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All sourcesNASA NTRSDOE OSTI
DOE OSTI2025

Facets of hydro power and future trends in a Nordic Context

Hydropower technologies bolster high penetration of variable renewable energies (VREs) in the net zero emissions scenarios. Nevertheless, there are various challenges to meeting the ambitious goal, such as stability, reliability, resiliency, security, lack of reactive power, voltage support and inertia, large-scale storage deployment and coordination, interconnectedness, demand-side response, higher thermal cycles with increased start/stops, and inadequate Levelized Cost of Energy (LCOE) for system-wise VRE integration and profitability. This survey conducts a bottom-up analysis to unveil the opportunities to utilize hydropower facilities and disentangle the nested problem for intertwining design features, control algorithms, operation, optimization approaches, incentives, services, and market mechanisms using a three-pillar framework perspective: grid owners, power producers, and machine designers. The survey identified emerging trends in real-time and capacity markets, flexible power systems, and enhanced grid capabilities, including advanced voltage support and updated grid codes. These developments present significant opportunities for hydropower, such as achieving super-flexibility through hybridization, expanded reactive power capabilities, and advanced operational modes like a synchronous condenser and power adequator functionalities. These opportunities require novel design philosophies — including new winding, stator, and rotor configurations, optimized ventilation, and active cooling systems — to enhance performance under stressed grid and climate conditions. Finally, integrating climate and energy models for multi-basin optimization with finer spatial and temporal granularity enhances the planning accuracy for water management of hydropower while addressing environmental challenges. The review delivers helpful prospective suggestions and tools that would serve researchers, power engineers, and stakeholders in making decisions about hydropower technologies and services in 2050 and beyond.

13 HYDRO ENERGY↗
DOE OSTI2023

Idaho national laboratory to demonstrate collaboration first versus competition to accelerate achieving a secure clean energy future by 2031

Idaho National Laboratory (INL) announced at COP27 it would reach net zero greenhouse gas (GHG) emissions by 2031. As a Nuclear, Energy and Environment, and National Homeland Security laboratory, the predominant solution to closing the clean energy gap will include nuclear as a safe, clean, reliable and affordable electricity source with the additional benefit of producing heat and hydrogen to fuel INL’s large transportation fleet. INL’s collaboration first vs. competition is essential to the program’s success. The focused actions in INL’s Nuclear Roadmap include: Infrastructure, Licensing/Regulatory, Financial, Time to Market, Fuel Cycle and Public Confidence/Communications. The roadmap also includes nuclear technology innovations and creative partnerships with utility providers, regulators, businesses, community members, and Indigenous Peoples to accelerate deployment of advanced reactors. Through development of the Net-Zero Nuclear Roadmap, INL will offer a model to provide safe and secure energy for the nation and the world by: (1) establishing the necessary infrastructure on its 890-square mile site to support demonstration, (2) showing proven pathways through the licensing and regulation process, (3) partnering with utilities to ensure commercial application, and (4) collaborating with industry to site new technologies.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗
DOE OSTI2022

Machine Learning Derived Dynamic Operating Reserve Requirements in High-Renewable Power Systems

Accurately forecasting wind and solar power output poses challenges for deeply decarbonized electricity systems. Grid operators must commit resources to provide reserves to ensure reliable operations in the face of forecast errors, a process which can increase fuel consumption and emissions. We apply neural network-based machine learning to expand the usefulness of median point forecast data by creating probabilistic distributions of short-term uncertainty in demand, wind, and solar forecasts that adapt to prevailing grid conditions. Machine learning derived estimates of forecast errors compare favorably to estimates based on incumbent methods. Reserves derived from machine learning are usually smaller than values derived using incumbent methods, which enables fuel savings during most hours. Machine learning reserves are generally larger than incumbent reserves during times of higher forecast error, potentially improving system reliability. Performance is tested using multi-stage production simulation modeling of the California Independent System Operator (CAISO) system. Machine learning reserves provide production cost and greenhouse gas (GHG) emission reductions of approximately 0.3% relative to historical 2019 requirements. Savings in the 2030 timeframe are highly dependent on battery storage capacity. At lower levels of battery capacity, savings of 0.4% from machine learning reserves are shown. Significant quantities of battery storage are expected to be added to meet California's resource adequacy needs and GHG reduction targets. Addition of these batteries saturate reserve needs and results in minimal within-hour balancing costs in 2030.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2023

