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Modeling Combined Heat and Power Systems in REopt

This webinar will explore how the National Laboratory of the Rockies' REopt(R) web tool can evaluate the techno-economics of combined heat and power (CHP) technologies and systems to assess performance and financial viability. REopt can analyze both standalone CHP systems, and systems paired with other on-site energy resources. Participants will gain practical insights into using REopt to optimize site energy strategies, reduce energy costs, and improve site energy security and outage recovery.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Considerations for using Privacy Preserving Machine Learning Techniques for Safeguards

In international nuclear safeguards, the International Atomic Energy Agency (IAEA) is tasked with inspecting and verifying nuclear facilities and their activities. Data analytics and machine learning to support inspections require large amounts of data that nuclear facility operators may consider proprietary or sensitive, so the IAEA may not have full access. Allowing computation over private data without compromising its security therefore has value for safeguards inspections and analysis. Privacy-preserving machine learning (PPML) consists of security-focused techniques that allow data analytics and machine learning algorithms to run on sensitive data without revealing it. This includes ideas like homomorphic encryption (HE), secure multiparty computation (SMPC), and secure enclaves. HE allows algorithms and mathematical operations to be conducted directly on the encrypted data instead of first decrypting it. With SMPC, multiple entities collaboratively compute over distributed data such that no party is able to directly view any others’ original data. Secure enclaves allow computation to take place in a separate and heavily blocked-off section of a CPU. Techniques like these allow for several potential use cases in which the security of data is essential. With SMPC, machine learning models can be trained over the input data from multiple entities, resulting in a model that all users can benefit from without leaking the input data from any particular entity. With SMPC or a zero-knowledge proof (ZKP), an algorithm returning some single answer or truth value can be run on someone else’s data without ever needing to see that data, potentially allowing for verification or proof of some underlying question. HE can allow for outsourcing computation on data to a hostile or untrusted environment. Although most of the research in this field resides within the health and financial domains, tools from PPML may have similar applications in nuclear safeguards. Allowing the IAEA to compute over proprietary information, such as process models and raw sensor data using PPML techniques, provides the baseline for running complex analytics without needing direct unencrypted access to the underlying data, maintaining its privacy. Important limitations to consider for these techniques include the efficiency and level of security required. The security of HE and SMPC come at the cost of speed—the significant amount of overhead means that algorithms implemented in these protocols and encryption schemes are slower than when run on plaintext. Additionally, several important parameters determine what techniques or protocols are used based on the security requirements. SMPC protocols may need to be selected for resistance against a party that attempts to deviate from the protocol to distort the result or gain access to additional information, and a protocol secure against these attacks may further increase the overhead of the algorithm.

97 MATHEMATICS AND COMPUTING↗

Modularization of Small Modular Reactor Facilities: Physical Protection Recommendations

U.S. nuclear power facilities face increasing challenges in meeting dynamic security requirements caused by evolving and expanding threats while keeping costs reasonable to make nuclear energy competitive. In consideration of the economic viability of small modular reactor (SMR) facilities, many designers and utilities are considering a modular approach to the construction and operation of these facilities. This modular approach considers building and operating a first unit; once the first reactor is in operation, construction will begin on a second reactor. This process would allow the vendor or utility to ensure production of energy and financial income while the second reactor is under construction. This project evaluates the feasibility of modular construction in terms of physical protection and identifies several recommendations for vendors and utilities considering this approach. To conduct this evaluation, a hypothetical three-unit SMR facility was developed, a physical protection system (PPS) was considered for the design, and a hypothetical design basis threat (DBT) was used to evaluate this PPS. Multiple outsider sabotage scenarios were examined, with adversary team sizes ranging from 4-to-8 to determine security system effectiveness. The results of this work will influence PPS designs and facility designs for U.S. domestic SMRs. This work will also demonstrate how a series of experimental and modeling capabilities across the Department of Energy (DOE) complex can impact the design and completion of security-by-design (SeBD) for SMRs considering modular construction. The conclusions and recommendations in this document may be applicable to all SMR designs.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

Energy Snapshot - Palau

This profile provides a snapshot of the energy landscape of Palau, an independent island nation geographically located in the Micronesia region. Over 97% of the island's electricity production is dependent on imported fossil fuels, primarily diesel. Palau is aiming for 45% renewable energy generation by 2025, and is striving to overcome technological, financial, and institutional capacity challenges to meet this goal.

