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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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All sourcesNASA NTRSDOE OSTI
DOE OSTI2022

Impact of Transport Electrification Demand and Charging Schedules on Electricity Markets and Nuclear Generators

As the U.S. pursues deep decarbonization targets, electric vehicles (EVs) are likely to become a major driver of demand growth and a major determinant of daily demand patterns. This study analyzes a possible future ERCOT-like electricity grid, and examines the impact of different types of EV charging schedules on grid and market outcomes. This analysis demonstrates the significant impact of EV charging patterns on capacity expansion simulations. Even without EVs, the overall daily demand profile in a market can have significant impacts on prices and grid stability in that system, especially if non-dispatchable renewable generators (e.g. wind and solar) make up a significant fraction of the generation mix. EV demand will not necessarily follow this preexisting demand profile, so its daily trends may significantly change what generation portfolio would optimally serve the system. Furthermore, the effects of EV demand can alter the profitability of different types of units, by altering the frequency of market events like extreme-demand hours or zero-price hours. These effects are explored in this study. The EV demand levels were derived from MARKAL simulations of the West-South-Central North American Electric Reliability Corporation (NERC) region for the year 2050, using a carbon tax of $100/ton. The baseline MARKAL simulation forecasted that 23% of the region’s annual electricity demand in 2050 would be attributable to EVs, and broke out demand projections for EV and non-EV end-use in that year. To model lower EV penetration into the system, an additional case was explored which assumed that EVs only achieved 75% of the demand level projected by MARKAL.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2023

Integrating plant physiology into simulation of fire behavior and effects

Summary Wildfires are a global crisis, but current fire models fail to capture vegetation response to changing climate. With drought and elevated temperature increasing the importance of vegetation dynamics to fire behavior, and the advent of next generation models capable of capturing increasingly complex physical processes, we provide a renewed focus on representation of woody vegetation in fire models. Currently, the most advanced representations of fire behavior and biophysical fire effects are found in distinct classes of fine‐scale models and do not capture variation in live fuel (i.e. living plant) properties. We demonstrate that plant water and carbon dynamics, which influence combustion and heat transfer into the plant and often dictate plant survival, provide the mechanistic linkage between fire behavior and effects. Our conceptual framework linking remotely sensed estimates of plant water and carbon to fine‐scale models of fire behavior and effects could be a critical first step toward improving the fidelity of the coarse scale models that are now relied upon for global fire forecasting. This process‐based approach will be essential to capturing the influence of physiological responses to drought and warming on live fuel conditions, strengthening the science needed to guide fire managers in an uncertain future.

54 ENVIRONMENTAL SCIENCES↗
DOE OSTI2024

Deep Generative Models in Energy System Applications: Review, Challenges, and Future Directions

In recent years, with the advent of mature machine learning products like ChatGPT, Stable Diffusion, and Sora, the world has witnessed tremendous changes driven by the rapid development of generative artificial intelligence (GAI). Beyond applications in text, speech, image, and video creation, deep generative models (DGMs) underpinning these cutting-edge technologies have also been employed by domain researchers to address scientific and engineering challenges. This paper aims to fill a gap in the research community by providing a systematic review of how DGMs have been utilized in energy system applications. After introducing four most popular DGMs, we review and categorize 196 research articles into five focus areas: data generation, forecasting, situational awareness, modeling, and optimal decision-making. Through this classification, we uncover trends in how DGMs are employed for each type of problem, highlighting GAI techniques that contribute to breakthroughs over traditional methods. We discuss limitations in existing literature, engineering challenges, and propose future directions, all tailored to the unique nature of problems in energy system engineering. Our goal is to offer insights for energy system domain researchers, providing a comprehensive view of existing studies and potential future opportunities.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2025

Extinction of Laser Light Due to Arctic Haze Final Campaign Report

Recent changes in emission patterns may have altered the historical stability of light attenuation strengths within the Arctic and, more specifically, the polar dome. While there have been decades of past and ongoing research on how atmospheric constituents, such as aerosols, affect light absorption, the bulk of this work is focused on the visible region. In recent years, there has been renewed interest in understanding laser light propagation at wavelengths such as 1 and 2 µm in this area. There is a need to evaluate how specific environmental parameters affect the propagation of light in this wavelength region, in particular: the extinction, scattering, and absorption coefficients, and how they relate to particle concentration; cn 2 and refractive index variations. Seasonally dependent variations in particle concentrations and compositions introduce different absorption and scattering characteristics that, in conjunction with varying temperatures, index-of-refraction variations, and wind, can result in laser beam focus and irradiance degradation. Understanding the fundamental influence of these parameters with respect to the propagation of light across a wide spectral band could lead to new insights about the minimal required datastreams required to provide accurate light propagation forecasting.

