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At least 37 records · Page 2

An economic assessment of behind-the-meter photovoltaics paired with batteries on the Hawaiian Islands.

Due to natural variability and uncertainty, the ever-increasing penetration of solar generation in Hawaii presents challenges to power grid operators to maintain reliable system operation. Demand response (DR) has the potential to be a cost-effective tool for Hawaii to reach its aggressive renewable energy goals while maintaining the reliability of power grids. The Hawaii Public Utilities Commission has approved the Hawaiian Electric Company's revised portfolio of DR programs. The companies have released a grid services purchase agreement and subscribed an initial tranche of load into their DR programs. This paper presents innovative analytical methods and comprehensive economic assessment for distributed photovoltaics (PV) paired with battery energy storage systems (BESSs) for two new DR programs, including fast frequency response and capacity grid service. Optimal dispatch and sizing methods are proposed for the paired system considering different tariff schedules and PV compensation programs across five islands. It was found that while the best resource configuration and potential economic benefits vary with tariff structure, a BESS paired with PV can be optimally dispatched to generate multiple value streams simultaneously. Compensation from DR programs is an important value stream to help increase the cost-effectiveness of the integrated system.

Battery energy storage system↗

Alternative Approaches to Traditional Net Energy Metering

Most jurisdictions in the United States originally implemented net energy metering (NEM) tariffs to support the deployment and interconnection of distributed generation (DG) resources (e.g., rooftop solar photovoltaic systems). Since then, NEM has proven effective in promoting adoption of DG resources. Recently, due to concerns about sufficient recovery of utilities’ revenue requirements and cost-shifting, there is increasing interest in—or statutory requirements to pursue—alternative compensation approaches, especially in U.S. states and territories with robust growth in distributed solar. Recent increases in other forms of distributed energy resources (DERs) that can potentially send power to the distribution grid (e.g., distributed battery energy storage system (BESS)) are further driving compensation reforms. This brief provides an overview of design elements associated with alternative approaches to traditional NEM, summarizes common arguments for and against them, and identifies implementation issues that utilities may need to address. Although this brief may be most useful in jurisdictions that are interested in or required to move beyond NEM, it is also applicable to those jurisdictions that have already done so—and are looking to further implement reforms to their existing compensation mechanisms. In the broadest sense, there are three primary tariff-related components when interconnecting a DER onto the local utility’s distribution system (adapted from Zinaman et al., 2017): 1. Metering and Billing Arrangements: How utilities measure and bill electricity consumption and production. 2. DER Export Tariff Design: The structure under which utilities compensate customers for electricity they export to the grid. 3. Consumption Tariff Design: The structure under which customers pay for electricity they consume from the grid. When implementing changes to any of these primary tariff-related components, there are likely implications for a utility’s metering system, billing system, and other technology systems. Where applicable, this brief explicitly identifies such implementation challenges.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Potential Impacts of Dynamic Electricity Pricing in California: Load Shape and Customer Bill Impacts Under Elastic Customer Response

The increasing penetration of renewable energy in California has intensified grid management challenges, exemplified by the “duck curve” and the resulting need for steep ramping and curtailment of renewables. To address these issues, dynamic electricity tariffs that vary in near-real time are being considered to incentivize customers to shift demand and support the grid. This study extends previous work on the bill impacts of such tariffs in the absence of load response by quantifying the system-level and customer impacts of load response based on customer price elasticity. Customer-level load response modeling was conducted using meter data from 411,000 customers across residential, commercial, and industrial sectors. Customer demand elasticity was estimated using literature-based values, with scenarios ranging from low to high elasticity, including an automation-enhanced scenario. Results indicate that universal adoption of, and response to, dynamic tariffs can significantly reduce peak net load (by 15%) and maximum ramping requirements (by 20%) with moderate elasticity, delivering demand response resources comparable to or exceeding current programs at all elasticity levels. Bill analysis shows that, when responding elastically to dynamic prices, most non-PV customers experience modest savings, while PV customers may see higher effective rates due to lower compensation for exports during low-price periods. Emissions analysis reveals a reduction in per-kWh emissions system-wide, with a total absolute load increase of 2% accompanied by a negligible absolute emissions increase. The study concludes that while dynamic tariffs offer substantial grid benefits, customer bill savings under modeled response behaviors may be too modest to drive widespread adoption without additional incentives or enabling technologies. Future research should model flexible loads and advanced control technologies with greater fidelity to better represent the potential opportunities of dynamic tariffs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

