A guide to residential energy storage and rooftop solar: State net metering policies and utility rate tariff structures
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25 ENERGY STORAGE↗
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Assessment of the driving factors of CO 2 mitigation costs of household biogas systems in China: A LMDI decomposition with cost analysis model
China has been placing a substantial focus on biogas for reducing energy consumption and carbon dioxide (CO 2 ) emissions. The operation mode of biogas systems may make the CO 2 reduction target over-optimistic. There is limited research to investigate the influential factors that may be causing the gap between the actual and theoretical CO 2 reduction costs of biogas systems in China. In this research, by using field survey data of 209 biogas users and 489 non-biogas users from 19 villages in 2015, the gap between actual and theoretical unit CO 2 reduction cost is quantified at approximately 156 USD/t CO 2 . By employing the Logarithmic Mean Divisia Index I (LMDI) model, it is found that both the cost effect (48%) and the reduction effect (52%) contribute to the unit CO 2 reduction cost gap. Furthermore, four influential factors–household labor, accessibility to the energy resource, acceptance of biogas technology, and subsidy–significantly narrow the gap between actual and theoretical CO 2 reduction costs, while the levelized subsidy contributes to widening the gap. On average, biogas systems should be operated for at least four years and the substitution rate should be more than 67% in order to keep the gap between actual and theoretical CO 2 reduction costs under 50%.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Extracting energy from ocean thermal and salinity gradients to power unmanned underwater vehicles: State of the art, current limitations, and future outlook
Thermal gradient energy-generation technologies for powering unmanned underwater vehicles (UUVs) or autonomous sensing systems in the ocean are mainly in the research development phase or commercially available at a limited scale, and salinity-gradient energy-generation technologies have not been adequately researched yet. The demand for self-powered UUVs suitable for long-term deployments has been growing, and further research related to small-scale ocean gradient energy systems is needed. In this study, we conducted a comprehensive review about harvesting energy from ocean thermal or salinity gradients for powering UUVs, focusing on gliders and profiling floats. Thermal gradient energy systems for UUVs based on phase change materials (PCM) cannot provide the energy required for powering autonomous sensing systems because of the systems' low energy conversion efficiency. Besides reducing energy consumption by developing more efficient electrical-mechanical systems, enhancing the thermal conductivity of the PCMs may help address this challenge by increasing the power generation rate of the UUVs. Several other emerging technologies, such as thermoelectric generators, shape memory alloys, and small-scale thermodynamic cycle systems, have shown potential for powering UUVs, but they are still only at the laboratory testing or conceptual design phase. The most advanced power generation technologies based on salinity gradients, reverse electrodialysis and pressure-retarded osmosis, are still not economically viable for large-scale deployment, mainly because of the high cost of the components required to operate in harsh saline environments. Our feasibility evaluation showed that existing salinity gradient power generation technologies are not directly feasible for powering UUVs in the open ocean.
16 TIDAL AND WAVE POWER↗
Reserve and energy scarcity pricing in United States power markets: A comparative review of principles and practices
Here, errors in forecasting load and renewable-based generation in restructured power systems mean that independent system operators (ISOs) must procure sufficient operating reserves to keep the real-time operation of the system reliable and secure. But when procured reserves turn out to be insufficient in real-time due to the lack of resource capacity or ramp capability, operators often set higher prices for reserves and energy to encourage more supply, and to motivate consumers to decrease usage or shift it to other times. This procedure, which is called scarcity or shortage pricing, is a core feature of U.S. electricity markets. It is receiving increased attention from market designers and stakeholders because scarcity will become more important for spot price formation in the future with the increased penetration of zero-marginal cost renewables, and the shrinking role of fuel costs in setting prices. Scarcity pricing is implemented in various ways by different ISOs. These differences have practical implications for the level of prices and incentives for investment, operations, and demand modification. In this paper, general approaches and specific calculation procedures for reserve and energy scarcity pricing practices and calculations across the seven ISO-based U.S. power markets are reviewed and compared. A consistent terminology is used to facilitate the comparison. Current scarcity pricing practices are grouped into three approaches: (1) imposing an adder after the spot market is run; (2) including stepwise demand curves within market clearing procedures for non-contingency reserve products (e.g., the novel flexiramp product), which tends to yield longer right tails for energy scarcity premium curves; and (3) having stepwise demand curves for traditional contingency reserve products only, which results in shorter right tails in energy scarcity curves. A generic numerical example is presented to highlight the large practical differences among the reserve scarcity pricing approaches and specific implementations. To further investigate factors that contribute the most to demand curves differences among ISOs, a sensitivity analysis is performed. This analysis shows that the largest source of differences among the curves is the scarcity prices assumed in the case of severe scarcity, while the number of steps used and whether flexiramp is considered also yields important differences in scarcity prices. As renewable penetration increases, it will become increasingly crucial to employ administrative demand curves so that spot prices more effectively motivate supply and demand adjustments exactly when and where they are needed. This study shows that the different assumptions yield very different scarcity premiums for reserves and energy, and are likely to provide divergent incentives for resources to respond to shortages. It is concluded that to promote market efficiency, a reserve shortage demand curve should have at least three features: inclusion of the marginal value of reserve products at each shortage level, consideration of the magnitude and probability of supply contingencies, and avoidance of abrupt price discontinuities that can cause excessively volatile market outcomes.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Energy Equity: From Sociological Concept to Engineering Perspective of Electric Power Systems
