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At least 721 records · Page 40

Economic dispatch for electricity merchant with energy storage and wind plant: State of charge based decision making considering market impact and uncertainties

Here this paper investigates how the market impact of electricity merchants and uncertainty of wind generation affect their co-optimized scheduling policy, specifically for merchants who have both energy storage and wind plants. In the existing literature, merchants' trading actions are usually assumed not to affect market prices; however, a large-scale energy storage merchant's actions can affect market prices. To this end, we approximate the electricity price by a linear function of the quantity of power traded by the merchant in the reward function to achieve decision-making incorporating the market impact. This paper utilizes the dynamic programming approach to analyze merchants' optimal multi-period decision-making incorporating market impact, uncertain wind generation, and energy storage constraints. First, our results demonstrate that for a merchant with co-located energy storage facilities and wind power plants, the energy storage's feasible state of charge (SOC) range can be segmented into four possible sub-ranges by three analytically developed SOC reference points. The unique optimal trading decision can be achieved by comparing the current energy inventory and the SOC references of the next period. Second, our results show that market impact and uncertainties substantially change the optimal storage scheduling policy by impacting the values of the reference points. To mitigate the negative effect of the merchant's market impact on buying and selling actions, the merchant may reduce the amount of generating or pumping electricity each period to maximize profit. Moreover, we identify and investigate the trade-off between market price and transaction quantity. Our findings provide co-optimized scheduling guidance for electricity merchants with co-located energy storage and renewable power plants systems.

17 WIND ENERGY↗

Potential Economic Values of Low-Vapor-Pressure Gasoline-Range Bio-Blendstocks: Property Estimation, and Blending Optimization

Adding non-traditional blendstocks derived from biomass into gasoline has gained renewed interest since it will reduce greenhouse gas emissions and potentially enhance fuel properties and boost engine efficiencies. A competitive bio-blendstock candidate should have either lower prices or superior properties or both relative to conventional gasoline blending components. Gasoline is a mixture of hundreds compounds specified by properties rather than compositions. The addition of bio-blendstocks, most likely oxygenates, will modify the property mixing rules due to the non-ideal interactions between polar and nonpolar components. This paper presents an equation-of-state-based model for predicting Reid vapor pressure, reduced order non-linear property blending models for computing key properties of final gasoline products, and a blending optimization approach to identify key economic drivers. This paper also evaluates the economic values of bio-blendstocks to petroleum refiners using those models. In additional to ethanol, six low-vapor-pressure bio-blendstock candidates were evaluated: i-propanol, n-propanol, i-butanol, diisobutylene, cyclopentanone, and a mixture of furans. Reid vapor pressure, distillation temperatures, and octane numbers were identified as the key economic drivers of adding bio-blendstock. The economic values of those bio-blendstocks range from 2.22 to 4.00 US dollar per gasoline gallon equivalent in 2013 to 2017 5-year averaged price basis. The bio-blendstocks with higher octane numbers may have higher economic values. The uncertainties in property predictions may lead to roughly 15% deviation in the economic value evaluation.

Jiang, Yuan↗

Designing a transactive electric vehicle agent with customer’s participation preference

The proliferation of electric vehicles (EVs) and their inherent flexibility in charging timings make them an asset to improve grid performance. In contrast to direct control by a utility or autonomous price-based charging, the transactive control framework not only provides benefits to both grid and customers but also ensures customer autonomy. In this work, we design a transactive electric vehicle (TEV) agent that incorporates the EV owner’s willingness to trade-off between savings and amenity in form of a slider, where the EV owner’s amenity is characterized as vehicle readiness. Further, a privacy-preserving bidding formulation is proposed that also represents the customer’s transactive preference. A transactive market mechanism is discussed that integrates the TEV Agents into the local retail market and reconciles with the current day-ahead and real-time market structure. It is demonstrated that the proposed slider is able to provide a preferred trade-off between savings and amenity to individual customers. At the same time, the market mechanism is shown to successfully reduce both peak prices and peak demand. A comparative investigation of V1G and V2G technologies with respect to the battery prices is also discussed. It reveals that the V2G does not offer significant additional benefits with current battery prices, but could be promising if battery costs decline in the future.

