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At least 55 records · Page 3

Improving the Representation of Hydropower in Production Cost Models

One of the challenges of a high-renewable, low-carbon system is that grid operators will no longer be able to count on fossil-fired generation should wind miss its forecast or modeling errors create shortage issues, and this change has operational and reliability implications that affect variable renewable energy integration. Hydropower can help in that it can provide many of the services that have been traditionally provided by fossil generation. However, getting the most from hydropower can be challenging in that its capabilities vary with time and are affected by other water users' needs, two complexities that are not well represented in most of today's production cost models (PCMs). This work is an early step in addressing these gaps and making the most of hydropower's capabilities.

cost model↗

Methods for Translating ReEDS Solutions to Production Cost Modeling Tools

Capacity expansion modeling tools are increasingly being utilized to investigate a wide range of potential future scenarios, particularly with high penetrations of variable and energy-constrained resources that may be operated differently than current dispatch paradigms. While capacity expansion models are particularly adept at making investment decisions for future years, they must make compromises in operational aspects to maintain computational tractability. However, it is of high interest to determine if such future systems would be able to maintain reliability during a variety of grid conditions, and to identify any potential operational challenges for these systems at finer temporal resolution than is typically captured in CEMs. As such, there is value in having an automated tool that can convert many CEM investment pathways into inputs for a more detailed production cost model, in this case the PLEXOS commercial software package. This paper describes the methodology used to make that translation for the NREL-developed ReEDS model, making use of two internally developed tools - PIDG and beetle - along with a set of processing scripts. We describe the current assumptions, data sets, and important operational characteristics of these translations along with an example of the extended analyses that may be done through this connection.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

FECM/NETL CO2 Saline Storage Cost Model CO2_S_COM 2024 (v4)

The U.S. Department of Energy's (DOE) Office of Fossil Energy and Carbon Management (FECM), in collaboration with the National Energy Technology Laboratory (NETL), has developed the FECM/NETL CO2 Saline Storage Cost Model (CO2_S_COM). This Excel-based tool provides a comprehensive framework for estimating the costs and breakeven prices associated with storing carbon dioxide (CO2) in deep saline formations. Designed from the perspective of a CO2 storage site owner, the CO2_S_COM incorporates four integrated modules—project management, financial analysis, activity cost estimation, and geological evaluation—to deliver fast, robust and actionable insights for screening project finances.

CO2 storage↗

PV O&M Cost Model [SWR-21-14]

This tool presents a method for calculating costs associated with the operation and maintenance (O&M) of photovoltaic (PV) systems. The tool compiles details regarding the cost and frequency of multiple O&M services to estimate annual O&M costs ($/year) for each year of an analysis period, the net present value ($) of life cycle costs accumulated over the analysis period, and the reserve account amount ($) that might be required to fund unexpected repairs. The reserve account includes parts inventory and is important for providing a source of funds to make repairs quickly and avoid lost production. This method allows a detailed selection of services to perform based on system size, market served (e.g., residential, commercial, or utility), type and configuration of system components (e.g., micro-, string, or central inverter), and site and environmental conditions (e.g., pollen, bird populations) which is an improvement over simple per unit valuations of O&M costs ($/kW/year). This model also distinguishes costs that vary from year to year and increase at different rates over time as modeled by heuristic failure distributions (e.g., Weibull or Lognormal distribution) based on actuarial data for many of the services.

Walker, Andy↗

Updated Oregon Floating Offshore Wind Cost Modeling [Slides]

The study provides heat maps showing updated estimates of the levelized cost of energy (LCOE) for floating offshore wind energy off the coast of Oregon. This project builds on a 2019 National Renewable Energy Laboratory (NREL) floating offshore wind power cost study in Oregon (Musial et al. 2019) and a recent NREL California cost analysis (Beiter et al. 2020). Floating wind power cost data, modeling methodology, and resource data are updated and LCOE is estimated through 2032 using 2019 as a reference year. Comparisons are made to the previous offshore wind energy cost studies (Musial et al. 2019; Beiter et al. 2020). The study does not prioritize specific sites or make judgments about marine spatial planning viability.

