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All sourcesNASA NTRSDOE OSTI
DOE OSTI2017

2016 Wind Technologies Market Report

The U.S. Department of Energy (DOE)’s Wind Technologies Market Report provides an annual overview of trends in the U.S. wind power market. You can find the report, a presentation, and a data file on the Files tab, below. Additionally, several data visualizations are available in the Data Visualizations tab. Highlights of this year’s report include: -Wind power additions continued at a rapid clip in 2016: $13 billion was invested in new wind power plants in 2016. In 2016, wind energy contributed 5.6% of the nation’s electricity supply, more than 10% of total electricity generation in fourteen states, and 29% to 37% in three of those states—Iowa, South Dakota, and Kansas. -Bigger turbines are enhancing wind project performance: Increased blade lengths, in particular, have dramatically increased wind project capacity factors, one measure of project performance. For example, the average 2016 capacity factor among projects built in 2014 and 2015 was 42.6%, compared to an average of 32.1% among projects built from 2004 to 2011 and 25.4% among projects built from 1998 to 2001. -Low wind turbine pricing continues to push down installed project costs: Wind turbine prices have fallen from their highs in 2008, to $800–$1,100/kW. Overall, the average installed cost of wind projects in 2016 was $1,590/kW, down $780/kW from the peak in 2009 and 2010. -Wind energy prices remain low: After topping out at nearly 7¢/kWh for power purchase agreements (PPAs) executed in 2009, the national average price of wind PPAs has dropped to around 2¢/kWh—though this nationwide average is dominated by projects that hail from the lowest-priced Interior region of the country (such as Texas, Iowa, Oklahoma). These prices, which are possible in part due to federal tax support, compare favorably to the projected future fuel costs of gas-fired generation. -The supply chain continued to adjust to swings in domestic demand for wind equipment: Wind sector employment reached a new high of more than 101,000 full-time workers at the end of 2016. For wind projects recently installed in the U.S., domestically manufactured content is highest for nacelle assembly (>90%), towers (65-80%), and blades and hubs (50-70%), but is much lower (<20%) for most components internal to the turbine. -Continued strong growth in wind capacity is anticipated in the near term: With federal tax incentives still available, though declining, various forecasts for the domestic market show expected wind power capacity additions averaging more than 9,000 MW/year from 2017 to 2020.

17 WIND ENERGY↗
DOE OSTI2018

2017 Wind Technologies Market Report

The U.S. Department of Energy (DOE)’s Wind Technologies Market Report provides an annual overview of trends in the U.S. wind power market. Highlights of this year’s report include: -Wind power capacity additions continued at a rapid pace in 2017: $11 billion was invested in new wind power plants in 2017. In 2017, wind energy contributed 6.3% of the nation’s electricity supply, more than 10% of total electricity generation in fourteen states, and more than 30% in four of those states—Iowa, Kansas, Oklahoma, and South Dakota. -Bigger turbines are enhancing wind project performance: Increased blade lengths have dramatically increased wind project capacity factors, one measure of project performance, and taller towers appear to be on the horizon. The average 2017 capacity factor among projects built from 2014 through 2016 was 42%, compared to an average of 31.5% among projects built from 2004 to 2011 and 23.5% among projects built from 1998 to 2001. -Low wind turbine pricing continues to push down installed project costs: Wind turbine prices have fallen from their highs in 2008 to $750–$950/kW. Overall, the average installed cost of wind projects in 2017 was $1,610/kW, down $795/kW from the peak in 2009 and 2010. -Wind energy prices remain low: After topping out at 7¢/kWh for power purchase agreements (PPAs) executed in 2009, the national average price of wind PPAs has dropped to around 2¢/kWh—though this nationwide average is dominated by projects that hail from the lowest-priced Interior region of the country (such as Oklahoma, Nebraska, Kansas). These prices, which are possible in part due to federal tax support, compare favorably to the projected future fuel costs of gas-fired generation. -The domestic supply chain for wind equipment is diverse: Wind sector employment reached a new high of more than 105,000 full-time workers at the end of 2017. For wind projects recently installed in the U.S., domestically manufactured content is highest for nacelle assembly (>90%), towers (70-90%), and blades and hubs (50-70%), but is much lower (<20%) for most components internal to the turbine. -Continued strong growth in wind capacity is anticipated in the near term: With federal tax incentives still available, various forecasts for the domestic market show expected wind power capacity additions of 8,000 to 11,000 MW/year from 2018 to 2020, with market contraction anticipated beginning in 2021 as those tax incentives are phased out.

