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At least 73 records · Page 4

Market Pricing and Settlements Analysis Considering Capacity Sharing and Reserve Substitutions of Operating Reserve Products

Electricity market pricing and settlement are the key signals for real-time dispatch and long-term investment decisions. Regional transmission operators (RTOs) in the U.S. adopt uniform pricing scheme, which is based on the marginal costs of supplying an incremental MW of electric services. The marginal cost of an electric service is highly dependent on the constraints in the pricing models of RTOs. A slight difference in constraint modeling of pricing model on energy and ancillary services could result in drastically different market clearing prices (MCPs), cleared reserve quantities, and associated revenue. RTOs in the U.S. have various market designs and assumptions in ancillary services modeling in capacity sharing and reserve substitutes. This paper examines four combination models of capacity sharing and reserve substitutes and analyzes the associated market implications. The numerical results present that 1) cascading reserve requirements have direct impact on reserve pricing schemes 2) both cascading reserve requirements and sharing capacity have significant impact on reserve MCPs and locational marginal prices, and thus result in drastically different reserve revenue, energy revenue, generation cost, and generation profit.

ancillary services↗

The impacts of COVID-19 on clean energy labor markets: Evidence from multifaceted analysis of public health interventions and COVID-health factors

COVID-19 pandemic has affected clean energy labor market. Using real-time job vacancy data, this study analyzes the impacts of the pandemic on the U.S. clean energy labor market in 2020, including biomass, energy efficiency (EE), electric vehicle (EV), power/microgrid, solar, and wind industries. This study identifies how COVID-health factors and public health interventions influence clean energy job availability during the early COVID pandemic. Overall, California had the most energy jobs and experienced a significant decrease in April 2020. EV and solar had the highest percentages of job vacancies during the pandemic in general. Still, lockdowns had the most severe influence on EE and wind jobs. Stay-at-home orders negatively affected clean energy job vacancies in biomass, EV, power/microgrid, and wind. Social-gathering restrictions, however, did not have much influence. Increased COVID tests at the state level had the strongest and most positive influence on clean energy job postings, indicating the importance of a state's ability to manage public health infrastructure or crisis issues. COVID hospitalizations negatively influenced the job vacancies in biomass and wind but did not affect the other four sectors; conversely, as COVID death numbers increased, the number of jobs in biomass, EV, power grid, solar, and wind decreased, but not in EE jobs.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

The Power of a Network

The Solar Energy Innovation Network (SEIN) helps communities discover transformative ways of adopting solar energy. Teams develop their ideas in real-world contexts, yielding results that can unlock tomorrow's solar markets.

analysis↗

Distributed Wind Market Report: 2023 Edition

The annual Distributed Wind Market Report provides stakeholders with market statistics and analysis along with insights into market trends and characteristics for wind technologies used as distributed energy resources. This report presents the distributed wind market from 2003 through 2022. Installed capacity, deployment trends, customer types, incentives, policies, installed costs, performance, and the future outlook for the distributed wind market are the key topics included in the report.

17 WIND ENERGY↗

Pilot Scale Testing of the Hydrophobic-Hydrophilic Separation Process to Produce Value-Added Products from Waste Coal

The primary objective of this project was to demonstrate the technical and economic feasibility of using the hydrophobic-hydrophilic separation (HHS) process to produce high-purity, value-added clean coal that could serve as feedstock for specialty carbon products from waste coal. An existing one-skid (i.e., the entire unit fits on a single tractor-trailer) HHS pilot-scale facility was used to process bituminous and anthracite waste coals to produce: 1) a clean coal containing less than 5% ash (super-clean) and 2) another containing less than 1.5% ash (ultra-clean), all of which contain single-digit moistures. Sufficient quantities of these products were to be generated to permit detailed evaluations by potential customers producing or developing new, high-value market applications. In addition, the project included the evaluation of several process improvements to reduce the capital and operating costs for a commercial HHS plant. A final objective was to complete an economic analysis, market-penetration analysis, and technology-gap analysis of the HHS technology and its products.

