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At least 199 records · Page 11

The value of in-reservoir energy storage for flexible dispatch of geothermal power

Geothermal systems making use of advanced drilling and well stimulation techniques have the potential to provide tens to hundreds of gigawatts of clean electricity generation in the United States by 2050. With near-zero variable costs, geothermal plants have traditionally been envisioned as providing “baseload” power, generating at their maximum rated output at all times. However, as variable renewable energy sources (VREs) see greater deployment in energy markets, baseload power is becoming increasingly less competitive relative to flexible, dispatchable generation and energy storage. Herein we conduct an analysis of the potential for future geothermal plants to provide both of these services, taking advantage of the natural properties of confined, engineered geothermal reservoirs to store energy in the form of accumulated, pressurized geofluid and provide flexible load-following generation. We develop a linear optimization model based on multi-physics reservoir simulations that captures the transient pressure and flow behaviors within a confined, engineered geothermal reservoir. We then optimize the investment decisions and hourly operations of a power plant exploiting such a reservoir against a set of historical and modeled future electricity price series. Further, we find that operational flexibility and in-reservoir energy storage can significantly enhance the value of geothermal plants in markets with high VRE penetration, with energy value improvements of up to 60% relative to conventional baseload plants operating under identical conditions. Across a range of realistic subsurface and operational conditions, our modeling demonstrates that confined, engineered geothermal reservoirs can provide large and effectively free energy storage capacity, with round-trip storage efficiencies comparable to those of leading grid-scale energy storage technologies. Optimized operational strategies indicate that flexible geothermal plants can provide both short- and long-duration energy storage, prioritizing output during periods of high electricity prices. Sensitivity analysis assesses the variation in outcomes across a range of subsurface conditions and cost scenarios.

15 GEOTHERMAL ENERGY↗

Detailed Evaluation of Electric Demand Load Shifting Potential of Heat Pump Water Heaters

Future utilities will emphasize home appliances to reduce greenhouse gas emissions while providing electric load shifting and demand profile management. Heat pump water heaters (HPWH) have demonstrated the ability to cut water heating energy by more than 65% compared with conventional electric resistance waters (ERWH). Laboratory research was conducted on the load shifting potential of grid-connected heat pump water heaters (HPWH), compared to ERWHs. Testing applied different CTA-2045 command designs. Highly-controlled laboratory experiments were conducted on one ERWH and four HPWHs, including a prototype incorporating the new CTA-2045-B protocol feature allowing ‘advanced’ load up above the tank setpoint. The prototype unit with the B-protocol increased tank temperature by 15oF (8.3C) under the advanced load up providing an increase of 1.8 kWh of storage for a 50-gallon (189 liter) tank. The prototype includes a built-in mixing valve to meet anti-scalding codes. With the load-shaping ability of CTA-2045-B, utilities might be able to store excess renewable energy in connected tanks when renewable wind and solar resource production is high. Tests were performed under baseline conditions (no load shift) and under several load-shifting schemes, including load up and advanced load up, ahead of shed commands. Grid-connected HPWHs reduced peak demand by as much as 0.5 kW, depending on tank volume, time of day, control scheme, and draw profile.

heat pump water heater, Demand flexibility, load s↗

Distribution Feeder-Scale Fast Frequency Response via Optimal Coordination of Net-load Resources Part II: Large-Scale Demonstration

This work is the second of a two-part series in which we develop and experimentally demonstrate a hierarchical control solution for optimally coordinating thousands of deferrable loads and distributed energy resources (DERs) to provide fast frequency response (FFR) from an entire distribution feeder. In Part I, we developed and proved practical algorithms for fast, cost-based optimal dispatch and for determining the optimal amount of headroom to operate solar inverters with to support FFR dispatch while minimizing opportunity cost. Simulation results in Part I demonstrated the advantages of the hierarchical dispatch approach in being able to maintain fast solution times needed for FFR even when the problem size increases. In Part II, we implement the algorithms developed in Part I in a novel, large-scale power hardware-in-the-loop experiment including embedded controllers and more than 100 powered appliance loads and DER connected to a simulated real-world distribution system with more than 10,000 controlled devices. Experimental results from multiple scenarios confirm that the optimal FFR dispatch approach scales well and can optimally coordinate more than 10,000 net-load resources across a distribution network while achieving hardware response times within 500 ms, which is not possible using state-of-the-art optimal coordination approaches.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Smart technologies enable homes to be efficient and interactive with the grid