17 WIND ENERGY↗
DOE OSTI2013

Conventional Generation Asset Management with Renewable Portfolio Standards Using Real Options

The transition to a more renewable generation mix under a competitive electricity market will require individual power producers to use sophisticated tools to value conventional generators. Owners will need to understand what market prices signal new investments, temporarily suspending operation, reactivating mothballed generators or permanently abandoning a plant. Net present valuation from a traditional discounted cash flow analysis is limited in capturing the value of generation technologies, and it does not provide an optimal investment criterion. We present and evaluate a closed-form decision support framework using a Spark Spread Real Options approach to value generation assets and to capture optimal market price signals that minimizes financial risks of individual power producers under a transition towards a more renewable energy fleet. We evaluate the Spark Spread options valuation for capital budgeting without capacity payments. As an example, for a fixed heat rate of 10,000 Btu/kWh and a combined electricity and fuel price annual volatility1 of 58%, the Spark Spread option valuation gives a positive value for a unit of installed generating capacity at electricity prices below $\$$40/MWh. Given the same conditions, a traditional net present value (NPV) cash flow has no value for a unit of installed capacity for electricity prices below $\$$40/MWh. Accounting for the inevitable volatility in electricity and fuel prices can allow firms to see more value in fossil plants than does the traditional approach.

17 WIND ENERGY↗
DOE OSTI2020

Optimizing an Integrated Renewable-Electrolysis System

Hydrogen is a versatile energy carrier that is used in a wide variety of chemical and industrial processes. Producing hydrogen using electrolysis can enable integration of multiple sectors including electricity, heating, and industrial sectors; however, the cost of producing hydrogen from electrolysis remains a challenge for encouraging greater adoption. With growing amounts of renewable generation on the California grid, there is downward pressure on wholesale electricity prices, particularly during the afternoon from photovoltaics (PV). These lower, or even potentially negative prices, challenge the business cases for new and existing PV plants. In addition, as the grid transitions to less flexible generation, there is greater need for system flexibility. To help improve the economics for both solar PV and hydrogen production using electrolyzers, we explore the benefit of combining PV and electrolysis systems. The optimal breakeven hydrogen production cost for six unique market participation configurations is calculated at six candidate locations where PV is already installed. The six market configurations include islanded, separated, retail, net energy metering (NEM), hybrid retail/wholesale and wholesale. Using the Revenue Operation and Device Optimization Model (RODeO) model, the optimal breakeven hydrogen price over the lifetime of the equipment is calculated. The cost includes production, storage, and compression in preparation for gaseous delivery trucks. Revenue streams include the sale of hydrogen, low carbon fuel standard (LCFS) credits, renewable electricity sold to the grid, and Renewable Energy Credits (REC). The costs included are the electricity costs, capital and fixed operation and maintenance cost (FOM) for the electrolyzer, PV, and storage and compression systems as well as taxes and financing costs. In addition, cost reductions are achieved through retail and wholesale rate optimization, by which electricity is purchased at the lowest price and sold, if possible, at the highest price. For all locations, the breakeven hydrogen production cost results show that, in the order of decreasing cost, the system configurations are islanded (highest), separated, NEM, retail, hybrid retail/wholesale, and wholesale (lowest). The resulting system design balances between the capital and maintenance cost components, the operation costs (i.e., electricity costs) and the additional market revenues. The integration of solar PV and electrolysis is shown to provide a mutually beneficial relationship. For PV, integration with electrolysis offers the potential to hedge against wholesale market price volatility, and integration with electrolysis may offer the potential to defer or avoid transmission investment to deliver power to the point-of-use and instead use it on-site. When compared with SMR without considering any renewable hydrogen premiums, this study finds that PV + Electrolysis systems with current costs are likely not competitive; however, with cost reductions for electrolysis equipment consistent with DOE projections, it was found that systems with wholesale market access would be competitive, largely on account of both low capital costs and low-cost electricity. The electrolysis units can provide greater flexibility than is required based on retail rate optimization, so there is an opportunity for a utility or CAISO to increase system flexibility with PV + Electrolysis systems in return for commensurate compensation. In this way, there are potentially several solutions that fall between the hybrid configuration and the wholesale configuration that could provide sufficient compensation for a PV + Electrolysis unit to compete with SMR while also providing greater flexibility to the grid.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2020

