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All sourcesNASA NTRSDOE OSTI
DOE OSTI2025

Net Present Value Optimization of a Natural Gas Combined Cycle Plant with CO 2 Capture using a Water-Lean Solvent Considering Transient Electricity Price for Multiple Regions

Global CO 2 emissions are increasing at about a 1.5% rate per year. Fossil fuel-based plants are one of the main contributors to this rise. In the power generation industry, fossil fuel plants are dominant, and many plants are under development. In this study, a natural gas combined cycle (NGCC) power plant with postcombustion capture using a leading water-lean solvent is considered. For optimal design and operating schedule, large-scale dynamic optimization is undertaken for net present value (NPV) optimization. The first principle dynamic model of NGCC is developed, including a model of the highly efficient H-class gas turbines. For computational tractability of the dynamic optimization problem, a reduced-order model is developed by using the Hankel singular value decomposition. A waterlean solvent, N-(2-ethoxyethyl)-3-morpholinopropan-1-amine, is used for carbon capture. A model of the capture system is developed in Aspen Plus, which is used to develop a reduced-order model by using ALAMO, a machine learning software. In addition, a reduced model of the CO 2 compression system with a dehydration unit is also considered. The integrated system is used for NPV optimization by using the Python-based PYOMO platform. The PCC process is analyzed for three configurations-conventional packed bed, rotating packed bed (RPB), and a combination of RPB and direct contact cooler. The NPV optimization is performed for 14 regional markets by considering year-long clustered and continuous locational marginal price data with a 1 h interval. Optimization results show that the PCC can achieve 90% CO 2 capture with a positive NPV for six regions. Sensitivity studies conducted by using the PCC configurations indicate that the process is economically feasible for 9 regions out of 14 regional electricity markets with NPV values in the range of 33−540 $MM.

cabon capture↗
DOE OSTI2023

Stochastic Price Generation for Evaluating Wholesale Electricity Market Bidding Strategies

This work presents a novel method for generating electricity price scenarios from statistical properties of past electricity prices using a hybrid statistical and reduced-form stochastic model. Previous work in applying stochastic differential equations (SDE) to model electricity prices has focused on daily average prices. To extend stochastic price generation methods to hourly or sub-hourly pricing, we address several weaknesses in the state-of-the-art: (1) we replace the mean-reversion component of the SDE with an ARIMA process that is better able to characterize the daily and weekly trends; (2) we extend the price-spike, or jump process to account for conditional probabilities of price spikes occurring in consecutive time steps by replacing the traditional Poisson process for modeling jumps with a generalized point process model inspired by brain neuron models; and (3) we replace the traditional method of estimating spike intensity with empirical variance with a Markov process based on observed price spike intensity transitions. The method is demonstrated with electricity prices from the US ERCOT market and a use-case example is provided for bidding an energy storage unit into the day-ahead and real-time energy markets of ERCOT using stochastic optimization methods. Results show that the the synthetic price model out performs a (naive) persistence forecast model by resulting in 24% to 47% more in profits over 168 simulated days.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2023

A Machine Learning Framework to Deconstruct the Primary Drivers for Electricity Market Price Events

As the electricity grid is moving towards a 100% Renewable Energy Source Bulk Power Grid, the overall operations of the power system operations and electricity markets are changing. The electricity markets are not only dispatching resources economically but also taking into account various controllable actions like renewable curtailment, transmission congestion mitigation, and energy storage optimization to make sure the grid is operating reliably. As a result, price formations in electricity markets have become quite complex. Traditional root cause analysis and statistical approaches are rendered inapplicable to analyze and infer the main drivers behind price formation in the modern grid and markets with variable renewable energy (VRE). In this paper, we propose a machine learning analysis framework to deconstruct some primary drivers for price formation in modern electricity markets with high renewable energy and the outcomes can be utilized for various critical aspects of market design, renewable dispatch and curtailment, operations, and cyber-security applications. The framework can be applied to any ISO or market data and in this paper it is applied to open-source publicly available datasets from California Independent System Operator (CAISO) and ISO New England.

