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At least 307 records · Page 17

Fish Friendly Water Rules' Impact On the Power Grid with High VRE Levels

Columbia River basin multipurpose reservoirs are operated for hydropower production and many other purposes considering the aquatic habitat of the river basin. Specifically, the river basin fish population is a vital element for the tribal community of the river basin. When conventional thermal power plants are retired, hydropower flexibility balances the wind and solar variability of the power grid and provides grid services to maximize the high renewable power absorption. On the other hand, over-reliance on hydropower could harm the river basin fish habitat. For example, water release pulses during peak electricity demand hours and shorter-term water release variation could harm the fish population. Power grid planners, environmentalists, Columbia Basin tribes, hydro regulators, and water resource planners work together to understand the impacts of Columbia River basin operation in a fish-friendly way in the current power grid and power grid with higher renewable power share. We examine different levels of renewable share in the Western Interconnection to understand the multiple weather years and future climate projection and operating scenario impact on the power grid and water system. We measure power grid impacts for various water resources planning scenarios in terms of total system operating cost, system reliability indicators, changes in wind and solar generation and curtailments, local marginal prices, and revenue for hydropower producers. The study results inform reservoir operating rules decisions from hydropower power producers, system operators, other water users, tribes, environmentalists, and other stakeholders.

environmental↗

Quantifying Risk in an Uncertain Future: The Evolution of Resource Adequacy

As our power grids transition toward a decarbonized energy mix, ensuring reliability and provision of grid services remains paramount. The power system has always been heavily influenced by the weather - extreme temperatures determine the timing of peak demand, winter cold snaps can limit natural gas supply, gas turbine reliability and output are affected by ambient conditions, and hydro output varies seasonally and annually. However, as the grid increasingly relies on variable renewable energy (VRE), like wind and solar, the attention to reliability and weather conditions is increasingly important. The implications of changing reliability are large. The Electric Reliability Council of Texas (ERCOT) rolling blackouts from earlier this year impacted millions of people across the state and could be seen from space (Figure 1).

hydraulic turbines↗

EXERGETIC: De-Risking Next-Generation Resilient Geothermal Hybrids via At-Scale Evaluation Using Virtual Emulation Digital Twin Environment for Efficient Operation

