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It's All About the Envelope: Prioritizing Envelope Upgrades for Electrification of Cold Climate Homes

Building decarbonization via electrification on a clean grid is the most promising climate solution proposed to date for the building sector. In cold climate zones, building electrification will be driven in large part by moving from natural gas space heating to cold climate heat pumps (CCHPs). CCHPs are commercially available today, including economical cold climate air source heat pumps (ccASHPs). But there's one big problem - wide-scale adoption of ccASHPs will dramatically increase winter peak electricity demand, even with the highest efficiency ccASHP products. Furthermore, cold climate space heating loads will drive unprecedented electric system peaks during the lowest periods of renewable generation and are likely to overwhelm existing distribution systems. This scenario is avoidable by coupling electrification with building envelope upgrades to reduce peak heating loads. This paper presents a model, built from home energy audit and research data sets, that quantifies the above challenges. Results demonstrate how weatherization efforts coupled with additional high-performance envelope upgrade measures can prepare the building stock for electrification and show the benefit these measures can bring to future utility operations. Much of this envelope upgrade work is cost-effective, according to conservative cost-benefit testing and program successes to date, and is coupled with substantial non-energy benefits. However, persistent market barriers have made scaling of envelope retrofit work challenging for decades, suggesting additional policy support is required. Lessons learned from previous policy experience, combined with new technology and administrative support, create exciting potential for this decarbonization climate solution.

air sealing↗

BI-LEVEL OPTIMIZATION FOR ELECTRICITY TRANSACTION IN SMART COMMUNITY WITH MODULAR PUMP HYDRO STORAGE

Grid integration of the increasing distributed energy resources could be challenging in terms of new infrastructure investment, power grid stability, etc. To resolve more renewables locally and reduce the need for extensive electricity transmission, a community energy transaction market is assumed with market operator as the leader whose responsibility is to generate local energy prices and clear the energy transaction payment among the prosumers (followers). The leader and multi-followers have competitive objectives of revenue maximization and operational cost minimization. This non-cooperative leader-follower (Stackelberg) game is formulated using a bi-level optimization framework, where a novel modular pump hydro storage technology (GLIDES system) is set as an upper level market operator, and the lower level prosumers are nearby commercial buildings. The best responses of the lower level model could be derived by necessary optimality conditions, and thus the bi-level model could be transformed into single level optimization model via replacing the lower level model by its Karush-Kuhn-Tucker (KKT) necessary conditions. Several experiments have been designed to compare the local energy transaction behavior and profit distribution with the different demand response levels and different local price structures. The experimental results indicate that the lower level prosumers could benefit the most when local buying and selling prices are equal, while maximum revenue potential for the upper level agent could be reached with non-equal trading prices.

Chen, Yang↗

Evaluating opportunity for distributed wind energy in rural and agricultural areas

Wind energy is among the most mature renewable energy technologies, accounting for 11% of the current US electricity generation in 2024, with the lowest average levelized cost. While it is known that substantial opportunity exists for further development, a key question has been where wind energy is best suited compared to other technologies. This study leverages an immense dataset of parcel-resolved technoeconomic potential for the contiguous United States, focusing on distributed wind (DW) energy—a configuration where one or more turbines, typically 30–60 m in height are used to satisfy nearby energy needs. The analysis is conducted at multiple spatial scales and considers land use, crop land, census, and incentive program data to determine the most opportune areas for market development. The results show that rural, agricultural and residential areas are most suited to DW. Connection type (in front of, or behind the meter) and regulations determine the best application, while siting constraints, economics, demand and the wind resource determines the optimal size of turbine.

17 WIND ENERGY↗

SCUC-DER Integration Report: Integrating Distributed Energy Resources (DER) Using Advanced Unit Commitment Models and DER Aggregation Methodologies

