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DOE OSTI2022

Electrification Futures Study: Impact of Electric Vehicles on Bulk Power Systems

This presentation builds on work presented at IEW2019 on "Transportation Scenarios of Electric Technology Adoption and Power Consumption" by providing insights on the impact of demand-side electrification, and electric vehicles in particular, on electricity supply and bulk power systems. This talk summarizes some results from the multi-year and multi-stakeholder Electrification Futures Study (EFS) series of reports. In particular, this work leverages integrated demand and supply modelling of future energy systems to provide insights on system design and operations focusing on demand flexibility and integration of variable renewables.

ADVANCED PROPULSION SYSTEMS,ENERGY PLANNING, POLIC↗

DOE OSTI2020

Preparing Distribution Utilities for Utility-Scale Storage and Electric Vehicles: A Novel Analytical Framework

Emerging distributed energy resources (DERs)—such as solar photovoltaics (PV), battery energy storage systems (BESS), and electric vehicles (EVs)—are expected to increase substantially in India in the coming years following policy-driven targets of the Government of India to modernize its electricity system, reduce greenhouse gas emissions (GHGs), and improve air quality. These emerging technologies can pose challenges to distribution utilities, forcing overhauls in planning and operational practices. They can also create challenges in power system infrastructure planning and cause more frequent system operational violations (e.g., network voltage bounds and loading thresholds) if not properly integrated. The impacts on the localized power distribution grid from these emerging technologies manifest in increased infrastructure investments and erratic shifts in demand patterns. These impacts are not yet well understood, and analytic solutions are not readily available. To address these challenges, the National Renewable Energy Laboratory (NREL), in collaboration with BSES Rajdhani Power Ltd. (BRPL), developed an advanced power distribution system impact analysis framework of BRPL’s distribution system. This framework helps analyze the readiness of the power distribution network to accommodate emerging technologies and the potential opportunities they might introduce. The framework has been predominantly set up to evaluate distributed PV, BESS, and EVs. In this collaboration between NREL and BRPL, we developed and evaluated the framework on two distribution feeders in the BRPL territory for various scenarios of BESS and EVs. BESS are evaluated for their effectiveness on the grid to mitigate present and future feeder overloading scenarios, and they are subsequently analyzed for their costs compared to the costs of traditional upgradation measures. Scenarios include assessing the effects of EV density on grid infrastructure upgrades and interlinking EV management with BESS integration.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2020

Hybrid Analytics Solution for Power Plant Operations

Expert Microsystems, Inc., MapEx Software Inc. and XMPLR Energy LLC have teamed to submit a proposal to the US Department of Energy’s Office of Fossil Energy to improve the efficiency, reliability and flexibility of existing coal-based power plants. The project, titled Hybrid Analytics Solution to Improve Coal Power Plant Operations (the “Hybrid Analytics” project), will develop, demonstrate and commercialize a novel approach that integrates two proven real-time monitoring techniques. The Hybrid Analytics approach integrates into a single, integrated solution: a) an established, advanced data-driven analytics solution that includes artificial intelligence, advanced pattern recognition and machine-learning techniques and b) a well-proven, first principle thermal heat balance model solution. The future role of coal plants will depend on the ability to cycle and follow loads to meet marginal power demands, accommodate renewables and support the grid. Essential to success in this new role is a plant’s ability to maintain high reliability, efficiency and flexibility. However, these changing operational demands put significant stresses on power plant components that directly impact the ability to deliver these requirements. In the past, plants have independently monitored performance using physics-based solutions (heat rate, boiler losses, etc.) and reliability using data-driven analytics (advanced pattern recognition). The Hybrid Analytics solution integrates both approaches to enhance fault detection, provide automated diagnostics and estimates of remaining time to act, and provide critical, enhanced and accurate real-time information to coal plant operators. As a result, coal plants can improve efficiency, reliability, and flexibility and can cost-effectively maintain their key role in the power delivery system.