The DOE-GTO-funded project, award number 5.1.2.12, entitled "EXERGETIC - De-risking Next Generation Resilient Geothermal Hybrids via at-Scale Evaluation Using a Virtual Emulation Digital Twin Environment for Efficient Operation," advances the solution to these challenges by developing and validating a geothermal co-emulation environment implemented at the National Laboratory of the Rockies (NLR)'s Advanced Research on Integrated Energy Systems (ARIES) platform. This framework enables the de-risking of next-generation geothermal and geothermal hybrid systems through high-fidelity modeling, real-time digital emulation, advanced control strategies, and techno-economic assessment. The project focused on geothermal hybrid configurations that integrate geothermal power plants with concentrated solar power and underground thermal energy storage, enabling enhanced efficiency, flexibility, and grid support capabilities. The main goal of this project was the development of a geothermal digital co-emulation environment to demonstrate the technical and economic value of geothermal hybrid systems and their contribution to grid stability and flexibility. The EXERGETIC framework combined physics-based models, controls, and real assets at ARIES, including digital real-time simulators (DRTS), a 20-MW-scale controllable grid interface (CGI), and a 2-MW conventional generator. Detailed transient models were developed for the key subsystems of a hybrid geothermal plant, including parabolic trough solar collectors, reservoir thermal energy storage (RTES), and a binary Organic Rankine Cycle (ORC) power plant. The ORC model explicitly captured thermal inertia and off-design operation and integrated control strategies to dynamically respond to electric load profiles. The models were validated against published experimental and numerical studies, demonstrating strong agreement and confirming the accuracy and robustness of the modeling approach. The resulting digital twin represents geothermal-solar-storage systems at multiple scales (1 MW to 100 MW) and enables realistic emulation of grid-connected operation. The control architecture allows the geothermal resource to provide stable baseload generation, while solar and stored thermal energy supply flexible, dispatchable support during periods of high demand or variable grid conditions. A key contribution of the EXERGETIC project is the demonstration that geothermal hybrid systems can be designed to be active grid assets rather than passive baseload generators. Using the ARIES platform, the digital twin was evaluated under multiple grid scenarios, including load following, voltage support at the distribution level, and frequency response at the transmission level. Results show that hybrid geothermal systems can respond effectively to dynamic grid conditions, providing inertia-like behavior, primary frequency support, and voltage regulation through coordinated control. In addition to the performance and grid services capability analysis of geothermal and hybrid geothermal systems, the EXERGETIC project also focused on scalability and techno-economic analysis of geothermal hybrid plants. In particular, for the scalability analysis, machine-learning (ML)-based surrogate models were trained using data generated from the geothermal digital twin under different grid-connected scenarios and plant capacities. These ML models demonstrated strong interpolation and extrapolation capabilities across plant sizes, accurately reproducing both steady-state and transient responses with very low errors. Regarding the techno-economic analysis, plant performance results were integrated with cost models for hybrid geothermal systems, and the levelized cost of electricity (LCOE) was used as the main economic metric to evaluate system performance across a range of system capacities, solar shares, solar multiples, and storage durations. Results indicate that economies of scale significantly reduce geothermal LCOE as plant capacity increases, with large-scale systems (25-100 MW) achieving substantially lower costs than small plants. Hybridization with solar thermal energy and storage further improves economic performance by increasing capacity utilization and enabling flexible dispatch. In addition, thermal storage plays a critical role in reducing LCOE by maximizing geothermal, solar, and stored energy resources. In summary, the results from this project demonstrate that geothermal hybrid systems represent a promising alternative for increasing the energy conversion efficiency of geothermal technologies, contributing to the preservation of geothermal resources, and supporting the transition of geothermal plants from traditional baseload resources into flexible, resilient, and cost-competitive energy conversion technologies.

15 GEOTHERMAL ENERGY↗

Integration of Microgrids, DER Aggregators, and DERMS with ADMS

Distributed energy resource (DER) management and control is disjointed, siloed, and at times conflicting. Behind-the-meter (BTM) assets can provide significant flexibility but are poorly integrated with the grid. Centralized control methods alone are not scalable. The objective is to develop and demonstrate an architecture that: provides reliable, resilient, and secure grid services; enables scalable, near-real-time management of utility- and small-scale DERs; supports transactive control, aggregation, and direct control of DERs; and incorporates existing utility management systems.

ADMS↗

A Hybrid Optimization and Deep Learning Algorithm for Cyber-Resilient DER Control

With the proliferation of distributed energy resources (DERs) in the distribution grid, it is a challenge to effectively control a large number of DERs resilient to the communication and security disruptions, as well as to provide the online grid services, such as voltage regulation and virtual power plant (VPP) dispatch. To this end, a hybrid feedback-based optimization algorithm along with deep learning forecasting technique is proposed to specifically address the cyber-related issues. The online decentralized feedback-based DER optimization control requires timely, accurate voltage measurement from the grid. However, in practice such information may not be received by the control center or even be corrupted. Therefore, the long short-term memory (LSTM) deep learning algorithm is employed to forecast delayed/missed/attacked messages with high accuracy. The IEEE 37-node feeder with high penetration of PV systems is used to validate the efficiency of the proposed hybrid algorithm. The results show that 1) the LSTM-forecasted lost voltage can effectively improve the performance of the DER control algorithm in the practical cyber-physical architecture; and 2) the LSTM forecasting strategy outperforms other strategies of using previous message and skipping dual parameter update.