54 ENVIRONMENTAL SCIENCES↗
DOE OSTI2025

Demographic Microsimulator for Integrated Urban Systems: Adapting Panel Survey of Income Dynamics to Capture the Continuum of Life

Agent-based models (ABMs) in transportation modeling simulate activity and travel decisions at the disaggregate level of households and individuals. To do this, ABMs require detailed and realistic information on agents’ socioeconomic and demographic characteristics. Various synthetic population generators have been proposed to address this need. However, most of those currently in practice are cross-sectional in nature and do not account for the dynamics within households and individuals as they progress through life events over time. This is a major shortcoming, as literature has shown that transportation decisions are affected by the transition between and co-occurrence of life cycle events. While some demographic evolution simulators have been proposed to address this issue, they are developed using cross-sectional data and capture only a small set of life cycle events and their interdependence. Addressing these drawbacks, we propose a demographic microsimulator (DEMOS) that captures the “continuum of life” by considering a range of household- and individual-level life cycle events. DEMOS is developed using the Panel Survey of Income Dynamics, one of the world’s longest-running longitudinal surveys. The DEMOS submodels consider key life cycle events that are influenced by agents’ demographic variables. DEMOS is applied to evolve the population of the San Francisco Bay Area over a 9-year horizon. Results demonstrate how DEMOS generates life trajectories and how DEMOS outputs match the observed demographic trends. DEMOS is expected to enable longitudinal analysis in the context of ABMs and expand ABMs analyses relating to dynamic processes such as household-level vehicle transactions.

Demographic evolution↗
DOE OSTI2024

Advanced Laboratory and Field Arrays (ALFA)/Lab Collaboration Project (LCP) for Marine Energy (Final Scientific/Technical Report)

The objective of the Advanced Laboratory and Field Arrays (ALFA) project was to reduce the Levelized Cost of Energy (LCOE) of Marine and Hydrokinetic (MHK) energy by leveraging research, development, and testing capabilities at Oregon State University, University of Washington, and the University of Alaska, Fairbanks. ALFA is a project within the Pacific Marine Energy Center (PMEC; formerly NNMREC), a multi-institution entity with a diverse funding base that focuses on research and development for marine renewables. The ALFA project aimed to accelerate the development of next-generation arrays of wave energy conversion (WEC) and tidal energy conversion (TEC) devices through a suite of field-focused R&D activities spanning a broad range of strategic opportunity areas identified in the Funding Opportunity Announcement: • Device and/or array operation and maintenance (O&M) logistics development; • High-fidelity resource characterization and/or modeling technique development and validation; • Array-specific component technology development (e.g. moorings and foundations, transmission, and other offshore grid components); • Array performance testing and evaluation; and • Novel cost-effective environmental monitoring techniques and instrumentation testing and evaluation. The objective of the Lab Collaboration Project (LCP) was to accelerate the development of next-generation marine energy conversion systems. The LCP aimed to achieve these project objectives in collaboration with the national laboratories by: • Developing concept generation and assessment tools; • Improving access to existing testing resources; • Validating collision risk models between fish and turbines; and • Advancing analysis and simulation capabilities for wave-WEC interactions and PTO analysis in nonlinear ocean waves. The ALFA portion of the project was comprised of six overarching technical tasks: • Task 1: Debris Modeling, Detection and Mitigation; • Task 2: Autonomous Monitoring & Intervention; • Task 3: Resource Characterization for Extreme Conditions; • Task 4: Robust Models for Design of Offshore Anchoring and Mooring Systems; • Task 5: Performance Enhancement for Marine Energy Converter (MEC) Arrays; and • Task 6: Evaluating Sampling Techniques for MHK Biological Monitoring. The LCP was divided into four overarching technical tasks: • Task 7: Project Management and Reporting • Task 8: Novel Design and Assessment Methodologies for Wave Energy Converter Design (Wave- SPARC) • Task 9: Testing Access for Commercial Marine Renewable Energy Technology Developers • Task 10: Quantifying Collision Risk for Fish and Turbines • Task 11: Nonlinear Ocean Waves and PTO Control Strategy Each ALFA/LCP task listed above functioned as a separate and discreet project. A final Technical Report was written for each individual task and these reports were uploaded to OSTI, after receiving DOE approval. The following document is a compilation of each of these final, approved reports arranged as individual chapters.