44 EE - Strategic Programs, Energy Transition Init↗

ACCELERATING MICROREACTOR DEVELOPMENT AND DEPLOYMENT THROUGH JOINT PUBLIC TEST BEDS AND PRIVATE ADVANCED REACTOR DEVELOPMENT

The United States Department of Energy (DOE) has funded the National Reactor Innovation Center (NRIC) to accelerate the development and commercialization of small modular reactors and other advanced reactor technologies. As part of this effort NIRC is building two strategic assets at the Idaho National Laboratory (INL) to facilitate public-private partnerships for the development and testing of advanced nuclear microreactors and Small Modular Reactors (SMR). One will provide a safe, secure, and affordable location for High-Assay Low Enriched Uranium (HALEU) fueled reactors and a second for Highly Enriched Uranium (HEU) fueled reactors. Together these testbeds fill a nuclear testing infrastructure gap. The availability of such comprehensive testing facilities at the national labs eliminates the significant financial and operational burdens associated with each developer building and licensing their own test facilities. Consequently, this approach will not only accelerate technological innovation and reduce time-to-market for advanced nuclear solutions but it also underscores the DOE's commitment to fostering an ecosystem where nuclear energy will thrive as a clean, reliable, and efficient source of power. The Demonstration of Microreactor Experiments (DOME) and Laboratory for Operations and Testing in the United States (LOTUS) have planned availability in 2026, and 2027 respectively.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

Safety-Related Instrumentation and Control Pilot Upgrade: Initial Scoping Phase Implementation and Lessons Learned

In May 2016, the U.S. Nuclear Regulatory Commission (NRC) staff provided a digital instrumentation and control (I&C) regulatory infrastructure integrated action plan to the NRC for approval. One of the objectives of that plan was to establish a clear regulatory structure with reduced regulatory uncertainty to enable the expanded safe use of digital I&C in commercial nuclear reactors while continuing to ensure safety and security. To achieve this end, the NRC, with collaboration from industry, developed a streamlined License Amendment Request Alternate Review (AR) process for safety-related (SR) digital I&C upgrades. In spite of this effort, the industry has remained reluctant to perform such I&C upgrades because of perceived regulatory and financial risks associated with being the first or an early adopter of the AR process for SR I&C upgrades. The U.S. Department of Energy Light Water Reactor Sustainability Program at the Idaho National Laboratory performed Initial Scoping Phase research to help break this impasse by supporting a SR I&C Pilot Upgrade, working with MPR Associates, ScottMadden Inc., and Exelon Generation. Exelon’s Limerick Generating Station (LGS) was selected as the target for this research. This paper summarizes the Initial Scoping Phase engineering and operations, licensing, and project management activities necessary to bound the scope, schedule, and estimated cost of the project sufficiently to enable utility management authorization of Conceptual Design Phase activities. These efforts and associated products are intended to provide a template to support larger industry efforts to perform similar upgrades as a foundation stone for a digital transformation that will improve plant safety, reliability, and operational performance while lowering plant total cost of ownership. As a result of the combined effort of Exelon Generation and research participants, Conceptual Design Phase activities for the subject upgrade at LGS were approved by Exelon. Further, the U.S. Department of Energy also awarded a $50 million cost share award to Exelon in order to pave the way for SR I&C modernization and associated control room upgrades across the U.S. nuclear fleet. Additional research reports are planned for the Conceptual Design Phase, Detailed Design Phase, and the Implementation Phase of the LGS project to document the process followed and promulgate lessons learned to industry.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

Small Reactors in Microgrids: Technology Modeling and Selection (Net-Zero Microgrid Program Project Report)