cyber-resilient algorithm↗

Fast Frequency Response using Reinforcement Learning-Controlled Wind Turbines

To fulfill the auxiliary grid services such as load regulation, spin and non-spin reserve, and frequency support during emergencies, power system operators often require certain wind farms to operate in de-loaded modes. By leveraging the fast response capability of wind farms, the reserved power in deloaded modes can significantly enhance the stability and reliability of power grids. This paper presents a novel methodology that incorporates wind turbines into reinforcement learning-based solutions for frequency response. The proposed approach employs the state-of-the-art reinforcement learning algorithm, surrogategradient- based evolution strategy (GSES), for continuous control of the wind farm output. Our methodology is tested on a modified IEEE-39 bus system, and simulation outcomes demonstrate that the proposed approach can reliably support the frequency of the power system and prevent unnecessary load shedding.

Gao, Wei↗

Systemwide Considerations for Electrification of Transportation in Islands and Remote Locations

Electric vehicles (EVs) represent an important socio-economic development opportunity for islands and remote locations because they can lead to reduced fuel imports, electricity storage, grid services, and environmental and health benefits. This paper presents an overview of opportunities, challenges, and examples of EVs in islands and remote power systems, and is meant to provide background to researchers, utilities, energy offices, and other stakeholders interested in the impacts of electrification of transportation. The impact of uncontrolled EV charging on the electric grid operation is discussed, as well as several mitigation strategies. Of particular importance in many islands and remote systems is taking advantage of local resources by combining renewable energy and EV charging. Policy and economic issues are presented, with emphasis on the need for an overarching energy policy to guide the strategies for EVs growth. The key conclusion of this paper is that an orderly transition to EVs, one that maximizes benefits while addressing the challenges, requires careful analysis and comprehensive planning.

33 ADVANCED PROPULSION SYSTEMS↗

Deep Reinforcement Learning Based Control of Wind Turbines for Fast Frequency Response

In order to fulfill vital auxiliary grid services, such as load regulation, spin and non-spin reserve provision, and frequency support during emergencies, there is often a requirement for certain wind farms to operate in de-loaded modes. Leveraging the swift response capabilities of wind farms, this study demonstrates that reserving power in de-loaded modes can significantly enhance power grid stability and reliability during system contingencies. Controlling wind farms optimally for frequency support is intricate due to the nonlinearity of models and controllers and the complexity of wind farm interactions with power systems. Here, to address this challenge, this paper introduces a novel approach that integrates wind turbines into reinforcement learning-based solutions for frequency response. This innovative methodology utilizes the state-of-the-art reinforcement learning algorithm known as the surrogate-gradient-based evolutionary strategy. The proposed learning-based algorithm provides continuous control of wind farm output to rapidly stabilize system frequency and prevent unnecessary trips of under-frequency load shedding relays. To facilitate efficient training, parallel computing techniques are employed. The proposed methodology is evaluated on a modified IEEE-39 bus system, and simulation results reveal its efficacy in reliably supporting power system frequency and preventing the need for unnecessary load shedding.

Gao, Wei [Argonne National Laboratory (ANL), Argon↗

TAS::89 0927::TAS RECOVERY - The Lean Green Energy Controller Machine

Achieving efficiency improvements and providing demand-response programs have been identified as key elements of our national energy initiative. The residential market is the largest, yet most difficult, segment to engage in efforts to meet these objectives. This project developed Energy Management System that engages the consumer and enables Smart Grid services, applications, and business processes to address this need. Our innovative solution provides smart controller providing dynamic optimization of energy consumption for the residential energy consumer. Our solution extends the technical platform to include a cloud based Internet of Things (IoT) aggregation of data sensors and actuators the go beyond energy management and extend to life style services provided through compelling mobile and console based user experiences.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Thermal and electric multidomain dynamic model for integration of power grid distribution with behind-the-meter devices

