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Search indexed NASA NTRS and DOE OSTI research on propulsion, heat transfer, battery materials and energy systems. Follow report and document links to the original sources.

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At least 127 records · Page 7
All sourcesNASA NTRSDOE OSTI
DOE OSTI2023

The impact of market design and clean energy incentives on strategic generation investments and resource adequacy in low-carbon electricity markets

Well-designed electricity markets play a crucial role in maintaining reliable electric power systems, which are critical in modern society. Here, this study examines the impact of different electricity market designs and clean energy incentive schemes on supporting renewable energy integration and achieving clean energy goals. To this end, we utilize a game-theoretical generation expansion planning model where generation companies make investment and retirement decisions to maximize their expected profit. The model is structured as an equilibrium problem with equilibrium constraints (EPEC) and solved using a diagonalization approach combined with progressive hedging. We analyze three types of electricity market designs: an energy-only market, a capacity market, and a clean energy market, and consider a wide range of market parameters resulting in 14 total scenarios. Wind and solar capacity comprise the majority of new investments in all considered scenarios, but the resultant system planning reserve margin (PRM) can differ significantly depending on market parameters. We also find that profit-driven investments lead to lower PRMs than a traditional system cost minimization approach. These individual scenario results further demonstrate how different market designs and clean energy incentive schemes may influence investor decision-making and impact resource adequacy throughout the clean energy transition.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2020

Photovoltaic Cleaning Frequency Optimization Under Different Degradation Rate Patterns

Dust accumulation significantly affects the performance of photovoltaic modules and its impact can be mitigated by various cleaning methods. Optimizing the cleaning frequency is essential to minimize the soiling losses and, at the same time, the costs. However, the effectiveness of cleaning lowers with time because of the reduced energy yield due to degradation. Additionally, economic factors such as the escalation in electricity price and inflation can compound or counterbalance the effect of degradation on the soiling mitigation profits. The present study analyzes the impact of degradation, escalation in electricity price and inflation on the revenues and costs of cleanings and proposes a methodology to maximize the profits of soiling mitigation of any system. Here, the energy performance and soiling losses of a 1 MW system installed in southern Spain were analyzed and integrated with theoretical linear and nonlinear degradation rate patterns. The Levelized Cost of Energy and Net Present Value were used as criteria to identify the optimum cleaning strategies. The results showed that the two metrics convey distinct cleaning recommendations, as they are influenced by different factors. For the given site, despite the degradation effects, the optimum cleaning frequency is found to increase with time of operation.

14 SOLAR ENERGY↗
DOE OSTI2025

Valued peaks: Sustainable water allocation for small hydropower plants in an era of explicit ecological needs

Optimizing hydropower operations to balance economic profitability and support functioning ecosystem services is integral to river management policy. In this article, we propose a dynamic, constrained optimization framework for small hydropower plants (SHPs) to evaluate trade-offs between economic profitability and socio-ecological requirements. Specifically, we examine the balance between short-term losses in hydropower generation and the potential for compensatory benefits in the form of revenue from recreational ecosystem services, irrespective of the direct beneficiary. Our framework integrates a fish habitat model, a hydropower optimization model, and a recreational ecosystem service estimate to evaluate different environmental flow scenarios. The optimization process gives three outflow release scenarios, informed by previous streamflow realisations (dam inflow), and designed environmental flow constraints. The framework is applied and tested for the river Kuusinkijoki in North-eastern Finland, which is a habitat for migratory brown trout and grayling populations. We show that the revenue loss due to the environmental flow constraints arises through a reduction in revenue per generated energy unit and through a reduction in turbine efficiency. Additionally, the simulation results reveal that all the designed environmental flow constraints cannot be met simultaneously. Under the environmental flow scenario with both minimum flow and flow ramping rate constraints, the annual hydropower revenue decreases by 16.5 %. An annual increase of 8 % in recreational fishing visits offsets the revenue loss. In conclusion, the developed framework provides knowledge of the costs and benefits of hydropower environmental flow constraints and guides the prioritizing process of environmental measures.

