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Distribution System Operator with Transactive (DSO+T) Study: Volume 1 (Main Report)

The Distribution System Operator with Transactive (DSO+T) study investigates the engineering and economic performance of a transactive energy retail market coordinating a high penetration of customer-side flexible energy assets. The study seeks to answer whether such an implementation is cost effective for customers, recovers sufficient revenue for DSOs, and is equally applicable and beneficial to a range of flexible asset types, renewable generation scenarios, and market assumptions. Using a highly interdisciplinary co-simulation and valuation framework, this assessment encompasses the entire electrical delivery system from bulk system generation and transmission, through the distribution system, to the modeling of individual customer buildings and flexible assets (including heating, ventilation, and air conditioning [HVAC] units, water heaters, batteries, and electric vehicles). The study exercises a transactive energy retail market coordination scheme designed to integrate with an existing day-ahead and real-time competitive wholesale electricity market. Software decision-making agents are designed for the retail market operator as well as various price-responsive flexible assets. The engineering and economic performance of the transactive energy scheme is studied for two separate flexible asset deployments: flexible loads (HVAC units and residential water heaters) and behind-the-meter batteries. The results of each transactive case are compared to a business-as-usual case. These cases are subject to two different renewable generation scenarios, a moderate renewable generation scenario, representative of current levels of renewable generation deployment, and a future high renewables scenario, including the increased deployment of rooftop solar photovoltaic and electric vehicles. The transactive coordination scheme is shown to produce effective and stable control and decrease peak loads 9–15%. The resulting annual demand flexibility provides net economic savings of $3.3–5.0B per year for a region the size of Texas. Detailed analysis shows that net benefits were seen for a range of distribution system operator, customer, and flexible asset types. Both participating customer (with transactive flexible assets) and nonparticipating customers (with nonflexible assets) see reductions in annual utility bills and net annual energy expenses in the range of 10–16%.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Light-duty Plug-in Electric Vehicles in China: Evolution, Competition, and Outlook

China's plug-in electric vehicle (PEV) market with stocks at 7.8 million is the world's largest in 2021, and it accounts for half of the global PEV growth in 2021. The PEV market in China has dramatically evolved since the pandemic in 2020: over 20% of all new PEV sales are from China by mid-2022. Recent features of PEV market dynamics, consumer acceptance, policies, and infrastructure have important implications for both the global energy market and manufacturing stakeholders. From the perspective of demand pull-supply push, this study analyzes China's PEV industry with a market dynamics framework by reviewing sales, product and brand, infrastructure, and government policies from the last few years and outlooking the development of the new government’s 14th Five-Year Plan (2021-2025). From the demand side, small-sized sedans and compact sport utility vehicles with increased electric ranges are both popular for PEVs, and the electric range of over 60% of new battery electric vehicles in 2021 has been longer than 400 km. From the supply side, although foreign brands like Tesla are still competitive, the products by Chinese domestic automakers like BYD are becoming more attractive and cannibalizing the high-end market. However, the production capacity and cost of PEVs may be limited by the upstream of the supply chain – the battery manufacturing and supply chain inflation. In addition, it is also uncertain how much sales demand impacts will be caused by the potential global economic recession. The government firmly supports electrification and decarbonization of the vehicle industry by emphasizing the importance of the vehicle industry for promoting the greenhouse gas net zero by 2060. The dual-credit policy is regarded as the most critical regulation in a bid to restrain fuel consumption and promote PEV share. Still, the market is facing some technological obstacles, such as battery safety and driving range anxiety, before real prosperity. In addition, the Chinese electric vehicle market is seeing a trend toward the development of new technologies such as vehicle-to-X, autonomous driving, and connected vehicles.

Hao, Xu↗

Extremum-Seeking-Based Ultra-local Model Predictive Control and Its Application to Electric Motor Speed Regulation

Electric vehicle (EV) market is rapidly expanding. As a critical component of EV, an electric motor needs to accurately follow a reference speed signal while respecting the electrical current constraint for safety. Those requirements are usually formulated as a model predictive control (MPC) problem. However, the performance of traditional model-based MPC depends on the accuracy of the system model, which may not always be guaranteed in reality. Therefore, we utilize a data-driven, model-free predictive control strategy, called ultra-local MPC (ULMPC), to control the speed of an electric motor. To further enhance the control performance of ULMPC, we employ the extremum-seeking control (ESC) to tune the control gain of the ULMPC online. Simulation and hardware experiments demonstrate the enhancement of the extremum-seeking-based ULMPC over a constant-gain ULMPC.