01 COAL, LIGNITE, AND PEAT↗

DOE OSTI2024

Market optimization and technoeconomic analysis of hydrogen-electricity coproduction systems

Decarbonization efforts across North America, Europe, and beyond rely on variable renewable energy sources such as wind and solar, as well as alternative fuels, such as hydrogen, to support the sustainable energy transition. These advancements have prompted a need for more flexibility in the electric grid to complement non-dispatchable energy sources and increased demand from electrification. Integrated energy systems are well suited to provide this flexibility, but conventional technoeconomic modeling paradigms neglect the time-varying dynamic nature of the grid and thus undervalue resource flexibility. In this work, we develop a computational optimization framework for dynamic market-based technoeconomic comparison of integrated energy systems that coproduce low-carbon electricity and hydrogen (e.g., solid oxide fuel cells, solid oxide electrolysis) against technologies that only produce electricity (e.g., natural gas combined cycle with carbon capture) or only produce hydrogen. Our framework starts with rigorous physics-based process models, built in the open-source Institute for the Design of Advanced Energy Systems (IDAES) modeling and optimization platform, for six energy process concepts. Using these rigorous models and a workflow to optimally design each technology, the framework is shown to be capable of evaluating new and emerging technologies in varying energy markets under a plethora of future scenarios (i.e., renewables penetration, carbon tax, etc.). Ultimately, our framework finds that solid oxide fuel cell-based coproduction systems achieve positive profits for 85% of the analyzed market scenarios. From these market optimization results, we use multivariate linear regression (R 2 values up to 0.99) to determine which electricity price statistics are most significant to predict the optimized annual profit of each system. The proposed framework provides a powerful tool for directly comparing flexible, multi-product energy process concepts to help discern optimal technology and integration options.

08 HYDROGEN↗

DOE OSTI2021

Optimal design of solar-driven electrolytic hydrogen production systems within electricity markets

Hydrogen has the potential to be a key contributor toward a low-carbon economy. Generating hydrogen by electrolysis using renewable energy is one way to support a decarbonized economy; however, its cost is not typically competitive with the carbon-emitting incumbent technology, steam methane reforming. The ability of electrolysis to integrate with electricity markets presents a unique cost reduction opportunity due to the perceived future availability of low and zero-marginal cost renewable energy sources. Additionally, as renewables, and particularly, photovoltaics are installed on the grid, they have a value deflation effect. This work evaluates solar-electrolysis configurations using a mathematical programming framework to maximize system net present value. The framework has been tested with specific weather conditions and financial mechanisms in California. Our findings indicate that a spectrum of potential cost competitive solutions is available for systems that (i) have market configurations resembling hybrid retail/wholesale, resulting in a hydrogen production cost range of US$6.2 kg-1–US$6.6 kg-1, or full wholesale market participation, reducing production cost to US$2.6 kg-1–US$3.1 kg-1, and (ii) achieve projected future cost reductions.

08 HYDROGEN↗

DOE OSTI2021

Combined Land Use of Solar Infrastructure and Agriculture for Socioeconomic and Environmental Co-Benefits in the Tropics

Solar photovoltaics (PV) are on the rise even in areas of low solar insolation. However, in developing countries with limited capital, land scarcity, or with geographically isolated agrarian communities, large solar infrastructures are often impractical. In these cases, implementation of low-density PV over existing crops may be required to integrate renewable energy services into rural communities. Here, using Indonesia as a model system, we investigated the land use, energy, greenhouse gas emissions, economic feasibility, and the environmental co-benefits associated with off-grid solar PV when combined with high value crop cultivation. The life cycle analyses indicate that small-scale dual land-use systems are economically viable in certain configurations and have the potential to provide several co-benefits including rural electrification, retrofitting diesel electricity generation, and electricity for processing agricultural products locally. A hypothetical full-density off-grid solar PV for a model village in Indonesia shows that electricity output (1907.5 GJ yr-1) is much higher than the total residential consumption (678 GJ yr-1), highlighting the opportunity to downscale the PV infrastructure by half to lower capital cost, to co-locate crops, and to support secondary income generating activities. Economic analysis shows that the 30-year net present cost of electricity from the half-density co-located PV system (12,257 million IDR) is significantly lower than that of the flat cost of diesel required to generate equivalent electricity (14,702 million IDR). Our analysis provides insights for smarter energy planning by optimizing the efficiency of land use and limiting conversion of agricultural and forested areas for energy production.

