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At least 289 records · Page 16

Fundamental Drivers of the Cost and Price of Operating Reserves

Operating reserves impose a cost on the electric power system by forcing system operators to keep partially loaded spinning generators available for responding to system contingencies variable demand. In many regions of the United States, thermal power plants provide a large fraction of the operating reserve requirement. Alternative sources of operating reserves, such as demand response and energy storage, may provide more efficient sources of these reserves. However, to estimate the potential value of these services, the cost of reserve services under various grid conditions must first be established. This analysis used a commercial grid simulation tool to evaluate the cost and price of several operating reserve services, including spinning contingency reserves and upward regulation reserves. These reserve products were evaluated in a utility system in the western United States, considering different system flexibilities, renewable energy penetration, and other sensitivities. The analysis demonstrates that the price of operating reserves depend highly on many assumptions regarding the operational flexibility of the generation fleet, including ramp rates and the fraction of fleet available to provide reserves.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Using Residential Solar PV Quote Data to Analyze the Relationship Between Installer Pricing and Firm Size

The vast majority of U.S. residential solar PV installers are small local-scale companies, however the industry is relatively concentrated in a few large national-scale installers. We develop a novel approach using solar PV quote data to study the price behavior of large solar PV installers in the United States. Through a paired differences approach, we find that large installer quotes are about higher, on average, than non-large installer quotes made to the same customer. The difference is statistically significant and robust after controlling for factors such as system size, equipment quality, and time effects. The results suggest that low prices are not the primary value proposition of large installer systems. We explore several hypotheses for this finding, including that large installers are able to exercise some market power and/or earn returns from reputations.

14 SOLAR ENERGY↗

Stochastic Continuous-time Flexibility Scheduling and Pricing in Wholesale Electricity Markets

Large-scale integration of intermittent renewable energy sources (RES) is calling for additional flexibility resources as well as more advanced modeling and optimization techniques to account for the increasing uncertainty and variability in power systems operation. As the RES integration gains momentum, the magnitude and frequency of their variations increase, which may trigger ramping scarcity events in real-time power systems operation. This necessitates revisiting the present definition of power systems flexibility and reserve services to reflect their robustness and adequacy towards sub-interval variations of the load and RES, as well as adjusting the operation models to accommodate the new reserve services. This project took a fundamental approach and aimed at developing continuous-time scheduling and pricing model that accurately models the continuous-time variations of load and RES and efficiently deploys the ramping capability of flexible resources to compensate the sources of variability and uncertainty in the market. In this regard, this project pursued the following goals: Developing stochastic multi-fidelity continuous-time optimization models for scheduling of energy storage (ES) systems and flexible loads in wholesale energy markets; Developing the theory and practices of continuous-time locational marginal pricing for valuating energy storage systems and flexible loads in wholesale energy markets; Developing function space solution approach to convert the proposed stochastic multi-fidelity continuous-time optimization models into tractable mixed-integer linear optimization models; and Defining flexibility reserve as a new type of reserve in markets that would enable ultimate participation of energy storage devices in provision of services to compensate the variability and uncertainty of RES in electricity markets. This project successfully completed all five major tasks defined in the SOPO, and produced 8 high-impact journal papers, 6 conference papers, 3 published U.S. patents, and one web-based software for continuous-time operation optimization of power systems. The application of the proposed flexibility reserve and the stochastic multi-fidelity continuous-time operation scheduling models would modify the forward commitment and schedule of generating units, ES devices and flexible loads, and would line up the resources in such a way that the composition of available resources is better prepared to respond to the sub-hourly variations of the load and renewable resources in real-time operation. Therefore, this project paves the way to sustainable, reliable, and economic integration of renewable energy resources in power system, supporting the progress towards reaching the national targets on energy independence. Even if the proposed models offers a radically different point of view as compared to existing models, it does not alter fundamentally the architecture of power systems operations, nor the complexity of the scheduling problem, so the integration of this project in power systems is extremely practical.

24 POWER TRANSMISSION AND DISTRIBUTION↗

U.S. Solar Photovoltaic System and Energy Storage Cost Benchmarks, With Minimum Sustainable Price Analysis: Q1 2022

NREL's bottom-up cost models can be used to assess the minimum sustainable price (MSP) and modeled market price (MMP) of PV and storage systems having various configurations. MSP can be used to estimate future potential cost-reduction opportunities for PV and PV-plus-storage systems, thus helping guide research and development aimed at advancing cost-effective system configurations. MMP can be used to understand the cost of systems under recent market conditions. The MSP data in this annual benchmarking report will be used to inform the formulation of, and track progress toward, the Solar Energy Technologies Office's Government Performance and Reporting Act cost targets.