Oak Ridge National Laboratory researchers compare two different approaches to test how advanced, energy-efficient building technologies such as smart thermostats, heat pump water heaters, and advanced heat pump HVAC (heating, ventilation and air conditioning) can be optimized within a home and connected at a neighborhood-scale load to a community microgrid in the Alabama Power Smart Neighborhood located in Hoover. Working with Southern Company and Alabama Power, ORNL researchers are pioneering that future where smart homes and smart neighborhoods can benefit both homeowners and utilities, by reducing energy consumption by 44% and peak demand by 34%.This project is one of two neighborhoods in the U.S Department of Energy’s (DOE’s) Connected Neighborhood project, supported by Building Technologies Office , where ORNL researchers leverages DOE investment in micro-grids and responsive, flexible building loads research to improve grid reliability – a goal of DOE’s Grid-interactive Efficient Buildings (GEB) Initiative. Researchers control the neighborhood and microgrid to enable utilities achieve their desired load and cost profiles while ensuring the comfort of homeowners in the Smart Neighborhood. This transactive control approach maximizes the utilization of technical resources of the microgrid and controllable loads, while reducing costs for both the homeowners and Alabama Power. These tests partially seek to determine a more precise range of tolerance with respect to occupant comfort as researchers work to facilitate customer acceptance and perception of new building technologies that enable energy savings.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Extended Low Load Boiler Operation to Improve Performance and Economics of an Existing Coal Fired Power Plant (Final Report)

The overall goal is to improve the performance and economics of existing coal fired power plants by extending low load boiler operation to lower loads than is currently achievable. The objective of this program is to develop and validate sensor hardware and analytical algorithms to lower plant operating expenses (OPEX) for the currently operating pulverized coal utility boiler fleet. Coal fired utility boilers are increasingly under grid dispatch pressure. In some cases, the coal fired cost of generation is noncompetitive with respect to natural gas generation and subsidized renewable sources. To remain profitable and remain fully compliant with existing environmental regulations, the installed coal fired fleet must find technologies which allow it to move into a more flexible cyclic load dispatch model. Today the installed coal fired utility fleet must be cost of generation competitive, fully emissions compliant, and responsive to the variability inherent in renewable energy generation sources. In the Phase I of the project, GE Steam Power, Inc. (GE) performed modeling of different operating scenarios for low load operation using an existing full plant dynamic model developed for a 660MW steam power plant. Sensors and analytic algorithms to enable a stable and steady coal supply for low load pulverizer operation were identified and tested at the Pulverizer Development Facility (PDF) at GE’s Clean Energy Center in Bloomfield, Connecticut. Sensors and analytic algorithms to enable stable combustion for low load operation were identified and tested at the 15 MWth Industrial Scale Burner facility (ISBF) at GE’s Clean Energy Center. A concept was developed to test the sensors and control algorithms, down selected after testing, at a full-scale coal fired power plant. A budget estimate was then developed, and the concept was implemented at an existing utility power plant. The specific objectives of the experimental work were to: • Identify and select sensors and analytic algorithms for monitoring coal pulverizer operation at lower loads to provide stable operation and appropriate coal fineness at lower coal throughput; Identify and select sensors and analytic algorithms for a Boiler Flame Stability Monitor to better balance air and fuel at each burner. This enables a reduction in a coal boiler’s safe low load power level while maintaining stable flame characteristics; Develop a concept in Phase I for low load operation of a full-scale power plant and develop a budget estimate for testing and execute the test plan at an existing plant in Phase II; Validate the capability of the extended low load boiler system to extend the minimum load operating point in a safe and reliable manner on an existing full-scale utility boiler. At the completion of this experimental study, GE has developed a set of sensors and analytic algorithms, down selected after testing, that have the potential to enable safe low load operation of a utility boiler. GE has also identified a host site for testing these identified sensors and analytic algorithms. GE has generated a full set of deliverables that provide sufficient information to proceed with the next step of testing at a host site. This includes a potential host site and budget estimate for concept testing at host site. In the Phase II of the project, a series of field tests were completed to validate the extended low load boiler operation, which consisted of detailed engineering, installation, commissioning, and testing the additional sensors and analytics for the coal-fired combustion system on an existing full-scale utility boiler. The optimization work has been supported by the host plant and endorsed by their engineering and operation staff.

