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At least 469 records · Page 26

The interaction of wholesale electricity market structures under futures with decarbonization policy goals: A complexity conundrum

Competitive wholesale electricity markets can help facilitate energy system decarbonization by incentivizing investments in clean energy technologies that meet evolving system needs. We explore market structure impacts on generator operations and deployment by risk-averse, heterogeneous investor firms using the Electricity Markets and Investment Suite - Agent-based Simulation (EMIS-AS) model. Here we apply clean energy targets of 45%-100% by 2035 considering energy, ancillary services, capacity, and clean energy credit products and pricing and eligibility rules. Results highlight a complexity conundrum, whereby finding the "right" market design to achieve decarbonization goals and avoid unintended consequences can be a highly-nuanced, non-incremental challenge. Carefully designed energy-only markets can achieve the same clean energy targets as capacity market structures but with different revenue and profitability outcomes. Operating reserve demand curve-based scarcity pricing can substitute capacity markets for similar deployment outcomes. Carbon pricing alone is most effective at achieving decarbonization levels at low clean energy targets, and clean energy credit markets and carbon pricing are substitutionary at high clean energy targets. Restricting technology participation in capacity and operating reserve markets can impact deployment and operations, even for nonrestricted technologies. Adding an inertia product with fast frequency response yields insufficient provision at high clean energy targets, but work is needed to understand frequency requirements and capabilities.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Assessment of the impacts of renewable energy variability in long-term decarbonization strategies

To meet the nationally determined contributions proposed by the countries that signed the Paris Agreement, investments must be made in renewable generation technologies such as solar and wind. However, due to their high variability, these technologies pose challenges in terms of meeting demand or generating excess electricity. For this reason, energy system models are designed to capture this variability by considering flexibility technologies. Nevertheless, it is important to note that some energy system models lack integration with other sectors. Therefore, integrated assessment models have been employed to evaluate mitigation strategies, as they endogenously consider the linkages between energy and non-energy sectors. In addition, due to their complexity, these models do not account for the variability of renewable resources. Hence, this research aims to address this issue. Here, this work represents the first attempt to evaluate how the introduction of hourly resolution affects the outcomes of integrated assessment models, specifically focusing on the Global Change Analysis Model (GCAM). We employ a soft-linking approach between the GCAM and the Highway to Renewable Energy Systems model (H2RES, an hourly level energy system model) to accomplish this. The proposed approach is tested using Chile’s Nationally Determined Contributions under different hydrological profiles in the power sector. The results show that it is possible to use the capacity obtained from the Global Change Analysis Model and implement it on an hourly scale. However, the feasibility of implementation depends on high levels of flexibility technologies, such as battery energy storage. When given the choice of investments in renewable sources and flexible technologies, the optimal dispatch of the H2RES model show small differences than those obtained by GCAM-Chile. H2RES differs from GCAM-Chile in approximately 5% for wind and 3% for solar electricity generation in the year 2050. However, feasible integration of significant renewable sources is obtained with relatively high Critical Excess Electricity Production levels, reaching 20% in 2050. This excess electricity is attributed to the necessity for flexible technologies to manage the intermittency of renewables sources when hourly profiles of such sources are considered.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Investigating the effects of cooperative transmission expansion planning on grid performance during heat waves with varying spatial scales

There is growing recognition of the advantages of interregional transmission capacity to decarbonize electricity grids. A less explored benefit is potential performance improvements during extreme weather events. This study examines the impacts of cooperative transmission expansion planning using an advanced modeling chain to simulate power grid operations of the United States Western Interconnection in 2019 and 2059 under different levels of collaboration between transmission planning regions. Two historical heat waves in 2019 with varying geographical coverage are replayed under future climate change in 2059 to assess the transmission cooperation benefits during grid stress. The results show that cooperative transmission planning yields the best outcomes in terms of reducing wholesale electricity prices and minimizing energy outages both for the whole interconnection and individual transmission planning regions. Compared to individual planning, cooperative planning reduces wholesale electricity prices by 64.3 % and interconnection-wide total costs (transmission investments + grid operations) by 34.6 % in 2059. It also helps decrease greenhouse gas emissions by increasing renewable energy utilization. However, the benefits of cooperation diminish during the widespread heat wave when all regions face extreme electricity demand due to higher space cooling needs. Despite this, cooperative transmission planning remains advantageous, particularly for California Independent System Operator with significant diurnal solar generation capacity. This study suggests that cooperation in transmission planning is crucial for reducing costs and increasing reliability both during normal periods and extreme weather events. It highlights the importance of optimizing the strategic investments to mitigate challenges posed by wider-scale extreme weather events of the future.