Study of Storage Requirements and Costs for Shaping Renewables and Nuclear Energy (FY23 Summary Report)

To decarbonize electricity generation primarily by using wind and solar resources, it is likely that additional low (or zero) carbon dioxide (CO 2 ) alternatives will be required for ensuring a reliable electricity supply. This study extends the work and modeling framework that we consolidated in FY 2022, by assessing the zero-CO 2 pathways of a Texas power system in which the availability of variable renewable energy (VRE), nuclear energy, and energy storage types (i.e., battery and thermal energy storage [TES]) are considered the sole resources available for expansion. Using the Risk Analysis Virtual Environment (RAVEN) and Holistic Energy Resource Optimization Network (HERON) frameworks, this study investigates the market of two nuclear energy technologies (i.e., large light-water reactors [LWRs] and LWR-type small modular reactors [SMRs]) under two plausible storage coupling scenarios (i.e., electric coupling and direct thermal coupling). We also explore optimal environments for nuclear energy deployment, and identify key performance characteristics that make nuclear energy economically viable in areas with significant intermittent energy sources. Our analysis encompasses 24 cases. We model the least-cost grid systems, highlight the potential for a coupled LWR-TES approach, and utilize SMRs to achieve deep decarbonization in an affordable, technically feasible manner. We also examine seasonal variations in balancing electricity supply and demand, and account for varying performance, costs, and grid constraints. Overall, the findings of our modeling afford valuable insights for supporting future technology investment decisions in the energy sector.

25 ENERGY STORAGE↗
DOE OSTI2023

Flexible Fully-Decoupled Nuclear Plants with Thermal Energy Storage - Technoeconomic Optimization

New nuclear power plants may be one of the technologies for future zero carbon electricity production. These future systems will however also need significant flexibility to cope with fluctuating demand and large share of intermittent renewable supply, rather than running in conventional baseload generation. The present work explores the use of thermal energy storage (TES) as a buffer between the reactor heat and its conversion to electricity, enabling flexible operation of nuclear plants. The focus is on maximizing flexibility, ideally as full decoupling of the nuclear and power cycle islands, as well as on system efficiency in various modes. A system design presented for a high temperature gas cooled reactor (HTGR) presents a slightly complex solution, as separate high- and low-temperature TES systems are required in order to cover the extended temperature range. Although this configuration imposes certain limitations on the discharge system configuration, it also presents the opportunity to design a more efficient system. For this case in particular, a steam reheat cycle is advantageous. Dynamic models were developed for the decoupled system in order to generate insights into aspects of off design operation and system control. A technoeconomic analysis, furthermore, provides sizing and costing of the component, followed by size and dispatch economic optimization considering energy arbitrage. This optimization shows that in all explored markets, the addition of TES system with the proposed configuration results in positive impact on project net present value. Further sensitivity analyses show impact of multiple inputs and possible technical limitations.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗
DOE OSTI2026

Use of Hardware-in-the-Loop to De-Risk Field Deployment of Hydrogen Assets

Grid-forming assets are required in microgrids to act as voltage-frequency masters. These grid-forming assets can operate in two modes of operation: grid-following mode and grid-forming mode. In grid-following mode of operation, these assets will follow real power and reactive power setpoints and in grid-forming mode of operation these assets will follow voltage and frequency setpoints. Traditionally, diesel generators or natural gas-based generators are widely used to act as a voltage-frequency master. However, many utilities are aiming to replace generators with grid forming-inverters supplied by solar photovoltaics (PV), batteries or fuel cells. Since grid-forming assets need a long-term reliable energy source, fuel cells are a reasonable and viable choice to supply the grid-forming inverters, but some of the challenges facing the wide deployment of grid-forming fuel cell inverters need to be addressed. Specifically, in our proposed work, we aim to focus on the interconnection and interoperability requirements of grid-forming fuel cell inverters. Currently, state-of-the-art fuel cell inverters follow the general interconnection requirements of distributed energy resources (DERs) and general interoperability requirements of DERs, but these requirements were built with PV and battery systems in mind. Fuel cells have different operational requirements, and therefore these requirements need to be appropriately modified for the grid operators to use. These additional steps add to the investment and operational cost to the grid operators. Through the ARIES platform, this proposed project aims to bridge this gap and use power hardware-in-the-loop (PHIL) and controller hardware-in-the-loop (CHIL) experiments to inform the creation of open-source interconnection and interoperability information that can aid in faster and cheaper installation and operation of grid-forming fuel cell inverters.

