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DOE OSTI2026

Challenges and Opportunities for Electric Utility Modeling and Asset Valuation Frameworks: Case Study on Valuing New Pumped Storage Hydropower

Asset valuation by electric utilities is becoming increasingly difficult in the rapidly changing electric sector. Rapid deployment of variable generation and inverter-based storage systems along with uncertain demand growth, climate, policies, and other factors create a challenging environment for understanding the value proposition of a new potential asset. This report describes an effort between the Tennessee Valley Authority (TVA) and three U.S. Department of Energy laboratories to perform a detailed review of utility modeling and analysis practices for asset valuation and identify challenges and opportunities for advancing its methods into the future. It focuses on a case study of new potential pumped storage hydropower (PSH) because of growing interest in new PSH capacity to provide energy balancing, firm capacity, and a range of ancillary services. Staff from the DOE labs conducted systematic interviews about current practices in capacity expansion modeling, production-cost modeling, hydrological modeling, and transmission stability modeling while also discussing how scenario analysis is conducted and how models and data are integrated. The effort resulted in a set of model, integration, and scenario recommendations that could be valuable to TVA, other utilities, system operators, and other stakeholders conducting integrated grid analysis. Individual model recommendations suggest exploring computational tradeoffs with detail and resolution across spatiotemporal structure, supply- and demand-side details, transmission overlays, market interactions, and ancillary services. Automated processes to pass data between models and conduct larger scenario suites could also enhance valuation practices by enabling a more consistent study of asset value across a broader range of uncertain future grid conditions where PSH could be particularly valuable. TVA and other industry stakeholders can learn from and adapt applied research-grade methods developed by DOE laboratories and other research institutions to improve decision making and accelerate progress towards a reliable, economic, sustainable energy system.

13 HYDRO ENERGY↗

DOE OSTI2019

H2@Scale: Economic Potential of Hydrogen as an Energy Intermediate

The H2@Scale concept envisions hydrogen as an energy intermediate across multiple energy sectors. The concept is motivated both by the opportunity to produce hydrogen from low-cost energy resources, and by the many potential applications of hydrogen, including as energy for transportation - used directly in fuel cell electric vehicles (FCEVs), as a feedstock for synthetic fuels, and to upgrade oil and biomass - feedstock for industry (e.g., for ammonia production, metals refining, and other end uses), heat for industry and buildings, and electricity storage. A key hydrogen production opportunity is using variable renewable electricity (i.e., electricity generated by wind turbines or solar photovoltaic panels) during hours when generation exceeds the load on the grid as a source of low-cost, dispatch constrained electricity (LDE). In addition to producing low-cost hydrogen, electrolysis can also serve as a form of responsive load on the electric grid, which can enhance grid stability, reduce curtailment, and create a supplementary revenue stream for generators. The future use and adoption of hydrogen across end-use applications depends both the cost of hydrogen production and on each application's threshold price (i.e., the maximum price each application will pay for hydrogen - above that price, the application has an alternative that is more economic). We estimate economic potential of the hydrogen market - the quantity of hydrogen at an equilibrium price at which suppliers are willing to produce and consumers are willing to buy the same quantity of hydrogen - by developing supply and demand curves for hydrogen production and use. The demand curves are based on the threshold price for various quantities of hydrogen in each market, which is affected by projected prices for alternatives that could provide the same service (e.g., fuel for vehicles, feedstock for metals refining). The supply curves include hydrogen produced via natural gas steam methane reforming, high-temperature electrolysis coupled with nuclear power plants, biomass gasification, and low-temperature electrolysis using LDE. We use a range of market and technology-advancement assumptions to estimate the economic potential for five scenarios in the mid 21st century timeframe, and the corresponding impacts on energy use and emissions. We estimate hydrogen's economic potential to be 14-48 MMT/yr in the contiguous United States - corresponding to 1.5-5 times current annual consumption - depending on key assumptions about the future market conditions and the success of hydrogen production research and development (R&D) in our five scenarios. As a result of the estimated economic potential markets, we also approximate that grid-integrated electrolysis can increase the penetration of wind generation in the electricity market by providing a value stream for LDE, and that total U.S. fossil fuel use could decline below a scenario with high renewable penetration on the grid. We find that hydrogen has potential to provide technical and economic synergies when integrated across multiple sectors of the U.S. energy system, but continued R&D, infrastructure, and market development for LDE are required.

