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Foss, Andrew

Publications and source records attributed to Foss, Andrew.

5 records
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DOE OSTI2024

Effects of the U.S. inflation reduction act on SMR economics

The U.S. Inflation Reduction Act (IRA) of 2022 provides a wide array of tax credits and other incentives for low-carbon energy. The technology-neutral clean generation production tax credit (PTC) (Section 45Y of the U.S. Internal Revenue Code) and the technology-neutral investment tax credit (ITC) (Section 48E) lower the net cost of new electricity generation projects with zero or negative greenhouse gas emission rates. We evaluate the impact of the IRA legislation—specifically the PTC and ITC—on the cost-competitiveness of small modular reactors (SMRs). We use the Argonne Low-carbon Energy Analysis Framework (A-LEAF) model to calculate the capacity factor of an SMR with a range of hypothetical variable operating and maintenance (O&M) costs in the Electric Reliability Council of Texas (ERCOT) electricity market. We selected ERCOT for market modeling because of its competitive structure, available data, and extensive use in prior literature. We use a discounted cash flow model to calculate the SMR’s net present value based on the market prices and capacity factors from A-LEAF, hypothetical ranges of capital and variable O&M costs, and other input parameters, with or without the IRA tax credits. We determine the SMR owner’s optimal choice of PTC or ITC for the hypothetical ranges of capital and variable O&M costs. We also evaluate potential shifts in the SMR owner’s optimal choice of PTC or ITC based on historical patterns of nuclear capital cost overruns in the United States. We also assess the sensitivity of our results to longer PTC period and electricity prices from the New England market, which tend to be higher than electricity prices in ERCOT. We find that even with the IRA tax credits, only SMRs with low capital and variable O&M costs would be economically feasible in the low-price ERCOT market scenario modeled. A longer PTC period and higher-price market such as New England, however, would significantly expand the economic feasibility of SMRs in the United States.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2022

Principles to adapt financing mechanisms for fully integrated hybrid energy systems

As the electricity sector evolves, and as all energy types (thermal, electric, chemical, etc.) become more coupled, there has been increased interest to develop and deploy hybrid energy systems (HES). This work focuses on fully integrated HES, where there are multiple energy sources and multiple energy products, often coupled through a storage buffer. A significant amount of the available literature on this work describes technology pathways for fully integrated HES; however, it is unclear how financial institutions should treat these systems. Fully integrated HES represent an increase in complexity from their stand-alone counterparts, but they also potentially mitigate financial risk and provide value to the energy system, which has not yet been accounted for in financing mechanisms that could help to enable such systems. This paper provides some examples of fully integrated HES and proposes principles to help adapt financing to adequately capture the value of such systems.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2022

Nuclear Energy: Supply Chain Deep Dive Assessment

The report “America’s Strategy to Secure the Supply Chain for a Robust Clean Energy Transition” lays out the challenges and opportunities faced by the United States in the energy supply chain as well as the federal government plans to address these challenges and opportunities. It is accompanied by several issue-specific deep dive assessments, including this one, in response to Executive Order 14017 “America’s Supply Chains,” which directs the Secretary of Energy to submit a report on supply chains for the energy sector industrial base. The Executive Order is helping the federal government to build more secure and diverse U.S. supply chains, including energy supply chains. This report responds to Executive Order 14017 by describing the current and potential future roles for nuclear energy in the United States and abroad, the various segments of the nuclear energy supply chain, and the main risks facing the sector. Some issues, such as uranium imports, relate both to existing nuclear reactors and advanced reactors under development, while other issues, such as production of high-assay low-enriched uranium, relate primarily to plans for advanced reactors.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗
DOE OSTI2021

Security by Design Economics Analysis for Advanced Reactors and Small Modular Reactors Project Interim Report for FY2021

Advanced Reactor and Small Modular Reactor (AR/SMR) designs have the potential to provide clean, reliable baseload energy. Ensuring the capability to deploy these reactors in an economically viable fashion is of interest to industry. A large portion of the expected operating costs of AR/SMRs involves the security of the plant. Security by Design (SeBD) is the practice of including features in the design and construction of the site, with the intent to decrease the operating costs related to security. Quantifying the increase or decrease in the overall lifetime cost to the plant as a result of SeBD is of paramount importance in understanding the disadvantages and benefits of such activities. The National Nuclear Security Administration’s (NNSA) Office of International Nuclear Security (INS) is funding the development of a methodology whereby the capital expenses and operating expenses, as well as the physical security effectiveness, of SeBD can be quantified for AR/SMRs. This report is an interim report on the progress of the work performed by Sandia National Laboratories (SNL), Idaho National Laboratory, and Oak Ridge National Laboratory (ORNL). It is the second annual report on this work.

21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS↗