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DOE OSTI2024

Advanced Oxygen-Free Electrolyzer for Ultra-Low-Cost H 2 Storage for Fossil Plants (Final Technical Report)

DOE’s Office of Fossil Energy and Carbon Management has determined that long-duration energy storage solutions co-located with fossil energy assets offer significant benefits to the fossil industry, electric utilities, and customers. T2M Global has developed an Advanced O 2 -Free Electrolyzer System (AES) Technology for low-cost, long-duration H 2 energy storage for fossil plants. The MW-class AES Module conceptual design aims to upgrade stranded assets (dilute/waste syngas streams, excess electricity, and waste heat) at fossil plants to higher value H 2 for additional revenue and greater sustainability. The H 2 energy storage equips fossil plants with the load following capability needed for the lucrative grid-support services market created by Variable Renewable Energy resources.

08 HYDROGEN↗

DOE OSTI2024

Average and Marginal Capacity Credit Values of Renewable Energy and Battery Storage in the United States Power System

As deployment of renewable resources and storage continue to significantly grow in the coming decades, these technologies will play increasingly important roles in maintaining power systems' resource adequacy. Few analyses so far offer comprehensive comparisons of forward-looking average and marginal capacity credits of variable renewable energy and storage in the U.S. interconnections across a wide range of possible futures. To fill this research gap, we quantify the average and marginal capacity credits of solar PV, onshore and offshore wind, and batteries between 2026 and 2050 across the U.S power systems to examine the temporal trends, spatial patterns, and trade-offs between these two capacity accreditation approaches. Across technologies, capacity credits of solar PV most clearly follow downward trends over time, reflecting the significant rise in solar PV generation share as the grid decarbonizes. While battery storages' generation shares also rise significantly over time, their capacity credits always remain stably high due to their capabilities to be dispatched strategically during critical periods to maintain reliability. On the other hand, capacity credits of wind technologies in general follow slight upward trends as their generation shares level off. There are strong spatial variabilities of both average and marginal capacity credits across technologies, but capacity credits of solar PV displaying the most obvious spatial patterns with high capacity credits concentrating in wind-rich, solar-poor regions in SPP, PJM, and MISO, suggesting potential reliability benefits of interconnection-wide planning for renewable energy deployments. Additionally, except for offshore wind, average capacity credits of all other renewable technologies tend to be higher than their marginal capacity credits, indicating that existing renewable resources tend to be accredited higher than new resources at almost any time.

25 ENERGY STORAGE↗

DOE OSTI2024

Innovating the next generation of commercial smart building software

Nearly 30% of commercial building energy use is wasted due to equipment faults and HVAC controls problems. The result is increased emissions, compromised comfort and productivity, and less reliable coordination of building power needs with a clean grid. The energy impact alone represents $17 billion in potential savings. Today’s smart building software provides a robust solution to address these operational deficiencies. Energy management and information systems (EMIS) are saving up to 9% on average, with two-year paybacks. They are being incorporated into energy management processes, commissioning services, and utility programs. As effective as they are, two barriers prevent even deeper benefits; limited personnel to fix problems once they are identified, and the expense and time to manually implement changes in control systems. In partnership with the research community, the EMIS industry is developing new capabilities to overcome these barriers. Moving beyond siloed products for either fault detection and diagnostics, or optimal control, these new capabilities empower users to not only automatically identify faults, but also to push corrective action, and control improvements to their buildings. In this paper, several areas for enhancements are documented: ‘one-time’ correction of faults such as setpoints, schedules, and economizer lockouts; short-term active testing for automated proportional integral derivative (PID) loop tuning and functional testing; and continuous supervisory control for demand flexibility and year-round efficiency. Results are presented from a pair of partner implementations out of a dozen providers integrating these enhancements into their products, including field tests from across the country, and insights into operator acceptance and integration into operations and maintenance practices.

