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At least 433 records · Page 24

Achieving an 80% carbon-free electricity system in China by 2035

Dramatic reductions in solar, wind, and battery storage costs create new opportunities to reduce emissions and costs in China’s electricity sector, beyond current policy goals. This study examines the cost, reliability, emissions, public health, and employment implications of increasing the share of non-fossil fuel (“carbon free”) electricity generation in China to 80% by 2035. The analysis uses state-of-the-art modeling with high resolution load, wind, and solar inputs. The study finds that achieving an 80% carbon free electricity system in China by 2035 could reduce wholesale electricity costs, relative to a current policy baseline, while maintaining high levels of reliability, reducing deaths from air pollution, and increasing employment. In our 80% scenario, wind and solar generation capacity reach 3 TW and battery storage capacity reaches 0.4 TW by 2035, implying a rapid scale up in these resources that will require changes in policy targets, markets and regulation, and land use policies.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Toward evaluating the effect of technology choices on linkages between sustainable development goals

Linkages between the Sustainable Development Goals (SDGs) have sparked research interest because a better understanding of SDG co-benefits may enable faster progress on multiple sustainability fronts. However, SDG linkages are typically analyzed without considering the technologies used to implement a primary SDG, which may have secondary effects on other SDGs. Here, we outline an approach to study this problem by connecting the industries and services required to produce a technology to the United Nations SDG indicator framework, using SDG7 and four energy technologies as an illustrative case. We find that all technologies in our set involve potential co-benefits with SDGs 1, 8–10, 12–13, and 17, and trade-offs with SDGs 6, 8–9, 11–12, and 14–15. Deployment services primarily induce co-benefits; manufacturing has mixed impacts. Our work sheds light on the technology characteristics (e.g., scale, high- or low-tech) that influence linkages while also pointing to SDG-relevant characteristics not captured by UN indicators.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Looking Beyond Bill Savings to Equity in Renewable Energy Microgrid Deployment

Microgrids powered by renewable energy can provide backup power to critical infrastructure during grid outages. These systems can also play an important role in advancing energy justice by providing economic, environmental, health, and resilience benefits for underserved communities. The value of microgrids is often measured by the economic savings and resilience provided, but there are other energy justice factors that should be considered. This paper describes a methodology for quantifying broader costs and benefits including utility bill savings, value of resilience, social cost of carbon, public health costs, and jobs associated with the construction and operation of microgrids. We evaluate these factors at three case study sites and find that including energy justice values in the cost-benefit analysis of microgrids can change investment decisions. When climate, health, resilience, and job creation are considered, cost-optimal microgrids include more renewable generation, leading to a 52-82% reduction in emissions and diesel fuel use. The net present values of the microgrids grow from negative $626,000-843,000 in the diesel only case to $10-16 million in the hybrid microgrid case and $12-19 million in the renewable microgrid case, indicating potential for greater microgrid deployment if energy justice values are incorporated in decision making. However, we also see large increases in capital expenses, which could limit deployment unless accompanied by innovative financing measures. These findings may be useful to communities as they seek to strengthen resilience to natural disasters while also improving public health, meeting climate goals, and providing economic opportunity for residents.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Incorporating energy justice into utility-scale photovoltaic deployment: A policy framework

Utility-scale photovoltaic (PV) installations made up 77 GW (6%) of installed capacity in the United States, as of the end of 2021. This will grow to more than 500 GW by 2050 under a mid-case projection or more than 800 GW if solar costs decline more rapidly. While utility-scale PV is projected to grow rapidly, to date, unlike energy efficiency or distributed PV, utility-scale PV has not been used to provide substantial financial benefits to underserved communities, either through ownership, financing of assets, or direct electricity bill reduction. We assess two mechanisms through which utility-scale PV could benefit underserved communities. We find that while a framework for direct electricity bill reduction can be meaningful to customers, this mechanism falls short of providing restorative justice via wealth creation for minority-owned businesses. In contrast, we find that a framework for procurement of utility-scale PV by public and private entities from PV projects that are financed, owned, and/or developed by minority-owned businesses can provide this restorative justice benefit, and thereby facilitate an equitable energy transition. We conclude with concrete recommendations for new policies and programs to ensure that the benefits of utility-scale PV systems are distributed to underserved communities.

14 SOLAR ENERGY↗

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↗

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↗