33 ADVANCED PROPULSION SYSTEMS↗

Economic evaluation of variable renewable energy participation in U.S. ancillary services markets

Variable renewable energy (VRE) is not yet meaningfully participating in U.S. ancillary services (AS) markets. VRE participation in AS markets could provide a new source of revenue for VRE resource owners to offset declining energy and capacity values and a new tool for power system operators to address emerging system constraints. This paper uses a price-taker dispatch model and historical prices to estimate the economic value of standalone and hybrid (battery-paired) VRE participation in AS markets, from the resource owner and electricity system perspectives, in each of the seven U.S. independent system operator and regional transmission organization (ISO/RTO) markets where ancillary service prices are set. Across ISO/RTO markets, average (2015–2019) simulated incremental revenues from power regulation market participation were 0.0–2.9 USD/MWh (+0–15% of revenue without participation) for standalone VRE owners and 1–33 USD/MWh (+1–69%) for hybrid VRE owners. However, ISO/RTO reserve markets are relatively thin and have the potential to become saturated by energy storage projects that are currently in ISO/RTO interconnection queues. In most markets, standalone and hybrid VRE could provide power regulation reserves during periods with high power regulation prices, suggesting that VRE participation in AS markets could have high system value. The analysis highlights the relevance of separate upward and downward power regulation products and indicates that ISOs/RTOs might consider initially focusing on enabling hybrid VRE provision of AS.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Filling the cellulosic bio-economy gap by utilizing a wedge approach combined with stakeholder collaboration

The price gap between the market and breakeven prices of cellulosic biomass for farmers represents a significant barrier to the development of a low-carbon cellulosic bioeconomy. Using a bottom-up, agent-based modeling tool that replicates the behaviors and interactions of key stakeholders, this study analyzes the emergence of a cellulosic bioeconomy at the local scale through a wedge approach that examines an integrated portfolio of multiple policy options, including subsidies for small-scale bioproducts and environmental credits. Here, the role of collaboration among multiple stakeholders, such as biomass producers (farmers), bio-refinery industry, government, and society, is assessed for filling the price gap. Using the Sangamon River Basin as a case study site, we evaluate the effectiveness of the wedge approach by comparing simulation results from multiple scenarios, each incorporating different combinations of bioeconomy wedges, with and without stakeholder collaboration. Results underscore that active collaboration among stakeholders acts as a catalyst enlarging the effectiveness of bioeconomy wedges. Including the carbon credits and environmental value in the policy portfolio is found to bridge the price gap through collective contributions from diverse stakeholders, where the cellulosic biofuel and bioproduct industry plays a pivotal role. Although this study is conducted at the local watershed scale, the methodology and findings offer valuable insights for market development in other watersheds and the potential scaling of local markets to regional and national levels.

09 BIOMASS FUELS↗

Customer economics of residential photovoltaic systems: Sensitivities to changes in wholesale market design and rate structures

We report that the customer economics of U.S. residential photovoltaics (PV) often depend on retail electricity rates, because most utilities compensate customer-sited PV generation via net metering. The future bill savings from net metering are uncertain and dependent on retail rate structures, wholesale market design, and renewable penetration levels, among other factors. We explore the impact of the following assumptions on the bill savings from residential PV: a wholesale electricity market design with a price cap (as opposed to an energy-only market); a retail rate with a fixed customer charge (as opposed to a fully volumetric rate); and increasing-block pricing (as opposed to a non-varying flat rate). A wholesale price cap can dampen the expected bill-savings erosion due to moving from a low to a high renewables scenario for customers with time-varying rates and net metering. Moving from a fully volumetric rate to a two-part tariff rate with a fixed customer charge could severely Erode the bill savings under net metering, because PV generation could only displace the (reduced) volumetric portion of the rate. Lastly, increasing-block pricing might have an even greater impact on the bill savings from behind-the-meter PV than the other uncertainties explored in this paper.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Expanding market opportunities: cogeneration strategies for integrated PWR and thermal energy storage systems