13 HYDRO ENERGY↗
DOE OSTI2025

Operational optimization for multi-functional charging station with electric and hydrogen-powered vehicles

The rapid adoption of electric vehicles (EVs) and hydrogen fuel cell vehicles (HFCVs), combined with global efforts to reduce carbon emissions, has accelerated the development of EV charging and hydrogen refueling stations. In response to this demand, this paper introduces the concept of Multi-Functional Charging Station (MFCS) that integrates power generation, EV charging, battery swapping, and hydrogen refueling. A comprehensive operational model is developed for the MFCS that couples electricity and hydrogen conversion and storage technologies to enhance infrastructure utilization and improve overall system efficiency. The model also considers multiple revenue streams, including participation in energy and ancillary markets. To validate the effectiveness of the proposed model and evaluate its performance, a series of numerical experiments are conducted with different charger numbers, different electricity purchase limits, and different charger allocations. Numerical results demonstrate that shared charger configurations can lead to 8.11 % improvement in operational profit by improving resource utilization and reducing the number of depleted batteries at the end of operations compared to allocated charger setups. By varying the number of chargers, sensitivity analysis identifies diminishing marginal returns beyond about 45 chargers, suggesting it as an optimal sizing point under current settings. The integration of electricity and hydrogen conversion is also explored under scenarios with limited external electricity purchases. In conclusion, these findings indicate that optimizing charger allocation and energy management can significantly enhance station productivity and profitability, ultimately supporting the broader adoption of electrified and hydrogen-based transportation solutions.

Charging station↗
DOE OSTI2020

A biosorption-based approach for selective extraction of rare earth elements from coal byproducts

Coal byproducts could be a promising feedstock to alleviate the supply risk of critical rare earth elements (REEs) due to their abundance and REE content. Herein, we investigated the economic and environmental potential of producing REEs from coal fly ash and lignite through an integrated process of leaching, biosorption, and oxalic precipitation based on experimental data and modeling results. Two microbe immobilization systems (PEGDA) microbe beads and Si sol-gels) were examined for their efficiency in immobilizing Arthrobacter nicotianae to selectively recover REEs. Techno-economic analysis revealed that North Dakota lignite could be a profitable feedstock when Si sol-gel is used due to its high cell loading and REE adsorption capacity. Life cycle analysis revealed that Si sol-gel based biosorption could be more environmental friendly than the prevailing REE production in China due to use of less toxic chemicals. However, fly ash sourced from Powder River Basin coals was neither profitable or environmentally sustainable, primarily due to low solublity of high-value scandium at an economical pulp density (100 ash/L). To further improve the proposed biotechnology, future research could focus on scandium recovery, leaching efficiency, and microbe carriers.

20 FOSSIL-FUELED POWER PLANTS↗
DOE OSTI2022

Techno-economic and life cycle assessment of aluminum electrorefining from mixed scraps using ionic liquid

Aluminum production from bauxite ore uses significantly high amount of energy and capital expenditure. Recycle and reuse of aluminum can be economical and minimize the environmental impacts. Smelter based recycle and reuse of aluminum is used in recent days, however, it also uses high amount of energy with high cost of production and yields high life cycle impacts. The University of Alabama has developed aluminum electrorefining technology from mixed scraps using ionic liquids as an alternative to traditional smelter based recycle and reuse. This study has explored the techno-economical, and life cycle viability of that technology. An excel-based techno-economic and life cycle assessment model was developed at Idaho National Laboratory for techno-economic and life cycle assessment. SimaPro was used to get the necessary database for the life cycle assessment. This study determined that a 20,000 kg/day ionic liquid-based electrorefining system can be profitable with a net yearly profit of $2.00 million. Further, in terms of net global warming potential, it emits 0.92 kg CO 2 equivalent per kg of aluminum recycled, whereas the traditional smelter-based recycle technology emits 1.57 kg CO 2 equivalent per kg of aluminum recycled, and the aluminum production from bauxite ore emits 17.8 kg CO 2 equivalent per kg of aluminum produced. In other life cycle assessment categories, electrorefining of aluminum emits >88 % less than aluminum production from bauxite ore and it is also better than traditional aluminum recycling in six out of ten categories studied. This makes ionic liquid-based electrorefining technology a very promising technology in terms of process economics and environmental sustainability.