14 SOLAR ENERGY↗

Consumer Choice of E85 Denatured Ethanol Fuel Blend: Price Sensitivity and Cost of Limited Fuel Availability

The promotion of greater use of E85, a fuel blend of 85% denatured ethanol, by flex-fuel vehicle owners is an important means of complying with the Renewable Fuel Standard 2. A good understanding of factors affecting E85 demand is necessary for effective policies that promote E85 and for developing models that forecast E85 sales in the United States. In this paper, the sensitivity of aggregate E85 demand to E85 and gasoline prices is estimated, as is the relative availability of E85 versus gasoline. The econometric analysis uses recent data from Minnesota, North Dakota, and Iowa. The more recent data allow a better estimate of nonfleet demand and indicate that the market price elasticity of E85 choice is substantially higher than previously estimated.

09 BIOMASS FUELS↗

The Effect of Agricultural Growing Season Change on Market Prices in Africa

Local agricultural production is a key element of food security in many agricultural countries in Africa. Climate change and variability is likely to adversely affect these countries, particularly as they affect the ability of smallholder farmers to raise enough food to feed themselves. Seasonality influences farmers' decisions about when to sow and harvest, and ultimately the success or failure of their crops. At a 2009 conference in the United Kingdom hosted by the Institute of Development Studies, Jennings and Magrath (2009) described farmer reports from East Asia, South Asia, Southern Africa, East Africa and Latin America. Farmers indicate significant changes in the timing of rainy seasons and the pattern of rains within seasons, including: More erratic rainfall, coming at unexpected times in and out of season; Extreme storms and unusually intense rainfall are punctuated by longer dry spells within the rainy season; Increasing uncertainty as to the start of rainy seasons in many areas; Short or transitional second rainy seasons are becoming stronger than normal or are disappearing altogether. These farmer perceptions of change are striking in that they are geographically widespread and are remarkably consistent across diverse regions (Jennings and Magrath, 2009). The impact of these changes on farmers with small plots and few resources is large. Farming is becoming riskier because of heat stress, lack of water, pests and diseases that interact with ongoing pressures on natural resources. Lack of predictability in the start and length of the growing season affects the ability of farmers to invest in appropriate fertilizer levels or improved, high yielding varieties. These changes occur at the same time as the demand for food is rising and is projected to continue to rise for the next fifty years (IAASTD, 2008). Long-term data records derived from satellite remote sensing can be used to verify these reports, providing necessary analysis and documentation required to plan effective adaptation strategies. Remote sensing data can also provide some understanding of the spatial extent of these changes and whether they are likely to continue. Given the agricultural nature of most economies on the African continent, agricultural production continues to be a critical determinant of both food security and economic growth (Funk and Brown, 2009). Crop phenological parameters, such as the start and end of the growing season, the total length of the growing season, and the rate of greening and senescence are important for planning crop management, crop diversification, and intensification. The World Food Summit of 1996 defined food security as: "when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life". Food security roughly depends on three factors: 1) availability of food; 2) access to food and 3) appropriate use of food, as well as adequate water and sanitation. The first factor is dependent on growing conditions and weather and climate. In a previous paper we have investigated this factor by evaluating the effect of large scale climate oscillation on land surface phenology (Brown et al., 2010). We found that all areas in Africa are significantly affected by at least one type of large scale climate oscillations and concluded that these somewhat predictable oscillations could perhaps be used to forecast agricultural production. In addition, we have evaluated changes in agricultural land surface phenology over time (Brown et al., 2012). We found that land surface phenology models, which link large-scale vegetation indices with accumulated humidity, could successfully predict agricultural productivity in several countries around the world. In this chapter we are interested in the effect of variability in peak timing of the growing season, or phenology, on the second factor of food security, food access. In this chapter we want to determine if there is a link between market prices and land surface phenology and to determine which markets are vulnerable to land surface phenology changes and variability and which market prices are not correlated.