California Price Response Potential Study

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

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Communications network design and costing model technical manual

This computer model provides the capability for analyzing long-haul trunking networks comprising a set of user-defined cities, traffic conditions, and tariff rates. Networks may consist of all terrestrial connectivity, all satellite connectivity, or a combination of terrestrial and satellite connectivity. Network solutions provide the least-cost routes between all cities, the least-cost network routing configuration, and terrestrial and satellite service cost totals. The CNDC model allows analyses involving three specific FCC-approved tariffs, which are uniquely structured and representative of most existing service connectivity and pricing philosophies. User-defined tariffs that can be variations of these three tariffs are accepted as input to the model and allow considerable flexibility in network problem specification. The resulting model extends the domain of network analysis from traditional fixed link cost (distance-sensitive) problems to more complex problems involving combinations of distance and traffic-sensitive tariffs.

Logan, K. P.↗

A Case Study about Energy and Cost Impacts for Different Community Scenarios Using a Community-Scale Building Energy Modeling Tool

The United States building sector consumed approximately 75% of electricity in 2019. By implementing renewable energy technologies and control strategies into buildings, future buildings will serve as energy generators as well as consumers. To accommodate this transition, communications among buildings and between buildings and the grid could provide more possibilities to optimize the energy performance of buildings. This paper develops a community-scale building energy model tool and conducts a case study adopting behind-the-meter distributed energy resources, sharing energy in different buildings, and using different electricity tariff structures. Three scenarios are studied: (1) electricity only supplied by the grid, (2) photovoltaic (PV) panels installed on and available to some but not all buildings, and (3) a connected community. To consider the impacts of locations and energy tariffs, this paper selects four cities and three electricity tariffs to evaluate the energy and cost performances of these three scenarios. The results show that the PV panels in Scenario 2 reduce 25% to 33% of the community-level electricity consumption and 20% to 30% of the community-level electricity cost compared with Scenario 1 in all studied locations and energy tariffs. By considering power management in the connected community (Scenario 3), the electricity consumption and cost can be further reduced by 6% to 7% and 5% to 11%, respectively, compared with Scenario 2.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Electricity Bill Calculator (elecprice) v0.1.0

The Electricity Bill Calculator Library is a generic tool for manipulating the tariffs of electricity, with an emphasis on commercial Time-Of-Use (TOU) rates in the U.S. and residential Net Energy Metering tariffs in CA. Typical uses of the package are price signal generation and bill computation. To generate price signals from a specific tariff and given a time window, the tool creates a pandas dataframes containing the various components of the electricity charges, at each time step. This is particularly useful for Demand Response (DR) applications, such as price-based optimization of energy in buildings. The tool also computes bills given a building's power consumption and a specific tariff and returning the corresponding cost of electricity, as well as a breakdown per type of rate.

Prakash, Anand Krishnan↗

Techno-economic and environmental assessment of solar-based electrical vehicles charging stations integrated with hydrogen production

