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Status and Trends in U.S. Compliance and Voluntary Renewable Energy Certificate Markets (2010 Data)

This report documents the status and trends of 'compliance'--renewable energy certificate (REC) markets used to meet state renewable portfolio standard (RPS) requirements--and 'voluntary' markets--those in which consumers and institutions purchase renewable energy to match their electricity needs on a voluntary basis. Today, 29 states and the District of Columbia have an RPS, more than half ofall U.S. electricity customers have an option to purchase some type of green power product directly from a retail electricity provider, and all consumers have the option to purchase RECs. This report documents REC activities and trends in the United States. The compliance REC market analysis includes analysis of REC trading, regional REC markets, REC tracking systems, types of compliance RECs,compliance REC pricing trends, and an overview of compliance with RPS polices. The voluntary REC analysis presents data and analysis on voluntary market sales and customer participation, products and premiums, green pricing marketing and administrative expenses, voluntary REC pricing, and the voluntary carbon offsets market. The report concludes with a discussion of upcoming guidance from theFederal Trade Commission on green marketing claims, the emergence of community solar programs, and the potential impact of Dodd-Frank regulations on the REC market.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Assessing the Control Systems Capacity for Demand Response in California Industries

California's electricity markets are moving toward dynamic pricing models, such as real-time pricing, within the next few years, which could have a significant impact on an industrial facility's cost of energy use during the times of peak use. Adequate controls and automated systems that provide industrial facility managers real-time energy use and cost information are necessary for successful implementation of a comprehensive electricity strategy; however, little is known about the current control capacity of California industries. To address this gap, Lawrence Berkeley National Laboratory, in close collaboration with California industrial trade associations, conducted a survey to determine the current state of controls technologies in California industries. This study identifies sectors that have the technical capability to implement Demand Response (DR) and Automated Demand Response (Auto-DR). In an effort to assist policy makers and industry in meeting the challenges of real-time pricing, facility operational and organizational factors were taken into consideration to generate recommendations on which sectors Demand Response efforts should be focused.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Impacts of Federal Tax Credit Extensions on Renewable Deployment and Power Sector Emissions

The report examines the impacts of the tax credit extensions under two distinct natural gas price futures, as the price of natural gas has been a key factor influencing the economic competitiveness of new renewable energy development. The analysis finds that, in both natural gas price cases, tax credit extensions can spur renewable capacity investments at least through the early 2020s, and can help lower CO 2 emissions from the U.S. electricity system. Federal tax credits for renewable energy, particularly the wind production tax credit (PTC) and the solar investment tax credit (ITC), have offered financial incentives for renewable energy deployment over the last two decades in the United States. In December 2015, the wind and solar tax credits were extended by five years from their prior scheduled expiration dates, but ramp down in tax credit value during the latter years of the five-year period.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

The Economic Potential of Nuclear-Renewable Hybrid Energy Systems Producing Hydrogen

This report is one in a series of reports that Idaho National Laboratory and the Joint Institute for Strategic Energy Analysis are publishing that address the technical and economic aspects of nuclear-renewable hybrid energy systems (N-R HESs). This report discusses an analysis of the economic potential of a tightly coupled N-R HES that produces electricity and hydrogen. Both low and high temperature electrolysis options are considered in the analysis. Low-temperature electrolysis requires only electricity to convert water to hydrogen. High temperature electrolysis requires less electricity because it uses both electricity and heat to provide the energy necessary to electrolyze water. The study finds that, to be profitable, the examined high-temperature electrosis and low-temperature electrosis N-R HES configurations that produce hydrogen require higher electricity prices, more electricity price volatility, higher natural gas prices, or higher capacity payments than the reference case values of these parameters considered in this analysis.