08 HYDROGEN↗
DOE OSTI2022

The USAID-NREL Partnership

The United States Agency for International Development is drawing on U.S. Department of Energy national laboratory expertise to advance clean, resilient, and equitable energy systems in the developing world through the USAID-NREL Partnership.

advanced power systems↗
DOE OSTI2025

Enhancing building resilience in cold climates: Integrating heat pump technologies with renewable energy

As electrification advances and Cold Climate Heat Pump technology progresses, ensuring grid stability becomes increasingly critical for effective heating in cold climates. However, natural disasters, especially during winter, pose significant threats to grid stability, impacting the reliability of air-source heat pumps. Despite these challenges, the integration of renewable energy sources and storage solutions in heating systems has not been extensively studied within the context of resilience. Here, this paper delves into the literature on renewable-powered heat pumps to assess their potential in enhancing building resilience in U.S. cold climate zones, which are particularly susceptible to extreme weather and grid disruptions. By leveraging renewable sources—solar, geothermal, and water—in conjunction with heat pump technology and supported by thermal or battery storage, this approach aims to provide a dependable solution for maintaining indoor heating during grid failures. Our analysis begins with a review of various renewable energy sources suitable for heat pumps, followed by an exploration of their application in cold climate regions across the U.S., and discussions on potential integration strategies with heat pump systems. This study highlights the advantages and suitability of solar irradiance and geothermal resources, emphasizing the importance of tailored, site-specific assessments to maximize energy efficiency and resilience. Additionally, it outlines the economic and environmental considerations necessary for implementing such systems and identifies potential challenges and areas for future research to facilitate the broader integration of renewable energy in heating solutions for enhanced resilience.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2023

The Role of Hydropower Flexibility in Integrating Renewables in a Low-Carbon Grid

In this study, we looked at the role of hydropower flexibility in variable renewable energy (VRE) integration. Our focus was on facilities that have at least ten hours of storage, i.e., plants that are "dispatchable" and have capacity values similar to that of fossil-fired generation. For our modeling framework, we used NREL's Mid-Case/95% Carbon Reduction by 2035 standard scenario as our foundation. This zonal model is representative of the buildout of a near-zero carbon policy grid in an otherwise "business-as-usual" policy and economic environment. We chose this scenario because it aligns well with the Administration's net-zero carbon grid by 2035 goal.

13 HYDRO ENERGY↗
DOE OSTI2024

Formally Verified ZTA Requirements for OT/ICS Environments with Isabelle/HOL

The clean energy transformation includes the integration of distributed energy resources with the power grid, which has led to a substantial increase in the complexity of power grids infrastructure and the underlying operational technology environment. Power grids infrastructure represents an operational technology environment that has become a system of systems, integrating heterogeneous devices which are both software-and hardware-intensive; as a result, there are increasing demands to exploit advances in the commodity of software-hardware infrastructures to improve energy systems requirements such as cybersecurity and resilience. In such a setting, system requirements at different levels mix, which leads to vulnerabilities and undesirable outcomes. The use of formal methods to characterize and prove system requirements removes ambiguity, increases automation, and provides high levels of assurance and reliability. In this paper, we contribute a methodology and a framework for the system-level verification of zero trust architecture requirements in operational technology environments. We define a formal specification for the core functionalities of operational technology environments, the corresponding invariants, and security proofs. Of particular note is our modular approach for the formal verification of asynchronous interactions in operational technology environments. The formal specification and the proofs have been mechanized using the interactive theorem proving environment Isabelle/HOL.

formal methods↗
DOE OSTI2021

Topical Report – Findings on Subtask 2.7 – Wet ESP and Aerosol Testing at Coal Creek Station