36 MATERIALS SCIENCE↗
DOE OSTI2026

Superstructure Optimization of Waste Plastic Pyrolysis, Integrating Thermal, Catalytic, and Plasma Technologies with Machine Learning

Global plastic waste generation exceeds 430 million tonnes per year, yet fewer than 9% are recycled in the United States. Pyrolysis offers a chemical recycling route at scale, but existing techno-economic and life cycle assessments fix product yields to single pure polymers, producing economic and environmental outputs that break down when the feed composition changes. Here, we present a superstructure optimization framework that addresses this by embedding a composition-aware random forest yield predictor, trained on 566 pyrolysis experiments, within a full-scale process simulation. Product distributions update automatically as feed allocation shifts across four reactor chemistries: conventional thermal, catalytic (HZSM-5), thermal oxo-degradation, and nonequilibrium CO2 plasma. The optimal superstructure achieves minimum selling prices of −0.56 to −0.76/kg feed and global warming potentials of −0.276 to −0.322 kg CO2-eq/kg feed across four commodity price scenarios, confirming profitable, carbon-negative operation without tipping fees. Carbon abatement costs of $\$$0.46 to $\$$1.25/kg CO2-eq are competitive with direct air capture. Sensitivity analysis shows that the catalytic-plasma split fraction is the single largest driver of both economic and climate performance, while hydrocracking allocation in the wax upgrading stage is emission-neutral across the full variable range. Mixed plastic waste streams, evaluated as composition-variable feedstocks rather than pure resins, are profitable and carbon-negative across realistic market conditions. These results give a quantitative basis for reactor selection, circular economy investment, and policy design targeting chemical recycling on a large scale.

Life cycle assessment↗
DOE OSTI2020

Mitigating the Impact of Thermal Binder Removal for Direct Li-Ion Battery Recycling

Li-ion battery recycling will become critical to the management of end-of-life batteries from electric vehicles. Currently, it is a challenge to create a profitable recycling process, which is made more difficult by the reduction in cathode cobalt content. Maintenance of the cathode structure throughout the recycling process can yield increased revenues that may make recycling profitable. This method will require careful removal of the PVDF binder and carbon black, which can be achieved through thermal processing. Furthermore, it is necessary to mitigate the effects of the fluorine from the PVDF on the cathode material. Herein, we report a process that utilizes excess LiOH•H 2 O to react with this fluorine and thereby prevent lithium removal and doping of the cathode material. In addition, we demonstrate a one-step thermal process that can both remove the binder and relithiate the cathode material.

25 ENERGY STORAGE↗
DOE OSTI2020

Techno-Economic and Life Cycle Assessments for Sustainable Rare Earth Recovery from Coal Byproducts using Biosorption

Coal byproducts could be a promising feedstock to alleviate the supply risk of critical rare earth elements (REEs) due to their abundance and REE content. Herein, we investigated the economic and environmental potential of producing REEs from coal fly ash and lignite through an integrated process of leaching, biosorption, and oxalic precipitation on the basis of experimental data and modeling results. Two microbe immobilization systems (polyethylene glycol diacrylate (PEGDA) microbe beads and Si sol–gels) were examined for their efficiency in immobilizing Arthrobacter nicotianae to selectively recover REEs. Techno-economic analysis revealed that North Dakota lignite could be a profitable feedstock when Si sol–gel is used due to its high cell loading and REE adsorption capacity as well as high reuse cycles. Life cycle analysis revealed that Si sol–gel-based biosorption could be more environmental friendly than the prevailing REE production in China due to the use of less toxic chemicals. However, fly ash sourced from Powder River Basin coals was neither profitable nor environmentally sustainable, primarily due to low solubility of high-value scandium at an economical pulp density (100 g ash/L of acid solution). To further improve the proposed biotechnology, future research could focus on scandium recovery, leaching efficiency at a high pulp density, and reuse cycles of the immobilized microbes.

01 COAL, LIGNITE, AND PEAT↗
DOE OSTI2021

Technoeconomic Assessment of a Sequential Step-Leaching Process for Rare Earth Element Extraction from Acid Mine Drainage Precipitates

Herein, Coal waste products have been studied as a new source of Rare Earth Elements (REEs) and other Critical Minerals (CM) essential for the development of renewable energy technologies, but the economic viability of these source materials is not well understood. This paper examines the technoeconomic performance of a novel process for rare earth element extraction from acid mine drainage precipitates (AMDp) in the Appalachian Coal Basin. The three phase extraction process includes excavation and transportation of AMDp, multi-phase pH driven step-leaching of REEs at ambient conditions, and commercial solvent extraction to produce a saleable grade rare earth oxide material that can be reduced to a pure metal. We estimate the life-cycle cost of bench-scale extraction of REEs from two representative Appalachian AMDp feedstock chemistries at between 4000 – 6000 $/kg of mixed REE concentrate produced. Both the AMDp composition and process parameters affect the profitability of REE extraction, with the REE concentration and distribution of REE in the feedstock, extraction and precipitation reagent consumption rates, and the potential for reagent recycling as the key variables. Economically profitable valorization of REE from AMDp will require a combination of continued process innovation and sizable financial incentives to substantially influence domestic supply of REEs.