As renewable energy sources like solar and wind power become more integrated into the grid, coordinated control of behind-the-meter devices is crucial for enhancing grid flexibility and reliability and for meeting cost targets, with standardized models being developed to support this transition. The increasing flexibility and uncertainty of integrated renewable energy grids, along with interactions between various subsystems, make traditional steady-state modeling insufficient to capture transient and dynamic behaviors. Current models (e.g., composite load and battery equivalent models) focus on thermodynamic or electrical characteristics but overlook critical electromechanical interactions. This limits the ability to share performance information for grid services and hampers fast dynamic simulations. In addition, motor stalling is usually triggered by a fault event and attributed to the characteristics of the mechanical torque of the motor, resulting in absorption of a large amount of reactive power during the stalling period. Further, this significant withdrawal of reactive power will deteriorate the dynamic voltage stability of power grids and cause delayed voltage recovery. Therefore, an in-depth modeling of the thermodynamics or mechanical torque is essential to study the impacts of the realistic torque characteristics of those behind-the-meter devices on power system voltage stability. This study developed a dynamic multidomain model for building HVAC systems, such as air-source heat pumps, to simulate their thermal and electrical responses to grid transients. The model can accurately predict power metrics with a mean absolute percentage error of 10%, by validating against with power system computer-aided design performance data. Case studies demonstrate the model capability of capturing the transient response to sudden voltage changes, rapid load fluctuations, and system shutdowns respectively. During a sudden voltage drop (30% for 0.1s), a fully loaded heat pump’s motor speed dropped, continued declining, and shut down after 3.6s, with severe power oscillations and a torque spike. A partially loaded unit experienced temporary oscillations but stabilized. Under higher building loads, compressor speed increased from 64% to 100%, with power and torque rising before stabilizing. In safety-triggered shutdowns, power decreased after minor fluctuations, and torque briefly spiked before dropping to zero.

24 POWER TRANSMISSION AND DISTRIBUTION↗

ARIES / Flatirons Facility - Hydrogen System Capability Buildout

Under the "Advanced Research on Integrated Energy Systems" (ARIES) initiative, hydrogen system capabilities including a MW-scale electrolyzer, storage system, and MW-scale fuel cell generator will be designed and commissioned at NREL's Flatirons Campus. This hydrogen infrastructure will support H2@Scale goals by enabling integrated systems R&D to study the science of scaling for hydrogen energy systems.The system is designed with flexibility to provide a testbed to demonstrate systems integration, grid services, energy storage, direct renewable hydrogen production, and innovative end use applications (e.g. HD transportation, natural gas blending, etc.).

electrical grid↗

Valve Regulated Lead Acid Battery Evaluation under Peak Shaving and Frequency Regulation Duty Cycles

This work highlights the performance metrics and the fundamental degradation mechanisms of lead-acid battery technology and maps these mechanisms to generic duty cycles for peak shaving and frequency regulation grid services. Four valve regulated lead acid batteries have been tested for two peak shaving cycles at different discharge rates and two frequency regulation duty cycles at different SOC ranges. Reference performance and pulse resistance tests are done periodically to evaluate battery degradation over the time. The results of the studies are expected to provide a valuable understanding of lead acid battery technology suitability for grid energy-storage applications.

25 ENERGY STORAGE↗

Seminar 13 - Advanced Methods for Grid Integration of High-Performance Residential Communities