machine learning (ML), electricity markets, Renewa↗
DOE OSTI2021

Collaborative Decision Approach for Electricity Pricing-demand Response Stackelberg Game

Demand response programs are considered as a valuable resource in smart grids that provide several advantages of load shifting, peak load reduction, mediating intermittency of renewable energy integration, etc. Flexible price-based incentives have been recognized as a critical strategy in motivating and compensating consumers' load adjustment actions for successful implementation of demand response. Game theoretical approaches, especially Stackelberg games are popularly adopted to model the relationship between electricity price and customers' demand response and solved by the classical centralized backward induction (BI) method. However, the BI method generally requires convexity of the follower's model for necessary optimality conditions, and the computational time of any centralized approach increases sharply with larger problem instances. In this paper, the Stackelberg game of electricity pricing-demand response between a distribution system operator (DSO) and load aggregators (LAs) is decomposed based on a collaborative optimization (CO) framework, where each LA is treated as a discipline with its own domain constraints (e.g. building temperature control), while the DSO at the system level tries to reduce the solution discrepancy and guide the searching towards optimality. Several groups of comparison experiments have demonstrated the effectiveness of the proposed collaborative decision approach in solving the demand response game.

Chen, Yang↗
DOE OSTI2021

A Computationally Efficient Algorithm for Computing Convex Hull Prices

Electricity markets worldwide allow participants to bid non-convex production offers. While non-convex offers can more accurately reflect a resource's capabilities, they create challenges for market clearing processes. For example, system operators may execute side payments when a participant’s cost is not covered through energy sale settlements from locational marginal pricing schemes, or when a participant incurs lost opportunity costs to follow the dispatch signal. Convex hull pricing minimizes these and other types of side payments while providing uniform (i.e., locationally and temporally consistent) prices. However, computing convex hull prices involves solving either a large-scale linear program - which in turn requires explicit descriptions of market participants’ convex hulls -or the Lagrangian dual of the corresponding non-convex scheduling problem. Here, we propose a computationally feasible and industrially scalable Benders decomposition approach to computing convex hull prices at least an order of magnitude faster than the current state-of-the-art while leveraging recent advances in convex hull formulations for thermal generating units.

61 RADIATION PROTECTION AND DOSIMETRY↗
DOE OSTI2022

A computationally efficient algorithm for computing convex hull prices

Electricity markets worldwide allow participants to bid non-convex production offers. While non-convex offers can more accurately reflect a resource's capabilities, they create challenges for market clearing processes. For example, system operators may be required to execute side payments to participants whose costs are not covered through energy sales as determined via traditional locational marginal pricing schemes. Convex hull pricing minimizes this and other types of side payments while providing uniform (i.e., locationally and temporally consistent) prices. Computing convex hull prices involves solving either a large-scale linear program or the Lagrangian dual of the corresponding non-convex scheduling problem. Further, the former approach requires explicit descriptions of market participants' convex hulls. While linear programs for computing convex hull prices are large, their structure is naturally decomposable by generators. Here, in this work, we propose and empirically analyze a Benders decomposition approach to computing convex hull prices that leverages recent advances in convex hull formulations for thermal generating units. We demonstrate across a large set of test instances that our decomposition approach only requires modest computational effort, obtaining solutions at least an order of magnitude faster than the equivalent large-scale linear programming approach. Overall, we provide a computationally feasible method for computing convex hull prices for industrial scale market clearing problems, enabling the possibility of practical adoption of this advanced pricing mechanism.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2022

Application of a Novel Heat Pump Model for Estimating Economic Viability and Barriers of Heat Pumps in Dairy Applications in the United States