13 HYDRO ENERGY↗
DOE OSTI2022

Uncertainty-Informed Operation Coordination in a Water-Energy Nexus

The widespread deployment of smart heterogeneous technologies and the growing complexity in our modern society calls for effective coordination of the interdependent lifeline networks. In particular, operation coordination of electric power and water infrastructures is urgently needed as the water system is one of the most energy-intensive networks, an interruption in which may quickly evolve into a dramatic societal concern. This paper develops a novel analytic for uncertainty-aware day-ahead operation optimization of the interconnected power and water systems (PaWS). Joint probabilistic constraint (JPC) programming is employed to capture the uncertainties in wind resources and water demand forecasts. The proposed integrated stochastic model is presented as a non-linear non-convex optimization problem, where the non-linear hydraulic constraints in the water network are linearized using piece-wise linearization technique, and the non-convexity is efficiently tackled with a solution methodology to convert the proposed model with JPCs to a tractable mixed-integer linear programming (MILP) formulation that can be quickly solved to optimality. Here, the suggested framework is applied to a 15-node commercial-scale water network jointly operated with a power transmission system using a modified IEEE 57-bus test system. The numerical results demonstrate the of the proposed stochastic framework, resulting in cost reduction (13% on average when compared to the traditional setting) and energy saving of the integrated model under different realizations of uncertain renewable energy sources (RESs) and water demand scenarios. Additionally, the scalability of the proposed model is tested on a modified IEEE 118-bus test system connected to five water networks.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2022

Multi-Fidelity Stochastic Economic Dispatch for Operating Low Carbon Power Grids

Grid operators can address the inherently stochastic nature of renewables by solving a two-stage stochastic programming model that minimizes the cost of dispatch decisions while accounting for the complex grid dynamics. It is common to use a sample average approximation to estimate the expectation of the second stage costs in this model. However, the large sample count needed for numerical accuracy makes effective modeling large-scale electric grids computationally intractable. We introduce a control variate multi-fidelity estimator for the second-stage recourse that enables high quality dispatch decisions in real-time with a reduced computational burden. We obtain a hierarchy of model fidelities by linearizing the AC power flow system representation to DC power flow, and by relaxing transmission and voltage network constraints. We evaluate the performance of our proposed method on a synthetic grid with 73 buses against a deterministic baseline with persistence forecast and a high-fidelity reference. Our analysis shows a computational speed-up of 7.62x with a minimal loss in accuracy. The multi-fidelity method is well suited to fidelity combinations that use a simplified network topology in their lower fidelity model and is an attractive option for applications where accurate grid modeling needed on a limited computational budget.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2025

LLM-Based Adaptive Distribution Voltage Regulation Under Frequent Topology Changes: An In-Context MPC Framework

This paper proposes a large language model (LLM) based adaptive inverter control for distribution voltage regulation under frequent topology changes. We leverage the ability of the LLM to perform in-context learning and create a topology-adaptive surrogate model for power flow calculation. The surrogate model is then integrated with a long short-term memory-based load forecaster and a model predictive control (MPC) scheme to achieve the optimal inverter control that adapts to frequent topology changes. Unlike many existing works that assume fixed-topology grids or require the knowledge of all possible topologies when training a model, the proposed in-context MPC method tackles the distribution voltage control problem under various topologies and adapts to unknown topologies with limited data requirement for fine-tuning. The effectiveness of our method is demonstrated on a modified IEEE 123-bus test system.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2023

BSM (Bioenergy Scenario Model) 2023 FKA: Biomass Scenario Model [SWR-09-09]

The U.S. Department of Energy's (DOE's) Bioenergy Technologies Office and the National Renewable Energy Laboratory (NREL) developed the BSM (Bioenergy Scenario model) to explore the development of a U.S. biofuels industry. The BSM is a system dynamics model built on the STELLA software platform. The model represents the dynamic interactions of the major sectors of the biofuels industry—feedstock production, feedstock logistics, biomass to biofuels conversion, and biofuels end use, including fuels inventory, dispensing, distribution, fuel use, and the vehicle fleet. The BSM represents contextual aspects of the developing biofuels industry, including investment in new biomass to biofuel conversion technologies, competition from petroleum fuels, vehicle demand for biofuels, and various government policies, using all of these to simulate the development of the industry. The purpose of the BSM is to generate and explore plausible scenarios for the evolution of a biofuels industry in the United States, and as a high-level system model it is not designed for precise, quantitative forecasting. Instead, it is best used to (1) analyze and evaluate alternate policies; (2) generate scenarios; (3) identify high-impact levers and bottlenecks to system evolution; and (4) seed focused discussion among policymakers, analysts, and stakeholders.

