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At least 37 records · Page 2
All sourcesNASA NTRSDOE OSTI
DOE OSTI2021

A Comprehensive Framework for Valuation of Ecosystem Services in the Context of Hydropower

While models to value ecosystem services exist, they suffer from a lack of “portability” in the sense that a single modelling framework developed for one site cannot be imported and applied to another. Additionally, benefit estimations are often fragmented, incomplete, incomparable, and in heterogenous metrics, thus preventing aggregation to arrive at one comprehensive value. In the context of hydropower, the methods, as well as the metrics used to value the associated ecosystem services, vary between stakeholders (e.g., competing water users, agencies, etc.), detracting from the ability to assess the total value of a hydropower project, water management schemes, or comparing value between competing water users. Further, current methods to value water neglect non-market ecosystem services’ values by failing to account for externalities, resulting in misallocation of costs (e.g., obligatory stakeholder payments for water use) and misinterpretation of hydropower benefits. The benefit-cost ratios in hydropower development are often incomplete because non-market benefits are excluded (e.g., benefits, such as fish habitat resiliency and agricultural water reliability, derived from hydropower development). An approach to enable consistent, standardized hydropower benefit-cost analyses does not currently exist. This paper conceptualizes a methodology to standardize ecosystem services valuation in the context of hydropower projects through the integration of the U.S. Environmental Protection Agency’s existing Final Ecosystem Goods and Services Classification System framework and economic valuation techniques, and demonstrates the applicability of this methodology through a limited proof-of-concept application (the New Waddell Plant, a pumped hydroelectric energy storage facility in Phoenix, AZ). The beauty of our proposed framework lies in its ability to be imported and applied to any other pumped storage facility after accounting for site-specific features.

13 HYDRO ENERGY↗
DOE OSTI2026

Africa Battery Energy Storage Systems (BESS) Capacity Building Utility-Scale Storage: BESS Valuation, Tariffs, and Remuneration [Slides]

Utility-scale Battery Energy Storage Systems (BESS) are key to enhancing grid reliability, integrating renewable energy, and providing operational flexibility. Designing effective valuation, remuneration, and tariff frameworks is essential to ensure both system benefits and financial viability for developers. This presentation outlines a structured methodology for evaluating BESS projects, covering policy and legal considerations, cost and revenue analysis, benchmarking, financial sensitivity, and risk assessment, while ensuring alignment with public interest. It also explores valuation of multiple storage services - bulk energy, ancillary services, and infrastructure support - and monetization strategies through capacity payments, energy tariffs, tolling, arbitrage, and non-wires alternative payments. Technical factors, including round-trip efficiency, degradation, and storage duration, are integrated into financial and operational modeling to quantify both system-wide and project-level benefits. Through case studies and simulation-based approaches, this framework provides regulators, utilities, and developers with practical guidance for tariff design, payment structures, and investment decisions, maximizing the economic and societal value of BESS deployment.

25 ENERGY STORAGE↗
DOE OSTI2023

Valuation of Distributed Wind Turbines Providing Multiple Market Services

The role of wind turbines has traditionally been limited to providing energy capacity to the grid, but the availability of smart inverters and recent regulatory changes provide the technical and policy capability for wind turbines to also provide ancillary services. However, in contrast to the technical and policy aspects, the valuation of distributed wind turbines providing such services has not been thoroughly studied. This paper presents an optimal market-participation method for distributed wind turbines and valuates different strategies in California Independent System Operator’s balancing area. The services include energy capacity, regulation up and down, and reserves. An optimization problem is formulated to determine optimal power output for each service and demonstrated using historical data for one complete year. The revenues from multiple services are quantified, and a sensitivity analysis is performed to relate market prices with revenues. It is found that the optimal strategy generates 6% more revenue compared to the revenue from participating in the energy market only. Also, the reduced energy prices in future scenarios increase the relative importance of market participation in ancillary services.