High-performance residential communities such as net-zero energy (NZE) and NZE-ready communities are emerging across the United States as many cities and states have committed to achieve ambitious energy efficiency and renewable energy goals between now and 2050. The achievement of these goals will transform the nation's communities into the holistic paradigms consisting of pervasive solar photovoltaics (PVs) and other renewable distributed energy resources, energy storage and flexible loads. However, integrating residential communities with high PV penetration may bring many challenges to the grid. For example, during many hours of the year, electric power is flowing out of PV-enabled homes and back into the grid. When this happens simultaneously in many nearby homes, distribution feeder voltage can be raised significantly. Intermittent solar power can also cause voltage flickers, leading to potential damages on both distribution feeder and home appliances. Existing solutions, such as PV curtailment, battery storage, and direct load control, are not able to address all the challenges in a cost-effective way. Better understanding is needed on how to deploy rooftop PV, how to predict building loads, and how to coordinate the homes in a community to enhance grid reliability. This seminar consists of four integral presentations that cover different aspects of a solution to these challenges. First, we will present an automated method to identify the best surfaces to deploy PV and size PV according to the PV penetration goals in a community. Second, we will present a streamlined way to create gray-box building models that are suitable for large-scale building-grid co-simulation. Next, we will present a data-driven method to estimate the end-use energy consumption to better coordinate the behind-the-meter resources to reduce utility cost, provide grid services, and improve renewable energy integration. Lastly, we will present a hierarchical control system that integrates the building models and the estimated non-dispatchable loads into the decision-making process to enhance the reliability and resilience of the residential community. Simulation results from an NZE-ready community in Fort Collins, Colorado will be presented in all four presentations and the guidelines on better grid integration of residential communities will be provided.

14 SOLAR ENERGY↗

Austin Sustainable and Holistic Integration of Energy Storage and Solar PV [Austin SHINES]. Final Report, Version 2