36 MATERIALS SCIENCE↗
DOE OSTI2021

Sustainable Recycling of Rare-Earth Elements from NdFeB Magnet Swarf: Techno-Economic and Environmental Perspectives

Rare-earth elements (REEs) are increasingly susceptible to supply risks due to their limited geographical availability and growing demand in clean energy applications such as neodymium-iron-boron (NdFeB) magnets used in electric vehicles and wind turbines. When NdFeB magnets are produced, 6–73% of swarf is generated during the manufacturing steps. This paper presents an innovative technology that utilizes copper nitrate to dissolve REEs in NdFeB magnet swarf and subsequently recovers ~97% of them as mixed rare-earth oxides (REOs) of purity higher than 99.5%. Techno-economic analysis (TEA) and life cycle assessment (LCA) quantified the economic and environmental impacts of adopting the proposed acid-free dissolution technology, projecting a net profit margin of 12–43% and a global warming impact reduction by up to 73% compared to the prevailing REO production routes in China. As copper nitrate is the single largest contributor to the cost and environmental footprint, recycling of copper nitrate was investigated as well as using alternative copper salts (e.g., copper acetate), revealing significant improvements in TEA and LCA results. Dysprosium was a major revenue source, highlighting the importance of targeting electric vehicle magnets that are rich in dysprosium. As the REO market is volatile, sensitivity analysis was employed to evaluate the profitability of the proposed technology under different REO prices over the last 11 years. Overall, our results confirmed the economic and environmental viability of the proposed technology for sustainable recycling of REEs from the NdFeB magnet swarf.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗
DOE OSTI2022

Drivers of Future Physical Water Scarcity and Its Economic Impacts in Latin America and the Caribbean

Future water scarcity is a global concern with significant impacts on the energy, water, and land (EWL) sectors. Countries in Latin America and the Caribbean (LAC) are significant producers of agricultural goods consumed around the world, so disruptions resulting from land and water scarcity in LAC are a source of global supply chain risk. Understanding where water scarcity in LAC could occur and what could drive that scarcity to emerge is critical for strategic resource management and planning, both regionally and globally. Assessing future water scarcity impacts in LAC is challenging given the multisector dynamic interactions among the EWL sectors and the multiple uncertainties acting across different spatial scales. We use scenario discovery to explore the drivers of future water scarcity, considering assumptions related to climate, socioeconomics, and the EWL sectors. Understanding what factors drive uncertainty across outcomes can help stakeholders in targeting long-term solutions and future data collection efforts. To illuminate these dynamics, we use a database consisting of a large ensemble of scenarios representing diverse worlds simulated using the Global Change Analysis Model. We quantify future water scarcity and its economic impacts across the scenarios using three metrics: (1) physical water scarcity, (2) water price, and (3) crop profit. We find that physical water scarcity and water price are driven primarily by reservoir storage capacity assumptions, highlighting the importance of strategic water infrastructure development in maintaining future water availability and accessibility. Crop profit is driven by a combination of water supply and demand assumptions, which emphasizes the complex nature of EWL multisector dynamics. While most of LAC is poised to have abundant land and water resources available for development, water basins in Mexico and along the Pacific coast of South America experience high levels of severity and uncertainty across the future scenarios for at least one of the metrics. We find that the drivers of extreme scarcity vary spatially and across the metrics, further highlighting the heterogeneity of the region and the importance of considering multiple metrics to assess water scarcity vulnerability.