Bhatti, Bilal Ahmad↗
DOE OSTI2019

A Valuation Framework for Informing Grid Modernization Decisions: Guidelines

Advances in technologies to provide electric power (e.g., renewable energy and battery storage), measurements and monitoring (e.g., synchrophasors, smart meters), communication (e.g., cellular service, Internet utilities), computing (powerful distributed microprocessors), and innovations in grid topologies and configurations (e.g., microgrids) have markedly changed the options available to provide electricity to end-users. The value propositions for electrical service have similarly become much more complex and diverse. The values of a grid design option can no longer be expressed by just using historical costemissions-reliability metrics. Nor can major decisions be made through closed analysis without consideration of the different stakeholders affected by a decision. This valuation framework provides a structure for valuation that is deliberate, inclusive, and transparent, documenting the intermediate and final results to ensure clarity, accountability and repeatability.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2022

Valuing Demand Flexibility During a Grid Disturbance: A Granular Approach to Resilience Valuation

As research continues to investigate how demand flexibility can aid in power system resilience so does the need for an approach to determine the value of resilience. This work utilizes visual modeling principles to model the value exchanges that take place within the system. These models can be used in analysis design as the foundation of a valuation analysis for each participant in the system. Utilizing a consistent approach for valuation will allow for different approaches in improving system resilience to be compared against each other in terms of economic outcomes of participants.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2021

Valuation of Wind Energy Turbines Using Volatility of Wind and Price

The limitedness of the nonrenewable local energy resources in Israel, even in the background of the later gas fields’ findings, continues to force the state to devote various efforts towards ‘green’ energy development. These efforts include installations, both for the solar and for wind energy, thus improving the diversity of energy sources. While the standard discounted cash flow (DCF) method using the net present value (NPV) criterion is extensively adopted to evaluate investments, the standard DCF method is inappropriate for the rapidly changing investment climate and for the managerial flexibility in investment decisions. In recent years, the real options analysis (ROA) technique has been widely applied in many studies for the valuation of renewable energy investment projects. Taking into account the above background, we apply, in this study, the real options analysis approach for the valuation of wind energy turbines and apply it to the analysis of wind energy economic potential in Israel, which is the context of our work. We hypothesize that due to nature of wind energy production uncertainties, the ROA method is better than the alternative. The novelty of this paper includes the following: real world wind statistics of the Merom Golan site in Israel (velocity 3.73 m/s, with a standard deviation of 2.03 m/s), a realistic power generation estimation (power generation of 1205.84 kW with a standard deviation of about 0.5% in annual value which is worth about 1.3 M$ per annum), and an economic model to evaluate the profitability of such a project. We thus discuss the existing challenges of diversifying renewable energy sources in Israel by adding wind installations. Our motivation is to introduce a method which will allow investors and officials to take into account uncertainties when deciding in investing in such wind installations. The outcomes of the paper, which are obtained using the method of Weibull statistics and the Black–Scholes ROA technique, include the result that market price volatility adds to the uncertainties much more than any wind fluctuations, provided that the analysis is integrated over a long enough time.

17 WIND ENERGY↗
NASA NTRS2023

Real Options Analysis for Valuation of Climate Adaptation Pathways With Application to Transit Infrastructure

Climate change and sea level rise (SLR) are expected to increase the frequency and intensity of coastal flood events, posing risks to coastal communities and infrastructure. While regional climate adaptation investments can provide substantive flood protection, existing plans often neglect uncertainty in future climate conditions and adaptation performance, consequently neglecting the option value of flexibly implementing proposed projects. Addressing this gap, we develop and employ a generalizable real options analysis (ROA) valuation framework that considers how uncertainty in adaptation project costs, SLR, flood severity, and flood losses inform the full range of adaptation performance outcomes. We further propose and apply a novel, computationally efficient flood loss sampling algorithm to estimate the consequences of randomly arriving coastal flood events. We apply this ROA framework to assess the option value of flexibly timing adaptation investments over time, investigating an adaptation pathway proposed by the City of Boston from the perspective of the regional transit system manager. Our results suggest that flexible implementation can provide significant option value in the near-to mid-term(>30 years), with highest option values under low-probability, high consequence scenarios. Our results also suggest adaptation pathway performance in the latter half of the 21stcenturyis most sensitive to uncertainty in sea level rise, flood loss estimates, and flood frequency, underscoring the importance of uncertainty quantification in the long-term valuation of adaptation investments.