24 POWER TRANSMISSION AND DISTRIBUTION↗

When do different scenarios of projected electricity demand start to meaningfully diverge?

Resource adequacy studies look at balancing electricity supply and demand on 10- to 15-year time horizons while asset investment planning typically evaluates returns on 20- to 40-year time horizons. Projections of electricity demand are factored into the decision-making in both cases. Climate, energy policy, and socioeconomic changes are key uncertainties known to influence electricity demands, but their relative importance for demands over the next 10-40 years is unclear. The power sector would benefit from a better understanding of the need to characterize these uncertainties for resource adequacy and investment planning. In this study, we quantify when projected United States (U.S.) electricity demands start to meaningfully diverge in response to a range of climate, energy policy, and socioeconomic drivers. Here we use a wide yet plausible range of 21st century scenarios for the U.S. The projections span two population/economic growth scenarios (Shared Socioeconomic Pathways 3 and 5) and two climate/energy policy scenarios, one including climate mitigation policies and one without (Representative Concentration Pathways 4.5 and 8.5). Each climate/energy policy scenario has two warming levels to reflect a range of climate model uncertainty. We show that the socioeconomic scenario matters almost immediately – within the next 10 years, the climate/policy scenario matters within 25-30 years, and the climate model uncertainty matters only after 50+ years. This work can inform the power sector working to integrate climate change uncertainties into their decision-making.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Energy storage in combined gas-electric energy transitions models: The case of California

California’s vision for a net-zero future by 2045 relies heavily on variable renewable energy systems. Thus, energy storage - particularly long-duration storage - could play a fundamental role in reliably supplying low-carbon electricity. We study energy storage using the BRIDGES model, a combined gas-electric capacity expansion model for California across multiple investment periods (2025-2045), modeled with progressively decreasing carbon emission targets to a zero emissions by 2045. This least-cost optimization model includes renewable gas production via power-to-gas, long-term storage of energy in gaseous form, electric energy storage such as through batteries and hydrogen storage, and renewable energy generation, all with capacity tracking and investment. Multiple scenarios are evaluated to examine the sensitivity of the optimal storage portfolio to system-level and sector-level parameters. The scenario results show that all electric energy storage systems - which vary in storage duration - are deployed and required in a net-zero California in 2045, amounting to around 75 GW of storage capacity. Lithium ion systems make up approximately 80% of this power capacity and supply most short-run storage needs. Hydrogen storage - in the form of a power-to-gas-to-power system - emerges as a replacement to conventional natural gas storage, comprising most of the total energy storage capacity (~ 4 TWh). This capacity is less than 5% of the current natural gas storage capacity (94 TWh), indicating sufficient room for repurposing part of the gas infrastructure. A demand-side sensitivity analysis proves that higher electricity demand correlates with more builds of Li-ion batteries, while higher industrial heat demand leads to more builds of long-duration storage systems in a net-zero economy. Furthermore, power-to-gas systems satisfy part of the industrial heat demand by locally supplying renewable gas, which overtakes the traditional centralized gas storage and transfers through pipelines, casting significant doubts on the future of the large-scale gas infrastructure.

