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At least 163 records · Page 9

Optimal Economic Dispatch and Load-Following Strategies for Nuclear Integrated Energy Systems

The need for distributed and adaptable energy resources that can handle the growing unpredictability in both supply and demand is rising as the power system continues to modernize. In order to satisfy those needs and maintain grid resilience, nuclear power plants can dynamically control their output, despite typically being used as baseload generators. By incorporating energy storage and renewable energy sources, nuclear integrated energy systems are designed to satisfy the electrical and thermal demands of different end-user applications while ensuring flexible power operation. These systems generate revenue by participating in both wholesale and ancillary services electricity markets, as well as commodity markets for various byproducts generated from coupled industrial processes. This study addresses the economic dispatch efficiency of a tightly coupled nuclear integrated energy system comprising a gigawatt-scale light water reactor, commercialized in the U.S., a high-temperature steam electrolysis unit, a district heating network, and specified electrical loads. To demonstrate the nuclear power plant’s flexibility within the day-ahead unit commitment and economic dispatch framework, while maintaining equilibrium even during periods of refueling outages, this paper develops a mixed-integer linear programming framework that models the subsystems and components of its nuclear steam supply system. A systematic comparative analysis of flexible versus baseload nuclear power plant operation under varying levels of renewable energy integration indicates that flexible operation enhances system profitability by more than 18% while also increasing energy storage utilization, improving reactor responsiveness to load fluctuations, and allowing for greater participation across numerous electricity markets.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Interconnected Risks in Electricity Systems: Understanding Research Challenges, Needs, and Partnerships

The U.S. federal government has a potential role in mitigating the most poorly addressed risks across electricity markets and interdependent systems. Electricity system risks stem from extreme acute shocks (e.g., cyberattacks, extreme weather, and supply chain disruptions) and chronic stressors (e.g., global economic competition, uncertainties surrounding emerging technologies, climate change, and related conflicts). These acute shocks and chronic stressors can result in dire consequences for society, underscoring the need for better information for decision makers in both public and private sectors. Best practices and a shared understanding of risk management and risk quantification must be rapidly developed and disseminated. Informed by a quantitative treatment of risk to electrical infrastructure and interdependent systems, decision makers can more prudently and efficiently prioritize mitigation initiatives to maximize benefits to government, businesses, and the public.

24 POWER TRANSMISSION AND DISTRIBUTION↗

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

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

22 - GENERAL STUDIES OF NUCLEAR REACTORS↗

DLMP of Competitive Markets in Active Distribution Networks: Models, Solutions, Applications, and Visions

Traditionally, the electric distribution system operates with uniform energy prices across all system nodes. However, as the adoption of distributed energy resources (DERs) propels a shift from passive to active distribution network (ADN) operation, a distribution-level electricity market has been proposed to manage new complexities efficiently. In addition, distribution locational marginal price (DLMP) has been established in the literature as the primary pricing mechanism. The DLMP inherits the LMP concept in the transmission-level wholesale market but incorporates characteristics of the distribution system, such as high $R/X$ ratios and power losses, system imbalance, and voltage regulation needs. The DLMP provides a solution that can be essential for competitive market operation in future distribution systems. This article first provides an overview of the current distribution-level market architectures and their early implementations. Next, the general clearing model, model relaxations, and DLMP formulation are comprehensively reviewed. The state-of-the-art solution methods for distribution market clearing are summarized and categorized into centralized, distributed, and decentralized methods. Then, DLMP applications for the operation and planning of DERs and distribution system operators (DSOs) are discussed in detail. Finally, visions of future research directions and possible barriers and challenges are presented.

42 ENGINEERING↗

Modeling Market Interactions

This slide deck provides a high-level overview of wholesale electricity market design model development activities occurring at NREL. The motivation for this work, as well as the broader NREL modeling landscape in which it belongs, is first presented. Then the various model formulations and features are described.

agent-based simulation↗

Beyond Price Taker: Optimizing Integrated Energy Systems Considering Market/Grid Interactions

Integrated Energy Systems (IES) combine two or more processes to increase the efficiency, flexibility of operation, and the overall reliability. However, analyzing IESs in volatile electricity markets is challenging, since the volatility in electricity prices makes the conventional levelized cost-type analysis less realistic. This work presents two approaches to address the challenge: price-taker and a surrogates-based approach for incorporating market interactions. The price-taker approach formulates a multiperiod optimization problem that takes the time-varying electricity prices into account, and solves the optimization problem to determine the optimal operational schedule that maximizes the chosen economic metric. This approach is successfully applied to investigate the performance of flexible power and hydrogen co-production systems. The market surrogates approach trains a machine learning model to predict the market behavior as a function of the characteristics of the IES. The trained surrogate model is used to optimize the design and operation of the given IES in an electricity market. This approach is demonstrated on a case study involving a nuclear power plant retrofitted with a low-temperature electrolysis unit to co-produce power and hydrogen.