01 COAL, LIGNITE, AND PEAT↗

Hardware Implementation and Market Impacts of Grid-Supportive Functions in End-Use Loads

Grid-supportive loads (GSLs) are power electronics-based end-use loads that can provide frequency response and other grid services by autonomously adjusting their output power using local grid measurements. This report provides details on GSL hardware design options and their associated costs and benefits for multiple devices, including EV chargers, refrigerators, and heat pumps. We consider mechanisms to incentivize adoption of GSLs at scale and estimate the quantity of frequency response that can be procured with GSLs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Connected Loads – Grid Connected Appliances: Commercial Refrigeration System Fault Detection and Diagnostics

As one of the most energy-intensive end-uses in the commercial buildings sector, supermarkets consume around 50 kWh/ft 2 (or 537.6 kWh/m 2 ) of electricity annually, or more than 2 million kWh of electricity per year for a typical store. The biggest consumer of energy in a supermarket is its refrigeration system, which accounts for 40–60% of its total electricity usage and is equivalent to about 2–3% of the total energy consumed by commercial buildings in United States, or around 0.5 quadrillion Btu (or 0.53 quadrillion KJ). Also, the supermarket refrigeration system is one of the biggest consumers of refrigerants. Current supermarket refrigeration systems rely on high global warming potential hydrofluorocarbon refrigerants. Reducing refrigerant usage or using environment friendly alternatives can result in significant climate benefits. Transcritical CO2 refrigeration systems have attracted more attention in recent years because of their zero-carbon emission advantages compared with traditional refrigerants. These systems are widely used in commercial buildings such as supermarkets. The refrigeration system can also be adapted to handle flexible building loads and be integrated into grid response transactive control to balance the supply and demand of the electric grid. Even minor improvements in the efficiency and operational reliability of supermarket refrigeration systems can create significant value in terms of saving energy, improving food quality, protecting the environment, reducing carbon footprint, and enhancing electric grid resilience.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Connected Loads – Grid Connected Appliances: Deployment IoT Solution for Fault Detection and Diagnostics

As one of the most energy-intensive end-uses in the commercial buildings sector, supermarkets consume around 50 kWh/ft 2 ( or 537.6 kWh/m 2 ) of electricity annually, or more than 2 million kWh of electricity per year for a typical store. The biggest consumer of energy in a supermarket is its refrigeration system, which accounts for 40–60% of its total electricity usage and is equivalent to about 2–3% of the total energy consumed by commercial buildings in United States, or around 0.5 quadrillion Btu (or 0.53 quadrillion KJ). Also, the supermarket refrigeration system is one of the biggest consumers of refrigerants. Current supermarket refrigeration systems rely on high global warming potential hydrofluorocarbon refrigerants. Reducing refrigerant usage or using environment friendly alternatives can result in significant climate benefits. Transcritical CO2 refrigeration systems have attracted more attention in recent years because of their zero-carbon emission advantages compared with traditional refrigerants. These systems are widely used in commercial buildings such as supermarkets. The refrigeration system can also be adapted to handle flexible building loads and be integrated into grid response transactive control to balance the supply and demand of the electric grid. Even minor improvements in the efficiency and operational reliability of supermarket refrigeration systems can create significant value in terms of saving energy, improving food quality, protecting the environment, reducing carbon footprint, and enhancing electric grid resilience. For decarbonization, the new administration has set a target to reduce greenhouse gas emissions by 50– 52% by 2030 and targeting a carbon-neutral economy by 2050. For electrification, the goal is to achieve 100% clean electricity by 2035. Such decarbonization and electrification in the building sector require that energy consumption in buildings be reduced significantly. Therefore, the building sector must continuously adopt new technologies to achieve its energy and carbon emission goals. One of the most fundamental technologies is the Internet of Things (IoT). IoT has proven to be an effective solution for the building domain, including building information/energy modeling, smart buildings, etc. Although much progress has been made in the development of IoT-based building energy systems, there is still a lack of reliable, scalable, and affordable IoT-based automated fault and degradation diagnostics (AFDDs) solutions. Such solutions would enable deployment of advanced algorithms into real systems to archive the projected energy benefits. This study reviews existing IoT solutions developed for building energy– related application and developed a simple but effective AFDD IoT deployment solution, including developing a suitable IoT architecture and conducting easy and scalable deployment by leveraging a common cloud-based IoT service.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Building Load Control Using Distributionally Robust Chance-Constrained Programs with Right-Hand Side Uncertainty and the Risk-Adjustable Variants