Casillas, Armando↗

DOE OSTI2024

Microgrid design and multi-year dispatch optimization under climate-informed load and renewable resource uncertainty

Microgrids are an increasingly popular solution to provide energy resilience in response to increasing grid dependency and the growing impacts of climate change on grid operations. However, existing microgrid models do not currently consider the uncertain and long-term impacts of climate change when determining a set of design and operational decisions to minimize long-term costs or meet a resilience threshold. In this paper, we develop a novel scenario generation method that accounts for the uncertain effects of (i) climate change on variable renewable energy availability, (ii) extreme heat events on site load, and (iii) population and electrification trends on load growth. Additionally, we develop a two-stage stochastic programming extension of an existing microgrid design and dispatch optimization model to obtain uncertainty-informed and climate-resilient energy system decisions that minimizes long-term costs. Use of sample average approximation to validate our two case studies illustrates that the proposed methodology produces high-quality solutions that add resilience to systems with existing backup generation while reducing expected long-term costs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2024

Grid Planning Impacts of Hydropower Growth and Decline

Hydropower and pumped storage hydropower (PSH) have a complex and uncertain future in the U.S. electricity system. On one hand, existing assets have the potential for an expanded role in integrating variable renewable energy while new deployment, particularly of PSH, can help meet growing needs for grid flexibility and improved reliability. On the other hand, challenging environmental and cost considerations could limit the extent of new investments in hydropower and PSH capacity and flexibility. This technical presentation demonstrates the use of a high-fidelity capacity expansion model of the U.S. electric grid (the National Renewable Energy Laboratory's Regional Energy Deployment System) to understand the impacts of alternative futures for the hydropower and PSH fleet, including scenarios of both growth and decline. Growth scenarios include new PSH deployment or improved hydropower flexibility, while scenarios of decline reduce the capacity or energy production potential of hydropower and PSH. Economic, environmental, and performance outcomes of the grid are compared across these scenarios to reveal the potential contributions of hydropower and PSH in the U.S. electric sector over the next several decades, focusing on changes to the grid technology mix, electric sector costs, electricity prices, and air emissions. This broad scenario approach demonstrates how flexible hydropower and PSH can help reduce air emissions and cost by complementing variable renewables, but the opposite can occur with reduced hydropower availability, particularly in the next decade. It is important to consider a wide range of scenarios and metrics to gain a national and regional understanding of hydropower's future in the United States.

capacity expansion↗

DOE OSTI2026

The relative influences of hydrologic information and dams’ hydropower scheduling decisions on electricity price forecasts

Price dynamics in wholesale electricity markets are driven by supply and demand. In markets with hydroelectric dams, the timing and amount of hydropower offered can influence prices in similar ways to wind and solar power. Unlike variable renewable energy, however, the supply of hydropower in wholesale markets is a function of both water availability and operational decisions at dams. Dam operators maximize revenues in wholesale markets by aligning generation with the periods of highest expected prices, and these scheduling decisions may in turn influence prices. Here, we examine the relative importance of two types of information in predicting forward electricity prices: a) water availability at dams, in the form of short-to-medium-range hydrological forecasts; and b) hourly scheduling decisions at dams. Using softly coupled hydrologic, hydropower scheduling, and power systems models spanning the U.S. Western Interconnection, we quantify the importance of hydrologic forecast accuracy in correctly predicting wholesale electricity prices and compare this with the influence of dam operators’ own hourly scheduling decisions on realized market prices. We find that aligning hydropower generation schedules with the periods of high forecasted prices causes larger, inadvertent price forecast errors than imperfect hydrologic forecasts. This suggests that knowledge of how water is managed by dam operators within the week is more important than weekly inflow forecast errors when predicting forward electricity prices. Our findings have implications for optimal hydropower scheduling by region. Specifically, accounting for price effects is critical in markets dominated by hydropower capacity.

Electricity markets↗

DOE OSTI2025

The value of integrating a geothermal district heating system into a microgrid

As electrical grids increasingly rely on variable renewable energy, maintaining reliability and cost efficiency becomes more complex. To address these challenges, this study analyzed the integration of geothermal district heating as a grid-responsive thermal resource within a microgrid in Tuttle, Oklahoma. Building energy modeling using EnergyPlus estimated annual district heating demand at 2.9 GWh, with a peak load of 2.8 MW th . Techno-economic analyses were conducted to meet the heating demand under three geothermal scenarios, varying by production depth, flow rate, and thermal output, each supplemented by natural gas peaking boilers. In parallel, equivalent electrical load profiles were developed using typical coefficients of performance (COPs) for air-source heat pumps and electric boilers to establish an electrified baseline scenario. A complete end-use electrical load profile was also developed for the microgrid using Cambium dataset. The modeling results demonstrated reliable and economic operation of the geothermal systems over 30 years, with COPs ranging from 2.6 to 8.9 and the lowest levelized heating cost at $\$$54.6/MWh. Geothermal integration reduced electricity consumption by up to 94.7 % compared to the non-geothermal base case, yielding annual energy savings of up to $\$$803 k. Avoided grid costs ranged from $\$$65 k–$\$$147 k per year, with individual events avoiding up to $\$$4,863 per hour. Grid-responsive operation further reduced wholesale energy costs by 53–56 %. These findings demonstrate geothermal heating, traditionally treated as a non-grid-responsive thermal resource, can be reconfigured to support dynamic grid services, offering a scalable pathway to enhance reliability and reduce costs in renewable-rich microgrids and district heating networks.