54 ENVIRONMENTAL SCIENCES↗
DOE OSTI2022

Economic evaluation of infrastructures for thermochemical upcycling of post-consumer plastic waste

Thermochemical technologies, such as pyrolysis, offer a potentially scalable pathway for upcycling diverse types of plastic waste (PW) into value-added chemicals. However, deploying these technologies in waste management infrastructures is not straightforward because such systems involve a wide range of interdependent stakeholders, processing facilities, and products. In this work, we present a holistic optimization framework that integrates value-chain analysis, techno-economic analysis, and life-cycle analysis for investigating the economic viability and environmental benefits of upcycling infrastructures that collect, sort, clean, and process post-consumer PW for producing virgin polymer resins. The framework is applied to a case study in the upper Midwest region of the US. Our analysis reveals that the infrastructures are economically viable and could activate a regional circular economy that generates over 1 billion USD in annual profit. Moreover, our analysis reveals that this economy can reduce the carbon footprint of PW incineration by half. Our framework also determines the inherent values of post-consumer PW and of derived products such as plastic bales and pyrolysis oil; we find that, in these infrastructures, PW becomes a highly valuable feedstock with a market value of 500 USD per tonne. Here, we discuss how this market value can generate incentives that foster more effective waste pre-sorting practices by consumers that can help bypass material recycling facilities and increase total system profit.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗
DOE OSTI2024

Market optimization and technoeconomic analysis of hydrogen-electricity coproduction systems

Decarbonization efforts across North America, Europe, and beyond rely on variable renewable energy sources such as wind and solar, as well as alternative fuels, such as hydrogen, to support the sustainable energy transition. These advancements have prompted a need for more flexibility in the electric grid to complement non-dispatchable energy sources and increased demand from electrification. Integrated energy systems are well suited to provide this flexibility, but conventional technoeconomic modeling paradigms neglect the time-varying dynamic nature of the grid and thus undervalue resource flexibility. In this work, we develop a computational optimization framework for dynamic market-based technoeconomic comparison of integrated energy systems that coproduce low-carbon electricity and hydrogen (e.g., solid oxide fuel cells, solid oxide electrolysis) against technologies that only produce electricity (e.g., natural gas combined cycle with carbon capture) or only produce hydrogen. Our framework starts with rigorous physics-based process models, built in the open-source Institute for the Design of Advanced Energy Systems (IDAES) modeling and optimization platform, for six energy process concepts. Using these rigorous models and a workflow to optimally design each technology, the framework is shown to be capable of evaluating new and emerging technologies in varying energy markets under a plethora of future scenarios (i.e., renewables penetration, carbon tax, etc.). Ultimately, our framework finds that solid oxide fuel cell-based coproduction systems achieve positive profits for 85% of the analyzed market scenarios. From these market optimization results, we use multivariate linear regression (R 2 values up to 0.99) to determine which electricity price statistics are most significant to predict the optimized annual profit of each system. The proposed framework provides a powerful tool for directly comparing flexible, multi-product energy process concepts to help discern optimal technology and integration options.

08 HYDROGEN↗
DOE OSTI2023

The Sustainability Index: a new tool to breed for reduced greenhouse-gas emissions intensity in Australian dairy cattle

Context The Australian dairy industry has a target to reduce greenhouse-gas (GHG) emissions intensity by 30% between 2015 and 2030. At the animal level, apart from nutritional modifications and other management practices, selecting animals that emit less GHG can be a cost-effective and long-term strategy. Given the world’s demand for protein is increasing, selecting for animals with lower GHG emissions per unit of production, i.e. emissions intensity, is a realistic approach that addresses the key issue of emissions reduction while maintaining farm productivity. Aim To develop a selection index for Australian dairy cattle to breed for reduced emissions intensity. Methods The Sustainability Index was built based on the existing Balanced Performance Index (BPI) but placed greater emphasis on production, survival, health and feed efficiency. Key results In August 2022, DataGene released the Sustainability Index that can be used by dairy farmers to select animals with lower environmental footprints. Compared with BPI, the weights for protein, fat, survival, mastitis resistance and feed efficiency increased by 2.6-, 1.4-, 2.8-, 1.3- and 3.8-fold respectively. It is expected that with the use of the Sustainability Index, emissions intensity will be reduced by 7.64%, 8.96% and 5.52% respectively in Holstein, Jersey and Red breeds by 2050, compared with the 2015 level. The corresponding values when selecting for BPI were 6.34%, 7.91% and 5.23% respectively. However, the trade-off in BPI when using the Sustainability Index will be AUD0.79, AUD0.83, AUD0.22 per cow per year for Holstein, Jersey and Red breeds respectively. Conclusions The current profit index BPI has contributed to reduction in emissions intensity. To enhance the rate of improvement in emissions intensity, the Sustainability Index can be used with minimal impacts on profit. Implications To breed for lower emissions intensity, farmers can select animals with high Sustainability Index values that are published on DataVat (datavat.com.au) and the Good Bulls App. To lower gross emissions, combinations of additional measures such as management of diet, adjustment to animal numbers, management of stored manure, and appropriate use of carbon neutral fertiliser, renewable fuels and energy, will need to be adopted on farms.