This report demonstrates the capabilities of the net-zero microgrid (NZM) Xendee platform for modeling an SR module with electricity, heat extraction and thermal storage in microgrids configurations. The model effectively captures the most important technical and economic considerations for SR technology specific analysis: cost and operational characteristics of SR technology and financial costs and incentives. The model can analyze multiple scenarios to establish metrics for cost-competitive and zero-carbon microgrids connected to the grid or completely isolated. The model is fully integrated within the Xendee platform for modeling and analysis of clean energy microgrids with storage and generation from renewable energy sources. The model captures the capabilities, constraints, and nuances of SR by incorporating parameters related to plant economics, design efficiency and performance, plant operation and component and fuel lifespan. The cost and operational parameters modeled in the SR module are specific to the technology selected for integration in the microgrid. Cost parameters recognize advanced nuclear technology for modular production and installation based on economies of scale from factory manufacture and related commissioning, and cost reduction through technology maturation—first-of-a-kind (FOAK) and nth-of-a-Kind (NOAK). The cost parameters include installation, operations and maintenance (O&M), fuel refueling cycle, and reactor life. Installation cost reflects economies of scale due to unit sizing at scale and colocation. O&M economies of scale for both fixed- and variable-cost fuel life-cycle costs are incurred at every refueling interval, with separate front- and back-end fuel costs, as well as waste-handling and disposition costs. This report investigates key characteristics of different SR technologies suitable for microgrid applications, including design principles, sizing, coolant properties, temperature ratings, fuel structures, and life-cycle considerations. This also includes fuel technologies applicable to these SR systems, alongside strategies for nuclear-waste and spent-fuel management and approaches to address safety, security, and proliferation challenges. Four primary groups of SR technologies are examined: water-cooled, liquid-metal-cooled, high-temperature gas-cooled, and molten-salt-cooled systems. In this report, an initial guideline for technology selection is established, aligning the characteristics of the technologies with the requirements of microgrids. The selection of technology in a microgrid is influenced by various factors, including financial capacity, location and accessibility, demand type and characteristics, reliability and resilience requirements, area constraints, and the lifespan of the microgrid. The types of electrical and non-electrical applications within the microgrid also play a significant role in technology selection. The characteristics of SRs, such as their smaller size, modularity, transportability, long refueling interval, improved safety features, ability to operate in autonomous or semi-autonomous mode, and provision of high-grade heat, are particularly appealing for microgrids. Furthermore, a list of considerations for implementing SRs in microgrids is outlined. The SR model is created to be continuously improved with the acquisition of actual data on investment and operational costs, experience with supply chains, production at scale, and field deployments. In the near term, performance data on applications in microgrids will become available from lessons learned from laboratory tests, such as those planned for the Microreactor Applications Research Validation and Evaluation Project (MARVEL), led by Idaho National Laboratory (INL). The SR model incorporates scenario data and known SR design specifications, enabling technoeconomic analysis for SR deployment in microgrids. It specifically considers the distinctive attributes of SRs as generators in technoeconomic studies. SRs can be modeled and analyzed with generation from renewable-energy sources, energy storage, and flexible loads over a range of functionality and applications. This offers a comprehensive tool for feasibility studies, scenario development, and sensitivity analysis for “what-if” consideration of any range of assumptions about SRs in microgrids and other aggregations of distributed-energy resources, including virtual power plants.

21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS↗

Establishing a Technical Assistance Network to Build Capacity in Southwest Alaska (Southwest Alaska Energy Network - Final Report)