Growing concerns over the impact of CO 2 emissions from combustion sources on global climate change have prompted numerous research and development projects aimed at developing cost-effective technologies for CO 2 capture. One family of technologies being demonstrated at pilot and full scale globally is postcombustion carbon capture (PCCC) systems that employ amine-based solvents. The captured CO 2 can be compressed and permanently stored underground or used for enhanced oil recovery. The proximity of North Dakota’s lignite-fired fleet of power plants to potential CO 2 storage options creates a unique atmosphere for PCCC within the state. However, the unique components present in lignite flue gas present a challenge for large-scale PCCC at North Dakota power plants by contributing to aerosol formation. Aerosols can negatively impact the long-term performance of amine-based solvents for CO 2 capture. Amine-based solvents are volatile, and flue gas particulate provides nucleation sites where amine vapors can condense as aerosols. Because aerosols cannot be easily captured at the column outlet using conventional technologies, the amine-laden aerosols escape the system and lead to accelerated solvent losses. Moreover, particulate components can chemically react with amines to form degradation products that can permanently deactivate the amine, cause fouling, and lead to hazardous emissions. Many of the elements that have been shown to catalyze solvent degradation are present in lignite coals and can exacerbate solvent replacement economics. Understanding this issue is critical to the implementation of solvent-based CO 2 capture systems as applied to lignite-fired generation systems. The Energy & Environmental Research Center (EERC) designed and carried out this project to fully characterize aerosol behavior with various control technologies installed to better optimize aerosol mitigation technology for CO 2 capture. To meet the goal of this project, the following objectives were identified: Determine the effectiveness of a wet electrostatic precipitator (WESP) on mitigating formation of problematic aerosols at Great River Energy’s Coal Creek Station, upstream of the PCCC system. Determine the effectiveness of the Mitsubishi Heavy Industries (MHI) proprietary amine emission reduction unit (AERU) as a postcapture solvent recovery system for reducing aerosol emissions and extending solvent life downstream of the PCCC system. Determine the impact of aerosols on the efficiency and degradation products of both commercial and advanced solvents within the PCCC system. Work was conducted at Coal Creek Station Unit 1 using a slipstream of flue gas from the outlet of the plant’s flue gas desulfurization (FGD) unit. Flue gas was routed through a pilot-scale FGD unit to remove SO 2 to very low levels (~1 ppm) and then through a direct contact cooler (DCC) to further cool the gas and to remove moisture. The gas exiting the DCC was then optionally routed through a WESP before passing to the CO 2 absorber columns. The MHI solvent was used to scrub CO 2 from the slipstream through a set of two absorber columns. The rich solvent was regenerated in a stripper column by heating to drive off captured CO 2 . Flue gas exiting the absorber column was routed to MHI’s proprietary AERU to recover entrained solvent. The system operated using a catch-and-release method where the CO 2 was separated to provide data on the process, but the captured CO 2 was released back into the host site stack. Particulate was measured, collected, and analyzed from multiple locations throughout the pilot-scale system. Unlike the performance observed in prior work, the inlet FGD and DCC did not remove significant particulate matter from the flue gas. This appears to be due to a difference in the nature of the particulate. The DCC seemed to increase particulate size and count, most likely owing to water condensing onto the surfaces of fly ash particles. When the WESP was operated, it achieved >95% particulate capture. Very little particulate matter or indications of solvent were detected at the AERU outlet. When operating with advanced KS 21 solvent, the particulate material at the AERU outlet was even further decreased. Solvent analysis showed that some species derived from flue gas and ash were slowly concentrating in the solvent over the duration of the test. The levels observed were reported to be within expected ranges and were not of concern to MHI. A high-level techno-economic assessment of installing CO 2 capture at Coal Creek Station suggested that, when using a standard monoethanolamine (MEA)-based solution with simple heat integration, the energy penalty to net generation would be 34%. The bulk of this was due to steam losses for regenerating solvent, followed by parasitic electrical demand for CO 2 compression and then by increased parasitic load for pushing flue gas through the absorber column. These demands could be decreased with a more advanced solvent that exhibits lower heat of regeneration and lower pressure drop than does a simple MEA solution. Further energy could be saved with more thorough heat integration to recover useful energy from the steam used for solvent regeneration. Installing a WESP was predicted to increase the cost of electricity by nearly $5/MWh. This would become cost-effective if solvent losses were roughly 10 times the baseline estimate when not using a WESP but could be returned to baseline by installing the WESP. Piping CO 2 for storage in more favorable geology could help with carbon capture and storage economics. Although storing off-site would necessitate construction of a CO 2 transport pipeline, the cost of this pipeline might be more than offset by reducing the number of wells required, the depths of the wells required, and the electrical demand for the CO 2 compressor. Additional factors that favor off-site storage costs include smaller expected CO 2 plume sizes, which translates to less monitoring and fewer landowner agreements. More detailed assessment of the specific geology in the region under and around Coal Creek Station would be needed to accurately assess the costs and benefits of different storage site options. This subtask was cofunded through the Energy & Environmental Research Center–U.S. Department of Energy Joint Program on Research and Development for Fossil Energy-Related Resources Cooperative Agreement No. DE-FE0024233. Nonfederal funding was provided by the North Dakota Industrial Commission.