With the growing interest in adopting both commercial and residential electric vehicles (EVs) utilizing green renewable energy, the techno-economic assessment of EV charging stations with solar energy is a critical aspect of the transition to sustainable transportation. However, battery storage capacity for variable solar energy production is becoming increasingly less cost-effective due to the higher Lithium price. Complementing solar energy production and battery storage, the potential of combining green hydrogen fuel energy integration with solar energy for EV charging stations can provide a sustainable alternative to reach carbon-free transportation. This research aims to assess the technical and economic viability of grid-connected Photovoltaic (PV)-based EV charging stations across Kentucky based on existing EV load profiles. The study considers different PV system sizes, locations, orientations, and the impact of net metering policies and electricity tariffs on the profitability of the PV systems. Further, using excess PV energy, Lithium-Ion batteries will be charged, which will be assessed considering the techno-economic and environmental impacts of green EV charging stations. To further enhance green renewable energy production, we also investigated the feasibility of on-grid PV-based EV charging stations with Lithium-Ion batteries charged during low tariff periods. In comparison with these scenarios, we studied the potential benefits of integrating green hydrogen energy production using excess solar energy with and without governmental incentives. Furthermore, we assess the environmental impact of these green EV charging stations across Kentucky. Our study indicates that EV stations across Kentucky have similar techno-economic feasibility with insignificant deviation in the levelized cost of electricity, payback period, and PV energy fraction with/without Li-Ion batteries. However, with green hydrogen production, the marginal H 2 production cost indicates the first scenario (on-grid PV energy charging) is the most significant, roughly 10 USD/Kg, which is similar to 1.5 times higher than the second (charging during low-tariff periods) and the third scenarios (power grid to satisfy the demand deficit - approximately 6.5 USD/Kg). From the environmental perspective, the second scenario would be a good option for either hybrid EV/H 2 or EV charging stations in Kentucky, factoring in the hydrogen production cost and the carbon footprint.

08 HYDROGEN↗

One Year In: Tracking the Impacts of NEM 3.0 on California’s Residential Solar Market

On December 15, 2022, the California Public Utilities Commission passed an overhaul of the net metering program for the state’s investor-owned utilities. The changes replaced the long-standing net energy metering (NEM) tariffs with a net billing tariff (NBT) structure—colloquially known as “NEM 3.0”—which significantly reduces the compensation for behind-the-meter solar photovoltaic (PV) systems. The NEM tariffs remained open for new interconnection applications until April 15, 2023, but after that date, all new interconnection applications were submitted under NBT. Now, one year later, we have an opportunity to evaluate how the California solar market has evolved under this new compensation regime. As a precursor to its annual Tracking the Sun report, Berkeley Lab has released a short technical brief describing key trends in the California residential solar market since the roll-out of the new NBT structure. The purpose of this analysis is to provide empirical insights into how the market has evolved over the past year, confirming some expectations while also revealing several striking surprises.

14 SOLAR ENERGY↗

Optimizing Price-Informed Operation of a Battery Storage System in an Office Building

New prescriptive efficiency requirements amended to US model energy codes historically have been evaluated using an average, blended electricity rate, which obscures demand charges. Post 2019, new measures can be evaluated using a representative time-of-use (TOU) tariff yet more sophisticated analysis methods are needed to consider a variety of TOU tariffs and assess price-informed control. To address these needs, this study couples building prototype simulation model with varying-in-sophistication battery storage operating strategies for different electricity TOU tariffs. The analysis compares the impact of operating a battery storage system following simpler rule-of-thumb methods versus a semi-optimized priced-informed heuristic approach. The investigation demonstrates that the heuristic approach results in greater electricity cost savings and is practical to implement.

Lei, Xuechen↗

Customer outcomes in Pay-As-You-Save programs

We review the energy and financial outcomes of households participating in several programs based on successive versions of the Pay As You Save¯ (PAYS¯) system. PAYS¯ programs offer non-debt financing for energy efficiency (and sometimes other technologies) in residential buildings through a tariff attached to the home’s utility meter, designed to be offset by project savings. We find that the five programs we study generally serve customers living in zip codes with levels of income and education below the national average and unemployment rates above the national average, demonstrating their potential to improve equity in energy efficiency adoption. Using weather-normalized analysis of energy consumption data, we show that most customers of Midwest Energy’s program reduce annual electricity and gas consumption, averaging 15% and 26% reductions respectively. Changes in energy consumption calculated using this method represent a combination of project effects and changes in occupant behavior. These results are similar to existing analyses of PAYS¯ programs in North Carolina, Arkansas, and Tennessee. About half of participating Midwest households generate sufficient energy cost savings to cover their monthly tariff. Various factors, including changes in occupant behavior, program error, causes independent of the customer or program, or some combination thereof may explain lower-than-expected cost reductions in some projects. Given the inherent variability in annual household electricity consumption, we feel these programs are enabling energy efficiency improvements and their attendant co-benefits, including occupant health and comfort and reduced carbon emissions, while reasonably balancing energy savings and tariff costs. Pairing PAYS¯ with additional financial assistance, as well as promoting cost-effective measures such as air and duct sealing, could further broaden program participation by enabling additional projects to meet PAYS¯ program eligibility rules.