The Southwest Alaska Municipal Conference (SWAMC) is a non-profit regional membership economic development organization that represents the Aleutian/Pribilof Islands, Bristol Bay, and Kodiak regions of southwest Alaska. SWAMC applied for the DOE-OIE Establishment of an Inter-Tribal Technical Assistance Energy Providers Network grant FOA to work with our partners to provide energy planning and project development technical assistance. The project team was made up of SWAMC, three regional organizations, a management consulting firm, and a panel of technical consultants. SWAMC sub-contracted with the three Alaska Native regional non-profit organizations – Aleutian Pribilof Islands Association (APIA), Bristol Bay Native Association (BBNA), and Kodiak Area Native Association (KANA) – to fund full or partial Regional Energy Coordinator (REC) positions. The project period ran from September 2016 to March 2020. The project goal was to help southwest Alaska regional tribal partners and communities to develop efficient and financially sustainable structures for identifying and developing energy projects that enhance community resiliency and energy sustainability. This project established energy coordinators and management structures in the Aleutian, Bristol Bay, and Kodiak regions to expand technical assistance capacity of regional residents; demonstrate this capacity by advancing energy efficiency, heat, and power supply projects; and secure long-term funding commitments to establish a sustained technical assistance structure. The project team expanded technical assistance capacity of energy coordinators and regional stakeholders in several ways: by providing funding for the SWAMC project manager to attend three Office of Indian Energy trainings; for energy coordinators to attend numerous energy conferences; for utility clerks from several villages to receive one-on-one reporting training on Alaska’s Power Cost Equalization electric subsidy program; and for the Kodiak REC to complete the Arctic Remote Energy Networks Academy and NREL’s Executive Energy Leadership Academy. The energy coordinators demonstrated and shared their increased capacity by hosting several public events: SWAMC hosted two full-day energy workshops in February 2017 and 2018; the Kodiak REC hosted seven Energy Committee meetings for Kodiak stakeholders and gave several presentations at other events; and SWAMC and BBNA organized a Bristol Bay Regional Energy Visioning Session in May 2019. The project team created platforms to both share and request information to involve energy stakeholders in this project, including an energy website, a Facebook group, a periodic newsletter, surveys, mass emails, and paper mailers. An increase in regional capacity was demonstrated through several grant awards, including a $1.2 million USDA grant for Akhiok for an electric distribution infrastructure replacement; an AHFC Kickstarter grant for Aleknagik to audit 2 Tribal and 3 City buildings; and installation of an Air Source Heat Pump demonstration project in Atka. Two communities and one region – Ouzinkie (May 2017), Ugashik (July 2017), and the Bristol Bay region (May 2019) – utilized DOE’s technical assistance services to hold Strategic Energy Planning sessions with NREL and DOE facilitation assistance. And in early 2018, SWAMC established a parallel program, funded through a USDA Energy Audit and Renewable Energy Development grant to provide subsidized energy audits for small businesses in the region. SWAMC and partners have now completed energy audits of over 60 businesses (buildings and fishing vessels) and are currently operating a third round of the USDA program. Fifteen of those business owners have now received additional grant funding to cover 25% of the cost of the energy efficiency upgrades identified in the audit. This technical assistance structure will be sustained beyond DOE grant funding in several forms. As a sign of increased grant writing and project management capacity, the Kodiak Regional Energy Coordinator applied for and received a USDA Community Facilities Technical Assistance and Training grant to continue work begun under this program. Energy coordination tasks have been folded into existing economic development positions at SWAMC and at BBNA, ensuring long-term outreach and support in the region.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Analysis of Supply Chain Challenges in the U.S. Solar Industry: Focus on Build America, Buy America Act and Inverter Supply Issues

The United States (U.S.) solar industry has been undergoing significant transformation, driven largely by meeting U.S. climate goals while simultaneously maintaining national security. At the forefront of this movement is the Inflation Reduction Act (IRA) and the Build America, Buy America (BABA) Act. The IRA has driven investment in clean energy generation deployments while the BABA Act, enacted under Division G, Title IX of the Infrastructure Investment and Jobs Act (IIJA) establishes domestic content procurement preference for all federal financial assistance obligated for infrastructure projects. While these pieces of legislation aim to reduce reliance on foreign-made solar components and increase domestic production, the sector continues to face notable supply chain challenges. These are particularly pronounced with inverters, a critical component in solar photovoltaic (PV) systems. This report explores the current state of these supply chain challenges, with a specific focus on the impact of the BABA requirements and the associated complexities in inverter manufacturing and supply.