Zhou, Yujing↗

Voluntary Renewable Energy Procurement Programs in Regulated Utility Markets

Multinational corporations are increasingly purchasing renewable energy (RE) to fulfill international commitments, reduce supply chain emissions, limit environmental impact, and secure stable and affordable electricity. The potential scale of global corporate RE purchasing has been estimated to be nearly 100 GW and growing; however, many markets still lack supportive enabling environments for corporations to access RE through on-site project development or private sector transactions. Even where allowed by law, on-site generation may be insufficient due to space and technical constraints, introducing additional challenges. Utility green pricing and utility green tariff programs backed by renewable energy certificates (RECs), referred to as utility green procurement programs (GPPs) in this report, offer powerful market-based solutions to utilities, regulators, and policymakers to provide corporate and other consumers with RE product options while generating revenue to support RE development. As RE markets expand around the globe, GPPs have proven to be effective mechanisms in market regimes, ranging from fully integrated state-owned utilities to broadly liberalized power markets. GPPs utilize RECs, which are a type of energy attribute certificate and closely resemble guarantees of origin, to track and ultimately monetize RE attributes that corporations and other buyers must procure to demonstrate progress against their RE commitments and make public claims of RE use. Time-tested and transparent REC accounting mechanisms provide market confidence, while at the same time offering flexibility to utilities, regulators, and customers for a range of applications. RECs are used in all types of electricity market structures, as indicated in Figure 1, but REC-based program designs and supporting components differ depending on the type of market. Liberalized markets allow for customers to contract directly with generators for electricity and RECs, while traditionally regulated markets with vertically integrated utility structures may have greater restrictions on generation asset ownership and electricity sales. RE markets can be further defined as being either mandatory or voluntary. Mandatory markets require suppliers to deliver specified amounts of RE to grid customers, such as under a renewable portfolio standard (RPS), while voluntary markets involve no legal mandates, but demand is driven by self-imposed customer goals.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

A nuclear-hydrogen hybrid energy system with large-scale storage: A study in optimal dispatch and economic performance in a real-world market

Here a study in optimal dispatch and economic analysis of a novel nuclear hybrid energy system (NHES) with large-scale hydrogen storage and a novel control scheme is conducted. The control scheme makes charge and discharge decisions by using the real-time electricity price relative to the historical price distribution. The pricing data is taken from the ERCOT Houston and West load zones with different price oscillations. Six case control studies with different levels of aggressiveness were chosen for each load zone for a total of 12 case studies. It is found that in a high price volatility load zone, a more aggressive control strategy maximizes revenue, while in a less oscillatory load zone, a moderate control strategy performs better. The NHES can store energy when the price is low and sell additional electricity when the price is high, as well as participate in the ancillary services market. Due to these advantages, the NHES can generate 10–40 million USD more revenue annually than a stand-alone nuclear plant. Due to higher costs, the NHES has a higher LCOE (81.36 USD/MWh) than a stand-alone plant (68.66 USD/MWh); however, the LCOE of the NHES is still comparable to other new forms of electricity generation. It is found that both the NHES and the stand-alone plant are not economical in the existing electricity market. Due to the extra revenue generated, the hybrid system has a positive annual cashflow whereas the stand-alone plant does not. It is found that the hybrid plant needs less cost subsidy than a stand-alone plant to become economical.