Prices↗

Optimizing Transportation Networks for E-Waste Reverse Logistics: A Multi-Modal Cost Allocation and Pricing Strategy

The exponential growth of electronic waste (e-waste) poses critical challenges for sustainable reverse logistics and transportation network optimization. This study develops a dual-channel transportation framework for e-waste logistics that integrates dynamic freight pricing, cost allocation mechanisms, and game-theoretic coordination. The model captures interactions between centralized hubs and distributed processing networks, accounting for freight rate elasticity, volume allocation, and capacity constraints. Using Stackelberg game theory and cost-sharing strategies, the framework optimizes transportation efficiency and profit distribution across logistics channels. Numerical simulations show that the dual-channel structure increases centralized hub profit by 226.8% compared to baseline single-channel operations, while boosting total transported volume by 1.2% and nearly doubling freight collector profit under cost-sharing. Scenario analyses across regional infrastructures reveal that network density, policy incentives, and logistics costs shape routing efficiency and profit allocation. These findings suggest that coordinated strategies combining dynamic pricing, targeted infrastructure investment, and strategic cost allocation are needed to design efficient, resilient, and regionally adaptable e-waste transportation systems.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Effect of biomass liquefaction on glucose and xylose prices predicted by National Renewable Energy Laboratory biochemical sugar model

Abstract The National Renewable Energy Laboratory (NREL) published a model in 2017 that enables the minimum selling price of lignocellulosic sugar to be calculated. The model can be modified to suit any biomass feedstock and operational design. In the present case, the model is used to understand the economics of a process configuration that incorporates liquefaction as a preprocessing step in corn‐stover‐fed biorefinery. This study demonstrates a quantitative approach utilizing an existing biorefinery setup to simulate the biomass liquefaction technique while estimating the price of the resulting sugar product. The objective is to understand whether the addition of liquefaction methodology – and the substitution of acid pretreatment – can reduce the cost of lignocellulosic sugars. The reason for setting up a liquefaction unit at the start is to reduce the yield stress of biomass slurry so that the flow remains unrestricted downstream. The liquefaction process is also unique because it uses no chemicals and saves the cost of pretreatment. The pretreatment step is bypassed because the output of liquefaction can be fed into enzyme hydrolysis just after simple cooking. The liquefaction process can be performed in three modes: enzyme, enzyme mimetic, and a combination of enzyme and enzyme mimetic. The results from the BC1707 model indicate the minimum cost for the enzyme liquefaction route. © 2022 The Authors. Biofuels, Bioproducts and Biorefining published by Society of Industrial Chemistry and John Wiley & Sons Ltd.

09 BIOMASS FUELS↗

Hedonic Price Estimates of Lake Water Quality: Valued Attribute, Instrumental Variables, and Ecological-Economic Benefits

We estimate the effect of lake water quality on residential housing prices using cross-sectional data on water clarity from 113 lakes across the United States. An instrumental-variables approach is developed to address potential endogeneity bias in the water-clarity variable. Three lake-based physical variables serve as instrumental variables: total nitrogen concentration in lake water, total phosphorus concentration in lake water, and water temperature near the lake surface. The econometric results include three methodological findings: the instruments are valid and strong; the ordinary-least-squares estimate of the coefficient on the water-clarity variable is unbiased; and water clarity is the attribute of water quality valued in the housing market. The estimated water-clarity effect shows that a one-tenth of a meter change in water clarity leads to a one-percent change in housing price, or an elasticity of 0.20 at mean clarity. Coupling this effect with estimates of an ecological production function, a lake-specific benefit index is developed that shows the effect on housing values of bringing lakes into compliance with the US Environmental Protection Agency's regional recommendations for phosphorous concentration in lake waters.

54 ENVIRONMENTAL SCIENCES↗

Reflecting on mainstreaming through environmental appraisal in times of financial crisis — From ‘greening’ to ‘pricing’?

