while accounting for wind power forecast uncertainty. Herein we propose a methodology for probabilistic zonal reserve requirements to address wind power forecast uncertainties. This method estimates the probability distribution of line flows based on the system generation margin and injection shift factor. This estimate is then used to construct pre-defined and post-zonal reserve requirements. Case studies demonstrate that the proposed method efficiently schedules energy and reserves to balance energy and manage deliverability with wind power forecast uncertainty.We also discuss operational implications of the proposed method.

17 WIND ENERGY↗

Additional Capacity Value From Synergy of Variable Renewable Energy and Energy Storage

Current capacity markets often consider capacity credits from each resource independently, irrespective of the portfolio of resources, potentially overvaluing or undervaluing the capacity contribution of variable renewable energy (VRE) and energy storage (ES) in the grid. We propose a method for calculating the standalone and integrated capacity value of an added VRE resource with existing ES resources. The difference between the integrated and standalone value is the portfolio effect. This is the additional capacity value gained by the synergy of VRE and the existing fleet. Using chronological dispatch simulations and two different reliability metrics to estimate firm capacity, we demonstrate on a small test system that the portfolio effect can be substantial.

capacity credit↗

Impacts of variable renewable energy on wholesale markets and generating assets in the United States: A review of expectations and evidence

Here, we synthesize available literature, data, and analysis on the degree to which growth in variable renewable energy (VRE) has impacted or might in the future impact bulk power system assets, pricing, and costs in the United States. Most studies of future scenarios indicate that VRE reduces wholesale energy prices and capacity factors of thermal generators. Traditional baseload generators are more exposed to these changing market conditions than low-capital cost and more flexible intermediate and peak-load generators. From analysis of historical data we find that VRE is already influencing the bulk power market through changes in temporal and geographic patterns areas with higher levels of VRE. The most significant observed impacts have concentrated in areas with significant VRE and/or nuclear generation along with limited transmission, with negative pricing also often occurring during periods with lower system-wide load. So far, however, VRE, has had a relatively modest impact on historical average annual wholesale prices across entire market regions, at least in comparison to other drivers. The reduction of natural gas prices is the primary contributor to the decline in wholesale prices since 2008. Similarly, VRE impacts on thermal plant retirements have been limited and there is little relationship between the location of recent retirements and VRE penetration levels. Finally, although impacts on wholesale prices have been modest so far, impacts of VRE on the electricity market will be more significant under higher VRE penetrations.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