beyond price taker↗

Combined Cycle Integrated Thermal Energy Storage “CiTES” (Final Scientific/Technical Report)

The Phase I of this project confirmed the technical feasibility of a Combined Cycle integrated Thermal Energy Storage “CiTES” system, calculated the key performance parameters like power efficiency and costs, and proved its commercial value with full-year simulations for several US electricity markets with high degree of variable renewable generation and volatile hourly electricity prices. The core element of this project is the Electro Thermal Energy Storage (ETES) technology from Siemens Gamesa Renewable Energy GmbH, using thermally stable and inexpensive volcanic rocks as storage material and air as heat transfer medium. This technology is backed by more than 10 years of experience and a 440MMBTU (130MWh-th) pilot plant in Hamburg, Germany, which is in operation since 2019. The integration of this thermal storage in an existing combined cycle power plant (CCPP) is typical power plant technology without any major technology risks. It allows the storage of inexpensive renewable energy during times of surplus renewable generation and the discharge of this energy in times of high energy demand when the fossil plant is in operation. This supplements the fossil power generation with CO2-emission-free energy. The secondary effect of the CiTES system is that a small part of the stored thermal energy is used to keep the heat recovery steam generator (HRSG) and steam turbine (ST) of the combined cycle power plant in hot and ready-to-start condition. This enables the plant to start rapidly when fossil generation is required to satisfy demand as soon variable generation drops off in the evenings or during cloud cover and calm wind periods. Without pre-warming of the HRSG and ST, the CCPP would need several hours for a cold or warm start, burn a lot of gas and release high NOx emissions during start and wouldn’t be able to use the short times of high energy prices in an efficient or economical manner. The economic parameters of CiTES were determined by a full year “8760” simulation using a data set calculation for each of the hours of the year, and historical electricity and gas prices. For consistency, the simulations were focused on the pre-COVID year 2019. The financially most attractive markets were in the Energy Reliability Council of Texas (ERCOT) region, which allowed substantial value generation with arbitrage (charge with cheap energy during renewable surplus times and discharge when energy is needed and expensive). The improvement of flexibility with the CiTES system by pre-heating and warm-keeping of the CCPP allowed for additional power generation during short time periods when demand is high but renewable generation is down; when the hourly energy prices are highest in these markets. The simulations are based on 2019 data, when ERCOT had 27GW of installed photovoltaic (PV) and wind generation. They showed that the created revenue with the prototypically sized CiTES system of 1,000MMBTU (300MWh-th) falls a little bit short of what is expected from a commercially viable investment. The system has optimization opportunities for cost reduction and increased effectiveness which will be realized during a potential Phase II Pre-FEED study following this project. Furthermore, it is safe to assume that a lot of renewable generation capacity will be added all over the US in the coming years. As an example, ERCOT is predicting to more than double its renewable generation from 27GW in 2019 to a forecasted 63GW in 2023. This will increase the amount of renewable overproduction exponentially. This rapid increase of local overproduction and the need to curtail renewable generation is well documented by the California ISO (www.CAISO.com / managing oversupply). However, the simulations also revealed a weakness in the structure of the electricity markets in the US. More specifically, when electricity prices are very low and approaching negative levels, the owners of Variable Renewable Energy (VRE) will curtail a part of their facility to stabilize the price by reducing supply. This results in a situation in which storage facilities, which are integrated in existing fossil assets and don’t have the behind-the-meter benefit of a VRE, won’t be able to purchase low cost – otherwise curtailed – renewable energy off the grid. A special tariff, which motivates VRE owners to sell otherwise curtailed renewable energy to storage facilities (Hydrogen, thermal, pumped hydro, etc.) can solve this issue. The implementation of such a regulating tariff by Independent System Operators, thus avoiding renewable curtailment, is a pre condition for successful commercialization for renewable energy storage technologies. With this advancement of design and technology and improvements in the market environment, it can be expected that the Combined Cycle integrated Thermal Energy Storage proves itself as an important innovation to keep highly efficient, natural gas-based power generation economically successful and relevant for the power industry in the United States of America.