08 HYDROGEN↗

NASA NTRS2008

Space Weather: What is it, and Why Should a Meteorologist Care?

"Space weather" is a term coined almost 15 years ago to describe environmental conditions ABOVE Earth's atmosphere that affect satellites and astronauts. As society has become more dependent on technology, we nave found that space weather conditions increasingly affect numerous commercial and infrastructure sectors: airline operations, the precision positioning industry, and the electric power grid, to name a few. Similar to meteorology where "weather" often refers to severe conditions, "space weather" includes geomagnetic storms, radiation storms, and radio blackouts. But almost all space weather conditions begin at the Sun--our middle-age, magnetically-variable star. At NASA, the science behind space weather takes place in the Heliophysics Division. The Space Weather Prediction Center in Boulder, Colorado, is manned jointly by NCAA and US Air Force personnel, and it provides space weather alerts and warnings for disturbances that can affect people and equipment working in space and on Earth. Organizationally, it resides in NOAA's National Weather Service as one of the National Centers for Environmental Prediction. In this seminar we hope to give the audience a brief introduction to the causes of space weather, discuss some of the effects, and describe the state of the art in forecasting. Our goal is to highlight that meteorologists are increasingly becoming the "first responders" to questions about space weather causes and effects.

SaintCyr, Chris↗

DOE OSTI2015

Impact of Rate Design Alternatives on Residential Solar Customer Bills. Increased Fixed Charges, Minimum Bills and Demand-based Rates

With rapid growth in energy efficiency and distributed generation, electric utilities are anticipating stagnant or decreasing electricity sales, particularly in the residential sector. Utilities are increasingly considering alternative rates structures that are designed to recover fixed costs from residential solar photovoltaic (PV) customers with low net electricity consumption. Proposed structures have included fixed charge increases, minimum bills, and increasingly, demand rates - for net metered customers and all customers. This study examines the electricity bill implications of various residential rate alternatives for multiple locations within the United States. For the locations analyzed, the results suggest that residential PV customers offset, on average, between 60% and 99% of their annual load. However, roughly 65% of a typical customer's electricity demand is non-coincidental with PV generation, so the typical PV customer is generally highly reliant on the grid for pooling services.

14 SOLAR ENERGY↗

DOE OSTI2018

Energy-Water Nexus Knowledge Discovery Framework, Experts' Meeting

Energy and water generation and delivery systems are inherently interconnected. With demand for energy growing, the energy sector is experiencing increasing competition for water. With increasing populationand changing environmental, socioeconomic, and demographic scenarios, new technology and investmentdecisions must be made for optimized and sustainable energy-water resource management. These decisionsrequire novel scientific insights into the complex interdependencies of energy-water infrastructures acrossmultiple space and time scales.On June 13, 2017 an Experts’ Meeting was convened for the purpose of informing the design of an integrateddata driven modeling, analysis, and visualization capability that can enable ecient local and regional decisionmakingregarding present and future energy-water infrastructure. This first multi-institute collaborativeEnergy-Water Nexus Knowledge Discovery Framework (EWN-KDF) will be informed by fundamentalscience and guided with strategic (federal) policy decisions in the service of ensuring national energyresilience.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2023

Irradiation of ultrasonic sensors and adhesive couplants for application in light water reactor primary loop piping and components