The Austin SHINES project and solution is a software management platform, for an electric grid with a high penetration of dispersed photovoltaic (PV) solar generation sites, which maintains the traditional power quality and reliability associated with grid service. This project developed and deployed the platform as a Distributed Energy Resource Management System (DERMS), engaging multiple advanced controls, to evaluate operation and optimization of a fleet of diverse DER assets, installed at several locations among Austin Energy’s customers and distribution system. The project also produced a methodology to create a replicable DERMS template, adaptable to other regions and market structures. Last, Austin SHINES aimed to demonstrate the solution’s methodology would enable the DER grid ecosystem to serve load at a technical cost (System Levelized Cost of Electricity, or System LCOE) of less than the U.S. Department of Energy SHINES program metric of $0.14/kWh, in a defined boundary, while enabling a high penetration of distributed PV. Research was categorized in 6 reports (Final Deliverables = FD) listed below, with titles and descriptions indicating which area of understanding was investigated: FD-1: System Levelized Cost of Electricity (System LCOE) Methodology The creation and use of the System LCOE to Serve Load metric that encompasses the holistic, system-level costs and benefits of all resources, and enables them to be evaluated based on their ability to support an efficient and low-cost integrated grid ecosystem. FD-2: Software Platform Product Description The creation of new DER control methodologies deployable within a utility-grade software platform that enable DER's to maximize their benefit within a grid, that is capable of serving load enabling a high penetration of distributed PV generation. FD-3: Optimal Design Methodology Optimal design methodologies for individual DER installations that enable utilities to determine the optimal combinations and sizing for individual DER sites. FD-4: Austin SHINES Ownership and Operation Models for DER System Performance A comparison of multiple DER aggregation and ownership methodologies including direct utility control, third-party aggregator, and autonomous. FD-5: Economic Modeling & Optimization A comparison of multiple DER technology mixes and configurations within the distribution system, providing insight into an optimal blend of technologies that best enable the distribution system to serve load at the lowest cost at high penetrations of solar. FD-6: Fielded Assets Deployed DER assets within the Austin Energy SHINES circuits. Austin SHINES provided an opening for state-of-the-art technology products to be deployed, providing a rich opportunity for improving how each of the products perform as stand-alone products, and in concert with other complementary products. The Austin SHINES project comprised of two key metrics for System LCOE: SystemLCOE_SHINES<$0.14/kWh Modeled ΔSystemLCOE_SHINES/ΔSystemLCOE_Base≥20% at same solar penetration The System LCOE calculation uses the costs of the utility-owned infrastructure as it exists today, the cost of the DERs that exist in the system today, and the cost of the purchase of energy from ERCOT wholesale markets over the course of the calendar year. All costs are on an annualized basis. The capital and operating costs are derived from the rate case, which produces a yearly cost. The net cost of energy and services imported to the system is integrated over the test year, as is the load served and solar penetration. The first metric was easily achieved by every scenario considered. The goal was set when the Department of Energy’s SHINES Funding Opportunity Announcement was written in 2015 and was a more difficult target at the time. Due mostly to rapidly declining costs for DERs and the significant decrease in the Electric Reliability Council of Texas (ERCOT) energy market prices, which results in lower net cost of energy purchases, the System LCOE is well below this target for all scenarios considered. A fleet of DERs can assume different mixtures, each of which serves the load at a different LCOE. The optimal mixture of DERs serves load at the smallest System LCOE. The second metric (hereinafter %delta metric) asks that the holistic DERMS controls reduce the incremental cost above the baseline of going to a high solar penetration future by at least 20% as compared to the case of a DER deployment with no sophisticated controls (autonomous). Many comparison sets were created throughout this project. Physical technology was installed for informing utility engineering and testing several types of operational control schemes, through the DERMS. The types of operational control which were compared for valuation of the System LCOE Metric were: Holistic control = using the full suite of the DERMS platform to decide and optimize how/why the systems operate depending on weather, market, and reliability signal input. Autonomous control = a local mode at the asset site, wherein a schedule operates the asset, with visibility into performance only No control = the baseline for comparing value against the other two types of control The types of ownership control included: Direct Utility control = the utility dispatches a signal to each asset Third-Party Aggregator = a third party aggregates a fleet of assets and the utility dispatches one signal for all Autonomous = a local mode is set for operation at the asset site, wherein a schedule operates the asset, with visibility into performance only The types of control methodologies deployable within a utility-grade software platform included: Utility Peak Load Reduction = Lower transmission cost obligation Day-Ahead Energy Arbitrage = Realize economic value through price differential Real-Time Price Dispatch = Realize economic value from real-time price spikes Voltage support = Reduce losses and increase solar generation Distribution Congestion Management = Increase local grid reliability Demand Charge Reduction = Lower customer bills and realize system benefit The fielded assets deployed for the project were: Utility Scale Kingsbery Energy Storage System: 1.5 MW / 3 MWh Li-Ion battery storage Mueller Energy Storage System: 1.75 MW / 3.2 MWh Li-Ion battery storage, 7 Energy Storage Units (250 kW each) La Loma Community Solar: 2.6 MW Commercial Scale Aggregated storage installations at 3 sites, with existing solar (300+ kW): One 18 kW / 36 kWh Li-Ion battery storage Two 72 kW / 144 kWh Li-Ion battery storage Residential Scale Aggregated storage installations: -Six stationary battery storage systems (10 kWh each) at homes with existing solar -One Electric Vehicle installed as Vehicle-to-Grid (V2G) Utility-Controlled Solar via Smart Inverters at 12 homes Autonomously-Controlled Smart Inverters at 6 homes Over the course of the project, Austin SHINES undertook installing more than 3 MW of distributed battery energy storage, smart PV inverters, a DER control platform, and other enabling technologies utilizing customer and utility locations and aggregation models. All of these resources were to be integrated and optimized at the utility level. DER assets and control methodologies were designed to achieve a credible pathway to a System LCOE for energy delivered to load of $0.14//kWh or less by 2020, while maximizing distributed solar generation and maintaining acceptable standards of power quality. The project also established a template for other regions to follow, to maximize the adoption of distributed solar PV in support of an economic and efficient grid. In total, the Austin SHINES project added value to the DER subject area in each layer of integration. From utility, to commercial to residential scales, the sheer hierarchy of communication and coordination was a significant accomplishment in addition to learnings from what these communications revealed was unique to each. Economically, the most effective method demonstrated was the criticality of planning phases. Contingencies and multiple projection scenarios helped guide the project to deploy optimal design as close as feasible, in real world conditions. The project and reports will serve public benefit by outlining specific areas of DER strategy and installation where many stakeholders and needs can be addressed with improved efficiency. Overall, communities and utilities should use the results to guide the increasing options available for powering the grid with DER, renewables, and carbon considerate energy.