Wolf, Thorsten↗

Leveraging concentrating solar power plant dispatchability: A review of the impacts of global market structures and policy

Concentrating solar power (CSP) integrated with thermal energy storage delivers flexible and dispatchable power, which is an increasingly valuable quality as electricity systems integrate growing penetrations of variable renewable energy. Valuing and compensating CSP's dispatchability and flexibility requires electricity market structures and policies that appropriately remunerate generation during high-value portions of the day. In this paper, we review previous analyses of CSP economics and deployment, and we find that continued CSP growth will require valuation mechanisms that appropriately compensate for CSP's flexibility during both plant design and plant operation. We then review market structures that drive CSP operations and dispatch in jurisdictions where CSP is being developed, with perspectives from Spain, Chile, Australia, Morocco, South Africa, the United States, China, and the United Arab Emirates (Dubai). Despite broad agreement that CSP's dispatchability provides value to electricity grids, countries' policies for remunerating and leveraging such dispatchability varies widely. As deployment of CSP and variable renewable energy grows, it will be increasingly important to redesign current integration policies to signal the delivery of CSP's grid services more appropriately.

14 SOLAR ENERGY↗

Rethinking the Price Formation Problem–Part 1: Participant Incentives under Uncertainty

Operators of organized wholesale electricity markets attempt to form prices in such a way that the private incentives of market participants are consistent with a socially optimal commitment and dispatch schedule. In the U.S. context, several competing price formation schemes have been proposed to address the non-convex production cost functions characteristic of most generation technologies. Here, this paper considers how the design and analysis of price formation policies for non-convex markets are affected by the uncertainty inherent in electricity demand and supply. We argue that by excluding uncertainty, the analytical framework underlying existing policies mischaracterizes the incentives of market participants, leading to inefficient price formation and poor incentives for flexibility. We establish favorable theoretical properties of a new construct, ex ante convex hull pricing , and demonstrate the difference between this idealized benchmark and existing methods on a large-scale test system. Given increased operational uncertainty with a transition to wind and solar generation, distortions caused by poor incentives for flexibility are likely to grow without improved price formation in organized wholesale markets.

24 POWER TRANSMISSION AND DISTRIBUTION↗

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↗

Using Concentrating Solar Power to Create a Geological Thermal Energy Reservoir for Seasonal Storage and Flexible Power Plant Operation

Abstract We propose a hybrid renewable energy system—a geothermal energy storage system (GeoTES) with solar—to provide low-cost dispatchable power at various timescales from daily, to weekly, to seasonally. GeoTES with solar uses a concentrating solar power collector field to produce hot water that is injected into a sedimentary basin to create a synthetic geothermal resource. The stored geothermal heat can then be dispatched when required by the electrical grid. GeoTES is particularly valuable for a grid with a high penetration of non-flexible renewable technologies such as photovoltaic and wind power. In this work, a sophisticated hybrid model is developed to assess the technical and economic potential of GeoTES by combining IPSEpro, which is a power-cycle simulation tool, and SAM, an economic analysis tool by National Renewable Energy Laboratory (NREL). The analysis shows with proper initial charging period that the heat loss in storage is almost negligible and is a suitable technology for long-term energy storage. Various power-cycle options are evaluated, and the most suitable power cycle is selected for further study. Annual calculations of the GeoTES system indicate that a levelized cost of storage (LCOS) of 12.4 ¢/kWh e can be achieved for seasonal storage of 4000 h; this value is much lower than the existing long-term storage. The LCOS of GeoTES is insensitive to the storage duration above 8 h, unlike battery and molten-salt thermal storage systems. This result demonstrates that GeoTES can be a competitive seasonal storage technology in the future electricity market. The levelized cost of electricity of the GeoTES system is also carefully analyzed and can vary between 10.0 and 16.4 ¢/kWh e , depending on solar-collector prices.