The Electric Power Research Institute (EPRI) Nuclear Sector and US Department of Energy Light Water Reactor Sustainability Program are committed to engaging in research and development endeavors to address materials aging issues specific to long term operation of light water power reactors. To this effect, EPRI launched an industry initiative to develop nondestructive evaluation systems for online monitoring of existing cracks in light water reactor primary coolant loop piping and components. One of the goals of this initiative is to develop a sensor system (or systems) that can determine nondestructively if cracks are growing or arrested and, in the case of the former, to characterize their growth rates. A missing component of this initiative is an experimental assessment of how sensors and adhesive couplants will perform in service when exposed to chronic energetic neutron radiation, particularly at the primary coolant loop hot and cold leg dissimilar metal welds, which join the primary loop piping to the reactor pressure vessel and reside in the vicinity of the reactor core. The objective of this experimental study was to determine how ultrasonic transducers and adhesive couplants perform when exposed to irradiation in a test reactor to simulate and accelerate in-service exposure. Further, to achieve this objective, the signal stability of piezoelectric transducers and performance of adhesive couplants as a function of accumulated fast neutron fluence were characterized by collecting ultrasonic data in-situ during irradiation. Of particular interest were the ultrasonic signal quality and time decay of the amplitude of acoustic reflections as a function of fast neutron fluence. The results of the study showed that, of the 8 transducer/substrate sample assemblies tested, only 3 generated usable ultrasonic signals through the conclusion of the irradiation campaign. It was found that high temperature epoxy tends to ultrasonically couple the sensors to the substrates better than three types of refractory ceramic cements studied, as is supported by post irradiation examination. The results obtained through this experimental study will be utilized in the achievement of the overall goal of development of a sensor system to perform online monitoring of primary loop components.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

DOE OSTI2013

Assessment of Industrial Load for Demand Response across U.S. Regions of the Western Interconnect

Demand response (DR) has the ability to both increase power grid reliability and potentially reduce operating system costs. Understanding the role of demand response in grid modeling has been difficult due to complex nature of the load characteristics compared to the modeled generation and the variation in load types. This is particularly true of industrial loads, where hundreds of different industries exist with varying availability for demand response. We present a framework considering industrial loads for the development of availability profiles that can provide more regional understanding and can be inserted into analysis software for further study. The developed framework utilizes a number of different informational resources, algorithms, and real-world measurements to perform a bottom-up approach in the development of a new database with representation of the potential demand response resource in the industrial sector across the U.S. This tool houses statistical values of energy and demand response (DR) potential by industrial plant and geospatially locates the information for aggregation for different territories without proprietary information. This report will discuss this framework and the analyzed quantities of demand response for Western Interconnect (WI) in support of evaluation of the cost production modeling with power grid modeling efforts of demand response.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2022

Conceptual Design of Pulverized Coal Electricity Generating Units for Flexible Operation

This National Energy Technology Laboratory (NETL) study addresses the conceptual design of greenfield pulverized coal (PC) plants intended for flexible rather than high capacity factor baseload operation. The United States has plentiful, low-cost natural gas resources - studies of aggressive decarbonization scenarios of the US energy sector suggest that the variability of carbon-free power can be economically addressed using dispatchable natural gas-fueled generation. Globally, natural gas resources are not as plentiful or low cost; consequently, some regions of the world are anticipated to continue to rely upon coal generation, even as they pursue decarbonization efforts. To support the increased utilization of variable renewable generation in these coal-dependent regions, plant designs must target low-capacity factor coal plants with increased emphasis on flexibility attributes such as start-up times, ramp rates, minimum load, and part-load heat rates. While much work has been performed on the improvement of the flexibility for existing coal plants originally designed for baseload service, little public literature exists on clean sheet design for flexible operation. This conceptual design study aims to define the features, performance characteristics, and costs for greenfield coal plants intended for flexible operation. Quantifying these characteristics provides critical information required by utility owners, grid planners, energy market modelers, and energy policy decision makers in coal-dependent regions of the world to better understand how coal-fired power plants can support a transition to low carbon generation.