08 HYDROGEN↗

Region-Specific Merchant Hydrogen Market Assessment and Techno-Economic Assessment of Electrolytic Hydrogen Generation: Cooperative Research and Development Final Report, CRADA Number CRD-18-00751

Utilities need to recover value from baseload and some renewable assets even when the electricity is curtailed. The declining cost of renewables (particularly solar), the persistently low-cost of natural gas, and the declining electricity demand, have all worked to lower the price of electricity. Furthermore, the baseload assets have a high turndown cost, which is not reflected in the low market electricity prices. One option for utilizing the curtailed electricity is hydrogen generation. One important aspect of this project will be to provide a “go/no-go” recommendation on the economic feasibility of pursuing hydrogen generation vs. other markets that could offtake curtailed electricity or nuclear steam. This project will specifically assess the opportunities for hydrogen production and use in the service territories of Southern Company Services (SCS), Exelon SBC, and Xcel Energy. Each utility partner represents a different mix of generation fleets: Exelon has significant nuclear assets, Xcel is primarily renewables (wind) with some nuclear, and SCS represents both a renewables fleet and a heavily baseload fleet, which includes significant nuclear. The Contractors will conduct the study of hydrogen market opportunities by first considering the approximate electricity demand and price profiles for the year, and power generation capacity that can be used to produce hydrogen. Therefore, a profile for hydrogen generation will also be developed to better understand the quantity and timing of hydrogen production. Once the hydrogen production schedule is estimated, hydrogen storage requirements can be determined. This effort will provide sufficient information to make a go/no-go decision on moving ahead with a detailed regional case study for hydrogen production in any of the three utility areas.

08 HYDROGEN↗

Effectiveness of Electric Vehicle Policies and Implications for Pakistan

This report explores evidence from several key countries regarding the impacts to electric vehicle (EV) market penetration from financial incentives, road access policies, EV mandates, fuel taxes, discounted electricity rates, charging infrastructure, and government investment in the domestic automotive industry. It reviews EV promotional policies in countries that have demonstrated success deploying EVs, focusing on Norway, China, the United States, India, and Korea. It also provides anecdotal examples from select ASEAN countries trying to promote domestic auto industry EV activity, such as Thailand, Indonesia, Philippines, and Vietnam. It provides applicability to policy efforts for growing the EV industry in Pakistan.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Effectively Considering the Distribution System in Integrated Resource Plans

While electricity planning practices vary by state and utility based on utility type and market structure, integrated resource planning (IRP) remains a prominent vehicle — even in states with centrally-organized wholesale electricity markets. IRP focuses on meeting forecasted long-term electricity needs. Typically, utilities have not considered impacts of design and operation of the low-voltage distribution network in IRP. With advanced capabilities of grid-edge technologies to generate and store electricity and provide load flexibility, and large utility investments in distribution systems, it's increasingly important to consider at least some distribution planning elements in IRP. This report considers the value proposition for doing so, such as reducing utility costs through resource co-optimization and strategic siting of grid-edge resources, and idenfities the most important touchpoints between planning for bulk power and distribution systems and provide a range of tactics for integrating these two processes.

Relf, Grace [Lawrence Berkeley National Laboratory↗

A Review of the Customer Experience at Public Charging Stations and its Effects on Electric Vehicle Purchase and Use

The electric vehicle (EV) market in the U.S. has grown rapidly. However, poor public charging reliability could challenge achieving widespread adoption. We reviewed peer-reviewed articles and market research reports to understand how the public charging experience affects the willingness to purchase EVs among first-time buyers and current owners. Ample literature identifies the measures of the public charging experiences, characterizes the current public charging experience, and identifies the effect of infrastructure availability on EV purchase decisions. However, there is no causal evidence linking the customer experience at public chargers to purchase decisions or intentions for current EV owners or prospective buyers.

33 ADVANCED PROPULSION SYSTEMS↗

Scale and Regionality of Nonelectric Markets for U.S. Nuclear Light Water Reactors