14 SOLAR ENERGY↗

Energy Improvements of Fire Station 71

Since 2018, the City of Shawnee, Kansas has completed two phases of the State of Kansas Facility Conservation Improvement Program (FCIP), an initiative that guarantees operational cost and energy savings through targeted construction improvements on City facilities and infrastructure. The City is currently in the third phase of this FCIP, where one of the projects included an investment in energy improvements for Fire Station 71 (FS 71). The City partnered with Navitas, an Energy Service Company (ESCO), to implement a Photovoltaic Solar Array on FS71. The purpose of this project was to invest in sustainable building improvements with Energy Conservation Measures (ECM) to bring cost savings to the City and to provide sustainable benefits to the residents of Shawnee. In the first task of the project, Navitas collaborated with the City of Shawnee and the Community Development Department to determine the optimal layout and schedule for the installation of the solar array on FS 71. In the second task of the project, Navitas installed the 99.8 kW DC Photovoltaic solar array system. This system installation comprised of racking, inverters, optimizers, load center, and disconnect, which were all installed at a total ECM price of $\$$247,948. The third task focused on start-up and commissioning of the array. Navitas installed a real-time data analytics information management system integrated with utility meters, which evaluates the operations of the utility system and verifies operation of equipment and ensures optimum operation for energy efficiency. In the final task of this project, this analytics system was used for monitoring and verification, which will continue to be used to evaluate the success of the project for the coming years. The primary goal of the project was to install the 99.8 kW DC PV solar array at FS 71 to demonstrate the viability of solar energy systems in essential municipal facilities. Fire stations are energy demanding structures, as they require a constant intake of power and have a high baseline energy usage. The success of solar arrays on a fire station exemplifies their energy efficiency and effectiveness and displays their potential for application on other city facilities. By installing a solar array at such a facility, the City sought not only to offset electricity usage but also to serve as a model for ECMs in other municipal facilities and infrastructure projects. From an economic standpoint, this project demonstrates the feasibility of renewable energy at the municipal level. The total project cost of $\$$247,948 was split evenly between city funds and award funding, minimizing financial risk while ensuring guaranteed long-term savings. Any excess savings that are beyond the guaranteed minimums remain with the city, which enables future investment in sustainable energy initiatives. This project provides many benefits to the public. In addition to reducing the environmental footprint of city operations, it lowers taxpayer-funded utility spending and improves the energy security of a critical facility. The knowledge gained from this implementation motivates the City to focus on similar efforts across other public facilities in future FCIP phases and other City projects.

14 SOLAR ENERGY↗

Domestic Supply Chain of Medical Consumables Needed During COVID-19 Pandemic

This report is an assessment of the availability, demand, and production capability of medical consumables needed to combat the COVID-19 pandemic. We focus here on the ability of the supply chain to increase production to meet demand during peak pandemic conditions. In addition, we report on domestic production efforts and supply chain issues, as well as the propensity of other countries to limit export of needed medical supplies to the United States. In brief, the domestic supply chain and production capability vary greatly depending on the consumable. Some consumables, such as N95 masks or face shields, can likely be nearly fully supplied by domestic production, while other consumables, such as gloves or surgical masks, have little domestic production and thus will depend on imports to meet demand. The assessment pulls primarily from published news sources and company press releases. As such, the demand and production numbers are not precisely known, and some degree of uncertainty exists in them. The total production capability is also often difficult to ascertain from these reports especially as other industries have begun to supplement existing supply chains. In addition, local conditions (including company financial decisions, local public health issues, and political aspects) can vary throughout the pandemic which will affect future production. The report also pulls from estimates of demand and domestic production of some consumables compiled by the White House COVID-19 Supply Chain Taskforce (SCTF) presented by Rear Admiral John Polowczyk before a June 9, 2020 hearing of the Senate Homeland Security and Governmental Affairs Committee. These numbers, where applicable, are likely to be more accurate than those found in public news sources since they are more directly tied to private companies’ actual orders and actual production estimates, as opposed to publicly released estimates. Finally, we note that other issues with the supply chain, including the production of raw materials, increase demand due to industries that have not previously used PPE now using it, and increased domestic production from non-traditional suppliers, make complete picture of a rapidly changing supply chain difficult to obtain. This report attempts to produce an accurate image of the supply and estimated demand, as understood by the authors who are not experts in the medical supply chain.