agrivoltaics↗

DOE OSTI2022

LIQUID AIR COMBINED CYCLE

Hybrid integration of thermal energy storage with gas turbines can provide compact, cost-effective, long-duration energy storage while reducing the fuel consumption of dispatchable resources needed for the reliability of renewable dominant electric grids. The Liquid Air Combined Cycle™ (LACC) is a hybrid energy storage system using cryogenic liquid air as an energy storage medium and gas turbine exhaust heat to extract stored energy. The storage tank is charged using liquefaction processes employing electric motor-driven compressors to pressurize the air, heat exchangers to reject heat of compression, and expanders to reduce the temperature and liquefy the air. Proven cryogenic refrigeration processes can be selected based on capital cost (per kg/s of liquid air produced), efficiency (kJ per kg of air produced), and operating factors including startup speed and load following capability. This paper presents results of studies undertaken for the U.S. Department of Energy to evaluate cost and performance tradeoffs for charge and discharge cycle components, optimize charge and discharge cycles, and assess the techno-economic potential of LACC technology.

Conlon, William↗

DOE OSTI2022

Design of Phase-Change Thermal Storage Device in a Heat Pump for Building Electric Peak Load Shaving: Preprint

Replacing carbon-intensive fossil fuel heating systems with electric heat pumps powered by renewables is a promising approach to decarbonize the building sector. However, one of the technical barriers of this approach is the large scale of heat demand, which will put excessive stress on the electricity grid. Integrating thermal energy storage (TES) into the heating systems can help alleviate this problem, by shifting thermal load and thus shaving peaks in the building electric load. Therefore, it is critical to understand how to design a thermal storage device in a heat pump for peak load shaving. In this study, we developed a numerical model for a cascaded vapor compression heat pump system integrating a phase change thermal storage device. This novel system can control the net thermal charging and discharging rate of the TES independently from the building's thermal load, which allows for precise control of electric power use. In the current study, we controlled the system to shave building electric peak load during a cold winter morning, and to charge TES during the relatively warm afternoon while still providing space heating. We used the model to evaluate the system performance with and without peak shaving. We also investigated the effect of PCM transition Tt on the peak reduction and electric energy saving potentials. The results show that peak shaving scheme effectively reduces the peak electric power consumption during a predefined discharge time window. When comparing to the no shaving case, for PCM Tt = 10 degrees C, the peak electric load reduction is 23.5%. When comparing to an air-source heat pump with back up electric heater, as Tt increases from 0 to 20 degrees C, the peak reduction increases from 46.1% to 50.9%. Integrating PCM Tt = 10 degrees C with peak shaving leads to the 45.5% of electric energy saving, which is the highest among the three transition temperatures.

electric energy saving↗

DOE OSTI2025

Packages of Distributed Energy Technologies Demonstrating Demand Flexibility at Community Scale