This study assesses existing and potential industries that could conceivably be directly coupled to existing nuclear reactors. The goal is to identify the scale, location, and accessibility of the candidate industrial-product markets, as well as process feedstocks that are available near the plants to establish new industries. For example, CO 2 as a feedstock can be combined with H 2 to produce formic acid (FA), transportation fuels, and lubricants. These new plants can be entirely supported with the heat and electricity provided by a nearby NPP. The potential demand for nonelectric industrial products was assessed by documenting current and possible growth of nonelectricity product markets considered. This assessment used DOE- and industry-supported tools, data, and projections to capture regional industrial market opportunities. Electricity-capacity markets that reward large and reliable generators, such as NPPs, were considered because the electricity market will likely continue to be an important revenue source to NPPs. The key is to balance the needs of energy customers so as to optimize revenue for the affiliated energy customers or partners. In most cases, flexible plant energy delivery and power generation for the grid will require either energy storage or a stock of intermediate products to sustain the industrial customers when the NPP dispatches electricity to the grid. A diverse mix of temperate regions with operating NPPs around the U.S.—representing a variety of operating markets, local generation mix, and seasonal climates—were chosen for this market study. Both current and future market opportunities for candidate industrial-product markets surrounding these NPPs were studied. Figure 2 illustrates the regions chosen for this study. The success of developing nonelectric industrial-product markets as alternative revenue-generating sources for LWRs depends, not only on demand from growing existing markets, such as petroleum refining and NH 3 production, but also on the development of new markets such as light-duty (LD) and heavy-duty (HD) hydrogen FCEVs, synfuels, chemical production, biofuels, metal refining, injection of hydrogen into NG pipelines for gas power-generating units, FA, polymers, and close-coupled industrial heat applications, all of which can significantly increase demand relative to current levels while decarbonizing energy sectors. This study also presents a sample analysis of the economics of hydrogen production in an area of Minnesota, considering the capital and operating costs of a hydrogen plant as well as the local market demand for hydrogen. It includes some assumptions on electricity-grid pricing, showing how hydrogen could be integrated with an NPP and be competitive with the incumbent hydrogen-production process, steam methane reforming (SMR). The objectives of this study include: Provide U.S. NPP operators a robust sampling of the market demand location, scale, and accessibility (including storage and transportation) of the wide variety of industrial-product choices that can be produced using nuclear thermal energy and electricity proximate to a subset of U.S. NPPs to inform the industry of the potential opportunity; show examples and trade-off analyses of how U.S. LWR operators can access these markets, including storage and transportation of industrial products to their intended markets; and present a general analysis example for one industrial product (hydrogen) in one region (Minnesota area), including production, storage, and transportation, to show how nuclear-hybrid integrated energy systems (IESs) could access local markets and improve the profitability of an NPP.

03 NATURAL GAS↗

Potential Early Markets for Fusion Energy

We examine potential early markets for fusion energy and their projected cost targets, based on analysis and synthesis of many relevant, recent studies and reports. Seeking to provide guidance to ambitious fusion developers aspiring to enable commercial deployment before 2040, we examine cost requirements for fusion-generated electricity, process heat, and hydrogen production based on today’s market prices but with various adjustments relating to possible scenarios in 2035, such as ‘‘business-as-usual,’’ high renewables penetration, and carbon pricing up to 100 $/tCO 2 . Key findings are that fusion developers should consider focusing initially on high-priced global electricity markets and consider including integrated thermal storage, depending on techno-economic factors, in order to maximize revenue and compete in markets with high renewables penetration. Process heat and hydrogen production will be tough early markets for fusion, but may open up to fusion as markets evolve and if fusion’s levelized cost of electricity falls below 50 $/MWh e . Finally, we discuss potential ways for a fusion plant to increase revenue via cogeneration (e.g., desalination, direct air capture, or district heating) and to lower capital costs (e.g., by minimizing construction times and interest or by retrofitting coal plants).

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

A method for determining optimal electric range by considering electric vehicle lightweighting on perceived ownership cost

The limited driving range due to high costs and low energy densities of batteries constraints the battery electric vehicle (BEV) market growth. Lightweighting in theory can reduce energy consumption rate and extend the driving range. The knowledge gap is to quantitatively link the cost-effectiveness of light-weight technologies with range extension and consumer acceptance of BEVs. In this study, a physics-based energy consumption model of BEVs is constructed and associated with a statistics-based model on the basis of travel surveys. A perceived cost of ownership (PCO) is then developed by adding intangible costs to traditional total cost of ownership models. We estimate, at the disaggregate vehicle model and driver level and the aggregate market level, 1) the extended range due to lightweighting for a given battery size; and 2) the optimal electric range based on lightweighting decisions. The cost-effectiveness of lightweighting for BEV range extension is found to vary with income-dependent daily range limitation value, driving patterns and lightweighting technology costs. In general, adopting lightweighting in BEVs is more cost-effective for consumers with higher daily limitation value, as well as for those with higher driving intensity or suitable daily driving patterns. When the lightweighting involves a higher vehicle production cost, less lightweighting could reduce the overall PCO for BEV owners. 4 of the selected top ten BEV models are found to benefit from additional 2.09%–4.45% lightweighting. Finally, the method built in this study can guide automakers in planning R&D investments in battery and lightweighting technologies.