Heat pumps represent an important opportunity for energy savings and decarbonization. This work investigates the techno-economic performance of high-temperature heat pumps (HTHPs) for use in the U.S. dairy industry. The studied heat pump performs a 50 °C temperature lift on a waste heat stream of cleaning water and applies the upgraded heat stream to a fluid milk pasteurization process. This work involved the creation of a HTHP model that estimated the coefficient of performance (COP), internal rate of return (IRR), net present value (NPV), and payback period (PBP), and emissions saved for a heat pump replacing a natural gas boiler. Capital costs, operations, and maintenance (O&M) cost, heat pump lifetime, electricity prices, natural gas prices, and a cost of carbon were varied to perform a parametric study on the factors affecting the break-even price of HTHPs. The results show that HTHP economics are highly sensitive to COP and energy price environment, and less sensitive to capital and O&M cost variance, leading to a large scatter of positive and negative NPVs based on U.S. location. PBPs demonstrate a defined threshold, based on energy price environment, below which favorable two-to-three-year PBPs predominate. This work is focused on the U.S. dairy industry, but international application in relation to fossil vs. electricity price regimes. Heat pumps have seen wider adoption in regions with a high ratio of fossil energy to electricity prices ($/MMBTU vs. $/kWh). The U.S. has plentiful natural gas resulting in lower fossil energy prices which has reduced heat pump adoption. This paper identifies potential first mover industries for HTHP adoption and their associated price regimes even in regions with lower ratios of fossil energy to electricity prices that exist many places globally.

ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION,↗
DOE OSTI2023

Grid-Integrated Production of Fischer-Tropsch Synfuels from Nuclear Power

Idaho National Laboratory (INL) investigates the relative economic profitability of an integrated energy system (IES) coupling an NPP with a synfuel production process at selected case study locations across the United States. In the synfuel IES, a high-temperature steam electrolysis (HTSE) plant is thermally and electrically coupled with an NPP to produce zero-carbon hydrogen. The synthetic fuel is produced from this H 2 combined with a CO 2 supply using the reverse water gas shift process followed by the Fischer-Tropsch (FT) reaction. This analysis considers a system in which the CO 2 is sourced from regional CO 2 emitters via the construction and operation of pipeline-based CO 2 supply networks. Locating the FT plant at the same site as the NPP and HTSE plants enables the NPP to provide zero-carbon heat and power to the HTSE plant and zero-carbon power to the FT plant as well as avoid the requirement for long-distance H 2 product transport from the HTSE plant to the FT plant. Hydrogen storage is used to enable the NPP to dispatch power to the electrical grid (instead of the HTSE plant) when grid demand increases, thus enabling the FT plant to continue to operate in a steady-state production mode. The ability to cease hydrogen production for several hours within each day enables the NPP to provide power to the grid to balance the electricity market during peak periods and maximize revenues for the nuclear synfuel IES. The FT process design considered has a 99% carbon conversion efficiency. The use of nuclear energy and nuclear energy-derived hydrogen enables synfuel production to achieve this high level of carbon utilization. Additionally, the life-cycle carbon emissions of the nuclear-based synfuel production process are very low, with WTW emissions of approximately 25 gCO 2 e/MJ, including steam credits (generated from FT process excess heat), and approximately 7 gCO 2 e/MJ, if steam credits are excluded. This compares favorably with the WTW emissions of 90.5 gCO 2 e/MJ for a compression-ignition, direct injection (CIDI) vehicle with a fuel economy of 31.6 miles per gallon gasoline equivalent (MPGGE), using low-sulfur diesel produced using conventional petroleum production and refining processes. Several NPPs in various regions of the U.S. are considered as case study analyses. Supply locations and transportation via pipeline of the CO 2 feedstock to the NPP site are analyzed through the National Energy Technology Laboratory (NETL) CO 2 Transport Cost model. The team finds that the amount of CO 2 generated by different sectors is sufficient for the synfuel production process at all locations considered. The CO 2 transportation costs are functions of the distance of the source to the NPP location, the CO 2 capture cost at the source, and the quantity of CO 2 transported. Historical electricity prices for the NPP case study locations are collected and analyzed. Monthly average prices, price range, and duration of negative-price periods vary among these locations. For each location, an auto-regressive moving average (ARMA) model is trained on historical electricity price data. ARMA validation is done to ensure the synthetic price distributions represent one of historical prices with high fidelity. Synthetic time series from these ARMA models are used in a coupled dispatch and system optimization in the Holistic Energy Resource Optimization Network (HERON) to compute the differential net present value (NPV) of the IES. The team finds that this econometric is positive, ranging from $14M–1.3bn (2020) depending on the location. The optimal synfuel IES configuration to obtain this increase in NPV often maximizes the size of the synfuel production process with regards to the size of the NPP. However, the team shows that the NPP still plays a stabilizing role for the grid: In periods of high prices and high loads, more electricity from the NPP is sent to the grid. A high variability of electricity prices and extreme maximum prices tend to drive up electricity production. While it requires significant investment, the synfuel IES could increase the economic profitability for the existing fleet of LWRs across the country while still maintaining the grid stabilizer role of NPPs. During its lifetime, the main costs for the nuclear synfuel IES are the carbon feedstock transportation costs, followed by the capital expenses (CAPEX) and operation and maintenance (O&M) costs while the revenue comes first from the IRA H 2 production tax credit (PTC) and then from the sales of synfuel products. The profitability of the synfuel IES is most sensitive to the value of the hydrogen PTC and the synfuel products as well as the cost of the carbon feedstock, highlighting the importance of governmental incentives regarding hydrogen, carbon emissions, and synfuel in driving the deployment of future nuclear synfuel IESs.