We assess the economic viability of nuclear cogeneration by investigating three different modes—fixed dispatch, fully flexible dispatch, and flexible dispatch with minimum heat supply requirements. The analysis focuses on an existing pressurized water reactor (PWR) integrated with thermal energy storage (TES). Heat production costs are estimated under these modes for two U.S. electricity markets: the Electric Reliability Council of Texas (ERCOT) and the Pennsylvania–New Jersey–Maryland Interconnection (PJM). A sensitivity analysis examines profitability at varying heat market prices. Results indicate that fixed heat dispatch inflates heat production costs, often rendering projects economically feasible only at higher heat price levels. Fully-flexible dispatch lowers heat production costs by an average of 43 % compared to fixed dispatch. However, the current 30 % thermal dispatch limit may be insufficient to serve high baseline industrial demands cost‐effectively; higher maximum dispatch rates could enhance project economics. Markets with higher and more volatile electricity prices (e.g., ERCOT) offer greater total energy sales potential (i.e., heat and electricity), but also increase opportunity costs when heat production scheduling restrictions are imposed. In contrast, lower-price, less volatile markets (e.g., PJM) experience smaller impacts from such constraints and provide greater flexibility in accommodating varying cogeneration modes. In conclusion, these findings provide a framework to guide nuclear plant operators in aligning cogeneration strategies with industrial process requirements and electricity market conditions.

22 - GENERAL STUDIES OF NUCLEAR REACTORS↗

A review of water valuation metrics: Supporting sustainable water use in manufacturing

In the manufacturing sector, water has been often considered too cheap to conserve. Such thinking relies on water valuations that limit the value of water to the price paid. Using such simple methods, the share of water cost to total manufacturing cost is significantly small, <3%. As a result, conserving water and enabling technology uptake is difficult to justify economically and slow to advance, hindering progress toward sustainable water use. However, the value of water to a manufacturer is far greater than the price paid. Valuations such as the true cost of water consider the additional in-plant treatment and energy costs and have been gaining greater traction in the manufacturing sector. However, true cost alone still undervalues water by not accounting for economic and social costs related to scarcity and environmental externalities. This paper makes the case and presents a framework for valuing manufacturing water beyond the price paid and the true cost. The proposed fuller valuation of manufacturing water takes into account the internal and opportunity costs associated with the realization of water risks. The paper follows with a review of a wide range of water valuation metrics, both at the specific industry level and regional/economy-wide level. The use of various valuation metrics incorporating the relationship between the change in value with change in water use, such as marginal value of water, shadow price, and elasticity at the specific industry level, has been limited in the U.S. manufacturing sector. Further, a limited number of studies exist on data-intensive subjective evaluation techniques such as computable general equilibrium modeling and input-output modeling for regional water valuation. After reviewing water value metrics, several recent case studies from manufacturers from the literature are presented to illustrate both the promise and challenges of a fuller valuation of water as proposed here. Some large multinational corporations have moved toward assessing the value of water via supply chain sustainability initiatives, environmental profit and loss accounting, estimating risk-adjusted values of water, hydro-economic modeling, natural capital asset valuation, and developing value chain indices. This paper provides policymakers and technology developers a framework for monetizing water value beyond its true cost and current metrics. If adopted, such fuller water valuations can help make the business case for the development and deployment of cost-effective water-conserving technologies, thereby improving the sustainability of the manufacturing sector with respect to water.