Impacts of High Variable Renewable Energy Futures on Electric-Sector Decision Making: Demand-Side Effects

Previous work by the Berkeley Lab describes how high shares of variable renewable energy (VRE) such as wind and solar power could change wholesale electricity price dynamics. These include the timing of when electricity is cheap or expensive, locational differences in the cost of electricity, and the degree of regularity or predictability in those costs. Many decentralized decision-makers on the demand-side may not yet have considered the implications of these possible future changes. In this report, we evaluate the sensitivity of a set of demand-side decisions to different levels of VRE penetration ranging from a low of 5-20% to a high of 40-50%. The analysis builds on hourly wholesale energy and capacity prices in different VRE scenarios for four wholesale markets in the United States for the year 2030 (CAISO, ERCOT, NYISO, and SPP). The principal question for this exploration is whether private and public electric-sector decisions that are made based on assumptions reflecting low VRE levels still achieve their intended objective in a high VRE scenario with 40-50% wind and solar? This scoping report evaluates the impacts of changing patterns of peak system needs on the benefits of demand reductions by examining the altered value of different energy efficiency (EE) measures. Similarly, we investigate new opportunities for large energy consumers that may arise from periods with very low wholesale electricity prices. We calculate the value of new process investments (e.g., hydrogen production and other generalized electro-commodities), showcase the varying value of new product storage investments (such as reservoir extensions at a desalination plant), and estimate the benefits of increased process flexibility that uses electricity as a process-input in addition to traditional fossil fuels (e.g., district energy systems). Finally, many decentralized decision-makers and end-use customers are not directly exposed to wholesale electricity prices but instead receive price signals from their retail electricity rates. As wind and solar shares increase, we compare the economic efficiency of flat retail rates relative to more dynamic time-of-use tariffs with and without critical peak-pricing events.

14 SOLAR ENERGY↗
DOE OSTI2021

Integrating Cambium Marginal Costs into Electric Sector Decisions: Opportunities to Integrate Cambium Marginal Cost Data into Berkeley Lab Analysis and Technical Assistance

NREL’s Cambium tool generates forward-looking simulations of marginal wholesale electricity costs associated with NREL’s Standard Scenarios. The scenarios include growing shares of variable renewable energy (VRE, i.e. wind and solar), among other power sector assumptions, between 2018 and 2050. The tool’s primary output—hourly costs at more than 130 balancing areas—could serve as public and transparent data source that supports electric-sector decision-making processes across the U.S. Berkeley Lab conducts a large range of analyses that use historical and forward-looking wholesale electricity prices to inform electric-sector decisions. In this report, Berkeley Lab uses its expertise to evaluate the Cambium cost data. We compare Cambium data with historical wholesale prices for the year 2018 and other modeled prices for the year 2030. We then present eight case studies in which Berkeley Lab researchers use Cambium data to replicate previous analyses based on other price datasets. We describe where primary findings and underlying key price dynamics align or differ, and highlight possible novel insights from the Cambium data. Finally, we qualitatively evaluate the suitability of Cambium costs in ten additional Berkeley Lab studies, though a direct comparison with alternative price data was not feasible at this time. The goal is to inform how electric-sector decision-makers and DOE program offices may be able to use this cohesive dataset, and to highlight what improvements to Cambium may make it even more useful.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2022

Combined Cycle Integrated Thermal Energy Storage “CiTES” (Final Scientific/Technical Report)