Aggregation of heating, ventilation, and air conditioning (HVAC) loads can provide reserves to absorb volatile renewable energy, especially solar photo-voltaic (PV) generation. In this paper, we decide HVAC control schedules under uncertain PV generation, using a distributionally robust chance-constrained (DRCC) building load control model under two typical ambiguity sets: the moment-based and Wasserstein ambiguity sets. We derive mixed integer linear programming (MILP) reformulations for DRCC problems under both sets. Especially, for the Wasserstein ambiguity set, we use the right-hand side (RHS) uncertainty to derive a more compact MILP reformulation than the commonly known MILP reformulations with big-M constants. All the results also apply to general individual chance constraints with RHS uncertainty. Furthermore, we propose an adjustable chance-constrained variant to achieve tradeoff between the operational risk and costs. We derive MILP reformulations under the Wasserstein ambiguity set and second-order conic programming (SOCP) reformulations under the moment-based set. Using real-world data, we conduct computational studies to demonstrate the efficiency of the solution approaches and the effectiveness of the solutions. Summary of Contribution: The problem studied in this paper is motivated by a building load control problem that uses the aggregation of heating, ventilation, and air conditioning (HVAC) loads as flexible reserves to absorb uncertain solar photovoltaic (PV) generation. The problem is formulated as distributionally robust chance-constrained (DRCC) programs with right-hand side (RHS) uncertainty. In addition, we propose a risk-adjustable variant of the DRCC programs, where the risk level, instead of being predetermined, is treated as a decision variable. The paper aims to provide tractable reformulations and solution algorithms for both the (general) DRCC and the (general) adjustable DRCC models with RHS uncertainty.

97 MATHEMATICS AND COMPUTING↗

Pumped Storage Hydropower (PSH) FAST Commissioning Prize Technical Analysis

The US energy landscape has undergone major changes over the past 10 years and will continue to see significant changes in future decades as the power grid increases its reliance on variable renewable energy resources. Because of the inherent variability of these resources, renewable energy growth may require additional energy storage capacity to provide flexible load-following capabilities and other grid services that can quickly adjust to changes in energy demand and generation. Pumped storage hydropower (PSH)—one such energy storage technology—uses pumps to convey water from a lower reservoir to an upper reservoir for energy storage and releases water back to the lower reservoir via a powerhouse for hydropower generation. PSH facility pump and generation cycling often follows economic and energy demand conditions. Across the United States, 43 PSH facilities are in operation and 55 projects are in various permitting or licensing stages. Altogether, the 43 operational projects provide the wide majority (95%) of utility-scale electricity storage in the United States. These facilities also provide significant power and nonpower grid benefits, including large-scale electrical system reserve capacity, grid reliability support, and electricity supply-demand balancing through quick-response capabilities and operational flexibility. PSH systems can accomplish these at a scale (e.g., size) and cost that makes these systems highly attractive from a technical standpoint. Although these research concepts are still in their infancy, they demonstrate promising potential as future PSH energy storage technologies. Although PSH has many advantages, development in the United States has effectively stalled since the 1990s, partially because of the magnitude of project costs and financing interest during development and construction, the length of time from project investment until project revenue begins, permitting challenges, construction risks, competition from other storage technologies (e.g., batteries, hydrogen storage), and electricity market evolution and uncertainty. In short, the time, cost, and risk associated with modern PSH development have resulted in limited growth in the United States recently, despite the growing energy storage demand stemming from increased wind and solar power deployment. Technology innovation is needed to help reduce PSH commissioning time, cost, and risk, particularly during the post-licensing phase of project development. To address challenges facing the PSH industry and to improve PSH commissioning timelines, the US Department of Energy (DOE) Water Power Technologies Office (WPTO) initiated the PSH Furthering Advancements to Shorten Time to (FAST) Commissioning Prize project.