42 ENGINEERING↗

Fueling Seniors: Meal Subsidy through Co-Generation

Formed in 1971, The Towers is an affordable HUD 202, 328-unit, living community with supportive services for extremely low, low and moderately low-income seniors. The average resident age is 79 and the average annual income is $\$$18,900. Approximately 70% of our residents receive assistance with their activities of daily living (e.g. hands-on bathing, feeding, dressing and toileting). We offer such services in a unique person-centered way through a wraparound support services model not always available in smaller low-income housing sites with assisted living (e.g. onsite service coordinators, engagement programs specific to the needs of our current and changing resident population and onsite 24-hour security who act as first response staff). The Towers serves the City of New Haven and surrounding areas by providing community-based senior care and support services that are affordable for individuals with limited resources. Our unique cost structure enables hundreds of seniors to avoid premature placement into nursing homes or other institutional care settings, even though they lack personal financial resources. This enables us to proactively keep our residents independent and healthy for as long as possible.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Cybersecurity for Electric Vehicle Charging Infrastructure

As the U.S. electrifies the transportation sector, cyberattacks targeting vehicle charging could impact several critical infrastructure sectors including power systems, manufacturing, medical services, and agriculture. This is a growing area of concern as charging stations increase power delivery capabilities and must communicate to authorize charging, sequence the charging process, and manage load (grid operators, vehicles, OEM vendors, charging network operators, etc.). The research challenges are numerous and complicated because there are many end users, stakeholders, and software and equipment vendors interests involved. Poorly implemented electric vehicle supply equipment (EVSE), electric vehicle (EV), or grid operator communication systems could be a significant risk to EV adoption because the political, social, and financial impact of cyberattacks — or public perception of such — would ripple across the industry and produce lasting effects. Unfortunately, there is currently no comprehensive EVSE cybersecurity approach and limited best practices have been adopted by the EV/EVSE industry. There is an incomplete industry understanding of the attack surface, interconnected assets, and unsecured inter faces. Comprehensive cybersecurity recommendations founded on sound research are necessary to secure EV charging infrastructure. This project provided the power, security, and automotive industry with a strong technical basis for securing this infrastructure by developing threat models, determining technology gaps, and identifying or developing effective countermeasures. Specifically, the team created a cybersecurity threat model and performed a technical risk assessment of EVSE assets across multiple manufacturers and vendors, so that automotive, charging, and utility stakeholders could better protect customers, vehicles, and power systems in the face of new cyber threats.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Performance of solar leasing for low- and middle-income customers in Connecticut

Policymakers are increasingly interested in expanding access to rooftop photovoltaic systems. This study analyzes the financial performance of a Connecticut Green Bank (CGB) solar leasing program, run in partnership with PosiGen, that targets low- and moderate-income customers. We show that this program has successfully reached underserved customers and has reasonable repayment rates given the credit characteristics of the participants. The CGB/PosiGen program reaches many more underserved customers than other PV financing programs in Connecticut.For example, the majority of CGB/PosiGen participants (58%) live in census tracts that have a median income of less than 80% of the area median income (AMI). In contrast, only 9% of participants in the other CGB solar financing programs live in these census tracts. Furthermore, the majority of CGB/PosiGen participants (56%) have FICO scores that would generally be considered non-prime (<670), whereas only 2% of participants in the other programs have similarly low scores. Credit, not income, is the primary factor that explains participants’ financial performance. Overall, we find that delinquency and annualized losses are higher for PosiGen (2.3% and 0.9%) than for other CGB programs (1.4% and 0.1%). Across the CGB programs, lower credit scores are associated with higher rates of delinquency and loss. Therefore, participants’ lower credit scores explain much of the program’s higher rates of delinquency and annualized losses. PosiGen leases perform competitively with market-rate solar and non-solar leases and loans. When compared to securities backed by market-rate PV loans and leases with similar amounts of seasoning, we find that the PosiGen leases have higher delinquency rates but comparable gross loss rates. The similarity in losses is notable given that loss rates for PosiGen leases were higher than those of the other CGB leases and loans. Rather than the PosiGen leases having high loss rates, other CGB leases and loans have unusually low loss rates. We also compare PosiGen to non-solar benchmarks, including indices of auto and consumer loans. We find that the PosiGen leases have significantly less delinquency than non-prime auto loans and have performance comparable to many consumer loans. The U.S. Department of Energy’s Solar Energy Technologies Office supported this research.