17 WIND ENERGY↗

Follow-Up from the Photovoltaic Reliability Workshop (PVRW): Cost Modeling Capabilities to Evaluate Trends in PV Technologies

NREL's Solar and Storage Techno-Economic Analysis (TEA) team reviews live polling results from the Photovoltaic Reliability Workshop (PVRW) related to module technology trends believed to have the greatest reliability impacts. Then, the team reviews the publicly available tools and inputs necessary for evaluating reliability tradeoffs between initial module and system costs, degradation profiles, and levelized cost of energy (LCOE). These tools include the online Detailed Cost Analysis Models (DCAM) and the DuraMAT LCOE calculator.

cost modeling↗

Carbon storage cost modeling for the offshore Gulf of Mexico

Groundbreaking for geologic carbon storage (GCS) projects in the offshore Gulf of Mexico is imminent, and there is great interest in utilizing this region for GCS projects. Offshore saline reservoirs provide a significant and accessible resource for GCS. However, conducting GCS in the offshore environment will pose distinct challenges pertaining to site selection, operations, infrastructure use, and monitoring compared to operating onshore that ultimately affect technoeconomic assessment of offshore GCS projects. Carbon storage and transport costs are critical to project developers looking to deploy carbon storage in the offshore environment. We present CO2_S_COM_Offshore, a model developed by the National Energy Technology Laboratory (NETL) as a screening-level offshore saline GCS cost modeling tool. Based on NETL’s widely used CO2_S_COM cost model for onshore saline CS, CO2_S_COM_Offshore enables technoeconomic analysis of GCS in offshore areas. This model comprehensively incorporates multiple facets of offshore GCS projects, from regional evaluation and site selection to permitting, transport, operations, monitoring, site closure, and decommissioning. In general, the model can explore the cost implications for potential offshore GCS project(s) by enabling the user to change several project operational and financial attribute configurations. Key inputs include offshore storage formation options, CO2 injection rate and duration, infrastructure types, monitoring intensity, project financing, and post-injection site care duration. Supporting cost algorithms within CO2_S_COM_Offshore were compiled utilizing S&P Global’ s QUE$TORTM cost estimation software alongside a variety of open-source scientific literature. In addition to reviewing key model components, we discuss several sensitivity analyses, input variabilities, and results on analysis of break-even CO2 price required by a project based on different regulation/policy and operational scenarios for the offshore Gulf of Mexico. These results indicate the value of modeling offshore GCS specifically, and the potential of offshore GCS within a decarbonization value chain. Presented at the 41st USAEE/IAEE North American Conference, 3-6 November 2024, Baton Rouge, LA, United States.

Mark-Moser, Mackenzie K.↗

Electrolyzer Cost Model

To compare material and electrical costs of different anodes for use in magnesium electrolysis, this interactive sheet is set up to manipulate values for varying configurations of geometry, material properties, and other assumed values.

Nguyen, Tuan (0000000297269764)↗

Battery Performance and Cost Modeling for Electric-Drive Vehicles (A Manual for BatPaC v5.0)

This manual details the fifth version of the Battery Performance and Cost (BatPaC v5.0) model developed at Argonne National Laboratory for lithium-ion battery packs used in transportation (file “BatPaC 5.0 2022-07-22.xlsm”). BatPaC is a publicly available model that performs a bottom-up lithium-ion battery design and cost calculation. The model designs the battery for a specified power, energy, and vehicle type (i.e., hybrid, plug-in hybrid, or full-electric). The cost of the designed battery is calculated by accounting for every step in the lithium-ion battery manufacturing process. The original model and manual were publicly peer-reviewed by battery experts assembled by the U.S. Environmental Protection Agency. This revised model and manual include changes made in response to comments received from users and the observed trajectory of the industry.

25 ENERGY STORAGE↗

Designing Harvesting and Hauling Cost Models for Energy Cane Production for Biorefineries

The harvesting and hauling operations of bioenergy feedstock is an important area in biofuel production. Production costs can be minimized by maintaining optimal machinery units for these operations. The objective of this study is to design an optimal harvesting unit for bioenergy refinery and estimate harvesting and hauling costs of energy cane. A biorefinery with the annual capacity of processing twenty-five million imp. gallons of ethanol were considered. Given the efficiency of harvesting, a two-row soldier system was considered. Considering the year-round supply of energy cane to the refinery, the optimal machinery unit was designed, and the combined operation costs were derived. The average estimated ownership, repair, labor and fuel and lubricant costs of biomass harvest unit were calculated to be $\$$0.50, $\$$0.54, $\$$1.78 and $\$$1.51/mt, respectively. The costs distribution generated showed harvesting and hauling costs could range between $\$$5.47–$\$$9.23/mt of energy cane. The methodology and the research output will provide guidelines for investors in designing harvesting and hauling units and estimating costs for different scales of operation.