13 HYDRO ENERGY↗

Hardware-in-the-loop Laboratory Performance Verification of Flexible Building Equipment in a Typical Commercial Building

This project aims to develop high-resolution equipment performance and occupant data that quantifies demand flexibility in typical commercial buildings. The dataset documented in this report includes comprehensive time-series measurements from hardware-in-the-loop (HIL) experiments conducted across multiple testbeds designed to simulate realistic operational environments for HVAC systems. Specifically, it captures minute-by-minute high-resolution data on the performance of various typical HVAC systems, including a variable-air-volume (VAV) air handling unit (AHU) system with chillers and an ice tank in the Intelligent Building Agents Laboratory (IBAL) at the National Institute of Standards and Technology (NIST), a two-stage air-source heat pump (ASHP) at the NIST, and a water-source heat pump (WSHP) at Texas A&M University (TAMU). The data were generated under a range of controlled conditions reflecting different grid scenarios and climatic influences, as well as various control strategies, building types, occupancy patterns, and occupant behaviors. This dataset provides DE-EE0009153 Final Report 5 detailed insights into the demand flexibility of these systems, including their response to grid signals, occupant behaviors, energy consumption patterns, and operational efficiency under different conditions.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Operating a commercial building HVAC load as a virtual battery through airflow control

Virtual battery (VB) is an innovative method to model flexibility of building loads and effectively coordinate them with other resources at a system level. Unlike a real battery with a dedicated power conversion system for charging control, methods are required for operating building loads to deviate from the baseline to respond to grid signals. This paper presents a VB control for a commercial heating, ventilation, and air conditioning (HVAC) system to follow the desired power consumption in real-time by adjusting zonal airflow rates. The proposed method consists of two parts. At the system level, a mixed feedforward and feedback control is used to estimate the desired total airflow rate. At the zone level, two priority-based algorithms are then proposed to distribute the total airflow rate to individual zones. In particular, a zonal airflow limit estimation method is proposed using machine-learning techniques, in contrast to physics-based thermal models in existing studies, to more accurately capture zonal thermal dynamics and improve temperature control performance. An office building on the Pacific Northwest National Laboratory campus is implemented in EnergyPlus, and used to illustrate and validate the proposed control.

Wang, Jiyu↗

Experimental Evidence on Latency in a Fleet of Controllable Water Heaters

Demand response is an important emerging part of smart grids with wide coverage in theoretical and modeling research. However, experimental evidence on the real-life behavior of controllable loads is still limited. We present observations regarding latency and communication aspects of the operation on a fleet of residential water heaters in a smart neighborhood in Atlanta, GA. Our analysis shows that latency in water heaters is not constant and does not follow a Gaussian distribution. We also find that there is a systematic relationship between latency and hour of the day. Latency was found to increase during morning and evening hours compared to the afternoon. These findings could help better plan deployment of control for demand response programs. Understanding delays associated with controlling smart devices is crucial for proper design and algorithm development for optimization, frequency of dispatch, and override detection.

communication delay↗

Impact of Control on Availability and Cycling of Residential HVAC in a Real-World Experiment

Demand response is an important emerging part of smart grids and there is a large stream of research from theoretical and modeling perspectives. However, there is relatively little experimental evidence that could help researchers and building operators make informed decisions on best practices for modeling, developing, and deployment of control mechanisms. We contribute to the body of experimental research by providing numerical insights into the role and availability of residential HVAC systems for control. We share the findings on the duration of the cooling cycle, off cycle, and temperature settling time of HVAC systems from data collected from a smart neighborhood located in Atlanta, GA.

cycling↗

Special Issue: Thermal Energy Storage for Buildings

This special issue (SI) of the ASME Journal of Engineering for Sustainable Buildings and Cities (JESBC) features peer-reviewed papers specific to technologies and applications of thermal energy storage (TES) for buildings. TES systems store energy in materials as a heat source or a cold sink and then discharge the stored energy hours or weeks later to enhance thermal comfort or reduce utility bills [1]. As buildings and cities are facing increasing energy consumption and extreme weather events, TES offers a powerful solution to balance supply and demand, reduce operational energy costs, and strengthen energy resilience during power outages.