03 NATURAL GAS↗

OR-AGENT framework – Architecting electrified heavy-duty drayage applications

The widespread adoption of zero-emission vehicles in heavy-duty (HD) commercial freight transportation faces considerable technoeconomic challenges. For heavy-duty trucks, ensuring high uptime, cost parity with diesel, and safety standards is especially critical as these vehicles operate over long distances with heavy loads, where any downtime or off-nominal behaviors significantly impacts logistics, productivity, and the total cost of ownership. Unlike traditional diesel refueling, BEV charging infrastructure must be co-optimized with vehicle deployment, operational demands, and grid capacity to ensure cost-effective and reliable freight operations. However, the lack of a standardized ownership and service model has led to a fragmented approach—where commercial vehicle operators may invest in, own, and maintain both vehicle/batteries and charging/energy infrastructure. This disconnect may exclude energy service providers from the equation, forcing fleet operators to explore ‘behind-the-fence’ energy solutions that increase capital investment, operational downtime, overhead costs, and, in some cases, net carbon emissions. To address these issues, this study introduces OR-AGENT (Optimal Regional Architecture Generation for Efficient National Transport), a comprehensive modeling framework that integrates powertrain architectures, charging infrastructures, and energy backbone systems into a cohesive strategy. In this paper, OR-AGENT is applied to develop an interconnected systems architecture for energy efficiency and resiliency enhancement of heavy-duty drayage vehicles at the Port of Savannah, GA. This framework showcases an interconnected systems approach to electrifying heavy-duty drayage vehicles at the Port of Savannah, GA. The study assessed BEVs with 400–1200 kWh battery capacities, accounting for seasonal variations in weather and freight routing. A diverse charging mix (150 kW–1250 kW) was evaluated alongside grid capacity constraints, cost, and carbon intensity analysis, leading to the development of a strategic microgrid/Distributed Energy Resources (DER) deployment architecture to ensure a reliable and sustainable transition. However, the findings also highlight the need for alternative zero-emission solutions for remaining trips, such as larger batteries, electrified roadways, hydrogen powertrains, or net-zero emission fuels. In conclusion, the findings are incorporated into a Total Cost of Ownership (TCO) model to identify optimal architectures for an interconnected electrified ecosystem.

Commercial vehicles↗

Evaluating advanced nuclear fission technologies for future decarbonized power grids

Advanced nuclear fission, which encompasses various innovative nuclear reactor designs, could contribute to the decarbonization of the United States electricity sector. However, little is known about how cost-competitive these reactors would be compared to other technologies, or about which aspects of their designs offer the most value to a decarbonized power grid. We employ an electricity system optimization model and a case study of a decarbonized U.S. Eastern Interconnection circa 2050 to generate initial indicators of future economic value for advanced reactors and the sensitivity of future value to various design parameters, the availability of competing technologies, and the underlying policy environment. These results can inform long-term cost targets and guide near-term innovation priorities, investments, and reactor design decisions. We find that advanced reactors should cost $\$5.7$–$\$7.3$/W to gain an initial market share (assuming 30 year asset life and 3.5 %–6.5 % real weighted average cost of capital), while those that include thermal storage in their designs can cost up to $\$6.0$/W–$\$7.7$/W (not including cost of storage). Since the marginal value of advanced fission reactors declines as market penetration increases, break-even costs fall ~32 % at 100 GW of cumulative capacity and ~51 % at 300 GW. Additionally, policies that provide investment tax credits for nuclear energy create the most favorable environment for advanced nuclear fission. In conclusion, these findings can inform near-term resource allocation decisions by stakeholders, innovators and investors working in the energy technology sector.

Capacity expansion↗

Long-term impact of electrification and retrofits of the U.S residential building in diverse locations

The U.S. buildings sector contributes 30% of operational carbon emissions, with residential buildings accounting for 56%. Reducing residential carbon emissions is crucial for achieving net-zero carbon goal. While many studies examine energy efficiency retrofit (EER) and electrification, few explore their long-term impacts across diverse climates and dynamic grid clean energy penetrations, as well as their economic effects on households. Here, this study proposes a method to assess how EER and electrification affect long-term decarbonization and economics across different climates, focusing on carbon emissions, energy burden (the percentage of household income spent on energy), and payback period in four locations: Tampa, San Diego, Denver, and Great Falls. The study also introduces the concept of implicit energy burden by considering investment costs. Results show that while electrification can reduce long-term emissions with increased clean energy penetration, it may not always achieve decarbonization due to mismatches between clean energy availability and demand. In cooling-dominant locations, electrification lowers energy burden and peak demand, but in heating-dominant locations, it increases energy burden to 8.24%, raises peak demand by 632.78%, and shifts it from summer to winter. After integrating investment costs, the implicit energy burden can reach 8.35% in cold climates. For already highly electrified buildings in Denver and Great Falls, the payback period of EER measures can be shortened by up to 48.98%. The study highlights a tradeoff between decarbonization and energy burden alleviation, showing that while EER measures can reduce the energy burden, they only achieve one-quarter of the carbon emission reduction of electrification.