09 BIOMASS FUELS↗

Development of Energy Storage: Cost models

Energy storage technologies offer a promising solution to electric grid stability issues associated with the integration of variable renewable generators. The capability to match the electrical power output to instantaneous fluctuations in grid demand is crucial to ensure continuity of service. Including energy storage capability in an integrated energy system (IES) can provide the flexibility needed to meet variable electric demand and reduce the load following demands place on the reactor. In this report, economic data collected for energy storage (ES) technologies are described to support the objective of assessing the profitability of ES integration within the IES framework. In particular, there is a growing interest in thermal energy storage (TES) given its unique capability for long-duration storage for improving electricity reliability at a low levelized cost. It is common practice to evaluate the total lifetime cost and profitability before commercializing new technologies. In this report we identify and examine the models needed to better understand the economics of thermal energy storage. We extend the TES cost model in RAVEN in the context of a balance of plant (BOP) that incorporates thermal storage. To focus the discussion, following a general overview of the most promising TES technologies, we consider a use case that involves a sensible heat, two-tank, molten-salt system. Structural and operational details are reported to identify the source of construction capital expenditure and operation and maintenance cost. A detailed description of the different cost items is provided as well as the cost scaling with different storage capacity and power ratings for capacity optimization purpose. In addition, the capital expenditure and the recurring cost of representative two-tank, molten salt coupled with concentrated solar plants are provided for readers’ reference. The ES use case is noteworthy as it is in the pilot stage of commercialization. We identify those areas that would benefit from an increased economic focus to obtain a more complete compilation of cost data. We also describe the thermal coupling issues that arise from integration of the two-tank molten salt thermal energy storage system with a BOP, which is the subject of our current research. Some components of costs will need to be evaluated through dedicated technoeconomic analysis in future modeling activities using modeling procedures proposed in this report. With the data presented and the procedures described in this report, sufficiently accurate models can be implemented for the solution of both the power dispatch and the capacity expansion problems within the RAVEN-based HYBRID framework.

25 ENERGY STORAGE↗

Assessing the New Home Market Opportunity: Case Study and Cost Modeling for Solar and Storage in 2030

Residential solar and storage markets are growing in the United States. With approximately 1 million new homes constructed every year, this represents a significant opportunity for solar and storage installations. Some homebuilders have begun to build new homes with solar and storage included as a standard offering. It is not clear how solar and storage is incorporated into the new construction process and at what cost. Further, it is unclear what barriers or opportunities exist to scale this model nationwide. To fill this gap in the literature, this research conducts a case study of Mandalay Homes' new solar and storage community in Arizona to gather lessons learned. From this foundation, we further generate a set of pathways to reduce install costs and expand solar and storage market penetration in this sector. To model existing and 2030 solar and storage costs, we use the National Renewable Energy Laboratory's (NREL's) bottom-up cost model. This modeling is further informed by 12 interviews conducted with new home builders, solar contractors, and other subject matter expert organizations. Our case study analysis generated three key considerations for other homebuilders including: 1. Educating local permitting, inspection, and in some cases utility officials on solar and storage products, designs, and code compliant building practices may be required. The need for education may decline as more local governments and utilities review and approve solar and storage projects. 2. Incorporating solar and storage systems into the homebuilding process can add complexity and related coordination challenges. This does not need to result in home construction delays, but can result in costly contractor "dry runs" to construction sites. 3. Deploying solar and storage at the time of new construction has significant economies of scale, which can improve the value proposition of the systems. The case study, extant literature, and interviews were used to model both existing and future solar and storage installation costs at time of new construction. Here, we find three key cost reduction opportunities relating to solar and battery storage hardware, customer acquisition, and overhead. If future contractors can maximize the cost reduction opportunities outlined here, residential new construction costs could decline by 8 - 25% by 2030, depending on the modeled scenario. Though we expect costs to decline through 2030, it is unclear which of these scenarios may ultimately appear. Interviewees further identified a variety of barriers across each cost category that could temper the savings shown here. At the same time, interviewees described several pathways to scale the new construction solar and storage market, beyond installation cost savings. Interviewees confirmed that changes in finance, rate design, resilience policies, deployment mandates, and DER aggregation could all support more market adoption than seen today. These findings suggest that there are significant opportunities to expand new construction markets and this research can serve as a baseline to assess progress in this segment through 2030.