25 ENERGY STORAGE↗

Design and Analysis of a Floating-Wind Shallow-Water Mooring System Featuring Polymer Springs

This paper presents a mooring system design featuring polymer springs for the VolturnUS-S 15-MW reference floating wind turbine in site conditions for the New York Bight at a 50-m water depth. Polymer springs have a nonlinear stress-strain curve that allows a stiffer response at low loads and a more flexible response at higher loads, potentially reducing peak mooring line tensions. The mooring dynamics model MoorDyn has been extended to model springs with nonlinear tension-strain curves from a user-inputted look-up table. This MoorDyn modeling advancement is verified against OrcaFlex simulation results. Using MoorDyn's updated capabilities, a spring-equipped catenary mooring system is designed for the 15-MW floating system, along with a baseline catenary mooring system that does not use polymer springs. The floating wind turbine simulator OpenFAST is used to simulate the mooring systems in design-driving load cases to show the effect of polymer springs on key dynamic behaviours. The results show that the spring-equipped design reduces peak tensions by up to 60%, whereas the turbine offsets stay within a maximum of 7.2 m, which is still a reasonable offset limit for cable considerations. The reduction in peak tensions results in a significant decrease in damage equivalent loads - on the order of 50% for upwind lines in fully loaded conditions. These results show that polymer springs can effectively reduce peak tensions and fatigue loads in mooring systems at shallow water depths.

floating offshore wind↗

Market Brief: Customer-sited Distributed Energy Resources

This market brief summarizes key takeaways from interviews with vendors and service providers in one or more areas of the DER market: DER controls, battery storage, solar photovoltaic, thermal energy storage, combined heat and power, flexible building loads, and electric vehicle charging. Back-up generators used only in emergencies are not in the scope of this market brief.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Optimizing an Integrated Renewable-Electrolysis System

Hydrogen is a versatile energy carrier that is used in a wide variety of chemical and industrial processes. Producing hydrogen using electrolysis can enable integration of multiple sectors including electricity, heating, and industrial sectors; however, the cost of producing hydrogen from electrolysis remains a challenge for encouraging greater adoption. With growing amounts of renewable generation on the California grid, there is downward pressure on wholesale electricity prices, particularly during the afternoon from photovoltaics (PV). These lower, or even potentially negative prices, challenge the business cases for new and existing PV plants. In addition, as the grid transitions to less flexible generation, there is greater need for system flexibility. To help improve the economics for both solar PV and hydrogen production using electrolyzers, we explore the benefit of combining PV and electrolysis systems. The optimal breakeven hydrogen production cost for six unique market participation configurations is calculated at six candidate locations where PV is already installed. The six market configurations include islanded, separated, retail, net energy metering (NEM), hybrid retail/wholesale and wholesale. Using the Revenue Operation and Device Optimization Model (RODeO) model, the optimal breakeven hydrogen price over the lifetime of the equipment is calculated. The cost includes production, storage, and compression in preparation for gaseous delivery trucks. Revenue streams include the sale of hydrogen, low carbon fuel standard (LCFS) credits, renewable electricity sold to the grid, and Renewable Energy Credits (REC). The costs included are the electricity costs, capital and fixed operation and maintenance cost (FOM) for the electrolyzer, PV, and storage and compression systems as well as taxes and financing costs. In addition, cost reductions are achieved through retail and wholesale rate optimization, by which electricity is purchased at the lowest price and sold, if possible, at the highest price. For all locations, the breakeven hydrogen production cost results show that, in the order of decreasing cost, the system configurations are islanded (highest), separated, NEM, retail, hybrid retail/wholesale, and wholesale (lowest). The resulting system design balances between the capital and maintenance cost components, the operation costs (i.e., electricity costs) and the additional market revenues. The integration of solar PV and electrolysis is shown to provide a mutually beneficial relationship. For PV, integration with electrolysis offers the potential to hedge against wholesale market price volatility, and integration with electrolysis may offer the potential to defer or avoid transmission investment to deliver power to the point-of-use and instead use it on-site. When compared with SMR without considering any renewable hydrogen premiums, this study finds that PV + Electrolysis systems with current costs are likely not competitive; however, with cost reductions for electrolysis equipment consistent with DOE projections, it was found that systems with wholesale market access would be competitive, largely on account of both low capital costs and low-cost electricity. The electrolysis units can provide greater flexibility than is required based on retail rate optimization, so there is an opportunity for a utility or CAISO to increase system flexibility with PV + Electrolysis systems in return for commensurate compensation. In this way, there are potentially several solutions that fall between the hybrid configuration and the wholesale configuration that could provide sufficient compensation for a PV + Electrolysis unit to compete with SMR while also providing greater flexibility to the grid.

24 POWER TRANSMISSION AND DISTRIBUTION↗