The combination of increased electric load growth across all sectors, deferred electrical infrastructure investment, and other factors resulting in variable electric power supply, has created technical challenges to maintaining a resilient and reliable grid. Many federal, regional, and local efforts are in play to modernize the electric grid, including advancing building technologies and distributed energy resources (DERs) that are utilizing smarter controls to become responsive to both occupant and grid needs. This report reviews ten pilot projects demonstrating how groups of buildings combined with behind-the-meter (BTM) DERs such as electric vehicle (EV) charging, battery storage, flexible HVAC and domestic hot water systems, and photovoltaic systems can reliably and cost effectively provide grid services. Each of the ten pilot projects aim to deliver both energy efficiency and demand flexibility (DF) while supporting load growth. The ten demonstration teams are piloting flexible DER packages across diverse communities of residential and commercial buildings to address a variety of regional grid needs. The outcomes of these pilot projects will be used to inform future scaling through utility program development. This paper characterizes the ten teams, showcasing the decision-making process used by each group to develop their packages (Section 2), the grid services they plan to deliver (Section 3), the types of DER packages selected for deployment within building sectors (Section 4) and trends between building sector, DER types, and grid services In order to achieve community scale benefits, the pilot projects must utilize aggregated control mechanisms for coordinating buildings and DERs together. Several types of coordinated control architectures have evolved amongst the teams, influenced by use type, existing market conditions, and integration type. Three coordinated controls architectures have been characterized, highlighting their use cases, benefits, challenges, and tradeoffs in their design. These insights can aid utilities, control vendors, and developers in scaling community-level energy systems (Paul, 2024). Ultimately, the technology packages selected by the ten teams will be coordinated to provide power system services, also known as grid services. Insights from these demonstrations will be useful for grid operators, regulators, aggregators and other stakeholders as they look to deploy demand flexible resources as grid services in the future. The grid services that each team is targeting for demonstration are described in Section 3 and Section 4. Methods for evaluating the grid services have been described in the paper Metrics for Evaluating Grid Service Provision from Communities of Grid-interactive and Efficient Buildings and other DER (MacDonald, 2023). To identify technology packages for demonstration, Section 2 shows that project teams used a range of analysis approaches, including building energy modeling, AMI data analysis, cost-benefit frameworks, and utility pilot data. Some teams emphasized technical modeling to quantify grid impacts and demand reduction potential, while others prioritized economic evaluations, stakeholder input, or exploratory pilots to inform deployment decisions. This diversity reflects the need to tailor selection methods to project goals, available data, and organizational context. Section 5 discusses trends between the DER technologies deployed and the grid service provisions from each team. Residential buildings (multifamily and single family) lean towards technologies that enhance energy efficiency (e.g. weatherization upgrades, smart thermostats) and onsite power generation integration (e.g. solar PV). Commercial building demonstrations prioritize technologies that ensure operational reliability (e.g. battery storage) and centralized energy management systems and optimization solutions. Teams that are deploying controllable storage-based technologies are more likely to provide grid services that require a near real-time response. Teams incorporating load shifting technologies like smart thermostats with HEMs are likely to include energy markets participation and customer bill management offerings. Campus demonstrations are adopting diverse sets of DERs to emphasize renewable generation, paired with centralized control. This section also describes technologies that were considered during project planning but ultimately excluded from final deployment. These demonstrations reveal that effective DER package design should be tailored to building type, customer segment, and construction vintage. Multifamily buildings benefit from centralized HVAC upgrades and supervisory controls, while single-family homes are well-suited for individualized technologies like solar, storage, and smart home energy monitors. Commercial and campus settings prioritize EMIS integration and load optimization. New construction enables cost-effective integration of DER-ready infrastructure, whereas retrofits require deployments aligned with owner and tenant value streams. For utility program planners, early coordination with developers and building owners, paired with segmented and modular program offerings, can improve adoption, scalability, and grid impact.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2020

Design, Development and Testing Plan for Energy Efficiency Algorithms Related to Building-Integrated Cooling, Heating, and Power Systems

Building-integrated cooling, heating and power (CHP) systems are more efficient than conventional systems at providing local power and thermal energy, and favorable fuel prices are bound to spur their increased adoption. It is estimated that the total CHP technical potential in the commercial building sector is approximately 76 GW, but only a small fraction of it is actually deployed. Advanced control and monitoring systems that realize the full potential of these CHP systems can transform this capacity into an asset for both the owner and the grid and also accelerate the adoption of these systems in the building sector. However, to realize the full benefit of the CHP systems, we must ensure persistence of energy efficient operations. It has been demonstrated by several studies that as much as 30% of building energy use is wasted. Much of the waste results from the inability to anticipate load variations (design day vs. non-design day operations; diurnal variation of loads), identify improper operation, and efficiently operate, control and maintain building systems. Moreover, many buildings, even those with adequate control infrastructure, lack knowledgeable staff to operate and maintain energy systems. Operators of buildings with CHP systems will constantly need to make tradeoffs (economic dispatch) between onsite power generation and purchasing power, between onsite heat production from distributed generation versus heating/cooling from conventional systems, and different passive and active load management measures. Much of the inefficiency in the current building operations can be eliminated by use of automated performance monitoring (PM), real-time commissioning verification (CxV) and automated fault detection and diagnostic (AFDD) tools. Automation can help system operators make intelligent decisions. Remote and continuous monitoring of system conditions and performance will enable better management and integration of CHP with existing building systems. Continuous PM, real-time CxV and AFDD could alleviate burdens for operations staff, enhance operations and maintenance (O&M), and improve reliability of building and CHP systems. To address the O&M challenges and to provide a means to maximize the rate-of-return of building-integrated CHP systems, the Building Technologies Office (BTO) within the U.S. Department of Energy’s (DOE’s) Office of Energy Efficiency and Renewable Energy (EERE) initiated a project to design, develop, and field test a VOLTTRON™-based supervisory controller and associated open-source algorithms. These algorithms will ensure real-time optimal operation of a building-integrated CHP system, support electric grid reliability, and lead to achieving the goal of a clean, efficient, reliable and affordable next-generation integrated energy systems. This report lists the components for which PM, real-time CxV and AFDD algorithms will be developed, how the algorithms will be tested, and metrics that will be used to validate the algorithms and easy of deployment. Deployment of these algorithms in the field will result in savings reduction in energy consumption of between 10% and 20%.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2021