33 ADVANCED PROPULSION SYSTEMS↗

Batteries Included: Top 10 Findings from Berkeley Lab Research on the Growth of Hybrid Power Plants in the United States

One of the most important electric power system trends of the 2010s was the rapid deployment of wind turbines and photovoltaic arrays, but a twist for the 2020s may be the rapid deployment of ‘hybrid’ generation resources. Hybrid power plants typically combine solar or wind (or other energy sources) with co-located storage. While hybridization helps to ease the challenge of balancing variable supply and demand, its relative novelty means that research is needed to facilitate integration and promote innovation. Combining the characteristics of multiple energy, storage, and conversion technologies poses complex questions for grid operations and economics. Project developers, system operators, planners, and regulators would benefit from better data, methods, and tools to estimate the costs, values, and system impacts of hybrid projects. This publication showcases some of Berkeley Lab’s robust research program intended to support private- and public-sector decision-making about hybrid plants in the United States. Our short briefing summarizes articles that we published between 2020 and 2022, links to the in-depth reports, and provides contact details for further engagement on the specific research topics: Growth: Developer interest in hybrid power plants is strong and growing Price vs. Value: PV+storage hybrids have low PPA prices and high value in some regions Market Drivers: Solar hybridization is driven by tax credits and other benefits Configuration Choices: Market prices have incentivized shorter duration batteries with PV Capacity Value: The capacity contribution of a hybrid is less than the sum of its parts Ancillary Services: AS markets are a valuable yet fleeting option for hybrids Market Participation: Hybrids can more flexibly engage with electricity markets Operations: The power system value of hybrids depends on how they are operated Distributed Hybrids: Growth of customer-sited PV+storage hybrids offers new opportunities Future Research: Where next? Priority areas for hybrid power research.

25 ENERGY STORAGE↗

Heat Pumps with Phase Change Thermal Storage: Flexible, Efficient, and Electrification Friendly

As we continue to electrify space- and water-heating, the electricity demand profile of many buildings will change significantly, and periods of high electricity demand will likely not align with renewable energy generation. We expect electricity demands will increase substantially in the winter, annual maximum electricity demands will increase, and more regions will experience annual peak electrical demands – and higher wholesale electricity prices – in the winter. This is especially important for cold climates where 60% of site energy use in buildings is for heating, and where heat pumps perform least efficiently. This paper focuses on one promising solution among the many paths to electrification: the use of phase change materials (PCM) for compact low-cost thermal energy storage (TES). We present the design and simulation of a combi heat pump and phase change thermal storage system used for space- and water-heating in a multifamily residence in a cold climate. To assess the benefits of this technology, we compare its annual performance to that of a current state-of-the-art air-to-air heat pump and separate heat pump water heater. Simulation results for IECC Climate Zone 6A reveal that the combi heat pump with phase change thermal storage can reduce the design size for heat pumps by 40-60%, reduce maximum electric demand by 30-50%, reduce electricity use during 4-12-hour load shed periods by 50%, and avoid the need for auxiliary electric resistance for both space- and water-heating. Tariff structures are highly varied between different utilities and currently reflect higher wholesale market prices for electricity during summer days. Consequently, although this system design provides large electric demand reductions during hypothetical 4-12-hour load shed periods, it does not provide energy cost reductions with current winter residential time-of-use tariffs.