Distributed energy resources (DERs) are continuing to grow due to regulatory, policy, and market shifts, and it needs to be ensured that small DERs are given a level playing field with traditional resources. Legacy market processes such as unit-commitment problems were designed for a power grid consisting largely of centralized power plants. In contrast, DERs consist of many small devices with distinct operating characteristics that may or may not be connected at the transmission interconnection points, limiting their visibility to the independent system operators (ISOs) who operate wholesale electricity markets. This report details the development and initial results from a simulation platform that integrates state-of-the-art security-constrained unit commitment software, detailed feeder models, and a DER aggregator model to quantify potential DER integration issues. Quantitative results to date illustrate potential infeasible scheduling solutions from SCUC when the DERA includes aggregations of energy-limited energy storage resources. Likewise, if aggregations are not penalized for dispatch deviations, they may have incentives to deviate from the SCUC-determined resource schedules. Assumptions about the amount of aggregated demand response resources (DRRs) and the ability of DERAs to follow profit incentives have an important impact – DRRs have significant flexibility and can typically feasibly meet their SCUC schedule, but on the other hand, their profit incentives can cause unscheduled increases in load before and after DRR dispatch. Computation time results on the SCUC solver and simulation platform only show a modest increase in SCUC solution time as the number of DERAs is increased, but results to date only reflect the RTS-GMLC test system; results may show more significant solver slowdown in larger transmission systems. The largest contribution to simulation time is attributed to the DERA offer generation method, which is suggested for future improvements.

24 POWER TRANSMISSION AND DISTRIBUTION↗

A life cycle analysis (LCA) primer for the agricultural community

Consumer demand for sustainably produced agricultural products is increasing. One approach that can be used to evaluate and compare product sustainability is to conduct a life cycle analysis (LCA). The term LCA is broadly used to describe a suite of analytical resources and standardized methods. Life cycle analyses are a transdisciplinary tool which can and are used by all professions but work best when conducted by teams with diverse skills and backgrounds. The objective of this paper is to provide a primer on LCAs for the agricultural community and for LCA practitioners unfamiliar with agronomy. Agricultural LCAs can differ greatly because agricultural products have multiple end uses, complex socio-economic and environmental trade-offs, and can be generated using a variety of different practices, resources, and production systems. Through worldwide agricultural marketing, intricate agronomic supply chains and support systems have been developed to produce, store, and distribute agricultural products. In many situations, the production practices are not linked to the products consumers purchase. This limitation can be partially overcome by conducting an LCA, which is a systematic summation of the multiple environmental impacts associated with the production, use, and disposal of a product. However, the large number and types of analyses can make it difficult for non-practitioners and decision-makers to use and interpret LCA results. Finally, it is important for members of the agricultural community to be aware of these analyses and how they can be used and how they affect product markets.

54 ENVIRONMENTAL SCIENCES↗

Integrating AI Data Centers with the Power Grid

The rapid expansion of artificial intelligence (AI) has triggered an unprecedented surge in electricity demand, with US data center energy use projected to double or triple 2023 levels by 2028. This exponential growth places strain on grid infrastructure, which can hinder timely construction of desired computing capacity. To bridge this supply-demand gap, utilities and AI developers are increasingly turning to demand flexibility, a strategy that incentivizes shifting or reducing power use during peak periods of grid stress. Data centers are uniquely equipped for flexible operations due to their digital workloads, built-in redundancy, and onsite energy assets. This article outlines four primary mechanisms to enable data center flexibility: computational load flexibility (shifting tasks temporally or geographically), flexible use of core facility infrastructure adjustments, energy storage utilization, and onsite electricity generation. To encourage adoption, utilities are deploying new tariff designs, including voluntary interruptible service riders, mandated flexibility requirements, and streamlined interconnection processes for flexible loads. For the highly capitalized and rapidly growing AI industry, the primary motivators for embracing these strategies are expediting facility interconnection, satisfying emerging regulatory mandates, and mitigating community resistance. While demand flexibility cannot substitute the long-term need for new bulk power generation, it serves as an essential, immediate solution for enabling near-term deployment. By transforming data centers from grid stressors into stabilizing assets, flexible operations can ensure reliable grid integration, ease market pressures, and support a resilient power system.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Demand Response in Residential Energy Code: Technical Brief