08 HYDROGEN↗

Solar Economies of Scope through the Intersection of Four Industries: PV Installation, Electrical, Construction, and Roofing

The U.S. solar photovoltaic (PV) installation industry largely grew from pre-existing industries that provide related services such as electrical contracting, construction, and roofing. In this report, we use a new data set based on data from the California Contractors State License Board (CSLB) to explore the ties between PV installation and these related-service industries. Based on a study period of 2010 to 2016, the CSLB data show that most PV installers hold some license other than the license designed specifically for PV installation, primarily electrical and construction licenses. Indeed, only about 9% of PV installers hold only the solar contractor license. The fact that most PV installers hold electrician and construction licenses illustrates the important ties between PV installation and these industries. The CSLB data, combined with residential PV price data, also show that installers with multiple non-solar licenses are associated with lower-priced systems. These findings suggest that installers with multiple skillsets may be able to reduce PV installation costs. Further, the data show that PV systems are lower-priced when installed during new construction, especially when new-construction systems are installed by licensed roofers.

14 SOLAR ENERGY↗

Biopower: Impact of Biofuels Deployment to Replace Petroleum Liquids in Stationary Power Applications

Petroleum-based liquids are used in a portion of power generation applications in the United States, predominantly in the New England, Middle Atlantic, South Atlantic, and Pacific-Noncontiguous regions. Power plants that burn petroleum liquids, such as distillate or residual fuel oils, are generally used for short periods to accommodate peak electricity demands. The Energy Information Administration (EIA) estimated the U.S. consumption of petroleum liquids for electricity generation at 27 million barrels in 2018, representing a cost of $2.4 billion annually. This study assesses the potential to displace all or part of the petroleum liquids in U.S. power generation with biofuels. The biofuels for this application are assumed to be derived from terrestrial feedstocks, with conversion routes of both fast pyrolysis (bio-oil) and hydrothermal liquefaction (bio-crude). Regional models were used to assess the availability and cost of three different base materials: clean wood, forest residues, and corn stover; each was evaluated in the laboratory at small or experimental scales for conversion to bio-oil or bio-crude. The estimated biofuel production quantities depend on equivalent heating versus the current heavy fuel. In this report, the availability of each type of biomass for each section of the U.S. Census division is estimated using a conservative broker price (in each case) of $ 80 per dry tonne. The results show that the petroleum-liquid power generation in each of the Census Divisions could be supplied by one or more of the feedstocks evaluated. For all regions, clean wood supplies (only) could provide ample supply. For all but two regions (Middle Atlantic and New England), forest residues alone are sufficient. Finally, for all regions but three (Middle Atlantic, New England, and South Atlantic), corn stover alone is adequate. The Minimum Fuel Selling Price (MFSP) of bio-oil and bio-crude were also estimated for each feedstock type and Census Division. This analysis showed that fast pyrolysis bio-oil projections to be lower (14% on average) than current wholesale petroleum-based heating oil prices in each of the regions, assuming 100 dry tonnes/day processing capacity. However, bio-crude predictions were significantly higher (2X) in all cases. The effect of biorefinery size was also quantified. Based on the preliminary results in this study, it is apparent the biofuels could be an economical alternative for current petroleum liquids in U.S. power generation. However, additional research is needed to determine the necessary biofuel characteristics to support existing generation equipment. It is recommended that both power generation and biofuel production stakeholders to be engaged to outline the research and testing needed to identify the technical hurdles to enable the opportunity.

02 PETROLEUM↗

Region-Specific Merchant Hydrogen Market Assessment and Techno-Economic Assessment of Electrolytic Hydrogen Generation: Cooperative Research and Development Final Report, CRADA Number CRD-18-00751