01 COAL, LIGNITE, AND PEAT↗

Chapter 2: Global Value Chain and Manufacturing Analysis on Geothermal Power Plant Turbines

The global geothermal power market has shown significant growth since the last decade and is expected to reach a total installed capacity of 18.4 gigawatts electric (GWe) by the end of 2021 (GEA, 2016). The global geothermal power plant turbine market is dominated by a small number of manufacturers. Between 2005 and 2015, 82% of the geothermal steam turbines were manufactured in Japan, and 74% of the geothermal binary cycle turboexpanders were manufactured in Israel. During this period, the United States played an important role in the global trade flow of fully assembled turbine units and turbine parts, with a high volume of imports and exports. Another significant growth area was in Italian turbine/turboexpander manufacturers, who have increased their market share in the last couple of years. One other important change in the manufacturing market was in Turkey, where the bonus on feed-in-tariff (FIT) for domestic hardware components boosted the national manufacturing sector between 2010 and 2020. When planning geothermal power projects, developers customize their power plant size to fit the available geothermal resource capacity. The turbine is designed and sized to optimize the efficiency and utilization of resource and revenue production. The rest of the power plant components such as heat exchangers (HX), water-cooled cooling towers (WCCT), or air-cooled condensers (ACC) are then chosen to complement the turbine size and design. These one-off manufacturing custom design turbines have relatively higher manufacturing set-up costs, longer lead times, and higher capital costs than the standard design turbines manufactured in larger volumes. However, turbines produced in standard increments and in larger manufacturing volumes could result in lower costs per turbine, but potentially lower efficiency. Based on pipeline projects and resource assessments, there is significant potential value in creating standard turbine sizes that could offer an economic advantage, as is done for modular microturbines.

40 EE - Geothermal Technologies Office (EE-4G)↗

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↗

Hydropower Investment and Public-Private Ecosystem Assessment

The U.S. Department of Energy's (DOE's) Water Power Technologies Office (WPTO) commissioned this Report to evaluate the primary challenges in raising investment in medium-sized hydropower and PSH, defined as projects with five (5) to 30 megawatts (MW) of installed capacity, and to understand potential opportunities to increase mobilization of private sector investment in hydropower and PSH projects in the future. Based on stakeholder interviews, a market survey, and industry reports, this Report considers the investment and development trends and future opportunities for five hydropower project types: capacity additions, conduits, PSH (both open and closed loop), non-powered dams (NPDs), and new stream-reach development (NSD).

13 HYDRO ENERGY↗

2023 FORCE Development Status Update

Technical and economic analysis of integrated energy systems (IES) using software models is a complex process requiring multiple commodity market decision analysis, optimal control, process modeling, and stochastic analysis. Many assumptions used in traditional energy analysis tools do not hold in future energy markets with significant storage and variable renewable energy sources (VRE), let alone with multiple commodity markets. Capturing these intricate elements for accurate techno-economic analysis of IES led to the development of the Framework for Optimization of ResourCes and Economics (FORCE) tool suite under the U.S. Department of Energy’s Integrated Energy Systems crosscutting technology program. With the aim of a full framework release in 2025, many improvements to the FORCE tool suite were developed in fiscal year 2023 (FY23). These improvements broadly fit into three focuses for development of FORCE: capability, accessibility, and reliability. Capability refers to the ability of FORCE to accurately model the technical and economic viability of various IES. Accessibility refers to ease-of-use for new and existing IES analysts to efficiently set up, analyze, and produce results using FORCE. Reliability refers to the consistency of the software, allowing consistency to analysis regardless of erstwhile changes to the software. In addition to many smaller changes, there are three major capability improvements in FORCE in FY23. In summary, FORCE developments in FY23 have moved us close to all the capability requirements for FORCE 1.0 to be delivered in FY25. Inclusion of Bayesian optimization, resilience metrics, and levelized cost analysis expand the capability, accessibility, and reliability of FORCE.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Portuguese Wood Pellets Market: Organization, Production and Consumption Analysis

Wood pellets are a form of energy that can be seen as an alternative to fossil fuels, thus contributing to the reduction of greenhouse gas emissions. In other words, wood pellets can be considered a solution contributing to the mitigation of climate change. The use of wood pellets has grown significantly in recent years, with different markets emerging, such as Portugal, both from production and consumption perspectives. The wood pellet industry in Portugal began its development about 15 years ago, with the companies installed in the country initially almost exclusively dedicated to the production of wood pellets for export to central and northern European markets. However, over the years, the domestic market, initially considered insignificant, began to develop; it recently reached a considerable consuming share of the national production. This study presents an analysis of the Portuguese wood pellet market using data collected on the sector, and specifically on producers and consumers. The information was gathered using surveys presented directly to consumers and producers and through interviews with other stakeholders in the sector. From the analysis of the information, it was possible to understand the market’s dynamics, its current evolution and its prospects for the upcoming years, since it can already be considered mature and consolidated.