Agriculture↗
DOE OSTI2026

Climate-Driven Divergence in Biophysical and Economic Impacts of Agrivoltaics

Increasing global demands for food and energy necessitate innovative land-use solutions. Agrivoltaics, colocating solar photovoltaics with agriculture, shows promise, but its widespread adoption faces complex biophysical and economic trade-offs in a changing climate. Here, we develop an integrated biophysical-economic modeling framework to quantify how agrivoltaics affect biophysical and economic impacts across the Midwestern United States under both current and project climate conditions. We find strong regional divergences driven by climate gradients. In the humid eastern Midwest, solar panel shading limits photosynthesis, leading to reduced yields (maize -24%; soybean -16%) and lower farmers' profitability (maize -16%; soybean -2%) compared to conventional agriculture. Conversely, in the semiarid western region, shading alleviates heat and water stress, moderating yield reductions for maize (-12%) and even boosting soybean yields (+6%), resulting in improved economic returns (-6% for maize; +9% for soybean), for a scenario with 33% photovoltaic ground coverage ratio. Although agrivoltaics generate substantial electrical energy across all regions, high upfront installation costs challenge solar developers compared to standalone solar photovoltaics. However, our analysis identifies “win-win” opportunities where soybean-based agrivoltaics in the semiarid region produce economic benefits for both farmers and solar developers, highlighting the necessity for region-specific designs tailored to local climate conditions. Critically, future climate projections indicate eastward expansion of semiarid conditions, broadening areas where agrivoltaics can mitigate crop yield penalties (even boosting yield) and improve overall profitability, especially under high-emission scenarios. The results provide a mechanistic and economically integrated understanding essential for developing evidence-based and region-specific strategies to scale agrivoltaics in a changing climate.

14 SOLAR ENERGY↗
DOE OSTI2022

Sensitivity analysis of the technical and economic feasibility of converter-interfaced CHP System

The adoption of small-to-medium sized (1MW~20MW) combined heat and power (CHP) system is lagging, especially in industrial and commercial applications. Our prior research has proved that interfacing CHP with grid-ready converters can increase its economic value and technical benefits; this paper is focused on investigating the critical parameters impacting profitability of converter-interfaced CHP, including CHP sizing scenario, energy price, generator cost, converter cost, voltage support price, converter to engine size ratio and interconnection delay. An automatic toolkit for evaluating CHP return on investment (ROI) is developed to enhance the computation capability and efficiency. Based on varying the value of critical parameters, 975 use cases are analyzed. Results show that the profitability of converter-interfaced CHP over directly-coupled CHP is more sensitive to energy price, delays in interconnection process, converter cost and much less to generator cost or voltage support price.

converter, CHP, ROI, economic feasibility, sensiti↗
DOE OSTI2021

A Double-Signal Retail Pricing Scheme for Acquiring Operational Flexibility from Batteries

Batteries can provide valuable operational flexibility to facilitate the system efficiency. However, there lacks market environments to effectively harness and monetize the value of these assets. Most existing works apply a profit-oriented single-signal pricing scheme, which mixes the value of energy and flexibility together and may ultimately raise the electricity bill. Therefore, this paper proposes a profit-neutral double-signal retail pricing scheme that distinguishes elastic market players (i.e., batteries) from inelastic market players (i.e., inflexible loads) and quantifies the value of energy and flexibility separately. Experimental results indicate that under the incentive provided by the proposed retail pricing scheme: 1) The system efficiency benefit aligns with benefits to both batteries and inflexible loads; 2) Value of operational flexibility, contributing to improve the energy efficiency, can be transparently priced and fairly allocated among batteries; and 3) The dominant role in which inflexible loads play on determining the market price is avoided.

25 ENERGY STORAGE↗