The implementation of energy equity has emerged as a pivotal goal of the global energy transition, driven by widespread recognition of energy inequities worldwide. Because energy equity is broadly regarded as a sociological concept rather than an engineering one, the current absence of technical engineering methods necessitates the development of a justified and sound approach to making energy equity an actionable practice in the broader realms of energy, environment, and sustainability. This Perspective discusses different terms related to energy equity and proposes a generalized definition of energy equity from the engineering perspective of electric power systems. To address these challenges related to energy equity, policies in Europe and the U.S. are introduced, although their effectiveness is limited. Further, current energy equity research is classified into four categories: quantifying energy equity, improving equity in the accessibility of electricity, improving equity in the affordability of electricity, and improving equity in the resilience of power systems. Then, we classify the ongoing research challenges in energy equity into two categories, technical challenges and application challenges, and provide corresponding insights. Finally, we discuss equity of resilience or reliability, income disparity, and environmental equity, followed by a summary of this Perspective.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Offshore wind and wave energy can reduce total installed capacity required in zero-emissions grids
Abstract As the world races to decarbonize power systems to mitigate climate change, the body of research analyzing paths to zero emissions electricity grids has substantially grown. Although studies typically include commercially available technologies, few of them consider offshore wind and wave energy as contenders in future zero-emissions grids. Here, we model with high geographic resolution both offshore wind and wave energy as independent technologies with the possibility of collocation in a power system capacity expansion model of the Western Interconnection with zero emissions by 2050. In this work, we identify cost targets for offshore wind and wave energy to become cost effective, calculate a 17% reduction in total installed capacity by 2050 when offshore wind and wave energy are fully deployed, and show how curtailment, generation, and transmission change as offshore wind and wave energy deployment increase.
16 TIDAL AND WAVE POWER↗
Challenges resulting from urban density and climate change for the EU energy transition
Dense urban morphologies further amplify extreme climate events due to the urban heat island phenomenon, rendering cities more vulnerable to extreme climate events. Here we develop a modelling framework using multi-scale climate and energy system models to assess the compound impact of future climate variations and urban densification on renewable energy integration for 18 European cities. We observe a marked change in wind speed and temperature due to the aforementioned compound impact, resulting in a notable increase in both peak and annual energy demand. Therefore, an additional cost of 20–60% will be needed during the energy transition (without technology innovation in building) to guarantee climate resilience. Failure to consider extreme climate events will lower power supply reliability by up to 30%. Here, energy infrastructure in dense urban areas of southern Europe is more vulnerable to the compound impact, necessitating flexibility improvements at the design phase when improving renewable penetration levels.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
A framework to centre justice in energy transition innovations
The important role of justice in energy transition technologies has been a topic of increasing interest in recent years. However, key questions remain about how inequities influence energy transition innovations (ETIs) from their design to their widespread use, which ETIs receive more funding, and who controls ETI research, prototyping and deployment. Here, in this work, we propose a framework to centre justice in energy transition innovations (CJI) and examine how three tenets of justice (recognition, procedural and distributional justice) influence each level of ETI, including niche, regime and landscape levels. We examine wind energy in Mexico and multiple ETIs in Los Angeles as use cases to show how our CJI framework can help reveal the specific inequities undermining just energy transitions at crucial analytical levels of ETI in practice. Our CJI framework offers a path for promoters, practitioners and underserved communities to target the problems these groups face and create ETIs that better address their specific aspirations, needs and circumstances.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
The enduring role of contracts for difference in risk management and market creation for renewables