24 POWER TRANSMISSION AND DISTRIBUTION↗

CCUS deployment under the U.S. 45Q tax credit and adaptation by other North American Governments: MARKAL modeling results

In 2018, U.S. Congress passed the Bipartisan Budget Act, known as 45Q [H.R. 3761], expanding the corporate income tax credit for carbon capture utilization and storage (CCUS). 45Q provides a performance-based tax credit for carbon capture projects of $30/ton of carbon dioxide (CO 2 ) (tCO 2 ) for anthropogenic CO 2 going to enhanced oil recovery (EOR), and $50/tCO 2 if going to straight storage. There are several conditions; for example, there is a 12-year time limit on tax credits for a new plant that commences construction before 2024 [H.R. 3761]. Here, this study aims to test the incremental impact of the 45Q tax credits on CCUS deployment, CO 2 -EOR, and power generation technological changes for North American (the United States, Canada, and Mexico) long-term energy system development. The scenario results show that offering a 12-year CO 2 storage subsidy provides the motivation needed for CCUS investment during the 12-year subsidy period, and the benefits of such investment can be sustained over the 40-year lifetime under CO 2 taxation. The modeling results show that carbon capture generation replaces uncontrolled fossil-fueled power, not new or existing renewables, so power generation and corresponding emission reductions from renewables remain unaffected by the availability of 45Q in the United States. Our scenario with CCUS technological learning indicates that CCUS could play a very important role under stringent environmental constraints. Thus, accelerated support and funding for the large-scale CCUS demonstrations is important for the execution of both short- and long-term climate mitigation goals. Given the significant role of the United States, Canada, and Mexico on the world energy system, our results represent an important contribution to the study of global energy trends.

42 ENGINEERING↗

Roadmap to reach global net-zero emissions for developing regions by 2085

As climate change intensifies, determining a developing region’s role in achieving net-zero emissions worldwide is crucial. However, regional efforts, considering historical emissions, remain underexplored. Here, we assess energy system changes, technology adoption, and investments needed for developing regions, including five major- and minor-emitting nations. Our analysis, using an integrated assessment model, shows a large gap in regional efforts toward global net-zero emissions, stemming from the necessary shift of energy systems to low-carbon resources. The use of new technologies, like electric vehicles, hydrogen, and carbon capture, varies by region, with the highest adoption required between 2020 and 2030. Financing this shift needs an average gross domestic product (GDP) investment rise of 0.464% in minor-emitting regions and up to 2.1% in major-emitting regions by 2085. Our results could guide policies and support setting quantifiable targets for developing nations. The findings are key to facilitating strategic technology use and finance mobilization to achieve a carbon-neutral future.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

The value of hydropower flexibility for electricity system decarbonization

Hydropower is an abundant, dispatchable, clean energy resource that will play an important role in supporting the clean energy transition. In particular, dispatchable hydropower can provide the operational flexibility that will be required in future systems with high variable renewable energy penetrations. However, the theoretical operational flexibility of hydropower can be restricted in practice by various non-power constraints. In this paper, we quantify how increasing the operational flexibility of dispatchable hydropower resources with reservoirs impacts least-cost generation portfolios and supports power system decarbonization. Specifically, we conduct a capacity expansion analysis of a two-zone system: a hydro-dominated region and a neighboring region with aggressive decarbonization targets that are represented by the United States Pacific Northwest and California respectively. We then introduce a quantifiable index for characterizing the operational flexibility of reservoir hydropower and assess how changes in this metric impact the system-optimal generation portfolio. We find that increasing hydropower flexibility leads to more investment in wind generation, less investment in natural gas generation, lower system costs, and lower system emissions. We further demonstrate a substitution effect between the grid services provided by flexible hydropower operation, increased transmission capacity on a congested line, and energy storage resources. Finally, we show that increasing the operational flexibility of hydropower increases the effective load carrying capability of both hydropower and wind resources. This research supports a more nuanced understanding of how hydropower can support electricity system decarbonization and may motivate reassessing the cost-benefit tradeoffs of non-power constraints that restrict operational flexibility.