The issue of mainstreaming has witnessed a revival over the last few years, not least because the latest financial crisis has triggered a renewed enthusiasm and a remarkable comeback amongst policy-making and environmental appraisal (EA) communities. Traditionally, environmental mainstreaming is linked to ideas of (environmental) integration and to the ‘greening’ of public policies. Yet, more recent mainstreaming efforts are building on the idea that the achievement of economic growth and of social well-being is not only dependent upon the protection of the environment, but on the fact that the environment should be valued as a source of goods and a provider of services, as well. In this context and despite the many shortcomings that EA has experienced as a mainstreaming tool over the last two decades, calls for EA to engage with ecosystem services and incorporate pricing valuations in its approach to mainstreaming are emerging, raising questions about the role and purpose of EA as an environmental mainstreaming tool. This paper aims to reflect on the role of EA as a mainstreaming tool, in terms of the extent to which it is mainstreaming the environment into policies for sustainable development and changing ‘the mainstream’ by breaking down the false dichotomy of environment and (economic) development. If mainstreaming through EA was to incorporate both greening and pricing logics, could EA be more effective in reframing the environment and development as correlated variables rather than competing variables? -- Highlights: ► Mainstreaming is witnessing a revival over the last few years and a comeback amongst environmental appraisal communities. ► Mainstreaming efforts through environmental appraisal have failed to challenge the deeply rooted belief in economic growth. ► Recent mainstreaming efforts are incorporated in “green deals” following ecological modernisation discourses. ► Environmental appraisal is urged to embrace ecosystem service approaches prompting a rethink of its advocacy role and purpose.

54 ENVIRONMENTAL SCIENCES↗

Co-benefits of subnationally differentiated carbon pricing policies in China: Alleviation of heavy PM 2.5 pollution and improvement in environmental equity

Carbon policies differentiated according to regional disparities have been recognized and recommended. However, the air quality co-benefits of differentiated policies remain unclear. Here we combine a multi-regional dynamic computable general equilibrium (CGE) model and an extend response surface model (ERSM) to investigate the impact of nationally uniform and subnationally differentiated carbon pricing policies on fine particulate matter (PM 2.5 ) concentrations in China. All policies examined lead to the same accumulated national CO 2 emissions (2020–2050), with the 2030 emissions attaining China's national abatement target. We find that, when subnational policies differentiated according to provincial PM 2.5 concentrations are implemented, the higher-than-average carbon price over more polluted provinces results in twice as much reduction in CO 2 and air pollutant emissions in 2050 as the national policy. As a result, the subnational policies cause larger PM 2.5 concentration reductions in these provinces (9%–18%) than the national policy (7%–11%). Also, the subnational policies eliminate high PM 2.5 exposure of over 45 μg/m 3 which 12% people suffer from under the national policy. Overall, the subnational policies substantially reduce regional disparity in PM 2.5 pollution and hence improve environmental equity. The results suggest that subnationally differentiated carbon policies are a promising instrument to mitigate severe pollution and promote environmental equity.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Managing weather- and market price-related financial risks in algal biofuel production

Large-scale algae production has garnered interest due to its potential as a biofuel feedstock. Previous research assessing the profitability of algae products has been mostly based on values averaged over time, but algae production and resulting financial returns exhibit significant variability due to weather and fluctuations in selling prices for algae-based products. In other sectors, producers often reduce weather- and market price-related financial risk with financial instruments such as insurance, but little research has been performed on the design of insurance products to protect algae producers. Furthermore, this study develops a novel index-based insurance instrument that pays-out during unfavorable weather and market conditions, then explores the instrument's effectiveness, combined with a cash reserve, in reducing revenue stream variability for an algae producer. Results indicate that a biophysically based index-insurance product tailored to the specific financial risks in algae production can reduce variability in net revenues and can do so at a lower cost than relying solely on cash reserves, the most common financial risk management tool. Assessing the performance of index-insurance in algae production is particularly timely given the passage of the 2018 Farm Bill, which newly opens opportunities for the USDA to provide crop insurance to algae producers.

09 BIOMASS FUELS↗

Roadmap for Deployment of Modularized Hydrothermal Liquefaction: Understanding the Impacts of Industry Learning, Optimal Plant Scale, and Delivery Costs on Biofuel Pricing

Hydrothermal liquefaction (HTL) is a promising technology for converting abundant organic wastes into fuels. Previous techno-economic analyses (TEAs) of HTL have been used to estimate the minimum fuel selling price (MFSP) of biofuel products, but these analyses often assume a bespoke plant design where each plant operates under unique process conditions and neglect transportation costs. However, transportation costs must be included in realistic TEAs, and further, a mass-produced fixed-scale modular plant design approach may be more effective than case-by-case plant design, provided that there is sufficient market capacity to benefit from modularization. This study estimates fuel price behavior in the presence of transportation costs and benefits stemming from modular plant design. This analysis indicates that a modular process capable of handling 60 dry tons per day (DTPD) is optimal, resulting in a ~25% reduction in MFSP (from $4.70/GGE, fully upgraded) at complete market feedstock utilization compared with case-by-case design. The associated cost reductions are attributable to learning benefits and modularization. Several HTL deployment “roadmaps” are then explored, with each roadmap consisting of different periods of case-by-case design followed by adoption of a modularized approach. A period of nonmodular industry growth up to market saturation of ~7% followed by implementation of modular plant design strikes a balance between the investment risk and learned cost reductions associated with modular plant design. However, if bespoke plants built during this period of nonmodular growth saturate more than 23% of available feedstock, learned cost reductions are significantly diminished. Here, this study points to the potential benefits of modularized and decentralized waste-to-energy processes when the modularization follows an optimal deployment strategy.