The Phase I of this project confirmed the technical feasibility of a Combined Cycle integrated Thermal Energy Storage “CiTES” system, calculated the key performance parameters like power efficiency and costs, and proved its commercial value with full-year simulations for several US electricity markets with high degree of variable renewable generation and volatile hourly electricity prices. The core element of this project is the Electro Thermal Energy Storage (ETES) technology from Siemens Gamesa Renewable Energy GmbH, using thermally stable and inexpensive volcanic rocks as storage material and air as heat transfer medium. This technology is backed by more than 10 years of experience and a 440MMBTU (130MWh-th) pilot plant in Hamburg, Germany, which is in operation since 2019. The integration of this thermal storage in an existing combined cycle power plant (CCPP) is typical power plant technology without any major technology risks. It allows the storage of inexpensive renewable energy during times of surplus renewable generation and the discharge of this energy in times of high energy demand when the fossil plant is in operation. This supplements the fossil power generation with CO2-emission-free energy. The secondary effect of the CiTES system is that a small part of the stored thermal energy is used to keep the heat recovery steam generator (HRSG) and steam turbine (ST) of the combined cycle power plant in hot and ready-to-start condition. This enables the plant to start rapidly when fossil generation is required to satisfy demand as soon variable generation drops off in the evenings or during cloud cover and calm wind periods. Without pre-warming of the HRSG and ST, the CCPP would need several hours for a cold or warm start, burn a lot of gas and release high NOx emissions during start and wouldn’t be able to use the short times of high energy prices in an efficient or economical manner. The economic parameters of CiTES were determined by a full year “8760” simulation using a data set calculation for each of the hours of the year, and historical electricity and gas prices. For consistency, the simulations were focused on the pre-COVID year 2019. The financially most attractive markets were in the Energy Reliability Council of Texas (ERCOT) region, which allowed substantial value generation with arbitrage (charge with cheap energy during renewable surplus times and discharge when energy is needed and expensive). The improvement of flexibility with the CiTES system by pre-heating and warm-keeping of the CCPP allowed for additional power generation during short time periods when demand is high but renewable generation is down; when the hourly energy prices are highest in these markets. The simulations are based on 2019 data, when ERCOT had 27GW of installed photovoltaic (PV) and wind generation. They showed that the created revenue with the prototypically sized CiTES system of 1,000MMBTU (300MWh-th) falls a little bit short of what is expected from a commercially viable investment. The system has optimization opportunities for cost reduction and increased effectiveness which will be realized during a potential Phase II Pre-FEED study following this project. Furthermore, it is safe to assume that a lot of renewable generation capacity will be added all over the US in the coming years. As an example, ERCOT is predicting to more than double its renewable generation from 27GW in 2019 to a forecasted 63GW in 2023. This will increase the amount of renewable overproduction exponentially. This rapid increase of local overproduction and the need to curtail renewable generation is well documented by the California ISO (www.CAISO.com / managing oversupply). However, the simulations also revealed a weakness in the structure of the electricity markets in the US. More specifically, when electricity prices are very low and approaching negative levels, the owners of Variable Renewable Energy (VRE) will curtail a part of their facility to stabilize the price by reducing supply. This results in a situation in which storage facilities, which are integrated in existing fossil assets and don’t have the behind-the-meter benefit of a VRE, won’t be able to purchase low cost – otherwise curtailed – renewable energy off the grid. A special tariff, which motivates VRE owners to sell otherwise curtailed renewable energy to storage facilities (Hydrogen, thermal, pumped hydro, etc.) can solve this issue. The implementation of such a regulating tariff by Independent System Operators, thus avoiding renewable curtailment, is a pre condition for successful commercialization for renewable energy storage technologies. With this advancement of design and technology and improvements in the market environment, it can be expected that the Combined Cycle integrated Thermal Energy Storage proves itself as an important innovation to keep highly efficient, natural gas-based power generation economically successful and relevant for the power industry in the United States of America.

Wolf, Thorsten↗
DOE OSTI2022

Methods for Computing Physically Realistic Estimates of Electric Water Heater Demand Response Resource Suitable for Bulk Power System Planning Models