As buildings account for over 75% of U.S. electricity use, effectively managing their loads can greatly facilitate the transition towards a clean, reliable grid. Grid-interactive efficient buildings (GEBs) combine efficiency and demand flexibility with smart technologies and communication to provide occupant comfort and productivity while serving the grid as a distributed energy resource (DER). In turn, GEBs can play a key role in ensuring access to an affordable, reliable, sustainable, and modern U.S. electric power system. Their national adoption could provide $\$$100-200 billion in U.S. electric power system cost savings over the next two decades. The associated reduction in CO 2 emissions is estimated at 6% per year by 2030 (DOE 2021). Building codes represent standard design practice in the construction industry and continually evolve to include advanced technologies and innovative practices. Historically, national model energy codes establish minimum efficiency requirements for new construction (ICC 2020). Expanding codes to support GEB capabilities is a pivotal step towards realizing demand flexibility in support of a clean grid by addressing capabilities to improve interoperability between smart building systems, the grid, and renewable energy resources. Realizing GEBs requires buildings with automated demand response (DR) capabilities that enable standardized communication with or control of, subject to explicit consumer consent, energy smart appliances or home energy management systems. This is achieved through direct or indirect (i.e., via an aggregator) communication between appliances and the electric grid. Energy codes can also support DR communication standardization and advance the deployment of building-integrated DERs such as energy storage, generation, and electric vehicles (EVs). Incorporating automated DR capabilities in energy codes provides many benefits to the consumers. Specifically, it aligns building electric load demand with intermittent renewable energy source availability, decreases peak load on the electric grid, allows buildings to respond to utility price signals, supports electrical network reliability and market growth of products and processes aligned with clean economic growth. The incorporation of DR into the model residential energy codes was considered for both the 2021 and 2024 International Energy Conservation Code (IECC) code development cycles. The approved DR measures in the 2021 cycle were removed in response to appeals (ICC 2020). Updated language was presented for consideration again for the 2024 IECC, where it was negotiated and again approved, and again removed in response to appeals (ICC 2024). This resulted in many sections, including sections on demand responsive controls, being moved to the credits options or an appendix as a voluntary application. This technical brief updates the proposed DR components such that they can be considered by states and local governments for direct incorporation into their codes, as well as for future IECC energy code development. The proposal refinements are intended to support consistency in approach and provide a degree of certainty for building owners, designers, contractors, manufacturers, and building and fire safety professionals. The scope of this technical brief includes three strategies for DR in residential buildings: 1) smart thermostats with demand-responsive control, 2) electric water heating incorporating demand-responsive controls and communication and 3) grid Integrated solar and energy storage systems.

2021 IECC↗

If One GEB is Good, a Community of GEBs is Better

Energy efficient, connected, grid-interactive, smart and flexible buildings are key to decarbonization, lowering energy use and improving the nation’s electricity grid. The U.S. Department of Energy’s Connected Communities initiative works to demonstrate how coordinated groups of highly efficient buildings combined with other distributed energy resources (DERs), such as electric vehicle (EV) charging, batteries, storage, demand response and photovoltaic (PV) generation can reliably and cost-effectively serve as grid assets by strategically deploying efficiency and demand flexibility while reducing carbon emissions. In 2021, DOE competitively awarded $61 million to a diverse portfolio of 10 pilot projects to promote grid-interactive efficient buildings (GEBs) working together to reliably and cost-effectively serve as grid assets while decarbonizing. Two of the main tenets of the program are measuring the communities’ energy and carbon performance and understanding how to replicate project successes in other communities. This paper begins with a discussion of what Connected Communities are (including a brief history) and their many benefits, including reduced carbon emissions and increased building efficiency and demand flexibility. Next, it provides an overview of the 10 projects, highlighting the diversity of approaches to measure success and replicate the projects: geographic locations; building types; utility, regulatory, market environments; and building vintages that will be used to test the ability of buildings to serve as grid resources. It concludes with a discussion of anticipated project impacts and the metrics that will be used to evaluate the Connected Communities projects.

Nemtzow, David↗

Austin Sustainable and Holistic Integration of Energy Storage and Solar PV [Austin SHINES]. Final Report, Version 2