Helmns, Dre↗

Enabling Principles for Dual Participation by Energy Storage as a Transmission and Market Asset

Because the electric transmission system is sized to meet the highest levels of customer demand, much of its designed capacity goes unused during average operating conditions. As a uniquely flexible and scalable asset capable of providing multiple grid services, energy storage can be deployed to support the transmission system and then also provide services to energy markets when not needed for transmission. This paper reviews the technical barriers in transmission planning practices and energy market design that prevent the realization of dual-use energy storage projects that provide both regulated transmission and competitive market services. Current practices create barriers against the identification of energy storage in the transmission planning process and against the participation of a regulated transmission asset in competitive energy markets. A review of regional transmission plans identifies best practices for including energy storage in the planning process by directing planners to proactively identify such projects or by providing clear mechanisms for stakeholders to propose them. Creating a market participation model for dual-use energy storage assets requires establishing when an asset will be allowed to participate in the market, how it will participate in the market, and where it will recover its costs. In answering these questions, key principles must be satisfied, such as prioritizing reliability, incrementally building on existing market design, and balancing competing objectives. Several policy options exist for satisfying those principles, giving grid operators and stakeholders significant flexibility in developing a dual-use participation model in accordance with regional policies and conditions. By objectively framing the issue and identifying policy options, this paper may inform subsequent proceedings on dual-use energy storage and be a resource to regional market operators, utilities, developers, regulators, policymakers, and other stakeholders as they collectively work on this complex issue.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Power and Natural Gas Systems Interface Study

Power systems worldwide are becoming more reliant on energy from natural gas, wind, and solar, posing potential reliability and coordination challenges from the tighter coupling of these infrastructure systems. This paper proposes a framework for the market-based coordination of electricity and natural gas system operations. The proposed framework includes a power system model that accounts for flexibility in the commitment of power plants with short start-up and shut-down times, coupled with a dynamic gas model that simulates when gas cannot be delivered to generators. The capabilities of the framework are illustrated using real-world electric power and gas systems, including scenarios around wind and solar penetrations and the analysis of time-variant, “shaped flow” gas nominations. Our results indicate that coordination between power and gas systems improves total gas delivery and reduces out-of-merit order dispatch in the electricity system, and that shaped flows may reduce unserved gas in systems with high penetrations of wind and solar.

coordinated operation↗

Predicting Li-ion Battery Performance for Impurity-doped NMC Cathodes Using Deep Learning

With the electric vehicle (EV) market expansion and the energy sector's shift towards electrification, the demand for battery metals, including lithium (Li), cobalt (Co), and nickel (Ni), is set to surpass supply. A critical knowledge gap exists in the purity standards for battery precursors and the impact of impurities on battery performance. Addressing this, our study employs a Deep Machine Learning (DL) based multi-objective optimization approach to interpret the relationship between metal impurities in domestic battery resources and their effects on battery performance. We analyze experimental data from Li-ion batteries with NMC (Nickel-Manganese-Cobalt oxide) cathodes over 1000 cycles, representing approximately ~6-8 months of operation, to establish a baseline of performance without impurities. Leveraging this data, we develop a Physics-Informed Deep Learning (PIDL) framework to extend our findings to cases that include metal impurities (e.g., Fe, Cu, Al) ranging from (0.001 - 0.01) %, respectively. By incorporating physics-based features, our PIDL model can accurately estimate the performance of NMC cathodes doped with various metal impurities to provide rapid design decisions. This research paves the way for informed decisions in Li-ion battery material design and optimization, ensuring the sustainable growth of the EV market and the broader energy sector.

25 ENERGY STORAGE↗

U.S. Industrial and Commercial Motor System Market Assessment Report Volume 1: Characteristics of the Installed Base