Strege, Joshua↗
DOE OSTI2021

Energy Efficient Data Centers

Energy efficient data center strategies include thermal/environmental guidelines, air management, free cooling, and liquid-based cooling. A case study highlighting the data center cooling system at the National Renewable Energy Laboratory Energy Systems Integration Facility illustrates many of these principles.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗
DOE OSTI2020

Integration of Large-Scale Renewable Energy in the Bulk Power System: Lessons from International Experiences

Deployment of increasing amounts of renewable energy (RE) presents certain challenges in reliably integrating larger quantities RE into existing bulk power system infrastructures. RE Bulk power typically refers to large-scale power generation at a centralized facility and in the context of RE can include wind farms, utility-scale solar, geothermal, hydro and biomass facilities. Based on international experiences, several actions and related good practices have emerged to support the deployment of RE in the bulk power system. This paper provides a review of emerging international best practices that support the integration of large-scale RE; examples of country-level efforts in implementing these practices; and key considerations for any country pursuing bulk power sector transformation.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
NASA NTRS1981

Energy efficient engine component development and integration program

The technology that will improve the energy efficiency of propulsion systems for subsonic commercial aircraft is investigated. A reduction of 14.4% in cruise installed sfc (0.572 versus 0.668 for the CF6-50C) and a direct operation cost reduction in excess of the 5% goal is projected. Noise and emissions projections are consistent with the established goals.

Source record↗
DOE OSTI2024

Comparison of Greenhouse Gas Emission Assessments of Solar and Energy Efficiency Improvements at Small Water Resource Recovery Facilities

Small water resource recovery facilities (WRRFs) account for the majority of centralized systems in the world and have higher energy intensities than large facilities. This study compares potential greenhouse gas emission reductions based on on-site solar energy and energy efficiency (E2) improvements made at small WRRFs. Case study data from 31 existing small WRRFs in Nebraska were collected and included 35 site-specific energy efficiency (E2) recommendations and on-site solar renewable energy systems integrated at three facilities, and the data were used to compare the benefits of on-site solar energy and E2 improvements made at small WRRFs. Improvements in E2 (e.g., improved aeration control) presented the largest reduction in emissions per dollar invested. They often exhibited shorter paybacks, with operational changes in aeration strategies showing the highest impact (up to 0.2 kg CO2eq/m3 treated water). On-site solar systems showed the largest net potential for reducing environmental footprint (0.35 kg CO2eq/m3) but often showed the smallest emissions reduction per cost. While the use of both E2 improvements and the integration of on-site solar renewable energy can significantly improve the sustainability of small WRRFs, on-site solar has advantages for small facilities in that it often requires less operational involvement, allows for greater facility resiliency, and presents less uncertainty in terms of environmental benefit.

Thompson, Matthew↗
DOE OSTI2024

Performance Investigation of High-temperature Latent Heat Storage for Integration with Advanced Nuclear Reactors

Integrating thermal energy storage (TES) with advanced nuclear reactors enhances the flexible use of nuclear energy, facilitating its expansion beyond conventional electricity generation. High-temperature TES, capable of storing heat above 400 degree C, emerges as a vital carbon-free energy solution for decarbonizing industrial sector, especially when combined with low-emission energy sources like advanced nuclear reactors. Idaho National Laboratory (INL) has recently developed a novel design for high-temperature latent heat storage system, called Heat pipe Integrated Thermal Battery (HITB), and efforts are underway to experimentally demonstrate the concept. HITB employs liquid-metal heat pipes to establish thermal linkage between TES and nuclear systems without direct fluid exchange, minimizing the potential risk of the integrated systems such as cross-contamination. HITB is designed to achieve high charging and discharging efficiency as well as high energy storage density by employing metal alloys as Phase Change Material (PCM). Initial proof-of-concept experiments are being undertaken using an aluminum alloy (Al59%-Mg35%-Zn6%). This paper discusses current progress of the HITB project at INL, seeking to develop high-temperature TES for versatile integration with advanced nuclear reactors, and shares insights from the performance evaluations via numerical modeling and analysis.