Utilities need to recover value from baseload and some renewable assets even when the electricity is curtailed. The declining cost of renewables (particularly solar), the persistently low-cost of natural gas, and the declining electricity demand, have all worked to lower the price of electricity. Furthermore, the baseload assets have a high turndown cost, which is not reflected in the low market electricity prices. One option for utilizing the curtailed electricity is hydrogen generation. One important aspect of this project will be to provide a “go/no-go” recommendation on the economic feasibility of pursuing hydrogen generation vs. other markets that could offtake curtailed electricity or nuclear steam. This project will specifically assess the opportunities for hydrogen production and use in the service territories of Southern Company Services (SCS), Exelon SBC, and Xcel Energy. Each utility partner represents a different mix of generation fleets: Exelon has significant nuclear assets, Xcel is primarily renewables (wind) with some nuclear, and SCS represents both a renewables fleet and a heavily baseload fleet, which includes significant nuclear. The Contractors will conduct the study of hydrogen market opportunities by first considering the approximate electricity demand and price profiles for the year, and power generation capacity that can be used to produce hydrogen. Therefore, a profile for hydrogen generation will also be developed to better understand the quantity and timing of hydrogen production. Once the hydrogen production schedule is estimated, hydrogen storage requirements can be determined. This effort will provide sufficient information to make a go/no-go decision on moving ahead with a detailed regional case study for hydrogen production in any of the three utility areas.

08 HYDROGEN↗

Near-Term Electricity Requirement and Emission Implications for Sustainable Aviation Fuel Production with CO 2 -to-Fuels Technologies

Aviation contributed approximately 10% of the U.S. transportation sector's greenhouse gas (GHG) emissions and about 3% of the nation's total GHG production before the coronavirus disease (COVID-19) pandemic (EPA 2022). Unlike the ground transportation sector, which can be decarbonized by using batteries and hydrogen fuel cell powertrain technologies, the technical and economic challenges of aviation electrification open the opportunity for CO 2 utilization (CO2U) using clean power sources. The U.S. government set a goal to produce 3 billion gallons per year of sustainable aviation fuels (SAF) by 2030 and scale up the production to 35 billion gallons per year by 2050 (Bioenergy Technologies Office 2022). In this report, we examine three potential locations, in California, Iowa, and Louisiana, for SAF production using two production pathways that are expected to be available by 2030. We analyze the electricity cost to satisfy 10% of the SAF production potential for the select locations. Specifically, we consider (1) retail electricity cost from the default local utility in each location; (2) physical power purchase agreement (PPA) for renewable power and battery storage hybrid systems with preset prices; (3) financial PPA from a dedicated renewable plant; and (4) estimated real-time pricing (RTP) from the wholesale power market with utility delivery adders. Retail rates are available for the three potential locations; however, the developer should negotiate with the local utility in Iowa for new tariff riders, because the load of the proposed SAF plant (1.4 GW) is significantly higher than the current industrial tariff structure requirement (200 kW). The developers are not able to claim federal credits (i.e., the Inflation Reduction Act of 2022) when sourcing electricity from local utilities. Developers could consider prioritizing physical and financial PPAs as purchase options. While physical PPAs can be imported out of state, this structure imposes availability issues as developers must locate in the same electricity grid regions. Financial PPAs do not have the same location restrictions and provide the same cost savings as physical PPAs, but financial PPAs impose financial risks in the event of system curtailment and grid interruption. RTPs are available for customers in California with flexible load and hourly load management capability; however, utilities in our studied regions in Louisiana and Iowa only offer time-of-use and curtailment programs to incentivize lower energy usage in peak hours. These utilities do not currently offer RTP programs, and the developer may need to have further negotiations with the local utilities to access RTP programs. The results show that purchased electricity prices may range from 2.6 cents/kWh to 7.1 cents/kWh for the three studied plants.

02 PETROLEUM↗

Biofuel-Food Market Interactions:A Review of Modeling Approaches and Findings

The interaction between biofuels and food markets remains a policy issue for a number of reasons. There is a continuing need to understand the role of biofuels in the recent spikes in global food prices. Also, there is an ongoing discussion of changes to biofuel policy as a means to cope with severe weather-induced crop losses. Lastly, there are potential interactions between food markets and advanced biofuels, although most of the latter are expected to be produced from non-food feedstocks. This study reviews the existing literature on the food market impacts of biofuels. Findings suggest that initial conclusions attributing most of the spike in global food prices between 2005 and 2008 to biofuels have been revised. Instead, a multitude of factors, in addition to biofuels, converged during the period. Quantitative estimates of the impacts of biofuels on food markets vary significantly due to differences in modeling approaches, geographical scope, and assumptions about a number of crucial factors. In addition, many studies do not adequately account for the effects of macroeconomic changes, adverse weather conditions and direct market interventions during the recent food price spikes when evaluating the role of biofuels.