Deason, Jeff↗

The bill alignment test: Identifying trade-offs with residential rate design options

The proliferation of smart meter data allows the application of new analytic methods to inform regulatory deliberations. The bill alignment test (BAT) method, which compares the costs allocated to each residential customer with their electric bill, is introduced to help regulators consider how a proposed rate design balances various regulatory criteria. The BAT requires an explicit statement of preferences by policymakers or stakeholders and choices about allocating residual costs unassociated with customer-level causality. The BAT is applied to more than 35,000 smart-meter customer load profiles to assess the trade-offs associated with proposed rate designs. Here this example demonstrates the impact of residual cost allocation preferences and tariff design choices on proposed tariff evaluation.

24 POWER TRANSMISSION AND DISTRIBUTION↗

LA100 Equity Strategies. Chapter 9: Equitable Community Solar Access and Benefits

The LA100 Equity Strategies project integrates community guidance with robust research, modeling, and analysis to identify strategy options that can increase equitable outcomes in Los Angeles' clean energy transition. This chapter focuses on community solar as a means to provide equitable access to local solar and storage benefits in Los Angeles. Specifically, NREL identified potential community solar sites that could host 30 kilowatts (kW)1 of solar or more and evaluated economic and equity metrics under various program design options. Analysis included a Baseline scenario (business-as-usual) and an Equity scenario, which modeled program enhancements to increase access and benefits to low-income customers. Both scenarios modeled the economics of solar and storage under the LADWP Feed-in Tariff (FiT) program (LADWP 2023b) and the LADWP Feed-in-Tariff Plus Pilot program (LADWP 2023d) compared to a community solar financial model. This research was guided by input from the community engagement process, and associated equity strategies are presented in alignment with that guidance.

14 SOLAR ENERGY↗

Load-Shifting Strategies for Cost-Effective Emission Reductions at Wastewater Facilities

Significant hourly variation in the carbon intensity of electricity supplied to wastewater facilities introduces an opportunity to lower emissions by shifting the timing of their energy demand. This shift could be accomplished by storing wastewater, biogas from sludge digestion, or electricity from on-site biogas generation. However, the life cycle emissions and cost implications of these options are not clear. Here, we present a multiobjective optimization framework for comparing cost- and emission-minimizing load-shifting strategies at a California case study facility with a relatively low carbon intensity grid and high spread in peak and off-peak electricity prices. We evaluate cost and emission trade-offs from the optimal flexible operation of both existing infrastructure and optimally sized energy flexibility upgrades. We estimate energy-related emission reductions of up to 9.0% with flexible operation of existing infrastructure and up to 16.8% with optimally sized storage upgrades. Only a fraction of these potential savings are realized under actual industrial energy tariffs and the EPA’s recommended social cost of carbon. Energy flexibility may hold promise as a short-term emission-saving solution for the wastewater sector, but the extent of savings is heavily dependent on the cost of carbon, electricity tariffs, and emission intensity of the regional electricity grid.

climate↗

Using Co-Simulation to Model Interconnect-Scale Power Systems from Loads to Generators