The Austin SHINES project and solution is a software management platform, for an electric grid with a high penetration of dispersed photovoltaic (PV) solar generation sites, which maintains the traditional power quality and reliability associated with grid service. This project developed and deployed the platform as a Distributed Energy Resource Management System (DERMS), engaging multiple advanced controls, to evaluate operation and optimization of a fleet of diverse DER assets, installed at several locations among Austin Energy’s customers and distribution system. The project also produced a methodology to create a replicable DERMS template, adaptable to other regions and market structures. Last, Austin SHINES aimed to demonstrate the solution’s methodology would enable the DER grid ecosystem to serve load at a technical cost (System Levelized Cost of Electricity, or System LCOE) of less than the U.S. Department of Energy SHINES program metric of $0.14/kWh, in a defined boundary, while enabling a high penetration of distributed PV. Research was categorized in 6 reports (Final Deliverables = FD) listed below, with titles and descriptions indicating which area of understanding was investigated: FD-1: System Levelized Cost of Electricity (System LCOE) Methodology The creation and use of the System LCOE to Serve Load metric that encompasses the holistic, system-level costs and benefits of all resources, and enables them to be evaluated based on their ability to support an efficient and low-cost integrated grid ecosystem. FD-2: Software Platform Product Description The creation of new DER control methodologies deployable within a utility-grade software platform that enable DER's to maximize their benefit within a grid, that is capable of serving load enabling a high penetration of distributed PV generation. FD-3: Optimal Design Methodology Optimal design methodologies for individual DER installations that enable utilities to determine the optimal combinations and sizing for individual DER sites. FD-4: Austin SHINES Ownership and Operation Models for DER System Performance A comparison of multiple DER aggregation and ownership methodologies including direct utility control, third-party aggregator, and autonomous. FD-5: Economic Modeling & Optimization A comparison of multiple DER technology mixes and configurations within the distribution system, providing insight into an optimal blend of technologies that best enable the distribution system to serve load at the lowest cost at high penetrations of solar. FD-6: Fielded Assets Deployed DER assets within the Austin Energy SHINES circuits. Austin SHINES provided an opening for state-of-the-art technology products to be deployed, providing a rich opportunity for improving how each of the products perform as stand-alone products, and in concert with other complementary products. The Austin SHINES project comprised of two key metrics for System LCOE: SystemLCOE_SHINES<$0.14/kWh Modeled ΔSystemLCOE_SHINES/ΔSystemLCOE_Base≥20% at same solar penetration The System LCOE calculation uses the costs of the utility-owned infrastructure as it exists today, the cost of the DERs that exist in the system today, and the cost of the purchase of energy from ERCOT wholesale markets over the course of the calendar year. All costs are on an annualized basis. The capital and operating costs are derived from the rate case, which produces a yearly cost. The net cost of energy and services imported to the system is integrated over the test year, as is the load served and solar penetration. The first metric was easily achieved by every scenario considered. The goal was set when the Department of Energy’s SHINES Funding Opportunity Announcement was written in 2015 and was a more difficult target at the time. Due mostly to rapidly declining costs for DERs and the significant decrease in the Electric Reliability Council of Texas (ERCOT) energy market prices, which results in lower net cost of energy purchases, the System LCOE is well below this target for all scenarios considered. A fleet of DERs can assume different mixtures, each of which serves the load at a different LCOE. The optimal mixture of DERs serves load at the smallest System LCOE. The second metric (hereinafter %delta metric) asks that the holistic DERMS controls reduce the incremental cost above the baseline of going to a high solar penetration future by at least 20% as compared to the case of a DER deployment with no sophisticated controls (autonomous). Many comparison sets were created throughout this project. Physical technology was installed for informing utility engineering and testing several types of operational control schemes, through the DERMS. The types of operational control which were compared for valuation of the System LCOE Metric were: Holistic control = using the full suite of the DERMS platform to decide and optimize how/why the systems operate depending on weather, market, and reliability signal input. Autonomous control = a local mode at the asset site, wherein a schedule operates the asset, with visibility into performance only No control = the baseline for comparing value against the other two types of control The types of ownership control included: Direct Utility control = the utility dispatches a signal to each asset Third-Party Aggregator = a third party aggregates a fleet of assets and the utility dispatches one signal for all Autonomous = a local mode is set for operation at the asset site, wherein a schedule operates the asset, with visibility into performance only The types of control methodologies deployable within a utility-grade software platform included: Utility Peak Load Reduction = Lower transmission cost obligation Day-Ahead Energy Arbitrage = Realize economic value through price differential Real-Time Price Dispatch = Realize economic value from real-time price spikes Voltage support = Reduce losses and increase solar generation Distribution Congestion Management = Increase local grid reliability Demand Charge Reduction = Lower customer bills and realize system benefit The fielded assets deployed for the project were: Utility Scale Kingsbery Energy Storage System: 1.5 MW / 3 MWh Li-Ion battery storage Mueller Energy Storage System: 1.75 MW / 3.2 MWh Li-Ion battery storage, 7 Energy Storage Units (250 kW each) La Loma Community Solar: 2.6 MW Commercial Scale Aggregated storage installations at 3 sites, with existing solar (300+ kW): One 18 kW / 36 kWh Li-Ion battery storage Two 72 kW / 144 kWh Li-Ion battery storage Residential Scale Aggregated storage installations: -Six stationary battery storage systems (10 kWh each) at homes with existing solar -One Electric Vehicle installed as Vehicle-to-Grid (V2G) Utility-Controlled Solar via Smart Inverters at 12 homes Autonomously-Controlled Smart Inverters at 6 homes Over the course of the project, Austin SHINES undertook installing more than 3 MW of distributed battery energy storage, smart PV inverters, a DER control platform, and other enabling technologies utilizing customer and utility locations and aggregation models. All of these resources were to be integrated and optimized at the utility level. DER assets and control methodologies were designed to achieve a credible pathway to a System LCOE for energy delivered to load of $0.14//kWh or less by 2020, while maximizing distributed solar generation and maintaining acceptable standards of power quality. The project also established a template for other regions to follow, to maximize the adoption of distributed solar PV in support of an economic and efficient grid. In total, the Austin SHINES project added value to the DER subject area in each layer of integration. From utility, to commercial to residential scales, the sheer hierarchy of communication and coordination was a significant accomplishment in addition to learnings from what these communications revealed was unique to each. Economically, the most effective method demonstrated was the criticality of planning phases. Contingencies and multiple projection scenarios helped guide the project to deploy optimal design as close as feasible, in real world conditions. The project and reports will serve public benefit by outlining specific areas of DER strategy and installation where many stakeholders and needs can be addressed with improved efficiency. Overall, communities and utilities should use the results to guide the increasing options available for powering the grid with DER, renewables, and carbon considerate energy.