08 HYDROGEN↗
DOE OSTI2023

Hydrogen Production Cost with Alkaline Electrolysis

Rigorous stakeholder-vetted techno-economic analysis was performed to assess the cost of hydrogen (H 2 ) produced using state-of-the-art Liquid Alkaline (LA) electrolysis. Projected high-volume, untaxed levelized cost of hydrogen (LCOH) range from 2020US $\$ 1.84$ to $\$ 2.88$/kg-H 2 depending on technology year, process design, and electrolyzer project scale, assuming an electricity price of $\$ 0.03$/kWh. The total installed capital cost for a LA electrolysis plant was estimated from bottom-up stack and installed cost models that account for purchased equipment, installation costs, site preparation, and general overhead costs. For this study, the LA electrolysis plant is assumed to be a stick-built, greenfield project developed by an EPC firm with electrolysis stacks purchased directly from an electrolysis stack manufacturer. The price of the electrolysis stacks is based on a bottom-up cost assessment with business markup for the electrolysis company fabricator. Methods from the Hydrogen Analysis (H 2 A) production model, a peer-reviewed national laboratory-developed discounted cash flow model, were used to calculate the LCOH production in 2020$/kg-H 2 . The baseline electricity price case ($\$ 0.03$/kWh) corresponds to average wholesale electricity prices currently possible in U.S. markets with plentiful wind. Similar low-cost electricity pricing is possible from solar Power Purchase Agreements (PPA) although these prices are typically limited by renewable energy capacity factors.

08 HYDROGEN↗
DOE OSTI2024

Hydrogen Production Cost with Anion Exchange Membrane Electrolysis

Rigorous stakeholder-vetted techno-economic analysis was performed to assess the cost of hydrogen (H 2 ) produced using state-of-the-art Anion Exchange Membrane (AEM) electrolysis. Projected high-volume, untaxed and unsubsidized levelized cost of hydrogen (LCOH)1 range from 2020 $\$$1.78 to $\$$3.68/kg H 2 depending on technology year, process design, and electrolyzer project scale, assuming an electricity price of $\$$0.03/kWh and a capacity factor of 97%. The total installed capital cost for an AEM electrolysis plant was estimated from bottom-up stack and process plant cost models. The stack cost model accounts for manufacturing equipment, equipment maintenance, material, tooling, cycle time, yield, labor, utilities and general overhead. The process plant cost model accounts for purchased equipment, installation costs, site preparation, and general overhead costs. For this study, the AEM electrolysis plant is assumed to be a stick-built, greenfield project developed by an engineering, procurement, and construction (EPC) firm with electrolysis stacks purchased directly from an electrolysis stack manufacturer. The price of the electrolysis stacks is based on a bottom-up cost assessment with business markup for the electrolysis company fabricator. Methods from the Hydrogen Analysis (H2A) production model, a peer-reviewed national laboratory-developed discounted cash flow (DCF) model, were used to calculate the production LCOH in 2020 $\$$/kg H 2 . The baseline electricity price case ($\$$0.03/kWh) corresponds to average wholesale electricity prices currently possible in U.S. markets with plentiful wind. Similar low-cost electricity pricing is possible from solar Power Purchase Agreements (PPA) although these prices are typically limited by renewable energy capacity factors.