Demand response is commonly called on to reduce load during system peak times or to respond to contingency events. In future power systems with higher shares of wind and solar generation (which we describe together as variable generation [VG]), demand response could have more opportunities to provide energy shifting or operating reserve services. This report evaluates the ability of residential electric water heaters, both electric resistance water heaters (ERWHs) and heat pump water heaters (HPWHs), to provide such services starting from detailed whole-building energy models that realistically represent New England single family home stock. We use a parsimonious surrogate model to represent operational flexibility in a form suitable for linear and mixed integer programming. This enables relatively fast determination of aggregate contingency reserve resource, price-taking energy shifting outcomes, and in some cases the determination of aggregate models at the megawatt (MW) scale that can be directly included in large-scale grid models. After selecting modeling methods and parameters through various computational experiments, we find interquartile ranges of contingency reserve resource in ISO-NE for about 603,400 ERWHs of 45 MW - 69 MW for Claim10 (50 minute responses provided with 10 minutes of advanced notification) and 65 MW - 102 MW for Claim30 (30 minute responses provided with 30 minutes of advanced notification), and for about 619,000 HPWHs of 48 MW - 88 MW for Claim10 and 52 MW - 90 MW for Claim30. The overall reserve resource is up to 32% of total load for ERWHs providing Claim10 service, 47% for ERWHs providing Claim30 service, 93% for HPWHs providing Claim10 service, and 97% for HPWHs providing Claim30 service. More work is required to determine if HPWHs are inherently more suitable than ERWHs for providing contingency reserve or if these results reflect idiosyncrasies of the single family home stock model used in this study. The value of this contingency resource in a Near-term VG model of ISO-NE is $\$ 0.40$ to $\$1.20$ per water heater-year, and significantly larger, $\$ 3.80$ to $\$ 5.30$ per water heater-year in a Mid-term VG model of ISONE. Aggregating surrogate models to the MW-scale for energy shifting service is more challenging than for contingency service and we only present such results for ERWHs, because we were unable to determine satisfactory ways to deal with HPWHs' time-varying and path dependent operational characteristics. Individual surrogate models suitable for evaluating the energy shifting resource from both ERWHs and HPWHs are created, however, and dispatched against day-ahead prices from the Near-Term VG and Mid-Term VG models of ISO-NE. The individual surrogate models are able to access and potentially shift all 640 GWh of HPWH load and 1,547 GWh of ERWH load we modeled in two different single family home stock models. In contrast, the most effective model of aggregate ERWH shifting resource we created only captured 34.7% of the total ERWH load. Energy shifting affected by price-taking dispatch against modeled day-ahead energy prices produces per water heater year profits of $\$19.44$ - $\$22.93$ for individual HPWHs, $\$39.11$ - $\$40.54$ for individual ERWHs, and up to $\$4.00$ - $\$4.24$ for aggregated ERWHs, with the variations mainly due to grid conditions (more or less VG). When the supply-side response to these changes is accounted for, the per water heater year production cost savings for ISO-NE are $\$7.50$ to $\$17.70$ for the most effective set of endogenously dispatched aggregate ERWHs, $\$15.60$ to $\$15.70$ for individual ERWHs dispatched against the DA prices, and $\$10.70$ to $\$11.20$ for individual HPWHs dispatched against DA prices. Those ranges primarily represent the difference between Near-Term VG and Mid-Term VG grid conditions.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2023

U.S. State Renewables Portfolio & Clean Electricity Standards: 2023 Status Update [Slides]

This report provides an overview and status update on U.S. state renewables portfolio standards (RPS) and has been expanded from previous editions to also cover 100% clean electricity standards (CES) adopted by a growing number of states. The report, published in slide-deck form along with accompanying data files, describes recent legislative revisions, key policy design features, compliance with interim targets, past and projected impacts on clean electricity development, and compliance costs. The 2023 edition presents historical data through year-end 2022 and projections out to 2050. Key trends from this edition of the report include the following: -Evolution of state RPS and CES programs: States continue to refine and revise their RPS policies, often by adopting higher targets and/or broader CES policies. Among the 29 states plus DC with an RPS, 16 states have RPS targets of at least 50% of retail sales, and 17 states have a 100% CES or RPS target. -Historical impacts on renewables development: Roughly half of all growth in U.S. renewable electricity (RE) generation and capacity since 2000 is associated with state RPS requirements, though that percentage has declined in recent years, representing 30% of all U.S. RE capacity additions in 2022. Within some regions, particularly the Northeast and Mid-Atlantic, RPS policies play a more central role in motivating RE growth. -Future RPS and CES demand and incremental needs: RPS and CES policies will require roughly 300 terawatt-hours (TWh) of additional clean electricity supply by 2030 and 800 TWh by 2050, requiring total U.S. non-hydro RE generation to reach 28% of electricity sales by 2050 (compared to 17% today). This amounts to roughly one-quarter of EIA’s projected RE growth through 2050. -RPS target achievement to-date: States have generally met their interim RPS targets in recent years, with only a few exceptions reflecting unique, state-specific issues. Most CES targets are not yet in force. -Renewable energy certificate (REC) pricing trends: Prices for NEPOOL Class I RECs remained at roughly $\$40$ /MWh over the past year, just below alternative compliance payment (ACP) rates in the larger state markets, while PJM Tier I REC prices continued to rise, reaching $\$30$ /MWh by year-end. Prices for solar RECs (or SRECs) remained relatively stable, and continue to exhibit wide variation across states, with the highest prices ($\$200-450$ /MWh) in NJ, MA, and DC. -RPS compliance costs: RPS compliance costs average roughly 3.5% of retail electricity bills across RPS states, though vary widely from state to state, with the highest costs (8-12% of retail bills) in states with solar carve-outs and high SREC prices.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2023