14 SOLAR ENERGY↗

Impact of Transport Electrification Demand and Charging Schedules on Electricity Markets and Nuclear Generators

As the U.S. pursues deep decarbonization targets, electric vehicles (EVs) are likely to become a major driver of demand growth and a major determinant of daily demand patterns. This study analyzes a possible future ERCOT-like electricity grid, and examines the impact of different types of EV charging schedules on grid and market outcomes. This analysis demonstrates the significant impact of EV charging patterns on capacity expansion simulations. Even without EVs, the overall daily demand profile in a market can have significant impacts on prices and grid stability in that system, especially if non-dispatchable renewable generators (e.g. wind and solar) make up a significant fraction of the generation mix. EV demand will not necessarily follow this preexisting demand profile, so its daily trends may significantly change what generation portfolio would optimally serve the system. Furthermore, the effects of EV demand can alter the profitability of different types of units, by altering the frequency of market events like extreme-demand hours or zero-price hours. These effects are explored in this study. The EV demand levels were derived from MARKAL simulations of the West-South-Central North American Electric Reliability Corporation (NERC) region for the year 2050, using a carbon tax of $100/ton. The baseline MARKAL simulation forecasted that 23% of the region’s annual electricity demand in 2050 would be attributable to EVs, and broke out demand projections for EV and non-EV end-use in that year. To model lower EV penetration into the system, an additional case was explored which assumed that EVs only achieved 75% of the demand level projected by MARKAL.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Explained: Maintaining a Reliable Future Grid with More Wind and Solar

Since the early 2000s, maintaining grid reliability has become more complex due to a variety of factors, including the changing generation mix, the creation of wholesale energy markets, and a growing number of extreme weather events. Parts of the U.S. grid are already operating with significant amounts of wind and solar generation - with 2022 annual wind and solar generation in the range of 25% to 40%. Even without considering the effects of extreme weather, maintaining reliability will require new capacity to address both growth in electric demand and retiring capacity. Based on the 2022 North American Electric Reliability Corporation (NERC) Long-Term Reliability Assessment, the combination of both growth in peak demand and retirements suggests a need for more than 100 gigawatts (GW) of new capacity by 2032. In general, there are a five categories of resources that are expected to be deployed and used to meet the challenge of maintaining an adequate source of supply in the coming decades: new wind and solar resources (accounting for their reliability contributions), energy storage, demand response resources, expanded transmission, and continued use of thermal generators.

power grid↗

Modifications to Solar Titan-130 Combustion Systems for Efficient, High Turndown Operation