Governments procure renewables through a variety of mechanisms. Contracts for difference (CfDs) have been used for more than 50% of the global offshore wind supply. The payments awarded through CfDs are sometimes labelled subsidies, suggesting that they support uneconomic activity. Here, in this study, we argue that the primary role of CfDs is rather risk management by creating a market for electricity supply at stable long-term prices. Similar to its use in other sectors of the economy, this contract type transforms a variable to a fixed price to reallocate volatility risks. Such long-term contracts are often necessary for renewables financing due to limited hedging options in existing markets. Our perspective could imply a shift in perception towards CfDs as a fundamental and lasting market feature. We hope to stimulate a timely discussion about the impact of greater CfD diffusion on electricity market mechanisms, risk allocation and the potential for combining fragmented streams of energy finance, market and policy research.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Considerations for the Global Commercialization of Floating Offshore Wind Energy
Floating offshore wind (FOW) has the potential to unlock access to wind resources in deep water where fixed-bottom turbines are not feasible, enabling coastal regions around the world to meet growing energy demands. Although fixed-bottom offshore wind is commercially mature, FOW, which may be needed for water deeper than 60 m, must progress in multiple ways to reach full commercial viability. In this Perspective, we examine the status of the global FOW industry's commercial development across three key areas - technical innovation, industrialization and cross-cutting value. Technical innovation has enabled FOW turbines to perform as well as fixed-bottom turbines, with the promise of future cost reductions. However, the complex architecture of FOW turbines, combining floating structures with more than 8,000 electrical and mechanical parts in wind turbines, requires industrialization efforts such as standardization and supply-chain integration to enable commercial project deployment. FOW can potentially offer unique benefits, including reduced environmental impacts and strengthened economic development in coastal regions, through substantial regional economic activity. Successful coordination across these three areas could help to position FOW as a major contributor to a competitive, reliable and resilient global energy system.
17 WIND ENERGY↗
Sustainable Energy & Fuels: 2022 and Beyond
Welcome to the first issue of volume 6 of Sustainable Energy & Fuels (SEF).
ENERGY PLANNING, POLICY, AND ECONOMY↗
Multi-timescale operations of nuclear-renewable hybrid energy systems for reserve and thermal product provision
In this paper, an optimal operation strategy of a nuclear-renewable hybrid energy system (N-R HES), in conjunction with a district heating network, is developed within a comprehensive multi-timescale electricity market framework. The grid-connected N-R HES is simulated to explore the capabilities and benefits of N-R HES of providing energy products, different reserve products, and thermal products. An N-R HES optimization and control strategy is formulated to exploit the benefits from the hybrid energy system in terms of both energy and ancillary services. A case study is performed on the customized NREL-118 bus test system with high renewable penetrations, based on a multi-timescale (i.e., three-cycle) production cost model. Both day-ahead and real-time market clearing prices are determined from the market model simulation. In conclusion, the results show that the N-R HES can contribute to the reserve requirements and also meet the thermal load, thereby increasing the economic efficiency of N-R HES (with increased revenue ranging from 1.55% to 35.25% at certain cases) compared to the baseline case where reserve and thermal power exports are not optimized.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Drivers and energy justice implications of renewable energy project siting in the United States
The rapid expansion of solar and wind energy projects is raising questions of energy justice. Some scholars argue that solar and wind project development could burden under-resourced communities with negative impacts such as environmental harm and reduced access to resources. Conversely, other scholars argue that project development could be a boon to under-resourced communities, providing local economic and cultural benefits. Here, we analyze the drivers of solar and wind project siting patterns in the United States and explore their potential energy justice implications. We find that siting patterns are driven primarily by technoeconomic factors, especially resource quality and access to open undeveloped spaces. These technoeconomic factors channel projects into sparsely populated rural areas and, to a lesser extent, areas with lower income levels. Here, we avoid simplifying assumptions about the broad justice implications of these siting patterns and explore our results from multiple perspectives.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Simulating energy performance of buildings: a study using eQUEST and Energy Star ® portfolio manager
Commercial buildings consume significant energy in the United States and exhibit high potential for energy use reduction through retrofits. Benchmarking and energy simulation are well established tools in the industry to identify potential improvements and measure performance. Analysis to identify most sensitive retrofit parameters to energy performance can optimize investment and available energy savings. Presented study demonstrates methodology using a static model to determine sensitivity of building design and retrofit parameters with respect to energy performance. Calibrated simulation energy models (eQUEST) of two distribution centers (A, B) are presented. A fractional factorial analysis is conducted on retrofit parameters of efficiency measures targeting the highest energy consumers, and the results are benchmarked using Energy Star® Portfolio Manager. A custom Microsoft Excel® based simulation model is created to simulate occupancy levels, lighting, plug loads, and other equipment used in various spaces throughout the day. For Building A, efficient lighting was the most influential parameter for energy savings, carbon savings and benchmarking score; whereas, for Building B, HVAC efficiency was most influential for energy and demand controlled ventilation and economizers was most influential for benchmarking score. While retrofit projects can save energy and carbon emissions, variation in source-site ratios and state grid emissions, benchmarking scores may not always reflect equivalent improvement. State grid emissions factors, natural gas composition are difficult to model and hence not considered in this study. In conclusion, the synergistic analysis presented, emphasizes the importance of benchmarking and efficiency retrofits in promoting sustainable building practices to reduce energy consumption.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Financial-technical co-design for capital-intensive, resource-responsive energy systems