Co-simulation is a modeling technique that allows analysts to combine simulation tools and their corresponding models to exchange data during run-time, allowing the creation of larger and more complex models across heterogeneous domains. HELICS is a co-simulation platform developed over the past six years that has been shown to be effective for these multi-domain analysis. Recently, a HELICS-based analysis was completed where the ERCOT electrical interconnect in the United States was modeled in high detail from bulk power system generation to individual customer loads. This model was used to evaluate a flat-rate and transactive energy tariff with integrated wholesale and retail real-time and day-ahead energy markets. This modeling allows detailed analysis showing how the operations of the power system under these tariffs impact all actors in the power system, from individual customers to bulk power system operators.

co-simulation, HELICS, transactive energy system, ↗

A Hierarchical Local Electricity Market for a DER-rich Grid Edge

We report with increasing penetration of distributed energy resources (DER) in the distribution system, it is critical to design market structures that enable smooth integration of DERs. A hierarchical local electricity market (LEM) structure is proposed in this paper with a secondary market (SM) at the lower level representing secondary feeders and a primary market (PM) at the upper level, representing primary feeders, in order to effectively use DERs to increase grid efficiency and resilience. The lower level SM enforces budget, power balance, and flexibility constraints and accounts for costs related to consumers, such as their disutility, flexibility limits, and commitment reliability, while the upper level PM enforces grid physics constraints such as power balance and capacity limits, and also minimizes line losses. The hierarchical LEM is extensively evaluated using a modified IEEE-123 bus with high DER penetration, with each primary feeder consisting of at least three secondary feeders. Data from a GridLAB-D model is used to emulate realistic power injections and load profiles over the course of 24 hours. The performance of the LEM is illustrated by delineating the family of power-injection profiles across the primary and secondary feeders as well as corresponding local electricity tariffs that vary across the distribution grid. Through numerical simulations, the hierarchical LEM is shown to improve the efficiency of the market in terms of lowering overall costs, including both the distribution-level locational marginal prices (d-LMP) as well as retail tariffs paid by customers. Together, it represents an overall framework for a Distribution System Operator (DSO) who can provide the oversight for the entire LEM.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Techno-Economic Analysis for the Addition of a Thermal Energy Storage System to a Central Plant

Increasing energy demand and rising peak loads present significant challenges for energy management in commercial and institutional settings. As climate change drives greater cooling needs, central plants must navigate the complex tradeoffs between operational efficiency, cost control, and grid stability. Thermal energy storage (TES) systems offer a viable solution by shifting energy consumption from peak to off-peak periods, thereby reducing peak demand, lowering utility expenses, and improving grid resilience. However, the success of TES implementation hinges on appropriate system sizing, effective control strategies, and alignment with local utility rate structures. This article presents a techno-economic analysis of integrating a chilled water TES system into the central plant at California State University, Dominguez Hills. Drawing on historical load profiles and utility tariffs, we assess three TES sizing approaches and their corresponding control strategies from both energy and economic perspectives. This article utilizes a model-based approach to assess the impact of TES sizing and control strategies on the techno-economic feasibility of integrating TES into an existing central plant. The models employed for this analysis were calibrated using 4 years of historical data. Here, the results demonstrated that utility tariffs and the campus's operational profiles dictate the most feasible sizing and control methods. The findings offer valuable insights for institutions and commercial building managers exploring sustainable energy solutions. By demonstrating how optimized TES strategies can improve operational efficiency while achieving financial savings, this study highlights the potential for TES to align performance with cost effectiveness in real-world applications.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Electric Load Planning Tool (ELPT) v0.9

The Electric Load Planning Tool (ELPT) helps facilities understand the economic and environmental impacts of their electricity consumption. Using a user-provided Excel input, ELPT analyzes electricity use, costs, and grid CO2e emissions to identify savings opportunities through load management strategies such as load shifting, shedding, and planning. It accounts for Time-of-Use (TOU) tariffs and hourly emissions factors, varying by location and time of day. Users input details about their facility's load profile, location, year of analysis, and electricity billing tariff to receive customized insights. The tool provides visual representations of cost and GHG impacts, helping users understand the benefits of adjusting electricity usage to align with periods of cheaper and cleaner electricity, thereby achieving cost savings and reducing Scope 2 CO2e emissions

Karki, Unique [Lawrence Berkeley National Laborato↗