Bush, Brian↗
DOE OSTI2021

Scenario Creation and Power-Conditioning Strategies for Operating Power Grids with Two-Stage Stochastic Economic Dispatch

A significant difficulty associated with the use of stochastic programming to solve optimal power flow problems on a 5-minute timescale is the quality of renewable energy scenarios input by the user. This is especially true when considering power systems with high penetrations of renewable energy, e.g. wind power. This paper introduces the use of stochastic programming to solve the DC optimal power flow problem with scenarios drawn directly from high-fidelity data sets. Hence, the proposed method avoids the problem of lost physics by finding high-fidelity analogs that can describe future states of the system. Furthermore, this method can be simply extended to output multi-period scenarios to the stochastic program. We demonstrate the effectiveness of this technique by simulating dispatch operations on a synthetic test system over the course of a week.

analog forecast↗
DOE OSTI2022

Evaluation of WRF simulation of deep convection in the US Southern Great Plains

The Southern Great Plains (SGP) exhibits a relatively high frequency of periods with extremely high rainfall rates (RR) and hail. Here, seven months of 2017 are simulated using the Weather Research and Forecasting (WRF) model applied at convection permitting resolution with the Mibrandt-Yau microphysics scheme. Simulation fidelity is evaluated, particularly during intense convective events, using data from ASOS stations, dual-polarization RADAR, gridded data sets and observations at the DoE Atmospheric Radiation Measurement site. The spatial gradients and temporal variability of precipitation and the cumulative density functions for both RR and wind speeds exhibit fidelity. Odds ratios >1 indicate WRF is also skillful in simulating high composite reflectivity (cREF, used as a measure of widespread convection) and RR > 5 mmhr –1 over the domain. Detailed analyses of the ten days with highest spatial coverage of cREF >30 dBZ show spatially similar reflectivity fields and high RR in both RADAR data and WRF simulations. However, during periods of high reflectivity, WRF exhibits a positive bias in terms of very high RR (> 25 mmhr –1 ) and hail occurrence, and during the summer and transition months, maximum hail size is underestimated. For some renewable energy applications fidelity is required with respect to the joint probabilities of wind speed and RR and/or hail. While partial fidelity is achieved for the marginal probabilities, performance during events of critical importance to these energy applications is currently not sufficient. Further research into optimal WRF configurations in support of potential damage quantification for these applications is warranted.

54 ENVIRONMENTAL SCIENCES↗
DOE OSTI2025

ASEAN Technical Exchange Workshop for System Operators, Regulators, and Policymakers

This presentation provides an in-depth exploration of power system planning, cross-border electricity trading, and battery energy storage systems (BESS), offering actionable insights for system operators, regulators, and policymakers. The first section delves into power system planning and analysis, focusing on capacity expansion models and resource adequacy studies, including their role in optimizing system efficiency, managing emissions, and addressing system reliability risks. Key considerations, such as integration of transmission into generation planning and the forecasting versus optimization of customer distributed energy resources (DER) technologies, are explored. The session highlights critical trade-offs in spatial granularity and model runtimes, as well as the feasibility of aligning distribution investments with capacity expansion efforts. The second section examines cross-border electricity trading, with an emphasis on resource adequacy concepts such as reliability targets, loss of load expectation (LOLE), and planning reserve margins (PRM). Case studies on reserve market design and coordination across US regions provide insights into improving reserve deliverability and managing interregional power balance and congestion. This section also addresses market-to-market congestion management, including advanced strategies for high-voltage direct current (HVDC) optimization and ancillary service delivery. Finally, the presentation covers the rapid evolution of Battery Energy Storage Systems (BESS), highlighting their operational growth, regulatory frameworks, and use cases in grid flexibility, energy storage, and reliability. The discussion focuses on the benefits of BESS for system stability, resilience, and integration of renewable energy, offering insights into its role as a vital component in the transition toward a more sustainable and flexible grid. Key performance parameters, such as throughput, round-trip efficiency, and state of charge, are also examined.