Motor systems are an integral part of our industrial and commercial facilities. They provide the motive force behind the fans, pumps, compressors, chillers, and conveyors in these facilities. Given their centrality to any facility’s operations, they are a critical energy end use to understand, particularly when developing technologies and policies to meet sustainability goals, improve productivity, and enhance resilience. In the late 1990s, the U.S. Department of Energy (DOE) conducted two seminal studies to better understand the installed stock and energy savings opportunities of industrial and commercial motor systems. In the industrial sector, The United States Industrial Electric Motor Systems Market Opportunities Assessment used primary data collected through onsite assessments and led to a greater understanding of the installed base of motor systems, their characteristics, and the opportunities for energy savings (U.S. Department of Energy, 2002). Notable findings included the following: Industrial motor systems consumed 679 billion kilowatt-hours (kWh) in 1994, representing 23 percent of U.S. electricity consumption. Cost-effective energy efficiency measures could result in 62-104 billion kWh of energy savings annually. Sixty-two percent of the energy savings potential was from fan, pump, and compressor end use equipment. Nearly half of motor system electricity consumption was attributable to approximately 3,500 facilities, or 1.5 percent of U.S. manufacturing facilities. Opportunities for Energy Savings in the Residential and Commercial Sectors with High Efficiency Electric Motors provided an evaluation of the installed stock of motor driven equipment in U.S. commercial and residential buildings and opportunities for utilization of high efficiency motors and variable speed technologies (Arthur D. Little, 1999). Notable findings included the following: Commercial motor systems consumed 343 billion kWh in 1995, with refrigeration and space conditioning constituting 93 percent of the total. Cost-effective energy efficiency measures could result in 51 billion kWh of energy savings annually. Due in no small part to these seminal studies, motor system technologies and usage characteristics have changed drastically since the late 1990s. Greater awareness of cost-effective strategies for reducing motor system electricity consumption have been developed and deployed. This includes several software tools, literature, and utility and government programs promoting energy efficiency improvements in motor driven systems. Additionally, several rounds of energy efficiency standards have been enacted, resulting in improved installed motor efficiency. The cost of variable speed drives has dropped substantially, and combined with utility rebate programs, has led to their greater adoption. Further, since these results were published, the U.S. manufacturing sector has undergone a massive transformation. Due to global competition, some sectors have relocated operations overseas. Others have brought operations onshore to avail low cost and abundant natural gas. Additionally, automation and robotics have pervaded the entire sector. Consequently, these two reports likely do not represent the current state of motor driven systems in U.S. industrial and commercial facilities. As cited in recent studies, the lack of current information on motor system electricity consumption and use characteristics limits the ability to conduct analysis on energy savings potential, develop technologies to address energy and productivity gaps, and develop programs to promote energy efficiency practices and technologies for motor systems (International Energy Agency, 2007; UNIDO, 2010; McKane and Hasanbeigi, 2011; Waide and Brunner, 2011). Specifically, the lack of information affects a range of stakeholders: Governments must rely on outdated information when setting research agendas, developing policies, and designing energy efficiency programs and offerings. Utilities and energy efficiency programs cannot identify the current market needs or potential impact when designing rebate and energy efficiency programs. Electric grid planners cannot identify motor system usage characteristics when developing plans to support the resilience of the electric grid. Manufacturers of motors, motor driven equipment, and drives are hampered when developing technologies to meet the needs of their market. Motor system end users are limited in their ability to identify energy saving opportunities within their own facilities because they do not have reliable benchmark information. In response to the lack of current information and analysis on industrial and commercial motor systems, the DOE initiated an update to these two studies. Launched in 2016 and led by Lawrence Berkeley National Laboratory (LBNL), the Motor System Market Assessment (MSMA) provides an updated, more comprehensive assessment of the installed stock of motor systems in both the industrial and commercial sectors, a review of the supply chains supporting motor and drives in the U.S., and the performance improvement opportunity available from using best available technologies and maintenance and operation practices. The outcomes of the MSMA are documented in three U.S. Industrial and Commercial Motor System Market Assessment reports, with this report being the first listed: 1. Volume 1: Characteristics of the Installed Base (this report) documents the findings on the installed base of motor systems in the U.S. industrial and commercial sectors. Quantification of energy savings potential is not documented in this report but in Volume 3. 2. Volume 2: Motors and Drives Supply Chain Review reviews the state of supply chains for motors and drives installed in U.S. industrial and commercial facilities, focusing on advanced motor and drive technologies and their constituent materials. 3. Volume 3: Energy Savings Opportunity analyzes the energy performance improvement opportunity for the installed base of U.S. industrial and commercial motor systems. This report has been prepared as a reference for motor system stakeholders. It provides factual information as could be best determined by the assessment results and avoids speculating on any findings.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