20 FOSSIL-FUELED POWER PLANTS↗

DOE OSTI2019

Electrification Futures Study: Scenarios for Demand-Side Adoption in the United States

Electrification - the potential for increased electricity demand due to new services and the shift from any non-electric source of energy to electricity at the point of final consumption - is a major emerging trend in energy markets around the world. Select driving forces for this trend are a collection of newly-improved electric end-use technologies, engaged consumers and manufacturers, and a variety of economic and policy objectives in different jurisdictions. NREL and partners are conducting a multi-year study of electrification scenarios, which will explore research questions related to the potential key technologies for, planning requirements for, and impacts of deep electrification of the U.S. economy. NREL recently published a report that presents scenarios with various degrees of future electrification in all major end-use sectors of the U.S. energy system, and quantifies impacts on the amount and shape of national and regional electricity demand. In addition, ongoing analysis is exploring how the U.S. electricity system could need to transform to meet changes in demand from an electrified economy, the potential role of demand-side flexibility in supporting reliable operations of a clean electricity grid, and the potential costs, benefits, and impacts of mass electrification. This talk will serve to frame some of the overall boundaries of the session and report on electrification levels and impacts under a variety of scenarios.

30 DIRECT ENERGY CONVERSION↗

NASA NTRS1998

Airspace Complexity and its Application in Air Traffic Management

The United States Air Traffic Management (ATM) system provides services to enable safe, orderly and efficient aircraft operations within the airspace over the continental United States and over large portions of the Pacific and Atlantic Oceans, and the Gulf of Mexico. It consists of two components, Air Traffic Control (ATC) and Traffic Flow Management (TFM). The ATC function ensures that the aircraft within the airspace are separated at all times while the TFM function organizes the aircraft into a flow pattern to ensure their safe and efficient movement. In order to accomplish the ATC and TFM functions, the airspace over United States is organized into 22 Air Route Traffic Control Centers (ARTCCs). The Center airspace is stratified into low-altitude, high-altitude and super-high altitude groups of Sectors. Each vertical layer is further partitioned into several horizontal Sectors. A typical ARTCC airspace is partitioned into 20 to 80 Sectors. These Sectors are the basic control units within the ATM system.

Sridhar, Banavar↗

DOE OSTI2019

Perspectives on Previous DOE Transportation Acquisition Efforts - 19049

The Department of Energy (DOE) is planning for future large-scale transport of commercial Spent Nuclear Fuel (SNF) and High-Level Radioactive Waste (HLW) to eventual disposal and/or storage facilities. Various options for procuring transportation services are being evaluated. To inform this work, a review of past comments received on DOE transportation acquisition activities in the early 1990's through 2016 was conducted. Through the course of data collection, staff analyzed comments submitted from ten DOE initiatives from DoE's Office of Civilian Radioactive Waste Management (OCRWM) and DoE's Office of Nuclear Energy (DOE-NE). This paper summarizes and outlines key themes arising from these comments. Past issues identified by a wide variety of commenters (nuclear industry and cask vendors, nuclear utilities and purchasers, states, Tribes, local governments, rail carriers, nongovernmental organizations, trade organizations, engineering firms, and members of the public) were examined. These issues concerned DoE's activities to make maximum use of the private sector to transport and store SNF and HLW. The key themes analyzed include: Uniqueness of the Shipping Campaign, Views on Privatization, Industry Risk and Privatization, Unclear Roles and Responsibilities, and Responsibilities Recommended for DOE to Maintain. This paper concludes by discussing lessons that can be learned from analyzing these public comments and what that may mean moving forward in the U.S. radioactive waste management program. (authors)

12 MANAGEMENT OF RADIOACTIVE AND NON-RADIOACTIVE W↗

DOE OSTI2020

The Link Between the Ecology of the Prokaryotic Rare Biosphere and Its Biotechnological Potential