MPC-based double-layer real-time conditional cSelf-restoration for interconnected microgrids

In this report, we propose a novel model predictive control(MPC)-based real-time conditional self-restoration energy management system (CSR-EMS) for interconnected microgrids (IMGs) integrated with renewable energy sources (RESs) and energy storage systems (ESSs). Superior to the existing IMG self-restoration methods, the “conditionality” of the proposed CSR-EMS can economically realize self-restoration and grid-assisted restoration during energy deficiency or faults, in both islanded and grid-connected modes. Cost minimization is implemented as the objective function to judge in real-time which restoration mode is economically preferred. The proposed CSR-EMS comprises two layers–the lower layer operates locally to eliminate electricity fluctuations created by RESs and ensure economic effectiveness within an MG, whereas the upper layer oversees the real-time operational status of the IMG system and determines power exchange among microgrids (MGs) during abnormalities. In detail, when a microgrid inside the IMG system experiences an energy deficiency, the CSR-EMS, on an MPC basis, intelligently optimizes power production from each dispatchable distributed generator (DG), ESS, power imported from the main grid, and power exchange among the IMGs to maintain the demand–supply balance, while considering system recovery cost, state of charge (SoC) of ESSs and operation modes of the IMGs (i.e., grid-connected or islanded mode). Simulation results and comparisons with existing IMG self-healing EMSs demonstrate the economic efficacy of the proposed CSR-EMS strategy during normal and abnormal operations, which can be used as an energy control framework for modern power systems with multiple interconnected microgrids.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2024

The Grid Value of Ocean Current Energy in Florida

Ocean current energy technology has been proposed as a potential contributor to Florida's energy portfolio. There has been limited investigation of how this energy would be valued when integrated into the Florida electrical grid. This study assesses three future grid scenarios to evaluate the impact of adding zero-cost ocean current energy to each. The Resource Planning Model, a tool developed by the National Renewable Energy Laboratory, is used to identify the least-cost generation mix through 2050, with and without ocean current energy. The first scenario is a base case and assumes existing policies in which the addition of ocean current energy does not retire fossil-based technologies but variable generation technologies. In the second scenario, solar and storage technologies are lower cost, and the addition of ocean current generation enables those technologies along with wind to retire existing natural gas units earlier. In the third scenario, which requires a 95% reduction in carbon emissions from 2020 levels by 2050, ocean current energy can play a role in decarbonization along with other variable generation technologies. This analysis is intended to inform stakeholders on the opportunity, potential challenges, and overall value to the grid of ocean current technology from a reliability and availability focused perspective.

capacity expansion model↗

DOE OSTI2020

Navy Ratchets Up Resilience Through Agency/Utility Collaboration

The Naval Construction Battalion Center (NCBC) in Gulfport, Mississippi, and Mississippi Power Company (MPC) have integrated a 15-acre solar photovoltaic (PV) array, battery storage, and backup generation with an innovative microgrid. The Navy and utility teams are helping ensure mission readiness at NCBC while increasing renewable energy generation on the grid in MPC's service area. The NCBC/MPC resilience effort will allow the base to more effectively deploy disaster recovery activities in the event of a grid outage.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2020

An Uncertainty Management Framework for Integrated Gas-Electric Energy Systems

In many parts of the world, electric power systems have seen a significant shift toward generation from renewable energy and natural gas. Because of their ability to flexibly adjust power generation in real time, gas-fired power plants are frequently seen as the perfect partner for variable renewable generation. However, this reliance on gas generation increases interdependence and propagates uncertainty between power grids and gas pipelines and brings coordination and uncertainty management challenges. To address these issues, we propose an uncertainty management framework for uncertain, but bounded gas consumption by gas-fired power plants. The admissible ranges are computed based on a joint optimization problem for the combined gas and electricity networks, which involves chance-constrained scheduling for the electric grid and a novel robust optimization formulation for the natural-gas network. This formulation ensures feasibility of the integrated system with a high probability, while providing a tractable numerical formulation. A key advance with respect to existing methods is that our method is based on a physically accurate, validated model for transient gas pipeline flows. Our case study benchmarks our proposed formulation against methods that ignore how reserve activation impacts the fuel use of gas power plants and only consider predetermined gas consumption. Here, the results demonstrate the importance of considering uncertainty to avoid operating constraint violations and curtailment of gas to the generators.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2022