15 GEOTHERMAL ENERGY↗

DOE OSTI2026

Short-term electricity load forecasting: Application-driven evaluation of machine learning models across spatial and temporal scales

As we transition towards a decarbonized economy, the integration of variable renewable energy resources and new demands (e.g., electric vehicles, heat pumps) into the electricity grid places unprecedented pressure on grid operators to effectively anticipate and manage peak load. In this context, machine learning algorithms are proving to be indispensable for accurate short-term load forecasting, a crucial task to address these challenges. This study benchmarks 6 machine learning algorithms, including three neural networks and three tree-based algorithms, across various levels of spatial aggregation and time horizons (1, 4, 8, 24, and 48 h). The central contribution of this work is the comparison and analysis of load forecasting models not only based on statistical metrics, but also based on a novel error metric, which evaluates the cost implications of forecast errors for power system stakeholders. Results show that tree-based models outperform neural networks, based on statistical metrics, and yield less skewed error distributions for most spatial scales. However, through the lens of the novel error metric, neural networks are the more competitive choice, especially for forecast horizons that exceed 8 h. The study concludes with actionable recommendations to grid operators and highlights the need for the development of error metrics that link forecasting accuracy to operational costs. To promote transparency and open science, the datasets and Python code are open-sourced via a supplementary repository.

Houben, Nikolaus↗

DOE OSTI2025

Decomposing sources of value for electricity and negative emissions technologies in net-zero power systems

Deep decarbonization of the US power system would require rapid deployment of variable renewable energy (VRE) resources, which are projected to provide a substantial share of electricity generation at the time of net-zero emissions. However, the exact share of generation met by VRE and the roles of other technologies in supplying key electricity services—energy and firm capacity—remain uncertain. This study employs a detailed model of the US power sector to decompose the provision and value of electricity services, including negative emissions, by technology across a range of deep decarbonization scenarios. Results indicate that while technology deployment and the share of services provided by each technology vary significantly depending on future technological and market conditions, the value composition and future roles of individual technologies remain consistent. These findings offer guidance for research and development priorities and provide insights to inform electricity policy and planning.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2025

Scalability analysis of heavy-duty gas turbines using data-driven machine learning

With the increasing integration of variable renewable energy sources into power systems, the role of flexible power generation technologies like gas turbines (GT) in rapid grid balancing remains crucial. This sustained importance underscores the need for scaled and precise modeling of GT to ensure effective integration within evolving energy frameworks. While physics-driven GT models integrate thermodynamics, fluid dynamics, and combustion principles, they often rely on approximate mathematical representations to accommodate scaling that may not capture the actual complex dynamics for GTs and inertial effects associated to GTs with different ratings. In this study, a data-driven model is proposed using machine learning (ML) techniques to conduct GT scalability analysis and performance evaluation with high accuracy. The ML model, trained on data from various operating conditions and performance parameters, aims to uncover intricate relationships and patterns, resembling GT characteristics at different scales (ratings). The model is developed to capture complex system interaction and to adapt to changing operational scenarios at different capacities, providing valuable insights of power system dynamics. In this study, the real-time digital simulator platform was employed to generate training data for the ML model and assess its dynamic characteristics. The ultimate objective was to develop a detailed modeling framework based on governing equations and data-driven ML capable of predicting key performance indicators, in thermal systems such as GTs, including power output, speed, fuel consumption, and exhaust temperature under diverse operating conditions at different scales. The developed ML framework demonstrated high accuracy, with mean relative errors for GT power prediction, reference speed, exhaust temperature, and compressor pressure ratio (CPR) parameters consistently below 0.1% across typical load fluctuation scenarios. Maximum deviations were limited to approximately 0.5 K for exhaust temperature and 0.009 for CPR, underscoring the model’s ability to replicating dynamic GT behavior with high precision. The adaptability of the ML model enables its application across diverse operational conditions and its extension to other thermal systems. By leveraging advanced ML techniques, this study presents a robust and scalable modeling framework that enhances GT simulation precision, facilitating improved integration into evolving power systems.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2024