Nunes, Leonel J. R. (ORCID:0000000154048163)↗

From Bricks to Clicks: Mapping the White Space in Building Innovation

It is a critical national imperative to transform the buildings sector, yet innovation is impeded by deployment failures that leave promising technologies stranded. Conventional market reports and techno-economic analysis provide an insufficient understanding of markets and resource allocation for emerging building technologies. They omit crucial commercialization factors such as ecosystem maturity and adoption friction, where the coordinated participation of a network of suppliers, contractors, financiers, regulators, and integrators is required to scale solutions. This study addresses these gaps by introducing an evaluation framework grounded in front-line data from six years of the DOE's IMPEL incubator, comprising experience from 300 building-sector innovators and the adjacent, complex ecosystem. Our methodology synthesizes top-down market analysis with bottom-up, practitioner-level data across five megatrends: (M1) Affordable materials and industrialized construction; (M2) Healthy and efficient mechanical systems; (M3) Intelligent building operations; (M4) Buildings as grid assets; and (M5) High-density power and cooling for data centers and therein identify twelve "white space" technology opportunities. Next, we develop a multi-criteria scoring rubric to rank these opportunities based on parameters, i.e., Affordability, Quality of Life, Reliability, and Security, yielding composite ‘Demand’ and ‘Maturity’ indices. Our results indicate that the most significant white spaces may not be incremental products but a new class of ‘Ecosystem Enablers’, such as logistics platforms, orchestration layers, and automated compliance software that solve structural deployment gaps. This paper summarizes this transparent, evidence-based, practitioner-informed evaluation framework for policymakers and investors to re-evaluate policy and resource allocation and unlock scalable market transformation.

Singh, Reshma↗

Evaluation of Hybrid FPOG Applications in Regulated and Deregulated Markets Using HERON

Recent changes in the U.S. energy market, such as low natural gas prices and increased electricity production for variable renewable energy (VRE) sources, have led to an economic crisis for existing light-water reactor (LWR) nuclear power plants (NPP). Many owners and operators of LWRs have elected to decommission these plants rather than continue using them as consistent sources of clean baseload power. This has led to exploration of various possibilities to increase the economic viability of these units, including market restructuring to monetize benefits LWRs already provide to the grid through ancillary markets, load following and economic dispatch, and possible integration of secondary systems directly to the NPP for production of additional products through technologies such as hydrogen electrolysis or water desalination. Previous studies have considered the technologies associated with these Integrated Energy Systems (IES) activities, and the analysis of markets for these secondary products. To analyze the economic viability of various system configurations including IES, especially given the uncertainty surrounding load demand, electricity prices, and the availability of VRE resources, the stochastic technoeconomic analysis package HERON (Heuristic Energy Resource Optimization Network) was released earlier this year as an extension of the risk analysis framework RAVEN (Risk Analysis Virtual Environment). HERON focuses foremost on making the complex uncertainty quantification analysis tools approachable for energy systems analysts, also providing general dispatch optimization algorithms for those workflows. HERON continues to be improved and tested as a significant part of the IES viability analyses performed in this work. HERON is not a capacity expansion model. To consider market and grid energy system development in a variety of scenarios, HERON is best used in coupling with modelling tools such as US-REGEN, which sacrifice some of the uncertainty analysis and resolution of HERON's modelling for the ability to efficiently predict the change in the grid energy system's profile due to economic drivers over decades. HERON can then use this information to explore the economic viability of introducing changes to the predicted outcomes, such as the introduction of an IES. In this work, experts at EPRI using US-REGEN provide six projection scenarios for use in HERON stochastic technoeconomic analysis (STEA) in considering the options available for increasing LWR economic viability through introduction of a hydrogen-centric IES using a high-temperature steam electrolysis plant (HTSE), hydrogen storage, and a constant-rate contracted hydrogen consumer. The results obtained are differential in nature; they do not report expected profits for any configuration, but rather report on the possible increase in the NPV of a configuration with respect to a baseline no-IES configuration. Due to the uncertainty captured in the variable net load of the systems, there is likewise uncertainty in the mean values reported. We consider this viability both in terms of a regulated market, where the energy producers and IES are owned and operated by single entity, as well as a deregulated market, where the IES chooses its bid for electricity generation and is then dispatched by the grid system operator. Results indicate that for deregulated markets, the inclusion of the IES is often statistically beneficial. This is especially true in policies that are not favorable towards nuclear, as nuclear is less often dispatched and is forced to deal with frequent idle capacity. In the nominal case as well as the case of carbon tax policies, inclusion of the IES clearly benefited the economic performance of the NPP. In the regulated case, however, there was a trend towards minimizing the IES, likely due to the optimal sizing performed by US-REGEN of the NPP within the system as well as the lack of penalty for idle capacity at the NPP in the regulated market analyses.

