Net metering and market feedback loops: Exploring the impact of retail rate design on distributed PV deployment
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While large-scale adoption of electric vehicles (EVs) globally would reduce carbon dioxide (CO 2 ) and traditional air pollutant emissions from the transportation sector, emissions from the electric sector, refineries, and potentially other sources would change in response. Here, a multi-sector human-Earth systems model is used to evaluate the net long-term emission implications of large-scale EV adoption in the US over widely differing pathways of the evolution of the electric sector. Our results indicate that high EV adoption would decrease net CO 2 emissions through 2050, even for a scenario where all electric sector capacity additions through 2050 are fossil fuel technologies. Greater net CO 2 reductions would be realized for scenarios that emphasize renewables or decarbonization of electricity production. Net air pollutant emission changes in 2050 are relatively small compared to expected overall decreases from recent levels to 2050. States participating in the Regional Greenhouse Gas Initiative experience greater CO 2 and air pollutant reductions on a percentage basis. These results suggest that coordinated, multi-sector planning can greatly enhance the climate and environmental benefits of EVs. Additional factors are identified that influence the net emission impacts of EVs, including the retirement of coal capacity, refinery operations under reduced gasoline demands, and price-induced fuel switching in residential heating and in the industrial sector.
This study examines the national landscape of hybridized fossil energy (FE) power plants with energy storage (ES) technologies (“ES-FE”) and presents the compilation of an ES-FE dataset, which includes over 65 ES-FE projects and concepts in the United States, comprising approximately 500 MWh of co-located ES capacity with FE power plants. This study also estimates the economic feasibility of adding ES to existing FE power plants by characterizing the potential revenues that can be generated by the ES component through flexibility and capacity value. The analysis focuses on ES technologies with 2- to 10-h. durations located in four U.S. independent system operators (ISOs): Midcontinent ISO (MISO), Electric Reliability Council of Texas (ERCOT), PJM Interconnection (PJM), and California ISO (CAISO), which have +70,000 MW of combined FE power capacity that could add ES. Annual revenues are estimated for the ES component using a what-if-analysis approach, for capacity value, price arbitrage, or ancillary services provision. The results show that annual revenues depend on the end-use storage service, wholesale electricity and capacity market prices, and ES technology operation parameters such as discharging duration and cycling frequency. When performing a sensitivity analysis, ES accrues $7–178/kW-yr. via price arbitrage and ancillary services provision in the four ISOs, and $13–92/kW-yr. when providing capacity value only in MISO and PJM. A cash flow analysis is performed to estimate the net present value (NPV) of the ES addition using a range of ES costs. The study finds that for most ES technologies considered, these revenues alone are insufficient to achieve economic feasibility. In conclusion, of the 1645 total runs analyzed, 115 had positive NPVs (7%). Therefore, other revenue streams or monetizable benefits are necessary to achieve the break-even point.
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Energy system transformation scenarios satisfying particular climate stabilization objectives, such as 2°C, suggest that a wide range of fossil energy outcomes could be consistent with such objectives. The underlying drivers of variability in these outcomes cannot, however, be easily separated. This paper attempts to shed light on such drivers using a single, state-of-the-art global integrated assessment model (GCAM) to evaluate the energy system implications of climate stabilization near 2°C. We focus specifically on the role of fossil primary energy through midcentury under different assumptions about carbon capture and storage (CCS) and bioenergy supply. In our scenarios, coal and natural gas primary energy are most sensitive to the availability of CCS, with bioenergy supply having a secondary impact on these sources. Looking across primary energy sources, we find that primary energy from coal declines by midcentury relative to 2015 in all GCAM mitigation scenarios considered here, whereas primary energy from natural gas and oil increases by midcentury relative to 2015 in most of the scenarios in which CCS is available. We explain these results in terms of fundamental energy-economic relationships and discuss the implications of these findings for broader energy policy and planning.
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