25 ENERGY STORAGE↗
DOE OSTI2024

Technical and Economic Assessment and Gap Analysis of Advanced Nuclear Reactor Integration with a Reference Oil Refinery

Efforts to identify the most-economic methods to decarbonize several sectors of the U.S. economy are underway. Industrial processes such as crude-oil refining rely heavily on energy-dense and easily stored and transported fossil fuels for powering their operations. Refineries use large amounts of energy, primarily derived from fossil sources to separate crude-oil components, break down heavier hydrocarbons into lighter compounds, remove impurities, reform hydrocarbon molecules, and generate steam and electricity for pumps and compressors and other various auxiliary systems. Crude-oil refining operations such as distillation, cracking, desulfurization, reforming, utilities systems and some offsite facilities collectively account for most of the energy consumption. Other operations such as hydrocracking or hydrotreating also require hydrogen for developing hydrogenation reactions which involve substantial heating to keep the reactors at high-temperature and pressure levels. All heat and energy demands are typically provided by natural gas (NG), oil, or other fuels, which makes refinery industry one of the most-difficult sectors to decarbonize. Nuclear power is a viable and energy-dense source of clean electricity, heat, and hydrogen to provide the large, sustainable energy supply that the refining industry demands. The U.S. Department of Energy’s (DOE’s) Integrated Energy Systems (IES) program is working to perform research and development, design, economic siting, and risk analysis. This state-of-the-art work will enable the first on-site demonstrations and commercial deployments of advanced small modular nuclear reactors (SMNRs) integrated with industries such as chemical production, refining, iron and steel making, and more. IES seeks to demonstrate the ability of advanced nuclear reactors to meet the heat and power demands of these industries while reducing carbon emissions in a sustainable and cost-competitive way. The primary objective of this research effort is to analyze industrial-scale SMNR integration intended to decarbonize refining facilities. The foreseen outcome is the provision of reliable, cost-competitive, and sustainable clean energy, alongside a reduction of carbon emissions. Specifically, the focus of this work lies on meeting the reference facilities’ heat and electricity demands with nuclear power while also supplying clean hydrogen via integrated high-temperature steam electrolysis (HTSE). This report presents a comprehensive technical and economic assessment of the integration of advanced nuclear reactors into a reference refinery, leveraging financial incentives from the Inflation Reduction Act (IRA). The evaluation aims to explore the potential economic benefits and challenges associated with incorporating advanced nuclear reactors into refinery operations, particularly in terms of energy efficiency, economic implications and environmental impact. By examining both the technical feasibility and economic viability, this analysis seeks to identify existing gaps and propose solutions for successful nuclear integration implementation. The findings are intended to provide valuable insights for stakeholders considering the adoption of advanced nuclear reactors in the refining sector. A refinery reference-plant was developed, using an open-source refinery model, Petroleum Refinery Lifecycle Inventory Model (PRELIM) and expert assessment, as a base case for comparison with various nuclear integration options. The capacity of 100 kbd/day (KBD) of heavy crude-oil feed was selected to represent a general coking-type refinery with deep conversion capabilities (incorporating heavy-oil upgrading with FCC, coking, and associated hydrotreating process units), using a heavy crude-oil feed, which represents about 70% of U.S. refineries configurations. A summary of all cases considered in this study is shown in Table 1.

13 HYDRO ENERGY↗
DOE OSTI2026

West Africa Battery Energy Storage Systems (BESS) Capacity Building - Discussion of BESS Tariffs: Payment Structures and Case Studies [Slides]

Battery Energy Storage Systems (BESS) are emerging as critical assets for enhancing grid reliability, integrating renewable energy, and enabling system flexibility. Yet, the regulatory and financial frameworks that determine how BESS projects are compensated vary widely across jurisdictions. This presentation explores international case studies - from Honduras, Costa Rica, Chile, South Africa, Mexico, and Brazil - to illustrate how tariff design and payment structures are evolving to support large-scale BESS deployment. The cases highlight a range of ownership and revenue models, including cost-of-service mechanisms, energy and capacity payments, and market-based arbitrage, as well as hybrid approaches under development. The discussion will examine key challenges such as defining remuneration for ancillary services, addressing double charging, and accounting for efficiency losses and degradation over time. By comparing experiences across markets, the presentation identifies emerging best practices for valuing BESS and designing tariffs that align technical performance with economic incentives, providing insights for regulators, utilities, and policymakers pursuing storage integration.

25 ENERGY STORAGE↗