25 ENERGY STORAGE↗

A systematic solution to quantify economic values of vehicle grid integration

We report Vehicle-Grid-Integration (VGI) supplies one of the potential benefit extensions for electric vehicles (EVs) to make use of their parking time, which enables the EVs to provide grid services while still meeting consumer driving needs. However, the costs, benefits and risks of VGI still remain unclear, which limits the development of the VGI to promote the interaction between the EV and grid. In this study, we propose an integrated framework to quantify and utilize the aggregate flexibility of the EVs to supply the grid services in electricity markets. The integrated solution includes five sub-modules that cover end-to-end functionalities from individual EV energy consumption estimation to final monetary values calculation of providing grid services. Both wholesale market and local level charging management are formulated in the optimization module. A predictive control algorithm is proposed to allocate power to individual vehicles in real time, considering uncertainties from dispatch signal and travel behavior. Simulation results from 10,000 EVs indicate that the proposed optimization methods can significantly reduce the system cost in both wholesale market and retail market. Local tariff optimization reduces the electricity cost by 24.4% compared to uncontrolled charging. Wholesale market optimization results show that $\$$691 and $\$$255 revenues can be captured by each EV in ERCOT and CAISO markets per year, although with a conservative assumption on battery throughput cost at 0.16$\$$/kWh.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Electric Grid and Markets 101 [Slides]

This presentation covers aspects of operating the bulk power system with a focus on the regulatory levels of the US grid at a pretty introductory level. It was meant ot help inform a request from USDA for a "101" presentation that spoke to how electricity markets, contracting and regulation interact with the engineering and physics of operating the bulk power system. They are presently moving to being able to more directly fund PPAs or other non-co-op owned assets for member co-ops, is my understanding.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Rethinking the Price Formation Problem–Part 2: Rewarding Flexibility and Managing Price Risk

In this study, part 1 of this two-part paper describes the impact that uncertainty has on the design and analysis of price formation policies in the non-convex auctions conducted by U.S. wholesale electricity market operators. Using first a toy model and then a large-scale test system, Part 2 demonstrates the difference in prices under the idealized benchmark of ex ante convex hull pricing defined in Part 1 versus existing methods, in particular documenting the potential for suppression of volatility and therefore under-compensation of flexibility by existing methods. The examples highlight that inefficient spot price formation can induce inefficient forward commitments of generators, necessitating out-of-market intervention to restore a reliable and efficient operating plan.Given the potential side effects of existing policies for investment and operation, we suggest two elements in a reoriented approach to the price formation problem: first ensuring that prices exhibit full-strength volatility, and second ensuring that risk-averse market participants have sufficient ability to manage this volatility.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Reserve and energy scarcity pricing in United States power markets: A comparative review of principles and practices

Here, errors in forecasting load and renewable-based generation in restructured power systems mean that independent system operators (ISOs) must procure sufficient operating reserves to keep the real-time operation of the system reliable and secure. But when procured reserves turn out to be insufficient in real-time due to the lack of resource capacity or ramp capability, operators often set higher prices for reserves and energy to encourage more supply, and to motivate consumers to decrease usage or shift it to other times. This procedure, which is called scarcity or shortage pricing, is a core feature of U.S. electricity markets. It is receiving increased attention from market designers and stakeholders because scarcity will become more important for spot price formation in the future with the increased penetration of zero-marginal cost renewables, and the shrinking role of fuel costs in setting prices. Scarcity pricing is implemented in various ways by different ISOs. These differences have practical implications for the level of prices and incentives for investment, operations, and demand modification. In this paper, general approaches and specific calculation procedures for reserve and energy scarcity pricing practices and calculations across the seven ISO-based U.S. power markets are reviewed and compared. A consistent terminology is used to facilitate the comparison. Current scarcity pricing practices are grouped into three approaches: (1) imposing an adder after the spot market is run; (2) including stepwise demand curves within market clearing procedures for non-contingency reserve products (e.g., the novel flexiramp product), which tends to yield longer right tails for energy scarcity premium curves; and (3) having stepwise demand curves for traditional contingency reserve products only, which results in shorter right tails in energy scarcity curves. A generic numerical example is presented to highlight the large practical differences among the reserve scarcity pricing approaches and specific implementations. To further investigate factors that contribute the most to demand curves differences among ISOs, a sensitivity analysis is performed. This analysis shows that the largest source of differences among the curves is the scarcity prices assumed in the case of severe scarcity, while the number of steps used and whether flexiramp is considered also yields important differences in scarcity prices. As renewable penetration increases, it will become increasingly crucial to employ administrative demand curves so that spot prices more effectively motivate supply and demand adjustments exactly when and where they are needed. This study shows that the different assumptions yield very different scarcity premiums for reserves and energy, and are likely to provide divergent incentives for resources to respond to shortages. It is concluded that to promote market efficiency, a reserve shortage demand curve should have at least three features: inclusion of the marginal value of reserve products at each shortage level, consideration of the magnitude and probability of supply contingencies, and avoidance of abrupt price discontinuities that can cause excessively volatile market outcomes.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