Current research on the prokaryotic low abundance taxa, the prokaryotic rare biosphere, is growing, leading to a greater understanding of the mechanisms underlying organismal rarity and its relevance in ecology. From this emerging knowledge it is possible to envision innovative approaches in biotechnology applicable to several sectors. Bioremediation and bioprospecting are two of the most promising areas where such approaches could find feasible implementation, involving possible new solutions to the decontamination of polluted sites and to the discovery of novel gene variants and pathways based on the attributes of rare microbial communities. Bioremediation can be improved through the realization that diverse rare species can grow abundant and degrade different pollutants or possibly transfer useful genes. Further, most of the prokaryotic diversity found in virtually all environments belongs in the rare biosphere and remains uncultivatable, suggesting great bioprospecting potential within this vast and understudied genetic pool. This Mini Review argues that knowledge of the ecophysiology of rare prokaryotes can aid the development of future, efficient biotechnology-based processes, products and services. However, this promise may only be fulfilled through improvements in (and optimal blending of) advanced microbial culturing and physiology, metagenomics, genome annotation and editing, and synthetic biology, to name a few areas of relevance. In the future, it will be important to understand how activity profiles relate with abundance, as some rare taxa can remain rare and increase activity, whereas other taxa can grow abundant. The metabolic mechanisms behind those patterns can be useful in designing biotechnological processes.

59 BASIC BIOLOGICAL SCIENCES↗

NASA NTRS2002

Mobile Router Developed and Tested

The NASA Glenn Research Center, under a NASA Space Act Agreement with Cisco Systems, has been performing joint networking research to apply Internet-based technologies and protocols to space-based communications. As a result of this research, NASA performed stringent performance testing of the mobile router, including the interaction of routing and the transport-level protocol. In addition, Cisco Systems developed the mobile router for both commercial and Government markets. The code has become part of the Cisco Systems Internetworking Operating System (IOS) as of release 12.2 (4) T--which will make this capability available to the community at large. The mobile router is software code that resides in a network router and enables entire networks to roam while maintaining connectivity to the Internet. This router code is pertinent to a myriad of applications for both Government and commercial sectors, including the "wireless battlefield." NASA and the Department of Defense will utilize this technology for near-planetary observation and sensing spacecraft. It is also a key enabling technology for aviation-based information applications. Mobile routing will make it possible for information such as weather, air traffic control, voice, and video to be transmitted to aircraft using Internet-based protocols. This technology shows great promise in reducing congested airways and mitigating aviation disasters due to bad weather. The mobile router can also be incorporated into emergency vehicles (such as ambulances and life-flight aircraft) to provide real-time connectivity back to the hospital and health-care experts, enabling the timely application of emergency care. Commercial applications include entertainment services, Internet protocol (IP) telephone, and Internet connectivity for cruise ships, commercial shipping, tour buses, aircraft, and eventually cars. A mobile router, which is based on mobile IP, allows hosts (mobile nodes) to seamlessly "roam" among various IP subnetworks. This is essential in many wireless networks. A mobile router, unlike a mobile IP node, allows entire networks to roam. Hence, a device connected to the mobile router does not need to be a mobile node because the mobile router provides the roaming capabilities. There are three basic elements in the mobile IP: the home agent, the foreign agent, and the mobile node. The home agent is a router on a mobile node's home network that tunnels datagrams for delivery to the mobile node when it is away from home. The foreign agent is a router on a remote network that provides routing services to a registered mobile node. The mobile node is a host or router that changes its point of attachment from one network or subnetwork to another. In mobile routing, virtual communications are maintained by the home agent, which forwards all packets for the mobile networks to the foreign agent. The foreign agent passes the packets to the mobile router, which then forwards the packets to the devices on its networks. As the mobile router moves, it will register with its home agent on its whereabouts via the foreign agent to assure continuous connectivity.