Michael V. Martello↗
DOE OSTI2018

Impact of Dynamic Storage Capacity Valuation in Capacity Expansion Models

This presentation summarizes the motivation and results from the corresponding International Energy Workshop (IEW) conference paper CP-6A20-71462. Both the slide deck and paper discuss the impact of dynamic storage capacity valuation in capacity expansion models (CEMs), which are tools commonly used by power system planners, policymakers, and other stakeholders to inform decisions regarding the buildout of the electric grid. The objective of this analysis is to demonstrate the impact with a CEM of moving from a static storage capacity value (CV) to a curve-fitted approximation that captures the interactions between storage duration, PV penetrations, and storage penetration. We fit and then use those curves to calculate the battery storage CV as a function of the storage duration, storage penetration, and PV penetration. We use the Regional Energy Deployment System (ReEDS) model developed at the National Renewable Energy Laboratory (NREL) to show the impact of this improved storage capacity valuation on deployment. We also provide a curve fit equation for use by other modeling teams. This exogenous, but dynamic, approach is meant to be a first step in improving the representation of storage in CEMs.

14 SOLAR ENERGY↗
DOE OSTI2018

Impact of Dynamic Storage Capacity Valuation in Capacity Expansion Models: Preprint

This paper looks at the impact of dynamic storage capacity valuation in capacity expansion models (CEMs), which are tools commonly used by power system planners, policymakers, and other stakeholders to inform decisions regarding the buildout of the electric grid. The objective of this analysis is to demonstrate the impact with a CEM of moving from a static storage capacity value (CV) to a curve-fitted approximation that captures the interactions between storage duration, PV penetrations, and storage penetration. We fit and then use those curves to calculate the battery storage CV as a function of the storage duration, storage penetration, and PV penetration. We use the Regional Energy Deployment System (ReEDS) model developed at the National Renewable Energy Laboratory (NREL) to show the impact of this improved storage capacity valuation on deployment. We also provide a curve fit equation for use by other modeling teams. This exogenous, but dynamic, approach is meant to be a first step in improving the representation of storage in CEMs.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2020

Power-to-Gas System Valuation. Final Report

To provide a framework for evaluating the technical and financial benefits of a power-to-gas (P2G) system deployed in the Holyoke Gas and Electric (HG&E) system, Pacific Northwest National Laboratory modified its energy storage valuation tools to run a one-year simulation of P2G operations. The simulation was used to evaluate the benefits of P2G for multiple grid and industrial applications over the economic life of the unit, or units, depending on the asset configuration.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2022

Fragility Functions Resource Report: Documented Sources for Electricity and Water Resilience Valuation

Fragility curves provide the vulnerability between hazard intensity and an asset. Federal installations may include many different electricity and water infrastructure types (or assets) such as generators, wind turbines, solar PV, switch yards, substations and power lines as well as water distribution systems that could be affected by different hazards. The vulnerability of each asset is a function of its age, type of materials and maintenance. In addition, the vulnerability changes with the hazards intensity and has a probability distribution function associated with it. The fragility functions are used in conjunction with hazard probability and consequence valuations to determine the values at risk for examination of investment grade analyses of alternative mitigation strategies. This document provides examples of fragility functions and links to their sources for different electricity and water infrastructure assets by hazard type.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2025

Development of an Interactive Valuation Model for Distributed Energy Resource Value: Cooperative Research and Development (Final Report)

The Oklahoma Office of the Secretary of Energy and Environment (OSEE) seeks to address perceived challenges and barriers to the deployment of distributed energy generation resources (DERs), including solar and other technologies, in the state of Oklahoma. The Scope of Work (SOW) associated with CRD-18-762 covers two tasks: (1) Interactive Valuation Model Requirements Document and (2) Consumer Protection Assessment. Follow-on work was completed under a separate CRADA (CRD-19-00788).

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2026

Developing a Framework for Valuation of Grid Services

The electric system is rapidly evolving and growing, raising new questions about how to define and value grid services delivered by a diverse set of resources, including customer-owned assets. This report advances a service–parameter–value framework that links what a grid service does to why it matters, and how its benefits are evidenced. We build upon prior efforts (Bender et al. 2021) and extend them to include value categories (reliability, resilience, cost & access, and security) with primary and secondary tiers, service-specific value streams that explain how benefits materialize, and metrics that make valuation traceable and comparable. We apply the framework to the six core grid services defined in (Kolln et al. 2023): Frequency Response, Regulation, Reserves, Energy, Voltage Management, and Blackstart and demonstrate it on three use cases to highlight the adaptability of these value streams. Further, we outline how the framework integrates with existing tools such as asset optimization, hosting capacity and cost-benefit analysis, and propose a path to portable qualifications and consistent stacking rules for use in tariffs and filings. Finally, we identify future pathways for research and application research needs to support standardization and decision-ready comparisons across services, assets, and architectures.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2021