54 ENVIRONMENTAL SCIENCES↗

Biofuel Options for Marine Applications: Technoeconomic and Life-Cycle Analyses

This study performed technoeconomic and life-cycle analyses to assess the economic feasibility and emission benefits and tradeoffs of various biofuel production pathways as an alternative to conventional marine fuels. We analyzed production pathways for (1) Fischer-Tropsch diesel from biomass and cofeeding biomass with natural gas or coal, (2) renewable diesel via hydroprocessed esters and fatty acids from yellow grease and cofeeding yellow grease with heavy oil, and (3) bio-oil via fast pyrolysis of low-ash woody feedstock. We also developed a new version of the Greenhouse gases, Regulated Emissions, and Energy use in Transportation (GREET) marine fuel module for the estimation of life-cycle greenhouse gas (GHG) and criteria air pollutant (CAP) emissions of conventional and biobased marine fuels. The alternative fuels considered have a minimum fuel selling price between 2.36 and 4.58 $/heavy fuel oil gallon equivalent (HFOGE), and all exhibit improved life-cycle GHG emissions compared to heavy fuel oil (HFO), with reductions ranging from 40 to 93%. The alternative fuels also exhibit reductions in sulfur oxides and particulate matter emissions. Additionally, when compared with marine gas oil and liquified natural gas, they perform favorably across most emission categories except for cases where carbon and sulfur emissions are increased by the cofed fossil feedstocks. The pyrolysis bio-oil offers the most promising marginal CO2 abatement cost at less than $100/tonne CO2e for HFO prices >$1.09/HFOGE followed by Fischer-Tropsch diesel from biomass and natural gas pathways, which fall below $100/tonne CO2e for HFO prices >$2.25/HFOGE. Pathways that cofeed fossil feedstocks with biomass do not perform as well for marginal CO2 abatement cost, particularly at low HFO prices. This study indicates that biofuels could be a cost-effective means of reducing GHG, sulfur oxide, and particulate matter emissions from the maritime shipping industry and that cofeeding biomass with natural gas could be a practical approach to smooth a transition to biofuels by reducing alternative fuel costs while still lowering GHG emissions, although marginal CO2 abatement costs are less favorable for the fossil cofeed pathways.

Greenhouse gas, life cycle assessment, techno-econ↗

A Kinetic Model-Driven Techno-Economic Analysis of Plastic Pyrolysis: Linking Process Dynamics to Economic Viability

This study employs a kinetic model integrated into Aspen Plus to predict pyrolysis product distribution under various conditions. A techno-economic assessment calculated the minimum selling price (MSP) of pyrolysis oil under different operating conditions for the baseline capacity of 100 kta, and across eight processing capacities ranging from 30 to 150 kta. The lowest MSP under the baseline capacity is estimated at $\$$420/ton, which is 33% lower than the 2023 average US crude oil price ($\$$74.6/bbl, equivalent to $\$$634/ton based on the density of pyrolysis oil). Under Monte Carlo simulation, accounting for variability in key economic and technical parameters, the mean MSP is estimated at $\$$1137/ton. The economic viability depends on feedstock price remaining below $\$$320/ton, defining the break-even feedstock price threshold. Sensitivity analysis further identifies capital investment and transportation cost as key economic drivers. Capacities beyond 90 kta show limited economies of scale benefits. Reducing product storage time cuts capital costs by 7% but raises operational risk. Uncertainty analysis suggests the economic feasibility of pyrolysis oil is unlikely to compete with crude oil without policy incentives.

petrochemicals↗

The Effects of Climate Change on Interregional Electricity Market Dynamics on the U.S. West Coast