Capacity expansion modeling↗

A novel green hydrogen production using water-energy nexus framework

The transformation of electrical energy to hydrogen via water electrolysis consumes considerable amount of fresh water and a productive use of nontraditional water sources enhances the reliability and resilience of energy and water systems. In this study, we have designed a solid oxide electrolysis cell (SOEC) system which is an evolving hydrogen production technology at high temperatures for water electrolysis. Here, the SOEC uses steam generated from flue gas as its feedstock and is fully integrated with numerous power production units, including coal and natural gas-fired power plants as its energy feedstock. While there is a hasten global shift away from fossil fuel, integrating its asset into this technology helps limit the risk and future losses of stranded assets and reduce the cost of investment in the new technologies. But high capital expenditures and doubt concerning the future cost and efficiency upgrade are obstacles to investing in water electrolysis. Such a detailed Levelized cost of hydrogen and techno-economic analysis is conducted to show the viability and environmental impacts of this novel technology. The results show SOEC efficiency of 97.4 % and 56.3 % as thermal-to-hydrogen efficiency of the system with a daily hydrogen production of 242,400 kg at $2.9–3.5/kg H 2 . The estimates show a positive gain prospect in this technology and techno-economic challenges.

08 HYDROGEN↗

Three different directions in which the European Union could replace Russian natural gas

Russia's invasion of Ukraine fuelled an energy crisis, which considerably impacted Europe given its heavy reliance on Russian natural gas imports. This study uses an ensemble of four global integrated assessment models, which are further soft-linked to two sectoral models, and explores the synergies and trade-offs among three approaches to living without Russian gas in Europe: (a) replacing with other gas imports, (b) boosting domestic energy production, and (c) reducing demand and accelerating energy efficiency. We find that substituting Russian gas from other trade partners would miss an opportunity to accelerate decarbonisation in end-use sectors while risking further fossil-fuel lock-ins, despite featuring the lowest gas price spikes and potentially reducing heating costs for end-users in the near term. Boosting domestic, primarily renewable, energy production on the other hand would instead require considerable investments, potentially burdening consumers. Energy demand reductions, however, could offer considerable space for further emissions cuts at the lowest power-sector investment costs; nonetheless, an energy efficiency-driven strategy would also risk relocation of energy-intensive industries, an aspect of increasing relevance to EU policymakers.

03 NATURAL GAS↗

Comparative Analysis of Natural Gas Cogeneration Incentives on Electricity Production in Latin America

An analysis to assess the influence of country-dependent variables and incentives on the feasibility of natural gas cogeneration projects in Latin America is presented in this work. The analysis is performed using a hypothetical industrial plant, where the cogeneration solution consists in the recovery of waste heat from the power generation for steam production. The feasibility is evaluated by calculating the Return of Investment (ROI) and the Internal Rate of Return (IRR) of the project. Eight Latin American countries are studied considering their specific natural gas markets, regulation, and macroeconomic variables. Two scenarios, electricity production for self-consumption and electricity production with power surplus sale, are independently analyzed considering the effects of available incentives. In the countries where the project is feasible, the application of incentives leads to a significant reduction in the ROI and, consequently, to an increment in the IRR. The effect of the interest rate and environmental impact were also analyzed. In general terms, along the region, the regulation for cogeneration is incipient while incentives are very standard and similar respect to lowering of import, Value-Added Tax (VAT), and income taxes, which seems to be designed purely to promote capital investment. Following the results from this study, it is of paramount importance to create new policy instruments in the future to advance the regulatory framework for cogeneration in Latin America.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