25 ENERGY STORAGE↗
DOE OSTI2025

Are better combinations of DERs more profitable?: Combinatorial optimization for aggregation of DERs in wholesale electricity markets

Recently, regulatory changes in various countries have enabled the participation of small-scale distributed energy resources (DERs) aggregated in virtual power plants (VPPs) in wholesale electricity markets. The inherent uncertainty and variability of resources comprising VPPs can lead to imbalances between forecasted and metered outputs, potentially resulting in the deficient settlement of generation under imbalance settlement rules. To address this challenge, it is essential to manage variability in the planning phase and uncertainty in the operation phase. Most current research focuses on managing forecasting errors in the operational phase, with insufficient attention given to the planning phase. Here, to bridge this gap, this paper proposes an optimal combination strategy for DERs to maximize the market participation revenue of VPPs by proactively managing variability in the planning phase. To estimate the expected revenue, we conducted analyses for homogeneous and heterogeneous DERs using Monte Carlo simulations and genetic algorithms. Remarkably, the proposed method demonstrated approximately 8 % higher revenue compared to the neighboring group case when considering diversity in DER set configuration with equal proportions of photovoltaics and wind.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2025

Biomass to bio-energy supply chain: Economic viability, case studies, challenges and policy implications in India

Biomass supply chain (BSC) management is an integral part of renewable energy projects, which include biomass-harvesting, collection, storage, processing and transportation to the bio-energy plants. The sustainability concept identifies economy, environment, and society as the three principal pillars of bioenergy. With an effective BSC implemented, all three dimensions of sustainability can be attained. Although, there’s been extensive research on the environmental sustainability of BSC, the economic aspects are under-represented in existing literature. So, an elaborate analysis on the economic viability of BSCs developed worldwide and those in India is critical, and needs to be studied. This review conducts a detailed accounting of the economic aspects of a BSC which includes the existing challenges in designing an environmental-cum-economically efficient BSC and strategies to address the issues. The Indian context has been studied on the BSC models, highlighting their shortcomings, while encapsulating the essential insights from global BSC models for a cost-effective BSC-to-bioenergy in India. Here, this review also emphasizes the policies supporting the BSC in India and forecasts the future biomass demand and supply. This review will provide stakeholders with critical insights on BSC and related challenges and assist them to investigate and devise strategies for successful implementation of BSCs in India.

Biomass↗
DOE OSTI2020

A High-resolution Regional Wave Resource Characterization For The U.S. West Coast

Objectives/Scope: Wave resource characterization is a critical step for wave energy converter deployment in the coastal ocean and relies on long-term, high-resolution wave datasets. This study presents a detailed modeling study of the wave resource along the U.S. West Coast (Washington, Oregon, and California), a coastal region that was identified with high wave energy potential in earlier studies. Methods, Procedures, Process: The wave hindcast covers a 32-year period from 1979 to 2010 and is based on a multi-resolution, unstructured-grid SWAN model framework. Model configuration closely follows and meets the requirements recommended by the International Electrotechnical Commission Technical Specification (IEC TS) for wave energy resource assessment and characterization (Class 2 - feasibility study). The model domain covers the entire U.S. Exclusive Economic Zone (EEZ) in the West Coast and has a spatial resolution varying from ~300 m in the nearshore region (20 km from the shoreline) to ~2500 m within the EEZ and ~5000 m at the open boundary, which extends beyond the EEZ. The model was forced by hourly 2-D wave spectra produced by a two-way nested WaveWatch III model, which covers the global ocean domain and the broader U.S. West Coast region domain with spatial resolutions of 0.5 degree and 10 arc-minutes, respectively. Both wave models are forced by hourly, 0.5-degree wind forcing obtained from NCEP’s Climate Forecast System Reanalysis (CFSR) product. Results, Observations, Conclusions: The standard model output for the SWAN model includes 3-hourly output for the six IEC wave resource parameters (e.g., omnidirectional wave power) at each grid point and hourly 2-D spectra at more than 50 NDBC buoys. Extensive model validation was achieved by comparing the six model-predicted IEC parameters with those derived from field observations at representative NDBC buoys. The error statistics indicated the model’s satisfactory performance. Further analyses were conducted to systematically evaluate the temporal and spatial distributions of wave energy potential and wave climate along the U.S. West Coast. Results suggest that Washington and Oregon coasts have similar nearshore wave resource, which is significantly higher than resources in Southern California. Strong seasonal variations are also observed, e.g., high wave energy tends to occur in the winter months. In summary, this study produced the first high-resolution, comprehensive dataset on wave energy distribution along the U.S. West Coast. Novel/Additive Information: The results are being used by the National Renewable Energy Laboratory to update the MHK Atlas, which was originally derived from NOAA’s 4-arc-minute WaveWatch III model output. In addition, the monthly averaged wave energy climatology dataset can be readily shared to support a variety of research and application efforts within the EEZ of the U.S. West Coast.