08 HYDROGEN↗
DOE OSTI2022

A Geospatial Cost Comparison of CO2 Plume Geothermal (CPG) Power and Geologic CO2 Storage

CO 2 Plume Geothermal (CPG) power plants can use gigatonne-levels of CO 2 sequestration to generate electricity, but it is unknown if the resources that support low-cost CPG power align with the resources that support low-cost CO 2 sequestration. Here, we estimate and compare the geospatially-distributed cost of CPG and CO 2 storage across a portion of North America. We find that the locations with lowest-cost CO 2 storage are different than the locations with lowest-cost CPG. There are also locations with low-cost CO 2 storage (<$5/tCO 2 ) that do not support CPG power generation due to insufficient reservoir transmissivity or temperature. Thus, CPG development may require electricity prices that are greater than the levelized cost of electricity (LCOE) to offset the increased cost of sequestration. We introduce the “Additional Cost of Electricity (ACOE)” metric to account for this cost and add it to the LCOE to calculate breakeven electricity prices that are required for CPG development. We find that breakeven prices are lower when new CO 2 injection wells are drilled specifically for CPG (i.e., “greenfield” CPG development) compared to if only existing CO 2 sequestration injection wells are used (i.e., “brownfield” CPG development). This is because comparatively few wells are needed for sequestration-only, and the increased power capacity from having more CPG wells outweighs the increased costs from more drilling. We also find that sequestered CO 2 could be used to approximately triple the United States geothermal electricity power capacity via a single CPG “sweet spot” in South Dakota, but that breakeven electricity price for this development is on the order of $200/MW e h.

15 GEOTHERMAL ENERGY↗
DOE OSTI2023

Hydroelectric Power and Hydrogen Production Integration

Hydropower-based hydrogen production could introduce opportunities for new revenue streams for hydropower plants, including from energy storage and regeneration as well as from sale of the hydrogen product to external markets. Hydrogen-based energy storage and regeneration could also help support Idaho Power’s decarbonization goals by decreasing dependence on fossil-based peaking power plants. Additionally, integration of hydrogen production with hydropower generation could help address the issue of low dissolved oxygen river water conditions that commonly accompany hydropower plant operations by utilizing the oxygen byproduct from an electrolytic hydrogen production process as a resource for mitigation of low dissolved oxygen water conditions. Comprehensive techno-economic analysis of the hybrid hydroelectric and hydrogen energy storage system has revealed critical insights into the pathways and considerations for optimizing the economic value and environmental benefits of such systems. Among the three identified pathways of natural gas blending, regeneration, and direct sale of hydrogen, the direct sale of hydrogen emerges as the most profitable, particularly given the current pricing dynamics of hydrogen and electricity. However, as we anticipate a future grid characterized by higher renewable energy penetration, the landscape may evolve, featuring lower average electricity prices, heightened fluctuations, and more significant seasonal variations. Consequently, the attractiveness of electricity regeneration through hydrogen and the benefits of long-duration hydrogen storage are expected to increase substantially in such a dynamic energy scenario. The careful selection of component sizes within the hybrid system proves to be paramount for ensuring cost-effectiveness. Notably, the size of the hydrogen market has emerged as a critical determinant for the optimal size of the electrolyzer. Hydrogen storage should be sized to meet energy shifting requirements. The appropriate size of the fuel cell/microturbine generator hinges on the shape of electricity prices and the available revenue streams derived from participating in grid services. Striking the right balance among these components is essential for maximizing the overall efficiency and profitability of the hydrogen facility. Furthermore, the by-product of electrolysis, namely oxygen, introduces an additional dimension to the system's functionality. The oxygen generated can be effectively utilized for dissolved oxygen (DO) mitigation, particularly with larger electrolyzer sizes capable of satisfying the complete oxygen demand for this purpose. While the economic benefits derived from saved oxygen purchase costs may be relatively modest compared to other revenue streams, the environmental advantages of repurposing oxygen for DO mitigation could help Idaho Power meet their environmental obligations. In addition to the identified factors shaping the viability of hybrid hydrogen production and hydroelectric generation, it is noteworthy that the integration of hydrogen energy storage offers a unique advantage during unusually wet years. In such periods of increased water inflow, the hydrogen storage capacity serves as a valuable supplement to the reservoir. By utilizing hydrogen energy storage as a complementary reservoir, the system gains flexibility in reservoir management when dealing with fluctuations in water availability.