From zonal to nodal capacity expansion planning: Spatial aggregation impacts on a realistic test-case

Solving power system capacity expansion planning (CEP) problems at realistic spatial resolutions is computationally challenging. Thus, a common practice is to solve CEP over zonal models with low spatial resolution rather than over full-scale nodal power networks. Due to improvements in solving large-scale stochastic mixed integer programs, these computational limitations are becoming less relevant, and the assumption that zonal models are realistic and useful approximations of nodal CEP is worth revisiting. Here, this work is the first to conduct a systematic computational study on the assumption that spatial aggregation can reasonably be used for ISO-scale CEP. By considering a realistic, large-scale test network based on the state of California with over 8000 buses, we find that well-designed small spatial aggregations can yield good approximations but that coarser zonal models may result in large distortions of investment decisions, e.g., capacity under-investment of up to 41% for the lowest resolution model considered.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Identifying Disadvantaged Communities in the United States: An Energy-Oriented Mapping Tool that Aggregates Environmental and Socioeconomic Burdens

This paper defines a policy-relevant nationwide composite index to identify communities disproportionately impacted by environmental, energy, and climate injustices in the United States. We review existing vulnerability indicators and indices to assess the tradeoffs of different design parameters, including variable selection, geographic unit, dimensionality reduction, weighting, and aggregation methods. From this methodological review, we create the first nationwide, census tract-level index of cumulative burden that includes energy-relevant indicators alongside climate, social, environmental, and economic indicators, and is flexible to the inclusion of additional data sources. We provide a summary of the sources of inputs used to develop a definition for "disadvantaged communities" that can be used to prioritize energy investments. We discuss use-cases for this index including the implementation of the Justice40 Initiative, which calls for 40% of certain federal clean energy benefits to flow to disadvantaged communities in the United States. We use our results to examine historic allocations of federal energy investments and show that communities that we identify as disadvantaged received about 37% fewer funds per capita than non-disadvantaged communities.

cumulative burden↗

Staying Current: A Community Readiness Framework for Marine Energy Applied to River Current Energy in Alaska

Marine energy-including wave, tidal, and river current energy-can provide a local energy source for rural and remote communities. Marine energy has the potential to bolster self-sufficiency and create economic opportunities while preserving ecological integrity. Communities may be interested in deploying, testing, and advancing these early-stage technologies to meet their needs. However, limited capacity, workforce constraints, and other barriers can challenge development. To better understand a community's interest in and preparedness for marine energy, we developed a suite of 150 'metrics of readiness.' Organized across seven categories-technical, social, environmental, strategic, governance, economic, financial-and 29 subcategories, the metrics provide a holistic perspective beyond the technical aspects of an energy device. We conducted a desktop application of the metrics of readiness for Igiugig, Alaska. The metrics were applied retrospectively for two points in time: before (2009) and after (2018) in-stream testing of a river current energy device. By documenting changes among categories and subcategories of the metrics, our results show the evolving nature of community readiness for river current energy. They also illustrate how our interdisciplinary framework captures the investment in environmental effects research and commitment to strategic planning that occurred in Igiugig. In future applications, we envision the framework could be used to foster public engagement in marine energy, collaborate with communities in project development, shape capacity building activities, prioritize investments, and inform research needs. While our study focuses on enabling river current energy in Alaska, the metrics of readiness have the potential to inform implementation of other renewable technologies with communities in new geographies.

13 HYDRO ENERGY↗

An energy storage dispatch optimization for demand-side management in industrial facilities

An energy storage (ES) dispatch optimization was implemented to test lithium-ion battery ES, supercapacitor ES, and compressed air ES on two different industrial facilities – one intermittent process facility and one continuous process facility. The model first shows the capability of optimizing the size of a single technology on a single industrial facility to maximize the return on investment. Then, for the same profile, the model identifies significant differences in the optimal size for different technologies based on their performance parameters. Third, the model identifies differences in the optimal size for each technology based on the facilities profile. Here the results show compressed air ES yields the highest return on investment for both facilities and provides insight for future development of ES systems.

25 ENERGY STORAGE↗