Renewable-battery hybrid power plants in congested electricity markets: Implications for plant configuration

Examining coupled renewable-battery power plants (“hybrids”) in congested areas provides insights into a future of increased wind and solar penetration. Our study focuses on two types of congested regions, Variable Renewable Energy (VRE)-rich Areas and Load Centers, and explores likely plant configuration choices for developers and transmission network planners. Here, this paper examines how hybrid value, comprising energy and capacity value, varies by plant configuration and congested region type considering factors such as storage duration, battery degradation, and ability to charge from the grid. We select plant locations from across the seven main U.S. independent system operators (ISOs). Hybrid value for each configuration is computed based on profit-maximizing plant operation given perfect foresight, according to observed wholesale power market real time prices from 2018 to 2021. In VRE-rich Areas, the median increase in energy value from extending storage duration from one to 4h is 29.4% for solar and 26.8% for wind, assuming low battery degradation costs and storage sized to 100% of the plant's nameplate generation capacity. Increasing storage duration beyond 4h does not substantially increase its value from energy markets, even in VRE-rich Areas. We find that solar hybrids reach a 90% capacity credit with 4h of storage, while wind hybrids require 8h of storage, based on the capacity factor of each hybrid during the top 100 net load hours.

24 POWER TRANSMISSION AND DISTRIBUTION↗

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 OSTI2025

Flexibility Options: A Proposed Product for Managing Imbalance Risk

The presence of variable renewable energy resources with uncertain outputs in day-ahead electricity markets results in additional balancing needs in real-time. Addressing those needs cost-effectively and reliably within a competitive market with unbundled products is challenging as both the demand for and the availability of flexibility depends on day-ahead energy schedules. Existing approaches for reserve procurement usually rely either on oversimplified demand curves that do not consider how system conditions that particular day affect the value of flexibility, or on bilateral trading of hedging instruments that are not co-optimized with day-ahead schedules. This article proposes a new product, ‘Flexibility Options', to address these two limitations. The demand for this product is endogenously determined in the day-ahead market and it is met cost-effectively by considering real-time supply curves for product providers, which are co-optimized with the energy supply. As we illustrate with numerical examples and mathematical analysis, the product addresses the hedging needs of participants with imbalances cost-effectively, provides a less intermittent revenue stream for participants with flexible outputs, promotes value-driven pricing of flexibility, and ensures that the system operator is revenue-neutral. This article provides a comprehensive design that can be further tested and applied in large-scale systems.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2024

Wholesale Electricity Analysis via Simulation & Learning Experiments (WEASLE): Platform Development and Pilot Competition

This document reports the development of the Wholesale Electricity Analysis via Simulation and Learning Experiments (WEASLE) platform and the pilot competition that was conducted to test the platform. Due to the increasing reliance on variable renewable energy resources for bulk power, the pilot competition, called the Energy Storage Participation Algorithm Competition (ESPA-Comp), was used to test the effect of various market designs on storage utilization and market efficiency. Basic details of the platform are provided, including an overview of the market clearing engine, the battery dispatch and degradation models, electric grid topology and resource mix, and software architecture. Two market designs were tested: a two-settlement market analogous to typical ISO design today, and a multi-settlement market that allows additional forward-trading periods during the real-time market. Results from the pilot competition show that the storage bidding problem is nontrivial and is well suited for future challenges. We find that: 1) all four teams utilized different approaches to the bidding problem, 2) different methodological approaches led to substantially different offer behaviors, 3) resource profits are clustered by team and methodological approach, 4) simulated offers reduced market surplus by about 0.5%, 5) substantially different prices between two-settlement and multi-settlement markets albeit minimal difference in overall market surplus.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2025

An Integrated Paradigm for the Management of Delivery Risk in Electricity Markets: From Batteries to Insurance and Beyond