Hydrogen Production Cost with Alkaline Electrolysis

Rigorous stakeholder-vetted techno-economic analysis was performed to assess the cost of hydrogen (H 2 ) produced using state-of-the-art Liquid Alkaline (LA) electrolysis. Projected high-volume, untaxed levelized cost of hydrogen (LCOH) range from 2020US $\$ 1.84$ to $\$ 2.88$/kg-H 2 depending on technology year, process design, and electrolyzer project scale, assuming an electricity price of $\$ 0.03$/kWh. The total installed capital cost for a LA electrolysis plant was estimated from bottom-up stack and installed cost models that account for purchased equipment, installation costs, site preparation, and general overhead costs. For this study, the LA electrolysis plant is assumed to be a stick-built, greenfield project developed by an EPC firm with electrolysis stacks purchased directly from an electrolysis stack manufacturer. The price of the electrolysis stacks is based on a bottom-up cost assessment with business markup for the electrolysis company fabricator. Methods from the Hydrogen Analysis (H 2 A) production model, a peer-reviewed national laboratory-developed discounted cash flow model, were used to calculate the LCOH production in 2020$/kg-H 2 . The baseline electricity price case ($\$ 0.03$/kWh) corresponds to average wholesale electricity prices currently possible in U.S. markets with plentiful wind. Similar low-cost electricity pricing is possible from solar Power Purchase Agreements (PPA) although these prices are typically limited by renewable energy capacity factors.

08 HYDROGEN↗
DOE OSTI2023

Cost-Benefit Assessment of Krypton and Xenon Recovery from Aqueous Reprocessing

The purpose of this paper is to provide an understanding of the cost-benefit of capturing Kr and Xe from the existing process of aqueous reprocessing of UNF. The study accomplishes this with a market assessment of Xe prices and volumes today, coupled with a cost estimate of Kr and Xe capture out of cryogenic distillation within aqueous reprocessing. The market assessment shows that the average price of Xe is about $\$ $60/L while the average price of Kr is about $\$ $1/L. The assessment also shows that the market structure for Xe is one of oligopoly, in other words, very few suppliers to the Xe market. The assessment shows growing demand for Xe, particularly in medical applications like anesthesia. The cost assessment finds the unit cost of Xe to range from $\$ $71.50/L to $\$ $131.13/L. This range is only slightly above the current range of market prices today, and with growing demand for Xe, prices could reach the range it would take to support extraction of Xe from aqueous reprocessing. On the other hand, the estimated cost range for Kr is $\$ $830.15/L up to $\$ $1,522.52/L, which far exceeds the range of market prices for Kr. However, as the text notes, Kr capture is already part of aqueous reprocessing so these costs are sunk costs (already incurred) whereas the cost estimates for Xe are marginal cost (if Xe is desired, then the cost estimate would result from the Xe capture).

11 NUCLEAR FUEL CYCLE AND FUEL MATERIALS↗
DOE OSTI2024

U.S. State Renewables Portfolio & Clean Electricity Standards: 2024 Status Update [Slides]

This report provides an overview and status update on U.S. state renewables portfolio standards (RPS) and has been expanded from previous editions to also cover 100% clean electricity standards (CES) adopted by a growing number of states. The report, published in slide-deck form along with accompanying data files, describes recent legislative revisions, key policy design features, compliance with interim targets, past and projected impacts on clean electricity development, and compliance costs. The 2023 edition presents historical data through year-end 2023 and projections out to 2050. Key trends from this edition of the report include the following: -Evolution of state RPS and CES programs: States continue to refine and revise their RPS policies, often by adopting higher targets and/or broader CES policies. Among the 29 states plus DC with an RPS, 16 have RPS targets of at least 50% of retail sales, and 4 states have a 100% RPS. An additional 16 states have adopted a broader 100% CES. -Historical impacts on renewables development: Almost half of all growth in U.S. renewable electricity (RE) generation and capacity since 2000 is nominally associated with state RPS requirements. That percentage has declined over time to 35% of all U.S. RE capacity additions in 2023, though in certain regions RPS policies continue to play a dominant role in driving RE growth. -Future RPS and CES demand and incremental needs: The combined demand for clean electricity from RPS and CES policies will grow from roughly 500 TWh today to 1700 TWh by 2050. Accounting for current supplies—including existing nuclear and hydroelectric generation eligible for CES targets—RPS and CES policies will require 900 TWh of new clean electricity by 2050, equivalent to roughly 3x the historical rate of RPS-buildout. -RPS target achievement to-date: States have generally met their interim RPS targets in recent years, with only a few exceptions reflecting unique, state-specific issues. Most CES targets are not yet in force, and so little compliance experience to-date. -REC pricing trends: Prices for NEPOOL Class I RECs remained at roughly $\$40$/MWh over the past year, just below ACP rates in the larger state markets, while PJM Tier I REC prices continued to rise, reaching $\$35$/MWh by year-end 2023 and surpassing ACP levels in some states. Prices for solar RECs remained relatively stable, and continue to exhibit wide variation across states, with the highest prices ($200-450/MWh) in NJ, MA, and DC. -RPS compliance costs: RPS compliance costs average roughly 4% of retail electricity bills across RPS states, though vary widely from state to state, with the highest costs (11-12% of retail bills) in states with solar carve-outs and high SREC prices.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2024