A Scalable Method for Decarbonizing Modular Building Solutions: Preprint

The decarbonization movement emphasizes the shift in focus from energy efficiency to directly reducing global-warming impact. Blokable, LLC, a vertically integrated modular builder with an all-electric portfolio, worked with NREL on a roadmap to decarbonize its high-performance building product at a relative cost advantage by utilizing the learning curves of mass production. Previous decarbonization literature focused on either i) lifecycle assessments, or ii) efficiency measures. These decarbonization exercises were bespoke to individual building projects and did not consider positive feedback loops of builder experience or process repetition. Vertically integrated, prefab builders possess the unique ability to leverage learning and repetition to decarbonize their design-build-operate process. This collaboration between Blokable and NREL resulted in a decarbonization strategy utilizing the company's scaling and production efficiencies, on-site renewable energy and storage, and the projected evolution of building components over time based on trends and emerging legislation. The method developed here encompasses a growing business model, lifecycle carbon assessment, and projected changes in product and grid emissions over time due to existing trends and emerging legislation. This methodology incorporates learning-curve efficiencies gleaned from scaled manufacturing, as well as open-source tools integration for energy and carbon accounting. The output projects and compares cost and carbon savings per modular unit as production increases to 10,000 dwelling units annually over 15 years. The resulting roadmap illustrates a path to roughly 60% carbon savings and beyond-net-zero-energy performance at no incremental cost by 2030. The methodology can be mapped to other integrated or productized builders for methodical decarbonization.

affordable housing↗

DOE OSTI2022

A Scalable Method for Decarbonizing Modular Building Solutions

affordable housing↗

DOE OSTI2020

Management of Risk and Uncertainty Through Optimized Co-Operation of Transmission Systems and Microgrids With Responsive Loads (Final Report)

The evolution of the power system to the reliable, efficient and sustainable system of the future will involve development of both demand- and supply-side technology and operations. Ambitious national and state-level goals around the decarbonization of electricity relies on the integration of very high levels of renewable resources, most of which are variable and intermittent. The use of demand response is an ideal approach to counterbalance the intermittency of renewable generation and brings the consumer into the spotlight. Though individual consumers are interconnected at the low-voltage distribution system, these resources are typically modeled as variables at the transmission network level. Demand-side participation cannot be leveraged effectively without explicitly including the distribution system dynamics in the optimization-based wholesale market operations. This project grew from a vision for co-optimized interaction of distribution systems, or microgrids, with the high-voltage transmission system. In this framework, microgrids encompass consumers, distributed renewables and storage. The energy management system of the lower voltage system (distribution or microgrid) can also sell (buy) excess (necessary) energy from the transmission system. Until recently, very little research had been conducted on the co-optimization of these two systems due to computational limitations. However, advances in computational capabilities, and the judicious use of decomposition methods and innovative approximation methods for high-dimension dynamic programming made this goal a viable objective for this project, leading to a fundamental shift in the ability to integrate and fully utilize demand-side resources. To this end, the modeling framework developed introduces a novel co-optimization framework, to include the operations of both the transmission and distribution systems (or microgrids) in operational decision making. This framework was used to analyze renewable and distributed generation along with responsive demand and to compare the capability of co-optimized systems to perform with higher levels of variable renewables. An ideal microgrid is defined as an electric entity capable of operating in both interconnected (with the high-voltage grid) and islanded mode. As such, the microgrid should incorporate generating units (traditional units and intermittent) and if needed, exchange power with the high-voltage grid. The interplay between the microgrid and high-voltage grid motivated the development of the co-optimization approach to ensure efficient performance of the interconnected network. Results show that the use of a bi-level optimization approach is an appropriate structure, capable of co-optimizing a transmission system with multiple distribution systems and microgrids. While increasing the number of connected systems provides increasing flexibility for renewables integration this can also the economic benefits to the low-voltage subsystems with each additional system connected. Comparison of a traditional single-level decision structure with the co-optimization approach illustrates a reduction in overall system cost under co-optimization, while specific cost allocations to transmission and distribution systems are changed.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2020

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↗