14 SOLAR ENERGY↗

Berkeley Lab 2021 Annual Financial Report

Lawrence Berkeley National Laboratory (LBNL) continued to successfully operate during the ongoing COVID pandemic, providing world-class science facilities to both researchers and scientific users in its five national user facilities. The dedication and commitment of the Lab community to continuing the Lab’s mission has been unparalleled during this difficult time. Due to the diligence of the Lab’s Operations teams and each person who came on site, the Lab was able to safely operate these facilities. In December, the Lab received its annual appraisal from the U.S. Department of Energy (DOE). The Lab received “A” grades for each of the performance goals which include mission accomplishment, leadership, health and safety, security and emergency management, business systems, and facilities. The University of California manages the Lab on behalf of the DOE.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Enabling Computation on Sensitive Data in International Safeguards with Privacy-Preserving Encryption Techniques

Privacy-preserving machine learning is a field of study that explores how to protect and preserve the privacy of sensitive data while allowing the data to be used by machine learning algorithms. This field has had substantial industry investment due to heightened concerns about privacy in the technology industry, with a focus in two broad application areas: financial services and healthcare. Numerous privacy-preserving methods have also been proposed for international safeguards, but they have been difficult to enact because the data they require is con- sidered sensitive or proprietary by the nuclear facility operator. This work examines how current privacy-preserving approaches might be used to enable the International Atomic Energy Agency (IAEA) to use that data to contribute to a safeguards conclusion about a state while giving nuclear operators confidence that their sensitive data is adequately protected. This paper begins by exploring several broad categories of privacy-preserving techniques including homomorphic encryption, secure multiparty computation, secure enclaves, and zero-knowledge proofs. Then we discuss some of the security considerations related to using these methods, potential use cases, and a conceptual system design for applying privacy-preserving methods in international safeguards.