Hydrogen Production Cost with Anion Exchange Membrane Electrolysis

Rigorous stakeholder-vetted techno-economic analysis was performed to assess the cost of hydrogen (H 2 ) produced using state-of-the-art Anion Exchange Membrane (AEM) electrolysis. Projected high-volume, untaxed and unsubsidized levelized cost of hydrogen (LCOH)1 range from 2020 $\$$1.78 to $\$$3.68/kg H 2 depending on technology year, process design, and electrolyzer project scale, assuming an electricity price of $\$$0.03/kWh and a capacity factor of 97%. The total installed capital cost for an AEM electrolysis plant was estimated from bottom-up stack and process plant cost models. The stack cost model accounts for manufacturing equipment, equipment maintenance, material, tooling, cycle time, yield, labor, utilities and general overhead. The process plant cost model accounts for purchased equipment, installation costs, site preparation, and general overhead costs. For this study, the AEM electrolysis plant is assumed to be a stick-built, greenfield project developed by an engineering, procurement, and construction (EPC) firm with electrolysis stacks purchased directly from an electrolysis stack manufacturer. The price of the electrolysis stacks is based on a bottom-up cost assessment with business markup for the electrolysis company fabricator. Methods from the Hydrogen Analysis (H2A) production model, a peer-reviewed national laboratory-developed discounted cash flow (DCF) model, were used to calculate the production LCOH in 2020 $\$$/kg H 2 . The baseline electricity price case ($\$$0.03/kWh) corresponds to average wholesale electricity prices currently possible in U.S. markets with plentiful wind. Similar low-cost electricity pricing is possible from solar Power Purchase Agreements (PPA) although these prices are typically limited by renewable energy capacity factors.

08 HYDROGEN↗
DOE OSTI2017

Potential Arbitrage Revenue of Energy Storage Systems in PJM

The volatility of electricity prices is attracting interest in the opportunity of providing net revenue by energy arbitrage. We analyzed the potential revenue of a generic Energy Storage System (ESS) in 7395 different locations within the electricity markets of Pennsylvania-New Jersey-Maryland interconnection (PJM), the largest U.S. regional transmission organization, using hourly locational marginal prices over the seven-year period 2008–2014. Assuming a price-taking ESS with perfect foresight in the real-time market, we optimized the charge-discharge profile to determine the maximum potential revenue for a 1 MW system as a function of energy/power ratio, or rated discharge duration, from 1 to 14 h, including a limited analysis of sensitivity to round-trip efficiency. We determined minimum potential revenue with a similar analysis of the day-ahead market. We presented the distribution over the set of nodes and years of price, price volatility, and maximum potential arbitrage revenue. From these results, we determined the breakeven overnight installed cost of an ESS below which arbitrage would be profitable, its dependence on rated discharge duration, its distribution over grid nodes, and its variation over the years. We showed that dispatch into real-time markets based on day-ahead market settlement prices is a simple, feasible method that raises the lower bound on the achievable arbitrage revenue.