The United States (U.S.) West Coast power system is strongly influenced by variability and extremes in air temperatures (which drive electricity demand) and streamflows (which constrain hydropower production). As hydroclimate changes across the West Coast, a combination of forces may work in tandem to make its bulk power system more vulnerable to physical reliability issues and market price shocks. In particular, a warmer climate is expected to increase summer cooling (electricity) demands and shift the average timing of peak streamflow (hydropower production) away from summer to the spring and winter, depriving power systems of hydropower when it is needed the most. Here, we investigate how climate change could alter interregional electricity market dynamics on the West Coast, including the potential for hydroclimatic changes in one region (e.g. Pacific Northwest (PNW)) to “spill over” and cause price and reliability risks in another (e.g. California). We find that the most salient hydroclimatic risks for the PNW power system are changes in streamflow, while risks for the California system are driven primarily by changes in summer air temperatures, especially extreme heat events that increase peak system demand. Altered timing and amounts of hydropower production in the PNW do alter summer power deliveries into California but show relatively modest potential to impact prices and reliability there. Instead, it is future climate conditions (extreme heat) in California that may exert a stronger significant influence on prices and reliability in the PNW, especially if California continues to rely on its northern neighbor for imported power to meet higher summer demands.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Critically assessing sodium-ion technology roadmaps and scenarios for techno-economic competitiveness against lithium-ion batteries

Sodium-ion batteries have garnered notable attention as a potentially low-cost alternative to lithium-ion batteries, which have experienced supply shortages and price volatility for key minerals. Here we assess their techno-economic competitiveness against incumbent lithium-ion batteries using a modelling framework incorporating componential learning curves constrained by minerals prices and engineering design floors. We compare projected sodium-ion and lithium-ion price trends across over 6,000 scenarios while varying Na-ion technology development roadmaps, supply chain scenarios, market penetration and learning rates. Assuming that substantial progress can be made along technology roadmaps via targeted research and development, we identify several sodium-ion pathways that might reach cost-competitiveness with low-cost lithium-ion variants in the 2030s. In addition, we show that timelines are highly sensitive to movements in critical minerals supply chains—namely that of lithium, graphite and nickel. Our modelled outcomes suggest that being price advantageous against low-cost lithium-ion variants in the near term is challenging and increasing sodium-ion energy densities to decrease materials intensity is among the most impactful ways to improve competitiveness.

25 ENERGY STORAGE↗

Technoeconomic and Life-Cycle Analysis of Single-Step Catalytic Conversion of Wet Ethanol into Fungible Fuel Blendstocks

Technoeconomic and life-cycle analyses are presented for catalytic conversion of ethanol to fungible hydrocarbon fuel blendstocks, informed by advances in catalyst and process development. Whereas prior work toward this end focused on 3-step processes featuring dehydration, oligomerization, and hydrogenation, the consolidated alcohol dehydration and oligomerization (CADO) approach described here results in 1-step conversion of wet ethanol vapor (40 wt% in water) to hydrocarbons and water over a metal-modified zeolite catalyst. A development project increased liquid hydrocarbon yields from 36% of theoretical to >80%, reduced catalyst cost by an order of magnitude, scaled up the process by 300-fold, and reduced projected costs of ethanol conversion 12-fold. Current CADO products conform most closely to gasoline blendstocks, but can be blended with jet fuel at low levels today, and could potentially be blended at higher levels in the future. Operating plus annualized capital costs for conversion of wet ethanol to fungible blendstocks are estimated at $2.00/GJ for CADO today and $1.44/GJ in the future, similar to the unit energy cost of producing anhydrous ethanol from wet ethanol ($1.46/GJ). Including the cost of ethanol from either corn or future cellulosic biomass but not production incentives, projected minimum selling prices for fungible blendstocks produced via CADO are competitive with conventional jet fuel when oil is $100 per barrel but not at $60 per barrel. However, with existing production incentives, the projected minimum blendstock selling price is competitive with oil at $60 per barrel. Life-cycle greenhouse gas emission reductions for CADO-derived hydrocarbon blendstocks closely follow those for the ethanol feedstock.