09 BIOMASS FUELS↗

Visualizations for Real-time Pricing Demonstration

In this paper, the visualization tools created for monitoring the operations of a real-time pricing demonstration system that runs at a distribution feeder level are presented. The information these tools provide gives insights into demand behavior from automated price responsive devices, distribution feeder characteristics, impact of weather on system’s development, and other significant dynamics. Given the large number of devices that bid into a feeder-level real-time electricity market, new techniques are explored to summarize the present state of the system and contrast that with previous trends as well as future projections. To better understand the system behavior and correctly inform decision-making procedures, effective visualization of the data is imperative.

Marinovici, Maria C.↗

Stochastic Pricing Game for Aggregated Demand Response Considering Comfort Level

In recent years, demand response (DR) has been explored as a fundamental strategy for demand-side management due to its advantages in mediating intermittency of renewable energy generation, load shifting, etc. To engage customers in DR programs, several deterministic price-based DR strategies have been developed and implemented. However, the stochastic weather conditions and occupants' consumption behaviors often make the deterministic solution less robust to uncertainties. In this paper, with the consideration of the uncertainties, a stochastic Stackelberg game is proposed to model the price-demand negotiation between a distributed system operator and load aggregators, where the virtual battery constraints are extracted from the building thermostatically controlled loads (TCLs)‘ characteristics to guarantee comfortable TCLs' levels. Following the negotiation, a priority-based control method is used to allocate the optimal aggregated power DR profile at the building level and track the power signal. Several groups of experiments have demonstrated the effectiveness and robustness of the stochastic solutions.

Chen, Yang↗

Scheduling and Pricing for Expected Ramp Capability in Real-Time Power Markets

Higher variable renewable generation penetrations are occurring throughout the world on different power systems. These resources increase the variability and uncertainty on the system which must be accommodated by an increase in the flexibility of the system resources in order to maintain reliability. Many scheduling strategies have been discussed and introduced to ensure that this flexibility is available at multiple timescales. To meet variability, that is, the expected changes in system conditions, two recent strategies have been introduced: time-coupled multi-period market clearing models and the incorporation of ramp capability constraints. To appropriately evaluate these methods, it is important to assess both efficiency and reliability. But it is also important to assess the incentive structure to ensure that resources asked to perform in different ways have the proper incentives to follow these directions, which is a step often ignored in simulation studies. Here we find that there are advantages and disadvantages to both approaches. We also find that look-ahead horizon length in multi-period market models can impact incentives. This paper proposes scheduling and pricing methods that ensure expected ramps are met reliably, efficiently, and with associated prices based on true marginal costs that incentivize resources to do as directed by the market. Case studies show improvements of the new method.

25 ENERGY STORAGE↗

Iteration-based Linearized Distribution-level Locational Marginal Price for Three-phase Unbalanced Distribution Systems

Distributed energy resources (DERs) are rocking the utilities’ business landscape. It calls for competitive market environments that incentivize DERs to form maximum operating efficiency. Among proposed pricing schemes, distribution-level locational marginal price (DLMP) is effective in signaling the marginal generation cost differences driven by energy losses and network constraints. It can be derived from a distribution-level optimal power flow (OPF) framework, as it essentially presents the sensitivity of optimized generation cost towards incremental loads. However, due to the high resistance-to-inductance ratio and unbalanced characteristics of distribution networks, computational affordable DLMPs are highly challenged. This article provides a linear-approximated DLMP that can be solved efficiently and generalized to account for reactive power flow, three-phase unbalanced loads and meshed network structure. The successive linear programming technique is introduced to enhance the model accuracy. Case studies on an IEEE 123-Bus system validate its accuracy against a nonlinear benchmark and capability in offering proper incentives.

24 POWER TRANSMISSION AND DISTRIBUTION↗