25 ENERGY STORAGE↗
NASA NTRS1977

Ariane is less costly than the space shuttle

'Ariadne', the European rocket, was found to be less costly than the American space shuttle, judging by the price proposals sent to Intelsat for the orbiting of its three latest telecommunications satellites in the Intelsat 5 series. The 'Ariadne' is being offered by the ESA and CNES at a ceiling price of $20 million, while the shuttle is priced by NASA at $22.5 million under the same condition. Neither the U. S. nor ESA have endorsed these prices officially. They are being presented as estimates. The 'Ariadne' has a ceiling price, which can only be adjusted downwards, if need be. The launching prices of both of these spacecraft do not include the cost of adapting the Intelsat 5 satellites, designed for the Atlas Centaur rocket.

Langereux, P.↗
DOE OSTI2015

Effects of Home Energy Management Systems on Distribution Utilities and Feeders Under Various Market Structure; NREL (National Renewable Energy Laboratory)

The combination of distributed energy resources (DER) and retail tariff structures to provide benefits to both utility consumers and the utilities is not well understood. To improve understanding, an Integrated Energy System Model (IESM) is being developed to simulate the physical and economic aspects of DER technologies, the buildings where they reside, and feeders servicing them. The IESM was used to simulate 20 houses with home energy management systems on a single feeder under a time-of-use (TOU) tariff to estimate economic and physical impacts on both the households and the distribution utilities. Home energy management systems (HEMS) reduce consumers’ electric bills by precooling houses in the hours before peak electricity pricing. Utilization of HEMS reduce peak loads during high price hours but shifts it to hours with off-peak and shoulder prices, resulting in a higher peak load. used to simulate 20 houses with home energy management systems on a single feeder under a time-of-use (TOU) tariff to estimate economic and physical impacts on both the households and the distribution utilities. Home energy management systems (HEMS) reduce consumers’ electric bills by precooling houses in the hours before peak electricity pricing. Utilization of HEMS reduce peak loads during high price hours but shifts it to hours with off-peak and shoulder prices, resulting in a higher peak load.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
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↗
DOE OSTI2022

Operating Strategies for Dispatchable PEM Electrolyzers that Enable Low-Cost Hydrogen Production

Hydrogen is a pathway to enabling decarbonization across multiple economic sectors that cannot be directly decarbonized with electricity including heat for industrial operations, medium- and heavy-duty transportation applications, long-duration energy storage, and as a feedstock for chemical synthesis. Producing hydrogen at low costs and carbon footprint is likely essential to economically decarbonize these otherwise "hard to decarbonize" sectors. Low-temperature polymer electrolyte membrane (PEM) electrolysis produces hydrogen from water and electricity and is a rapidly developing pathway towards making hydrogen at the scales required for decarbonization applications. The levelized cost of electrolytic hydrogen is dependent on the capital cost, efficiency, and durability of the electrolyzer system as well as the price of electricity supplied to the electrolyzer and the annual utilization of the electrolyzer (capacity factor). Electricity price and capacity factor depend on the source of energy that the system uses and impact other economic factors. Electricity price and capacity factor and the connections between other aspects of hydrogen production via PEM electrolyzers are the focus of this work. PEM electrolyzers have conventionally been operated at high capacity factors using electricity purchased from utilities with a constant price throughout the year. To achieve lower effective electricity prices, recent work has investigated opportunities for electrolyzers to purchase electricity in wholesale markets, where the cost of electricity varies hourly. This option can lead to lower electricity costs when the electrolyzer is a controllable load that ramps up and down rapidly and turns on and off frequently. This configuration and operating strategy capitalizes on times of low wholesale electricity prices and results in lower hydrogen levelized costs than constant operation due to reduced electricity costs even though the reduced capacity factor increases the cost of recovering the capital investment. Cycling on and off frequently also has implications for electrolyzer durability. An electrolyzer configuration where it is directly connected to renewable generation such as wind or solar, only running when the generator is producing energy, has similar implications on operating strategy, hydrogen levelized cost, capacity factor, and durability. This work provides insight into the relationships between dispatchable electrolyzer operating strategies and the cost of producing hydrogen from these systems, outlining strategies and opportunities to minimize production costs while minimizing operations that are likely to negatively impact system durability and efficiency. We find strategies that minimize electrolyzer cycling and the resulting durability impacts while increasing the hydrogen levelized cost only slightly above the minimum. We also find opportunities for batteries to minimize the number of cycles in systems directly connected to renewable generation. These findings outline key opportunities for future electrolyzer deployments and the synergistic benefits between electrolyzers and increased deployment of renewable energy generation like wind and solar. They also inform research and development that is reducing electrolyzer capital cost while managing durability impacts.

electricity markets↗