98 NUCLEAR DISARMAMENT, SAFEGUARDS, AND PHYSICAL P↗

Scaling Equitable Finance

Driven by dramatic declines in up-front cost, the U.S. solar photovoltaics (PV) industry has taken off over the past decade, growing from 1 gigawatt of installed capacity in 2009 to 89 gigawatts in 2020—or enough capacity to power roughly 19 million homes. The industry is expected to double in size over just the next 5 years.1 Much of the growth has been driven by large, utility-scale projects that can produce 5 mega- watts or more of power—enough to power at least 1,000 homes. The cost of electricity produced by these projects has decreased by more than 70 percent since 2010. As of Q3 2020, development costs of large, util- ity-scale solar PV power plants were under $1 per watt, down by more than 70 percent from 2010.2 A robust array of investors has come forward to efficiently deliver capital to these kinds of utility-scale projects including large banks, insurance companies, pension funds, and others. But low- and moderate-income communities, including communities of color, are at risk of being left behind in the transition to clean energy. Mission- driven solar project developers and financial institu- tions have been working alongside energy justice advocates to open up solar access for these communi- ties, using strategies ranging from community solar, to solar installations on affordable multifamily housing, to distributed solar and storage programs, and more. Their goals go beyond simply generating more green energy to advancing social equity by: • empowering communities to control their energy future • stabilizing energy prices, saving money, and build- ing wealth for low-income families • creating quality jobs • improving health by reducing pollution • providing energy resilience for vulnerable communities Mission-driven actors are successfully deploying a wide variety of strategies to meet these goals, from helping low-income homeowners get solar—and some- times battery storage, to developing solar projects serv- ing affordable rental housing and community facilities, to building larger “shared solar” projects to which households from across the community can subscribe. However, the financing ecosystem does not work nearly as well for these “mission driven” solar proj- ects as it does for utility-scale projects. For home rooftop solar, even if low-income consumers have a home and suitable roof, they may fail to qualify for federal tax incentives, lack adequate credit to qualify for a loan—or the mission-driven lenders seeking to serve them may not be adequately capitalized to make long-term loans. For mission-driven commercial or community-scale projects, assembling nearly every component of the project capital stack—whether bridging early-stage costs, attracting tax credit equity investors, securing long-term debt, or coming up with sponsor equity and filling gaps—can present challenges. A variety of obstacles contribute to the scarcity of financing for low-income solar, including small project sizes, lack of developer balance sheet capacity, both real and perceived issues with credit risk, elevated technical assistance needs, and greater subsidy requirements to pursue goals such as deep energy affordability, climate resilience, or job creation. Still other obstacles are regulatory: for example, not all states allow community solar projects or Power Purchase Agreements, common strategies used for providing low-income solar—and the potential for regulations to shift over time creates risks that mission-driven projects can ill afford. This report synthesizes information garnered from 47 key informant interviews, four focus group discus- sions involving 60 stakeholders, and a review of the substantial existing literature on low-income solar finance to assess the current landscape of mission- driven solar development in the United States, examine the roles that community-based financial institutions could play, and recommend public invest- ments and policy changes that could help to scale the provision of equitable solar finance. Key recommen- dations for policymakers and funders in the renew- able energy and community development fields that emerge from this process include the following: • Help to capitalize and support community-based lenders to provide flexible, low-cost, and long- term financing to mission-driven solar projects— including providing guarantees or other forms of credit enhancement. • Provide federal support for equitable solar, including a grant-in-lieu-of-credits option for the Investment Tax Credit to improve access to this critical government subsidy. • Develop pools of government and philanthropic support that can complement financing from community-based lenders to complete the capi- tal stack for mission-driven projects, as well as to support education and technical assistance to both consumers and potential project sponsors. • Create a national Renewable Energy Credits pro- gram that includes social equity targets to provide a baseline of support for clean energy generation. • Change utility regulations to remove barriers to low-income solar projects; lower permitting costs; provide greater certainty for developers, consumers and owners; and measure progress toward equity in renewable energy policy implementation.

14 SOLAR ENERGY↗

Workshop Report: Rural Electric Cooperative Distributed Energy Resource Business Model Development Workshops

The United States' energy future is being shaped by decades of technology innovation, rapidly changing consumer requirements, and governmental focus on securing reliable, low-cost energy sources. With expanded electrification and increased emphasis on grid reliability coupled with the heightened complexity and risks associated with transmission infrastructure, the use of distributed energy resources (DERs) is more commonly being considered a safe, efficient, and cost-effective way to maintain grid resilience and reliability. Amidst improvements in performance, decreasing costs, and unprecedented federal policy support for DERs, electric cooperatives are considering new opportunities to use these assets to ensure secure and reliable operations for millions of customers. In light of these developments, a series of workshops were held to collaborate on the development of business models for DERs in rural electric cooperative ecosystems. The first workshop was held July 11, 2024, at the Tri-State Generation and Transmission Association Inc. headquarters in Westminster, Colorado (hereafter referred to as the "Tri-State Workshop"). The second workshop was hosted by PNGC Power on Oct. 9, 2024, in Portland, Oregon (hereafter referred to as the "PNGC Power Workshop"). These workshops convened representatives from G&Ts, distribution cooperatives,2 the energy industry, the financial community, the U.S. government, national and regional organizations, and national laboratories to share perspectives on the unique needs, challenges, and opportunities that they face as DERs are further integrated into the grid. The workshops were designed to address the following objectives: (1) develop the enabling attributes of electric cooperative DER business models, (2) explore pathways for generating community benefits from these assets, and (3) identify technical challenges and market risks for DERs in rural electric cooperative service territories. This report outlines key findings and major themes identified by workshop participants that federal agencies, G&Ts, distribution cooperatives, and other entities can consider to advance electric cooperative DER business models.

24 POWER TRANSMISSION AND DISTRIBUTION↗