14 SOLAR ENERGY↗

A Reduced-form Cost Model for Prefeasibility Analysis of Hydropower at Non-Powered Dams

This study presents a reduced-form model to support a better understanding of the capacity potential and drivers of costs for hydropower development at U.S. non-powered dams (NPD), which are existing dams that are not currently used for hydropower. With information on nineteen reference sites, a set of reduced-form design and cost equations were estimated to enable rapid assessments of aggregate costs and their components for a large number of NPD sites. The model was then applied to 36,000+ potential U.S. NPD sites using the limited data commonly available. Although the cost estimates span a wide range, there exists a significant amount of U.S. NPD hydropower capacity potential, which are considered cost-competitive in the current market using baseline technologies.

13 HYDRO ENERGY↗

CAD-based Energy & Cost Models Prove Affordable Net Zero Energy Performance for WonderWindows + 24" On-center Framing

Windows are thermally the “weakest link” in the building envelope. Increasing the thermal resistance of windows can make buildings more energy efficient and reduce the cost of electricity needed for conditioning the building. The proper design and placement of framing can also help to reduce the thermal bridging that occurs near the window frame area. This study investigates the energy performance of multi-pane acrylic windows fitting 24" on-center framing. Initial parametric analysis is done for a single zone accessory dwelling unit (ADU). Then, an energy model was developed for three types of wood-framed buildings: townhomes, stacked flats and hotels. A whole building energy simulation is performed for each of these building types in hot-humid Houston, mixed-humid New York, and cold-humid Minneapolis climates. The results show up to a 39% reduction in heating, ventilation, and air-conditioning (HVAC) related electricity consumption for the cold climate compared to the Base case which has window and wall properties based on ASHRAE standard 90.1 2019. In the hot climate, a modest increase in electricity consumption was seen due to an increase in cooling electricity demand. The ADU achieved Net Zero Energy performance in all 3 Climate Zones despite having the highest exterior surface area-to-floor area ratio: the ADU also had the highest PV kW to floor area ratio compared to the other multi-story building types. The townhomes, hotel and stacked flats respectively met 73, 52 and 57 % of electrical use in Houston, 71, 48 and 56 % in New York, and 63, 40 and 53 % in Minneapolis from energy produced by rooftop solar. If 400 W solar panels are used instead of 320 W panel used for energy simulation, it is estimated that in the townhomes, hotel and stacked flats rooftop solar can meet 91, 65 and 71 % of electrical use in Houston; 89, 60 and 70% in New York, and 79, 50 and 66 % in Minneapolis. A preliminary evaluation of cost shows that such superior performance can potentially be achieved at less first cost with this 24"on-center solution than conventional construction. All the building types at the three locations used for simulation had net energy use intensity under 20 kBtu/sf/year with 320 W solar panel and under 17 kBtu/sf/year with 400 W solar panel. Further tailoring of building envelope R-values and window solar heat gain to particular Climate Zone locations for each building type shows promise in reducing the HVAC electricity use that comprises almost half of building energy use.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Carbon Capture, Transport, And Storage (CTS) Cost Modeling Of The Onshore Gulf Coast

The onshore Gulf of Mexico region presents significant opportunities for CO2 capture, transport, and storage due to its numerous CO2 sources, such as power plants, refineries, and its substantial CO2 storage potential. However, operators face critical decisions in designing an efficient and cost-effective CO2 pipeline network. This study examines the economic implications of two primary strategies: constructing a trunkline with excess initial capacity versus developing dedicated pipelines incrementally as new CO2 sources come online. Building a trunkline first offers the advantage of future-proofing the network, allowing for the accommodation of increased CO2 volumes from various sources over time. However, this approach incurs higher upfront costs and risks underutilizing the transport capacity in the initial stages, potentially resulting in economic inefficiencies. Conversely, constructing dedicated pipelines for each new CO2 source as it becomes operational may avoid the initial overcapacity issue but fails to capitalize on the economies of scale. This could lead to higher overall costs due to the duplication of infrastructure and increased complexity in network management. This research employs a comprehensive cost-benefit analysis, integrating factors such as capital expenditure, operational costs, projected CO2 volumes, and potential economies of scale. Through this analysis, we aim to provide operators with insights into the most economically viable strategy for CO2 pipeline network design in the region. The findings underscore the importance of strategic planning and highlight the trade-offs between immediate capacity utilization and long-term cost savings, ultimately guiding stakeholders towards informed decision-making in the development of CO2 transport infrastructure. Presented at the 41st USAEE/IAEE North American Conference, 3-6 November 2024, Baton Rouge, LA, United States.

Shih, Chung Yan↗