The project team of Southwest Research Institute® (SwRI®), Solar Turbines Incorporated (Solar), the Electric Power Research Institute (EPRI), the University of California, Irvine (UCI), and the Georgia Institute of Technology (Georgia Tech) investigated methods to allow higher efficiency part-load operation of a Solar Titan 130 gas turbine. The objective was to develop a low-emission combustion system capable of sustaining combustion and avoiding lean blowout during high turndown operation, which would allow the gas turbine to operate as efficiently as possible at part load. Currently, electric utility markets are beginning to experience substantial increases in renewable energy generation. Some of these renewable energy sources have highly variable output in an uncontrolled manner. In order to maintain grid stability, there is a need for power plants to ramp up power to the grid rapidly to make up for drops in renewable generation. This is often termed spinning reserve, but the size of this reserve may need to increase as renewable penetration into the electric utility market increases. Small combined heat and power (CHP) power plants provide a promising option for meeting this spinning reserve requirement. In order to operate in spinning reserve while still meeting the heat requirements for the CHP, the gas turbine needs to operate efficiently at very low loads. Efficient, high turndown operations in this engine are limited by the lean flammability limit of the premixed combustion system. This project sought enhance the lean operability range of the Titan 130 combustor. First, the project team participated in a brainstorming activity and ultimately selected two concepts to explore: fuel augmentation with hydrogen (H2) to improve the stability at lean operating conditions and modifications to the fuel nozzle to improve the emissions performance at lean operating conditions. Analytical and laboratory investigations were accomplished by UCI to investigate the efficacy of H2 addition at improving lean blow out (LBO) limits and the resulting emissions. These investigations used a variety of chemical reactor network (CRN) and CFD models, validated against laboratory data, to model the impact of H 2 and inform the experimental efforts accomplished by SwRI and Solar. Ultimately, both the CRN and CFD models yielded generally good agreement with the experimental data below a particular temperature threshold. Atmospheric tests of a full-scale T130 annular combustor were performed at SwRI facilities in San Antonio, Texas, to investigate the use of H 2 addition. For these tests, the T130 combustion system remained largely unchanged; minor modifications were performed to the fuel ducting to allow for the safe use of H 2 . The test ultimately demonstrated that the addition of H 2 to the fuel mixture significantly increased the AFR ratio at which the combustor could operate. This improvement to the LBO limit should allow for less use of compressor bleed and less throttling needed by the inlet guide vanes (IGV). This in turn could result in more efficient operation of the gas turbine at lower load points. The second modification explored in this work was a direct modification to the T130 injector. The project team hypothesized that modifications to the pilot of the T130 injector could provide lower emissions at high turn-down operations. These modifications were manufactured and explored by the team at Solar. High pressure rig tests, originally slated to occur at SwRI, were ultimately accomplished by Solar to maintain overall project budget and mitigate cost growth attributable to supply chain issues and inflation. The pressurized rig tests ultimately showed that the SwRI Project No. 18.24153 - DE-EE0008415 Page 2 Final Technical Report January 24, 2024 modifications did not significantly alter the performance of the combustion system at the high turn-down conditions; both the modified injectors and the baseline configuration exhibited elevated emissions comparted to the full-load operating condition. A final set of studies performed by EPRI investigated the benefit-cost of flexible CHP as well as a grid interconnection study for the California Independent System Operator (CAISO) grid. These studies considered: traditional CHP with no spinning reserve available for on-demand grid support, 50% flexible CHP where 50% of the machine’s capacity is consumed by on-site baseload operations while providing an additional 50% capacity for on-demand grid support, and 70% flexible CHP where 70% of capacity is consumed on-site by baseload operations and 30% is available for on-demand grid support. In all cases, the analyses showed a benefit-to-cost ratio greater than unity implying a positive net present value for all configurations. However, the traditional CHP showed the most economic benefit. These results are sensitive to several factors, many of which are not fully known and may vary over time. Thus site owners must be convinced that taking up the increased costs and risks from flexible CHP would be worth implementing. As the grid in California and across the country transition to incorporate larger renewable energy generation, flexible CHP can provide much needed operating reserves and dispatchability. Alternative fuel options, such as hydrogen blending and biofuels, may also lower carbon intensities of CHP. Flexible CHP should be examined in the evolving market to understand innovative business models, changes market rules and services, and new technologies.