If power systems transition to integrate higher amounts of variable renewable energy sources, storage technologies, and distributed energy resources (DERs), new risk management frameworks are necessary to ensure cost-effective and reliable power system operations. Projects funded by the Advanced Research Projects Agency-Energy (ARPA-E) Performance-based Energy Resource Feedback, Optimization, and Risk Management (PERFORM) program aim to contribute new risk management frameworks by developing methods to quantify and manage risk at grid asset and system levels. The National Renewable Energy Laboratory (NREL) led a PERFORM project in collaboration with the Johns Hopkins University, the Electric Power Research Institute (EPRI), kWh Analytics, Packetized Energy, and Imperial Consultants (ICON). The project addressed two challenges related to risk management in electricity markets: managing net load imbalances and flexibility from DERs. This final technical report presents a list of project accomplishments, activities, and outputs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2024

Cooperation in Transmission Expansion Planning: Enhancing Grid Reliability and Efficiency Under a Changing Climate

Electricity grids are challenged to maintain reliability during more intense and frequent extreme weather events due to climate change. This challenge is exacerbated by multi-sector electrification and power sector decarbonization through increased reliance on variable renewable energy, which necessitates the expansion of transmission infrastructure. However, transmission expansion planning is often complicated by intertwined planning authorities and jurisdictions, and allocation of large capital investment needs. These factors cause authorities to manage transmission investments individually (i.e., only/mostly intraregional planning), which can lead to suboptimal transmission networks. This study investigates the potential benefits of cooperative transmission expansion planning (i.e., both intraregional and interregional planning that optimizes transmission investments across the entire physical system). Using sectoral and economic optimization, and machine learning models, it analyzes the impact of different levels of cooperation among transmission planning regions within U.S. Western Interconnection in 2019 and 2059 via an iterative investment process. Furthermore, it examines the effects of future climate change on transmission cooperation by simulating historical heat waves from 2019 under conditions of 2059. The results indicate that cooperative transmission planning leads to lower wholesale electricity prices, decreased energy outages, and reduced greenhouse gas emissions. However, the advantages of collaboration diminish during widespread heat waves, despite remaining beneficial especially for regions like California Independent System Operator with substantial solar installations. The study underscores the importance of transmission cooperation in reducing costs and enhancing reliability, emphasizing the need for strategic investments in storage to address challenges posed by future extreme weather events with varying spatial scales.

Capacity Expansion Model↗

DOE OSTI2024

Impact of Hydrological Data on Power System Operational Studies: Preprint

Hydropower is expected to play an important role in maintaining grid reliability and flexibility as the share of of variable renewable energy increases. While the current hydropower operational models have been studied and used widely, they haven't been updated for decades to meet new performance standards. For example, current steady state and dynamic models often neglect hydrological conditions, which may lead to unrealistic expectations when relying on hydropower for energy and ancillary services. To study this impact, a multi-timescale hydrological model was created by leveraging the National Renewable Energy Laboratory-developed Multi-timescale Integrated Dynamics and Scheduling (MIDAS) tool. Using MIDAS, we compare the impact of considering hydrological conditions in a day-ahead unit commitment (DAUC) schedule on the reduced 240-bus Western Interconnect (WI) test system under winter and summer case studies. We show that neglecting current hydrological conditions of hydropower plants in power system models can lead to an overestimation of hydropower capabilities, which could lead to power balancing issues. For example, power system DAUC simulation results of our reduced test system show that in the case where hydrological conditions are not considered in the model, an approximate 31% overestimation of hydropower capabilities occurs in the summer case and approximately 60% occurs in the winter case compared to what is available. Additionally, results show an underestimation of WI day-ahead power system generation costs by approximately $54M - $80M in the weekly summer scenario and $116M - $126M in the weekly winter scenario. This analysis helps to underscore the importance of considering hydrological data in power system operational studies.

ENERGY PLANNING, POLICY, AND ECONOMY,HYDRO ENERGY↗

DOE OSTI2024

Getting to 100%: Six Strategies for the Challenging Last 10%

This presentation summarizes the challenge of decarbonizing the last 10%" of the power system and discusses six strategies for addressing that challenge. This presentation was given at the IRA, BIL, and the Future of Energy: A Summit to Support State Implementation" workshop in Washington, D.C., in April 2024.

carbon capture↗