Ivancic, William D.↗

DOE OSTI2014

Climate Change and Infrastructure, Urban Systems, and Vulnerabilities

This Technical Report on Climate Change and Infrastructure, Urban Systems, and Vulnerabilities has been prepared for the U.S. Department of Energy by the Oak Ridge National Laboratory in support of the U.S. National Climate Assessment (NCA). It is a summary of the currently existing knowledge base on its topic, nested within a broader framing of issues and questions that need further attention in the longer run. The report arrives at a number of assessment findings, each associated with an evaluation of the level of consensus on that issue within the expert community, the volume of evidence available to support that judgment, and the section of the report that provides an explanation for the finding. Cross-sectoral issues related to infrastructures and urban systems have not received a great deal of attention to date in research literatures in general and climate change assessments in particular. As a result, this technical report is breaking new ground as a component of climate change vulnerability and impact assessments in the U.S., which means that some of its assessment findings are rather speculative, more in the nature of propositions for further study than specific conclusions that are offered with a high level of confidence and research support. But it is a start in addressing questions that are of interest to many policymakers and stakeholders. A central theme of the report is that vulnerabilities and impacts are issues beyond physical infrastructures themselves. The concern is with the value of services provided by infrastructures, where the true consequences of impacts and disruptions involve not only the costs associated with the clean-up, repair, and/or replacement of affected infrastructures but also economic, social, and environmental effects as supply chains are disrupted, economic activities are suspended, and/or social well-being is threatened. Current knowledge indicates that vulnerability concerns tend to be focused on extreme weather events associated with climate change that can disrupt infrastructure services, often cascading across infrastructures because of extensive interdependencies threatening health and local economies, especially in areas where human populations and economic activities are concentrated in urban areas. Vulnerabilities are especially large where infrastructures are subject to multiple stresses, beyond climate change alone; when they are located in areas vulnerable to extreme weather events; and if climate change is severe rather than moderate. But the report also notes that there are promising approaches for risk management, based on emerging lessons from a number of innovative initiatives in U.S. cities and other countries, involving both structural and non-structural (e.g., operational) options.

Climate Impacts on Infrastructure Systems↗

DOE OSTI2012

The Path to Savings: Understanding the Federal Purchase of Energy-Consuming Products

Energy efficiency has been a federal procurement policy objective since at least 1992, with the origin of the Energy Efficient Product Procurement (EEPP) program within the larger Federal Energy Management Program (FEMP). Today, the EEPP program’s mandate is based on requirements that 95% of new contract actions, task orders, and delivery orders for products and services be energy and water efficient, as laid out in Executive Order 13514 in 2009. Facilitating full compliance with EO 13514 presents a significant strategic planning challenge to the FEMP EEPP program, given the size of the federal government, the range of missions of its many agencies, the mix of management approaches for its buildings, and the diverse set of roughly 80 energy efficient products which has been established through preceding legislation and executive orders. The goal of this report is to aid the program in prioritizing its resources by providing an overview of how the purchase of energy-consuming products occurs in today’s evolving federal procurement system, as well as identify likely intervention points and compliance review mechanisms. Through a synthesis of the literature on U.S. federal sector procurement and two dozen primary interviews, the report particularly focuses on the importance of price in determining the actor(s) responsible for any given purchase of an energy-consuming product. This identification is important, as the relevant actors are trained and reviewed in different ways that the FEMP EEPP program can prioritize for targeting, based on the decision criteria such as the potential energy savings associated with the actor’s purchases or the administrative ease of the intervention.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2021

Competitiveness Metrics for Electricity System Technologies

The relative economic competitiveness of power generation technologies is a topic of much interest to diverse electric industry participants. However, assessing competitiveness can be challenging as it requires considering both total costs and total system value of each technology, which are complicated by the (1) numerous and diverse grid services needed to operate a reliable power system; (2) variations in the economic value of the grid services with system state and location, and over multiple timescales, due to the challenges of transporting and storing electricity; and (3) the unique characteristics of different electric system assets. Ideally, metrics designed or used to convey technology competitiveness must consider these complexities, but existing metrics often fall short. For example, the levelized cost of energy does not consider the system economic value of the various technologies nor does it consider services beyond electricity production. Various other metrics have been designed with the purpose of more-accurately communicating the economic viability of electric system technologies. In this report, we summarize the primary sources and components of costs and value and review the known competitiveness metrics by presenting their definitions, applications, advantages, and disadvantages. We also introduce a new set of competitiveness metrics, which we refer to as System Profitability metrics, that more-directly applies the economic principles of return-on-investment to electric system technologies. We use conceptual examples to show how the System Profitability metrics better reflect economic viability and relative technology competitiveness compared with existing metrics. We also describe how competitiveness metrics can be quantified using optimization-based models and demonstrate this capability using a U.S. electric sector capacity expansion model.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2021