14 SOLAR ENERGY↗

Analysis of System and Interoperability Impact from Securing Communications for Distributed Energy Resources

As the power grid incorporates increasing amounts of distributed energy resources (DER) that provide new generation sources, new opportunities are created for improving operation of the grid while large challenges also arise for preserving grid reliability and security. To improve grid performance, DERs can be utilized to provide important support functionality, such as supporting frequency and voltage levels, especially if they are assisted by communication schemes as part of an advanced distribution management system (ADMS). Unfortunately, such connectivity and grid support functionality also creates additional cyber security risk with the potential for degradation of grid services, especially under conditions with high amounts of distributed generation. This paper will first discuss the communications needed by DERs to support system and interoperability objectives, as well as the security requirements and impact of securing these communications. Some common security mechanisms are discussed in relation to DERs, and a simulated 15-bus model of a distribution feeder is used to demonstrate aspects of the DER communications and impact to grid performance. These results help to advance understanding of the benefits, requirements, and mechanisms for securely implementing DER communications while ensuring that grid reliability is maintained.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Nuclear-Renewable Energy Systems Secondary Product Market Analysis Study

In order to properly create a program surrounding the development of any technological concept it is necessary to fully understand the market in which it is being developed. In the case of Integrated Nuclear-Renewable Hybrid Energy Systems (HES), there are two economic markets in which it must be able to participate in: the electricity market and the secondary product market associated with the specific system. The purpose of the present report is to characterize the secondary product market in the U.S. and to provide recommendations for further developing the HES program. While HESs have been discussed in depth in many other reports, it is helpful to discuss them briefly in the present work [REF]. The concept of the HES can be deduced to a system, featuring a combination of a nuclear power plant, a renewable energy source, and an industrial manufacturing plant . The system is designed in a fashion that allows it either to produce electricity or to manufacture a secondary product as needed. The primary benefit of this concept lies in its ability to maximize economic performance of the integrated system and to manufacture products in a carbon-free manner. A secondary benefit is the enhanced supply-side flexibility gained by allowing the HES to economically provide grid services. A key tenant to nuclear power plant economics in today’s electricity market is their ability to operate at a very high capacity factor. Unfortunately, in regions with a high penetration of renewable energy, the carbon free energy produced by nuclear power may not be needed at all times. This forces the nuclear power plant to find a user for its excess capacity. This may include paying the electric grid to find a user, releasing energy to the environment by ‘dumping steam’, or reducing power. If the plant is unable to economically or safely do any of these actions, the plant is at risk of being shutdown. In order to allow for nuclear power plants to continue to contribute carbon free electricity to the grid in a future with high renewable energy penetration, HESs allow for excess capacity to be diverted to a chemical process. If the chemical products sold on the market replace those sold previously – which would be the case if a currently operating manufacturing plant was modified to be a HES component – then the products would now be produced with reduced emission of carbon and other greenhouse gases. There are several key economic barriers that must be surmounted for HESs to be developed. The two primary barriers are the increased capital cost associated with coupling and controlling the HES components and the decreased utilization of the manufacturing plant capital due to intermittent energy delivery . Because of this, manufacturing plants that are less complex and have smaller non-variable operations and capital costs may be more attractive for integration. A secondary economic barrier for the HES is the market availability for its products. The system must operate a region where there is either an intermittent demand for its electricity, an intermittent demand for its secondary product, or both. In a region with an intermittent demand, product prices should shift accordingly, making it less attractive to produce one of the products. The HES then can shift production in order to maximize profit. Without an intermittent demand for at least one of its products, there would be little need for it to expend the extra capital required for integration as an HES.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

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

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

13 HYDRO ENERGY↗