Because of their capital-intensive operation, wind energy systems that are competitive in terms of the cost of the energy that they produce lead to risk-reward trade-offs that make their business cases less favorable than those of conventional energy generation technologies. However, wind energy systems tend to be designed to maximize energy production or minimize cost of energy rather than to maximize their business cases. In this work, we attempt to exploit designs specifically tailored to business cases. We develop a novel framework for analyzing energy systems that ties their design variables to monthly operating incomes using simple models and historical hourly market and resource data. Using this approach, we demonstrate that for a wind site with abundant wind resource in the California Independent System Operator market, we can control the trade-off between mean and 5th percentile monthly returns by choosing the specific power of the turbine at a fixed modeled initial capital cost. Our framework gives a measure of the risk-reward spectrum of energy generation assets that could be built at a given site with respect to the sub-annual resource/market variation.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Implications of different income distributions for future residential energy demand in the U.S.
Abstract Future income distribution will affect energy demand and its interactions with various societal priorities. Most future model simulations assume a single average consumer and thus miss this important demand determinant. We quantify long-term implications of alternative future income distributions for state-level residential energy demand, investment, greenhouse gas, and pollutant emission patterns in the United States (U.S.) by incorporating income quintiles into the residential energy sector of the Global Change Analysis Model with 50-state disaggregation. We find that if the income distribution within each U.S. state becomes more egalitarian than present, what means that the difference on income between the richest and poorest decreases over time, residential energy demand could be 10% (4%–14% across states) higher in 2100. This increase of residential energy demand will directly reduce energy poverty, with a very modest increment on economywide CO 2 emissions (1%–2%). On the other hand, if U.S. states transition to a less equitable income distribution than present, with the difference between richest and poorest increasing over time, residential energy demand could be 19% (12%–26% across states) lower. While this study focuses on a single sector, we conclude that to improve understanding of synergies and tradeoffs across multiple societal goals such as energy access, emissions, and investments, future model simulations should explicitly consider subregional income distribution impacts.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
A comparative analysis of US state-level policies and programs to advance energy justice
Abstract The US energy system is undergoing massive changes that have environmental, technological, and societal implications. Decisions and actions taken now will dramatically alter the trajectory of our future energy system. Though new technologies can lessen the dangers of anthropogenic climate change, an effective and sustainable transition requires addressing social justice issues as a priority. To this end, many states have implemented policies and programs that address energy justice. A formal survey of state-level energy justice policies and programs is needed to better understand the methods used to assist communities targeted and the impacts of these efforts. Such an analysis should include an analysis of the metrics used to judge the effectiveness of the enacted policies and programs. In this paper, we analyze the energy justice policies and programs of seven different US states. From this analysis, we identify three important aspects of state energy policies. First, most policies and programs do not articulate their goals, nor cite metrics to judge their successes. This lack of transparency and accountability is a major roadblock to truly just solutions. Second, states focus on a very narrow range of solutions for energy justice issues. The most prevalent being utility bill assistance, which does not address the systemic and enduring challenges faced by many low-income or historically marginalized communities. Lastly, comprehensive energy policy does not acknowledge and address housing, employment, education, and healthcare inequities that exacerbate energy system inequities. The work presented in this paper sheds light on the progress of state-level energy justice policies and programs across the United States, and we argue more work needs to be done to understand best practices in energy justice policymaking.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Feedback Optimization of Incentives for Distribution Grid Services
Energy prices and net power injection limitations regulate the operations in distribution grids and typically ensure that operational constraints are met. Nevertheless, unexpected or prolonged abnormal events could undermine the grid's functioning. During contingencies, customers could contribute effectively to sustaining the network by providing services. Herein this paper proposes an incentive mechanism that promotes users' active participation by essentially altering the energy pricing rule. The incentives are modeled via a linear function whose parameters can be computed by the system operator (SO) by solving an optimization problem. Feedback-based optimization algorithms are then proposed to seek optimal incentives by leveraging measurements from the grid, even in the case when the SO does not have a full grid and customer information. Numerical simulations on a standard testbed validate the proposed approach.
24 POWER TRANSMISSION AND DISTRIBUTION↗