20 FOSSIL-FUELED POWER PLANTS↗

Wind and Solar Hybrid Power Plants for Energy Resilience

Wind-solar-storage hybrid power plants represent a significant and growing share of new proposed projects in the United States (U.S.). Their uptake is supported by increasing renewable energy market share, technical abilities for dispatch and control, and decreasing wind, solar, and battery storage costs. Simultaneously, generation and storage resources are increasingly used in distributed power systems. While concerns around the reliability of the aging, transforming U.S. electric grid are growing, diversifying energy resources through hybridization or spatial distribution provides an opportunity to enhance power system resilience compared to single-source generation. Understanding where to build hybrids for resilience value, rather than bulk power supply, has not been fully explored in previous studies. Therefore, in this study, we complete a national complementarity analysis to identify areas in the U.S. that are particularly suited for wind-solar hybrid power plant development. We show the importance of seasonal and diurnal patterns in assessing complementarity, and identify that regions in the Great Plains, Midwest, and Southeast are particularly suited for hybrid power plants. We demonstrate the resilience value of hybridization for a reference system based near Memphis, Tennessee, and show optimal sizing of wind, solar, and storage assets given 1.0 and 0.9 critical load factors. Results indicate that pairing wind and solar assets better meet constant load demand and reduce storage requirements compared to solar alone. These results enable future work integrating complementarity metrics in resilience frameworks and indicate a need for more finer resolution of local resource, demand, and hazard data.

14 SOLAR ENERGY↗

Chapter 11: Renewable Microgrids as a Foundation of the Future Sustainable Electrical Energy System

Renewable microgrids are an integral part of the future sustainable energy system. This chapter focuses on the role of renewable energy-based microgrids in the electricity system transformation. It is seen as a foundation that complements large-scale generation plants and high-voltage transmission lines by providing additional flexibility and resilience. This flexibility and resilience are crucial for balancing the energy system and ensuring its long-term sustainability, given the changing supply and demand patterns due to rooftop solar photovoltaics (PV), battery storage, electric mobility, and heat pumps. It is also an opportunity for residential and commercial consumers to become active participants in the energy market. Innovation, new technologies and business models will act as the key enabler for this transformation. The regulatory restructuring of the energy market will be crucial for successful integration of prosumers and aggregated energy communities. The chapter presents the vision of a sustainable, decentralized, and digitized energy future including market potential, most innovative case study projects and start-up companies, and the shifts needed in the regulatory landscape.

battery storage↗

A Demand Bidding Model for Multi-Product Industrial Plants

The growing contribution of renewable energy sources has increased volatility and uncertainty in electricity markets, challenging traditional grid operation paradigms. Demand bidding (DB), a market participation model where (large) electricity users communicate their willingness to pay for electricity to the grid operator, was shown in previous work to enhance grid stability and lower generation cost. We present a DB model for multi-product industrial plants, based on an extended optimal power flow problem where the plant dynamics are represented using autoregressive with extra inputs (ARX) models. We compare DB to price-based demand-side management, showing that, under certain assumptions, the two approaches are equivalent, while DB provides more transparency and predictability to the grid operator. A case study based on an industrial air separation unit is discussed.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Packages of Distributed Energy Technologies Demonstrating Demand Flexibility at Community Scale