Photovoltaic (PV) System Levelized Cost of Energy (LCOE) Evaluation with Grid Support Function Valuation and Service Lifetime Estimation

Photovoltaic (PV) systems play a critical role in renewable energy resource grid integration, and levelized cost of energy (LCOE) is commonly used to evaluate PV system feasibility in modern power grids. In this work, a revised PV system LCOE calculation model is derived to quantify the potential of LCOE reduction. Particularly, the grid support functions are valuated to offset the investment and operation costs of PV systems, which thereby reduces the LCOE. Meanwhile, PV system service lifetime is also estimated with the derived PV inverter reliability model, considering the critical components (i.e., semiconductor devices and capacitors). The case studies with field datasets are conducted to validate the effectiveness of the developed LCOE calculation model.

Zhao, Shijia↗
DOE OSTI2026

Techno-Economic Evaluation of a 600MW Pumped Storage Hydropower Plant using the Pumped Storage Hydropower Valuation Tool

This paper presents a techno-economic evaluation of the proposed 600 MW, 8-hour Craig – Hayden pumped storage hydropower project using the U.S. Department of Energy’s Pumped Storage Hydropower Valuation Tool. The analysis integrates plant technical characteristics, regional grid conditions, and market-based operating assumptions to quantify stacked value streams from energy arbitrage, capacity, ancillary services, transmission congestion relief, and reliability. Both price taker and price influencer frameworks are applied to examine the impact of market participation and system interactions on lifecycle economic performance using Benefit - Cost Analysis and Multi - Criteria Decision Analysis. The results show that the price taker approach provides higher revenue estimates based on exogenous price signals, while the price influencer approach captures production cost savings, renewable curtailment reduction, and market price formation, yielding more conservative but system-representative outcomes. The study demonstrates the strategic value of long-duration PSH for enhancing operational flexibility, resource adequacy, and grid reliability in a high-renewable Western Interconnection.

Bhattacharyya, Arjun [ORNL] (ORCID:000900060976046↗
DOE OSTI2023

Energy Storage Sizing, Placement and Valuation for Distribution Networks

SAND2023-05682O The Energy Storage Sizing, Placement, and Valuation for Distribution software allows a user to simulate sizing, placement, and operation of one or more storage assets on a distribution grid. Among its features are measuring differences to determine the best combinations, and options for configuring and comparing results. This new simulation capability leverages the Open Distribution System Simulator and the Hierarchical Engine for Large-scale Infrastructure Co-Simulation (HELICS). Sandia National Laboratories is a multimission laboratory managed and operated by National Technology & Engineering Solutions of Sandia, LLC, a wholly owned subsidiary of Honeywell International Inc., for the U.S. Department of Energy’s National Nuclear Security Administration under contract DE-NA0003525.

Tamrakar, Ujjwol↗
DOE OSTI2021

The Value of Distributed Wind: A Valuation Framework

While there has been an increase in distributed energy resource (DER) adoption, particularly for solar photovoltaic (PV) DERs, distributed wind deployment is still relatively low. However, distributed wind has significant growth potential for behind-the-meter applications and can provide improved resource diversity and resilience in high-DER grid systems. In order to make optimized decisions about distributed wind deployment, it is important to identify and characterize the value streams of distributed wind in a way that will help policy makers, microgrid developers, utilities, project developers, and others understand the potential value of distributed wind. In our paper, we develop a framework to provide a consistent and comprehensive approach to finding the net benefits of distributed wind to various stakeholders in different scenarios. We do this by considering the main use cases for distributed wind, and then developing a framework which is flexible for these various use cases and the relevant stakeholders while maintaining the same overall structure for analysis. Ongoing work includes applying this framework to valuing two distributed wind power systems, one in a remote village in Alaska and one in a front-of-the-meter deployment in Iowa. Our analysis aims to understand the full value that distributed wind is providing in these systems, including the resilience benefits it is contributing. As a better understanding of distributed wind valuation is gained, it will be easier for stakeholders to make informed decisions in order to have resilient renewable energy systems.

17 WIND ENERGY↗