08 HYDROGEN↗
DOE OSTI2025

Evaluating grid stress and reliability in future electricity grids across a range of demand, generation mix, and weather trends

The reliability of power grids in the future will depend on how system planners account for the integration of new technologies, extreme weather events, and uncertainties in demand growth from increased electrification and data centers. This study introduces an open-source, multisectoral, multiscale modeling framework that projects grid stress and reliability trends between 2020 and 2055 in the Western Interconnection of the United States. The framework integrates global to national energy-water-land dynamics with power plant siting and hourly grid operations modeling. We analyze future wholesale electricity price shocks and unserved energy events across eight scenarios spanning a range of population growth and economic change, generation mixes, and weather conditions. Our results show future grids with high percentage of non-renewable generation and strong economic growth are characterized by higher reliability and lower wholesale electricity prices than lower growth scenarios because of larger reliance on dispatchable generators and lower fossil fuel extraction costs. Scenarios with high percentage of renewable resources have lower median but more volatile wholesale electricity prices as well as more frequent and severe unserved energy events compared to scenarios relying more on dispatchable generators. These events occur because higher proportion of solar and wind energy causes net demand curves to deepen during midday (duck curves get progressively severe), exacerbating the challenge of meeting demand during summer evening peaks. This study suggests that robust and co-optimized transmission and energy storage planning could help maintain low wholesale electricity prices and high reliability levels in future electricity grids across uncertainties in generation mixes.

Electric grid reliability↗
DOE OSTI2020

Optimizing workplace charging facility deployment and smart charging strategies

This study introduces a workplace charging (WPC) optimization model that maximizes the total satisfied electric miles of employees’ plug-in electric vehicles, subject to a given annual budget. The model optimizes both planning decisions of charger number and power levels and operation decisions of charging spot assignment and charging schedule for the given temporal distribution of charging demands and varied electricity prices. Results of experiments based on national average travel data indicate that the actual WPC strategy varies by budget level. Through optimization, the strategy could reduce impacts of the varied electricity price by shifting charging schedules to periods when electricity prices are low. Also, the model is expanded to study the trade-off between providing WPC and addressing consequence of degraded charging service by including the per-mile shadow cost of unsatisfied charging demand. Finally, we observe that their relative competitiveness mainly depends on the actual shadow cost of WPC.

33 ADVANCED PROPULSION SYSTEMS↗
DOE OSTI2021

Plentiful electricity turns wholesale prices negative

In 2020, average wholesale electricity prices in the United States fell to $21/MWh, their lowest level since the beginning of the 21st century. Low natural gas prices and the proliferation of low marginal cost resources like wind and solar had already established a trend toward lower wholesale prices, and this trend was exacerbated by declining electricity demand due to the Covid-19 pandemic in 2020. Negative real-time hourly wholesale prices occurred in about 4% of all hours and wholesale market nodes across the United States, but these were not distributed evenly. Regional clusters emerged, for example, in the Permian Basin in western Texas, and in Kansas and western Oklahoma in the Southwest Power Pool (SPP), negative prices accounted for more than 25% of all hours. Negative electricity prices result either from local congestion of the transmission system leading supply to exceed demand locally or due to system-wide oversupply. Looking at the latter condition in SPP, we find that all major generator types contribute to this excess supply, because of limited ramping flexibility or self-scheduled out-of-market unit commitments. Additional monetary production incentives such as renewable energy credits or tax credits also enable negative bids; indeed, negative prices predominantly occur when demand levels are low and wind production levels are high. Frequent negative prices can inform the value of additional renewable energy investments at specific locations, the need for transmission and storage development, and opportunities load growth or adaptation.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