The combination of increased electric load growth across all sectors, deferred electrical infrastructure investment, and other factors resulting in variable electric power supply, has created technical challenges to maintaining a resilient and reliable grid. Many federal, regional, and local efforts are in play to modernize the electric grid, including advancing building technologies and distributed energy resources (DERs) that are utilizing smarter controls to become responsive to both occupant and grid needs. This report reviews ten pilot projects demonstrating how groups of buildings combined with behind-the-meter (BTM) DERs such as electric vehicle (EV) charging, battery storage, flexible HVAC and domestic hot water systems, and photovoltaic systems can reliably and cost effectively provide grid services. Each of the ten pilot projects aim to deliver both energy efficiency and demand flexibility (DF) while supporting load growth. The ten demonstration teams are piloting flexible DER packages across diverse communities of residential and commercial buildings to address a variety of regional grid needs. The outcomes of these pilot projects will be used to inform future scaling through utility program development. This paper characterizes the ten teams, showcasing the decision-making process used by each group to develop their packages (Section 2), the grid services they plan to deliver (Section 3), the types of DER packages selected for deployment within building sectors (Section 4) and trends between building sector, DER types, and grid services In order to achieve community scale benefits, the pilot projects must utilize aggregated control mechanisms for coordinating buildings and DERs together. Several types of coordinated control architectures have evolved amongst the teams, influenced by use type, existing market conditions, and integration type. Three coordinated controls architectures have been characterized, highlighting their use cases, benefits, challenges, and tradeoffs in their design. These insights can aid utilities, control vendors, and developers in scaling community-level energy systems (Paul, 2024). Ultimately, the technology packages selected by the ten teams will be coordinated to provide power system services, also known as grid services. Insights from these demonstrations will be useful for grid operators, regulators, aggregators and other stakeholders as they look to deploy demand flexible resources as grid services in the future. The grid services that each team is targeting for demonstration are described in Section 3 and Section 4. Methods for evaluating the grid services have been described in the paper Metrics for Evaluating Grid Service Provision from Communities of Grid-interactive and Efficient Buildings and other DER (MacDonald, 2023). To identify technology packages for demonstration, Section 2 shows that project teams used a range of analysis approaches, including building energy modeling, AMI data analysis, cost-benefit frameworks, and utility pilot data. Some teams emphasized technical modeling to quantify grid impacts and demand reduction potential, while others prioritized economic evaluations, stakeholder input, or exploratory pilots to inform deployment decisions. This diversity reflects the need to tailor selection methods to project goals, available data, and organizational context. Section 5 discusses trends between the DER technologies deployed and the grid service provisions from each team. Residential buildings (multifamily and single family) lean towards technologies that enhance energy efficiency (e.g. weatherization upgrades, smart thermostats) and onsite power generation integration (e.g. solar PV). Commercial building demonstrations prioritize technologies that ensure operational reliability (e.g. battery storage) and centralized energy management systems and optimization solutions. Teams that are deploying controllable storage-based technologies are more likely to provide grid services that require a near real-time response. Teams incorporating load shifting technologies like smart thermostats with HEMs are likely to include energy markets participation and customer bill management offerings. Campus demonstrations are adopting diverse sets of DERs to emphasize renewable generation, paired with centralized control. This section also describes technologies that were considered during project planning but ultimately excluded from final deployment. These demonstrations reveal that effective DER package design should be tailored to building type, customer segment, and construction vintage. Multifamily buildings benefit from centralized HVAC upgrades and supervisory controls, while single-family homes are well-suited for individualized technologies like solar, storage, and smart home energy monitors. Commercial and campus settings prioritize EMIS integration and load optimization. New construction enables cost-effective integration of DER-ready infrastructure, whereas retrofits require deployments aligned with owner and tenant value streams. For utility program planners, early coordination with developers and building owners, paired with segmented and modular program offerings, can improve adoption, scalability, and grid impact.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Batteries Included: Top 10 Findings from Berkeley Lab Research on the Growth of Hybrid Power Plants in the United States

One of the most important electric power system trends of the 2010s was the rapid deployment of wind turbines and photovoltaic arrays, but a twist for the 2020s may be the rapid deployment of ‘hybrid’ generation resources. Hybrid power plants typically combine solar or wind (or other energy sources) with co-located storage. While hybridization helps to ease the challenge of balancing variable supply and demand, its relative novelty means that research is needed to facilitate integration and promote innovation. Combining the characteristics of multiple energy, storage, and conversion technologies poses complex questions for grid operations and economics. Project developers, system operators, planners, and regulators would benefit from better data, methods, and tools to estimate the costs, values, and system impacts of hybrid projects. This publication showcases some of Berkeley Lab’s robust research program intended to support private- and public-sector decision-making about hybrid plants in the United States. Our short briefing summarizes articles that we published between 2020 and 2022, links to the in-depth reports, and provides contact details for further engagement on the specific research topics: Growth: Developer interest in hybrid power plants is strong and growing Price vs. Value: PV+storage hybrids have low PPA prices and high value in some regions Market Drivers: Solar hybridization is driven by tax credits and other benefits Configuration Choices: Market prices have incentivized shorter duration batteries with PV Capacity Value: The capacity contribution of a hybrid is less than the sum of its parts Ancillary Services: AS markets are a valuable yet fleeting option for hybrids Market Participation: Hybrids can more flexibly engage with electricity markets Operations: The power system value of hybrids depends on how they are operated Distributed Hybrids: Growth of customer-sited PV+storage hybrids offers new opportunities Future Research: Where next? Priority areas for hybrid power research.

25 ENERGY STORAGE↗