biofuels↗

Markets to Facilitate Wind and Solar Energy Integration in the Bulk Power Supply: An IEA Task 25 Collaboration; Preprint

Wind and solar power will give rise to challenges in electricity markets regarding flexibility, capacity adequacy, and the participation of wind and solar generators to markets. Large amounts of wind power will have impacts on bulk power system markets and electricity prices. If the markets respond to increased wind power by increasing investments in low-capital, high-cost or marginal-cost power,the average price may remain in the same range. However, experiences so far from Denmark, Germany, Spain, and Ireland are such that the average market prices have decreased because of wind power. This reduction may result in additional revenue insufficiency, which may be corrected with a capacity market, yet capacity markets are difficult to design. However, the flexibility attributes of thecapacity also need to be considered. Markets facilitating wind and solar integration will include possibilities for trading close to delivery (either by shorter gate closure times or intraday markets). Time steps chosen for markets can enable more flexibility to be assessed. Experience from 5- and 10-minute markets has been encouraging.

14 SOLAR ENERGY↗

Effects of Home Energy Management Systems on Distribution Utilities and Feeders Under Various Market Structures: Preprint

The combination of distributed energy resources (DER) and retail tariff structures to provide benefits to both utility consumers and the utilities is poorly 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 tariff to estimate economic and physical impacts on both the households and the distribution utilities. HEMS reduce consumers’ electric bills by precooling houses in the hours before peak electricity pricing. Household savings are greater than the reduction utility net revenue indicating that HEMS can provide a societal benefit providing tariffs are structured so that utilities remain solvent. Utilization of HEMS reduce peak loads during high price hours but shifts it to hours with off-peak and shoulder prices and resulting in a higher peak load.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Effects of Platform Design on the Customer Experience in an Online Solar PV Marketplace

Residential solar photovoltaic (PV) customers are increasingly buying PV systems in online marketplaces, where customers can compare multiple quotes from several installers on quote platforms. In this study, we use data from an online marketplace to explore how quote platform design affects customer experiences. We analyze how four design changes affected customer experiences in terms of factors such as prices. We find that three of the four design changes are associated with statistically significant and robust price reductions, even though none of the changes were implemented specifically to reduce prices. The results suggest that even seemingly small platform design changes can affect PV customer experiences in online marketplaces.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Modular–scale ethane to liquids via chemical looping oxidative dehydrogenation: Redox catalyst performance and process analysis

The difficulties in the liquefaction and transportation of ethane in shale gas has led to significant rejection, via reinjection or flaring, of this valuable hydrocarbon resource. Upgrading this low–value, isolated ethane into easily transportable liquid fuels is a promising solution to this supply glut. In this study, we present a modular system that can potentially be operated economically at geographically isolated gas–processing facilities. The modular ethane–to–liquids (M–ETL) system uses a chemical looping–oxidative dehydrogenation (CL–ODH) technology to efficiently convert ethane and natural gas liquids into olefins (primarily ethylene) via cyclic redox reactions of highly effective redox catalyst particles. The resulting olefins are then converted to gasoline and mid–distillate products via oligomerization. CL–ODH eliminates air separation and equilibrium limitations for olefin generation. It also simplifies the process scheme and reduces energy consumption. Here, we present experimental proof–of–concept data on CL–ODH conversion of ethane to ethylene. Using the CL–ODH performance data at 750°C, we show that a simple, single–pass configuration can be economically viable at distributed sites. We identify that economic factors such as the capital cost, price of ethane feed, and value of electricity byproduct have strong effects on the required selling price of the liquids. It is also noted that the economic viability of the M–ETL system is relatively insensitive to the liquid yield under a low ethane price scenario. In conclusion, the demand and value of electricity at distributed locations, on the other hand, can play an important role in the optimal process configuration and economics.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗

Investigation of thermochemical biorefinery sizing and environmental sustainability impacts for conventional supply system and distributed pre-processing supply system designs

The 2011 US Billion-Ton Update estimates that by 2030 there will be enough agricultural and forest resources to sustainably provide at least one billion dry tons of biomass annually, enough to displace approximately 30% of the country's current petroleum consumption. A portion of these resources are inaccessible at current cost targets with conventional feedstock supply systems because of their remoteness or low yields. Reliable analyses and projections of US biofuels production depend on assumptions about the supply system and biorefinery capacity, which, in turn, depend upon economic value, feedstock logistics, and sustainability. A cross-functional team has examined combinations of advances in feedstock supply systems and biorefinery capacities with rigorous design information, improved crop yield and agronomic practices, and improved estimates of sustainable biomass availability. A previous report on biochemical refinery capacity noted that under advanced feedstock logistic supply systems that include depots and pre-processing operations there are cost advantages that support larger biorefineries up to 10 000 DMT/day facilities compared to the smaller 2000 DMT/day facilities. This report focuses on analyzing conventional versus advanced depot biomass supply systems for a thermochemical conversion and refinery sizing based on woody biomass. The results of this analysis demonstrate that the economies of scale enabled by advanced logistics offsets much of the added logistics costs from additional depot processing and transportation, resulting in a small overall increase to the minimum ethanol selling price compared to the conventional logistic supply system. While the overall costs do increase slightly for the advanced logistic supply systems, the ability to mitigate moisture and ash in the system will improve the storage and conversion processes. In addition, being able to draw on feedstocks from further distances will decrease the risk of biomass supply to the conversion facility.

99 GENERAL AND MISCELLANEOUS↗

Techno‐economics of microalgae production and conversion to refinery‐ready oil with co‐product credits

Abstract The economics of the production of hydrotreated algal oil ( HTAO ) along with co‐production of animal feed and nutraceuticals (omega‐3 oils) was explored. Base case calculations were for commercial scale production of 10 000 barrels per day of HTAO with nutraceuticals claiming only 0.05% of the raw algae oil ( AO ). The sensitivity of economics to critical parameters was studied. The greatest sensitivity of sales price was to the algae doubling time. Doubling time might be reduced by increasing pond velocity or other mixing‐inducing means. Other important parameters were oil content, CAPEX , and moisture content of post‐extracted algal residue. Algal area weight productivity (g/m 2 /day) was calculated from four parameters: initial algal concentration, pond depth, residence time in pond, and algae doubling time. Using presently accepted operating parameter values and with co‐product credits, the estimated plant gate price was ~ $10/gal. However, it was shown that there is significant potential for enhanced economics through moderate improvements in many areas. Credits for co‐production of animal feed and nutraceuticals were $3.24/gal and $0.14/gal, respectively. At constant oil area productivity (gal/acre/yr), the trade‐off between oil content and area weight productivity favors oil content. In the limit of 100% oil content (no solid co‐product) a sale price of $7.90/gal was estimated. Hydrotreatment of AO was discussed. Municipal waste‐water tertiary treatment was briefly discussed but not deemed viable on a large scale. An easy‐to‐use Excel spreadsheet for material and energy balances and economics was developed as a flexible scouting tool. The symbol ‘$’ denotes US dollars. © 2015 Society of Chemical Industry and John Wiley & Sons, Ltd

Manganaro, James L.↗

A novel risk analysis methodology to evaluate the economic performance of a biorefinery and to quantify the economic incentives for participating biomass producers