Novel technologies for emission reduction complement conservation agriculture to achieve negative emissions from row-crop production

Plants remove carbon dioxide from the atmosphere through photosynthesis. Because agriculture’s productivity is based on this process, a combination of technologies to reduce emissions and enhance soil carbon storage can allow this sector to achieve net negative emissions while maintaining high productivity. Unfortunately, current row-crop agricultural practice generates about 5% of greenhouse gas emissions in the United States and European Union. Here, to reduce these emissions, significant effort has been focused on changing farm management practices to maximize soil carbon. In contrast, the potential to reduce emissions has largely been neglected. Through a combination of innovations in digital agriculture, crop and microbial genetics, and electrification, we estimate that a 71% (1,744 kg CO 2 e/ha) reduction in greenhouse gas emissions from row crop agriculture is possible within the next 15 y. Importantly, emission reduction can lower the barrier to broad adoption by proceeding through multiple stages with meaningful improvements that gradually facilitate the transition to net negative practices. Emerging voluntary and regulatory ecosystems services markets will incentivize progress along this transition pathway and guide public and private investments toward technology development. In the difficult quest for net negative emissions, all tools, including emission reduction and soil carbon storage, must be developed to allow agriculture to maintain its critical societal function of provisioning society while, at the same time, generating environmental benefits.

54 ENVIRONMENTAL SCIENCES↗

DOE OSTI2020

Financing Microgrids in the Federal Sector

Recent high-impact events such as hurricanes and wildfires highlight the need for energy system resilience. One potential impact of these events is the loss of utility grid power to federal sites, negatively affecting the ability to carry out their missions. Depending on the need to sustain critical functions, it may be important to continue operations during an outage of the electric grid, or at least have power restored quickly after the event. One approach to addressing this need is through a microgrid. Microgrids can provide a more reliable solution than the traditional approach of using a backup generator at individual buildings. A microgrid can enhance a site’s electrical power system during normal operations, as well as provide reliable backup power to critical loads when electric utility power is interrupted. Many times, certain components of a microgrid (and potentially the entire system) can be justified economically and paid for out of energy savings or avoided costs. In cases where savings can cover the project costs, one of several privately financed procurement mechanisms may be used to implement the project. Procurement options available to all federal agencies include utility energy services contracts (UESC), energy savings performance contracts (ESPC), and utility services contracts (USC); other mechanisms such as a power purchase agreement (PPA), enhanced use lease (EUL), and utility privatization (UP) may also be useful to agencies that have the authority to use them. Implementing a microgrid in a comprehensive effort that also includes energy efficiency can provide an important savings component, while reducing power requirements for critical loads, thus reducing the cost of the microgrid and associated distributed energy resources (DER). However, it can be difficult to achieve enough savings and avoided costs to cover the entire microgrid system, so leveraging these avoided costs in combination with appropriated funds may be necessary to implement the full project. When a site is deciding if a microgrid is the best solution, activities early in the process include identifying critical loads and existing DERs, conversations with the local electric utility, and implementation options that work best for the agency and site. This paper explores procurement options and agreements that may be useful to federal agencies interested in implementing microgrids at their sites. Microgrid complexities, implementation considerations, and suggestions to get started are also discussed. This information will be most useful to agencies when they are exploring electric energy system resilience options and/or considering different procurement options to meet their needs.

24 POWER TRANSMISSION AND DISTRIBUTION↗