09 BIOMASS FUELS↗

Assessing the impact of demand response on peak demand in a developing country: The case of Ghana

Peak demand on electricity grids is a growing problem that increases costs and risks to supply security. Residential sector loads often contribute significantly to seasonal and daily peak demand. Demand response refers to consumer actions that change the utility load profile in a way that reduces costs or improves grid security by applying price signals and automated load shedding technologies. The methodologies that are used to achieve demand response can hardly be applicable in developing countries. Peak pricing of electricity, for instance, can hardly be implemented in many developing countries as high prices would disproportionately affect the many low-income households who do not have the capacity to take action to avoid paying high peak prices. This study aims to develop demand response methodology that can be applied in developing countries to achieve residential peak demand reduction. We use a consumer preference survey to develop a methodology suitable for developing countries. The method of diversified demand is used with energy audit and monitored data to estimate the potential peak load reduction and its cost-effectiveness for Ghana. Results show that peak reduction of 15-210 MW is expected by 2040 with a positive return on investment of 2-22% for all designed scenarios.

Diawuo, FA↗

On Market-Based Coordination of Thermostatically Controlled Loads With User Preference

This paper presents a market-based control framework to coordinate a group of autonomous Thermostatically Controlled Loads (TCL) to achieve the system-level objectives with pricing incentives. The problem is formulated as maximizing the social welfare subject to feeder power constraint. It allows the coordinator to affect the aggregated power of a group of dynamical systems, and creates an interactive market where the users and the coordinator cooperatively determine the optimal energy allocation and energy price. The optimal pricing strategy is derived, which maximizes social welfare while respecting the feeder power constraint. The bidding strategy is also designed to compute the optimal price in real time (e.g., every 5 minutes) based on local device information. The coordination framework is validated with realistic simulations in GridLab-D. Extensive simulation results demonstrate that the proposed approach effectively maximizes the social welfare and decreases power congestion at key times.

Li, Sen↗

A Privacy Preserving Model-Free Optimization and Control Framework for Demand Response from Residential Thermal Loads

We consider the problem of optimizing the cost of procuring electricity for a large collection of homes managed by a load serving entity, by pre-cooling or pre-heating the thermal inertial loads in the homes to avoid procuring power during periods of peak electricity pricing. We would like to accomplish this objective in a completely privacy-preserving and model-free manner, that is, without direct access to the state variables (temperatures or power consumption) or the dynamical models (thermal characteristics) of individual homes, while guaranteeing personal comfort constraints of the consumers. We propose a two-stage optimization and control framework to address this problem. In the first stage, we use a long short-term memory (LSTM) network to predict hourly electricity prices, based on historical pricing data and weather forecasts. Given the hourly price forecast and thermal models of the homes, the problem of designing an optimal power consumption trajectory that minimizes the total electricity procurement cost for the collection of thermal loads can be formulated as a large-scale integer program (with millions of variables) due to the on-off cyclical dynamics of such loads. We provide a simple heuristic relaxation to make this large-scale optimization problem model-free and computationally tractable. In the second stage, we translate the results of this optimization problem into distributed open-loop control laws that can be implemented at individual homes without measuring or estimating their state variables, while simultaneously ensuring consumer comfort constraints. We demonstrate the performance of this approach on a large-scale test case comprising of 500 homes in the Houston area and benchmark its performance against a direct model-based optimization and control solution.

Sivaranjani, S.↗

Piecewise Linear Optimization for Public EV Charging Depots in Different Utility Environments

With the proliferation of electric vehicles (EVs), EV supply equipment technology is being pushed to increasingly higher power levels, such as extreme fast charging (XFC) at 300kW or more. As more public XFC depots are connected to electric distribution systems, utility operators will mitigate their impact with pricing schemes and programs such as demand response, demand charges, and time-varying prices. In this paper we describe an XFC management system that combines an on-site battery energy storage system and an optimization application that minimizes the cost to operate the depot in light of the utility pricing programs. We have designed the optimizer specially to use fast and simple linear programming so that it can be deployed to low-cost computing platforms. We also describe how several utility pricing schemes are integrated into a single piecewise model, reducing the engineering effort to implement the optimizer in different utility environments.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