In this work, a novel risk analysis methodology is presented to evaluate the economic performance of a biorefinery given the volatility in the market price of the final product and the variability in the biomass delivered cost. In addition, potential economic incentives for participating biomass producers are quantified for different farm participation rates. The Monte Carlo simulation model, IBSAL-MC, is used to estimate the biomass delivered cost distribution, and a modified risk heat map is used to visualize the expected return on investment (ROI) for various combinations of the market price of the final product and the biomass delivered cost. The developed methodology is applied to an under-construction cellulosic sugar facility located in Sarnia, southwestern Ontario. Four farm participation rates of 20% (base-case scenario), 30%, 40% and 50% are studied. Additionally, the results show that the expected annual ROI for the base-case scenario is estimated to be 1.3%. As the farm participation rate increases, the expected annual ROI increases from 1.3% at 20% farm participation rate to 3.4%, 4.6% and 5.1% at 30%, 40% and 50% rates, respectively. At high sugar market prices ($375–$525/tonne), the overall expected annual ROI increases to 9.5%, 11.4%, 12.6% and 13.0% in 20%, 30%, 40% and 50% farm participation rates, respectively. In this case, the economic incentives to share with biomass producers are estimated to be $14.10/dry tonne (dt), $15.77/dt and $16.33/dt by increasing the farm participation rate from 20% to 30%, 40% and 50%, respectively.

09 BIOMASS FUELS↗

Supply and value chain analysis of mixed biomass feedstock supply system for lignocellulosic sugar production

Here the sustainable supply of high-quality, low-cost biomass feedstock to cellulosic biorefineries is still a challenge. Utilizing corn stover as the single feedstock to a biorefinery also poses a source of risk to seasonal feedstock availability, affordability, and sustainability. Implementing a year-round feedstock switching strategy or utilizing an optimal mixture of corn stover, miscanthus, and switchgrass is demonstrated to diminish these concerns while reducing the cost of sugar production by as much as 3.8% and 13.6%, respectively, when compared to a baseline sugar price of 441.9 $ metric ton-1 (t) attributed to a fixed corn stover feedstock basis. This study determines that a mixing ratio of corn stover, miscanthus, and switchgrass of 36%, 50%, and 14%, respectively, minimizes the selling price of sugar. If miscanthus is sufficiently available in the future, its fraction could be further increased to 70% by reducing the fraction of corn stover. We find that the mixed feedstock considered in this study reduces the nutrient replacement and feedstock transportation costs and improves the quality of feedstock (determined by total carbohydrates and ash) relative to corn stover alone. Results suggest that a high-quality feedstock with a high carbohydrate content is an important metric for consideration, beyond strictly the feedstock cost, to reduce the selling price of sugar and its uncertainties. In the future this may be supported by the increased availability of higher carbohydrate feedstocks such as miscanthus.

09 BIOMASS FUELS↗

Nth-plant supply: corn stover supplies and costs in a fleet of biorefineries

Feedstock cost and cost variability is expected to increase with the number of biorefineries. To quantify this effect, this spatial-economic analysis simulates feedstock cost and cost variability of an industry based on corn stover as a function of the number of biorefineries. Results are reported for nine scenarios (a base case and sensitivity analysis of four variables – harvest efficiency, sustainability constraints, opportunity cost, and corn grain yield) under deterministic and stochastic simulations, assuming biorefineries using 658 000 Mg (725 000 tons) year- 1 of corn stover in 2019. The resulting supply curves are highly elastic (i.e. little change in cost) for the first 50 of the 121 biorefineries, with price increases in subsequent biorefineries depending on scenario. In the base-case deterministic scenario, weighted-average stover costs are $66 Mg -1 ($60 ton- 1 ), $69 Mg -1 ($62 ton -1 ), and $156 Mg -1 ($142 ton -1 ), at the first, 60th, and 121st biorefineries, respectively. The stochastic simulations, subject to observed 30-year corn yield variability, follow a similar pattern, with price distributions that vary by scenario. The base-case stochastic simulations illustrate minimal cost variability for the first 60 biorefineries, but rapid increases in cost variability in the second half of potential biorefineries, with similar patterns observed in the other scenarios. Of the four variables explored, price was most sensitive to harvest efficiency, followed by sustainability constraints, corn yield, and opportunity cost. Results suggest that, under conventional logistics, about half of the US corn stover resource is reliably available with minimum cost increase and variability. Interactive visualization is available at https://doi.org/10.11578/1828779.

09 BIOMASS FUELS↗