99 GENERAL AND MISCELLANEOUS↗

European residential wood pellet trade and prices dataset

The European market for wood pellets used in small-scale heating systems has been expanding significantly over the past decade. For an analysis of market efficiency in the Journal Energy with the title “The European wood pellets for heating market - price developments, trade and market efficiency“ wood pellet prices have been collected as well as trade flows downloaded for the trade relations between Austria, Germany, Italy and France. Only since January 2012 monthly wood pellet trade data is published by Eurostat. This, now monthly expanding data-set provides new opportunities for analysing the development of this important renewable energy commodity. Furthermore, national wood pellet prices published by national authorities and interest groups are improving in quality in the recent years. The collection and combination of these data-sets are a chance for novel econometric analysis. This paper presents valuable tools and processes to acquire and prepare this data and connects to a data and code repository for downloading the resources described in this and the related Journal Energy publication.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Hybrid Power Plant Bidding in Models of Future Electricity Systems

This paper proposes a stochastic model for hybrid power plants participation in day-ahead electricity markets, considering uncertainty in market prices and renewable generation. Additionally, it presents a methodology to incorporate this hybrid participation into existing production cost models (PCM), allowing the analysis and market design of future systems with high penetration of hybrids. These developments are illustrated using a wind-battery hybrid located in New York Independent System Operator (NYISO) footprint.

Kemp, Julie Mulvaney↗

Average Incremental Cost Pricing for the AC Unit Commitment Problem [Rev. 1]

Unit Commitment (UC) problems that consider the Alternating Current (AC) model of the transmission network have long been considered intractable to solve at scale by the power system community. Recently, the Grid-Optimization (GO) Competition held by the Advanced Research Project Agency-Energy (ARPA-E) has facilitated the development of the first algorithms to solve large-scale ACUC problems. This new capability opens a path towards the explicit consideration of the AC transmission network model in UC problems used to clear day-ahead electricity markets. This calls for the analysis of electricity market structures that accommodate both the continuous non-linearity of the AC transmission network and the discrete non-linearity of the UC problem simultaneously. This paper serves as an initial effort to do so by proposing an Average Incremental Cost (AIC) pricing structure that is designed around the ACUC problem. In particular, an AIC one-pass pricing problem is proposed that represents a continuously constrained variant of the ACUC problem and allows for the computation of Locational Incremental Prices (LIPs) for both real and reactive power as the local optimal Lagrange multipliers of the power balance constraints. To avoid degeneracy, the pricing problem includes a small parameter ϵ > 0. Under certain assumptions market participants are shown to realize profit that converges to a non-negative value as ϵ approaches zero, practically ensuring profitability for small values of ϵ. We additionally provide many simple and important examples that provide intuition and insights into the proposed prices. Examples illustrate the basic concept of AIC pricing, the derived profitability results, the existence of multiple LIPs, the importance of including reactive power in the dispatch and pricing problems, the need for reactive power prices, and the improved incentives exhibited by LIPs as compared to traditional Locational Marginal Prices (LMPs). We additionally indicate many directions for future work including analysis of larger test cases.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Gallium Oxide Techno-Economic Analysis for the Wide Bandgap Semiconductor Market

More than 30% of electrical energy passes through power electronics today with speculation that in the next decade this could grow to 80%. The wide bandgap semiconductor market is already approaching $1 billon USD in 2019 and is projected to be almost $7 billion USD in 2028. Even with its high cost, SiC, is starting to dislodge the incumbent Si technology in some applications, such as hybrid and electric vehicles, due to smaller size, and higher efficiency. We review and report the IHS Markit’s market predictions for wide bandgap semiconductor technologies, and highlight the technoeconomic analysis results for the manufacturing cost of Ga2O3 wafers. Specifically, we focus on the potential for Ga2O3 to be more economically advantageous than SiC using current manufacturing methods and then identify opportunities where research can further reduce the volume cost of Ga2O3 wafers.

28 EE - Advanced Manufacturing Office (EE-5A)↗