Wang, Taiping↗
DOE OSTI2022

2.2.5.401 - Ocean Observing Prize

The Powering the Blue Economy: Ocean Observing Prize is a $2.4M contest that challenges innovators to develop solutions that integrate marine renewable energy with ocean observation platforms to revolutionize our ability to monitor, manage, and understand the ocean. Competitors are challenged to design, build, and test novel, wave-powered, self-charging autonomous underwater vehicle (AUV) systems that could be suitable for a 6-month deployment in the Atlantic Ocean to monitor hurricane formation. Through engagement with the end user ocean observing community, the team identified challenges in a lack of data on storm intensity, endangering coastal communities. This challenge could be addressed by collecting data before, during, and after a hurricane develops and strengthens at sea. Amassing this data, however, requires an ocean observing system that can be deployed at sea for long periods, waiting for approaching storms. To help solve this problem, competitors are working to integrate wave energy capture with AUV systems to collect this data, helping to better protect coastal communities from oncoming storms. Solutions developed through this prize aim to enable long-term collection of data before, during, and after a hurricane that will help better forecast storm intensity. The prize mechanism provides an environment to accelerate technology development for innovators and helps to improve awareness of marine energy and its ability to provide power to blue economy applications.

coastal communities↗
DOE OSTI2026

California Price Response Potential Study

California's energy landscape is undergoing a significant transformation, driven by the increasing integration of renewable energy sources, the increased adoption of distributed energy resources, the electrification of end-use loads, and the growing need for grid efficiency. To address these challenges, recent revisions to the State’s Load Management Standards (LMS) require all of California’s large utilities and community choice aggregators (CCAs) to offer dynamic electricity pricing options to customers by 2027. Dynamic pricing, which involves varying electricity rates based on real-time supply and demand conditions, offers a promising solution for optimizing grid operations, reducing costs, and incentivizing efficient use of grid capacity. Effective implementation of dynamic pricing requires understanding the potential impacts on customer bills, system load, and the cost-effectiveness of automation technologies. This study aims to evaluate the load response of various end-use devices to hourly dynamic prices. The end-uses studied here are space cooling, space heating, water heating, crop irrigation, pool and spa pumps, and electric vehicle (EV) charging, all for both residential and commercial applications, except for crop irrigation. In 2030, these end uses are forecasted to account for 18% of annual electricity demand in the state, but 40% of demand in the peak net load hour. By modeling possible price-responsive load dispatch algorithms and assessing the resulting impacts on both individual bills and the overall grid, we seek to inform policymakers and utilities about the potential benefits and challenges associated with dynamic pricing, and considerations for the design of dynamic pricing tariffs. Additionally, we will explore the cost effectiveness of adopting automation technologies to enable devices to respond more effectively to real-time price signals. This study considers a range of price profiles, accounting for differences across utilities and customer classes, and presents scenarios for dynamic price design via variation in the percentage of total customer electric costs that are allocated dynamically (versus constituting a fixed portion of the hourly volumetric price). We present results focused primarily on 2030, forecasting electricity prices under both low and high-cost scenarios, to inform longer-term tariff design considerations. We design tariffs by starting with 2019 prices that were calculated according to CalFUSE guidance (CPUC, 2022) and that have been used in recent studies; these prices are all-in volumetric rates that vary by utility and are revenue-neutral to each customer class. They are developed by considering six electricity cost components that are allocated hourly based on system load indicators (gross and net load, and wholesale prices). These prices are forecasted to 2030 for low and high cost scenarios, considering recent trends in total electricity costs with and without years of substantial wildfire mitigation investments. These tariffs, which allocate all costs on an hourly basis, are considered our “Full” dynamic tariff design scenario, while two additional scenarios explore allocating a portion of costs as a flat volumetric charge: the “Medium” scenario allocates 50% of revenue dynamically (and keeps 50% flat), while the “Mild” scenario allocates 20% of revenue dynamically. The 20% dynamic allocation on the Mild scenario aims to represent a case where only the marginal operating costs of the grid are included in the dynamic price.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