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At least 163 records · Page 9

Decarbonization scenarios of the U.S. Electricity system and their costs

Decarbonizing the electricity system to zero-carbon emission is crucial for climate change mitigation. Previous studies have shown that such a transition in the United States (U.S.) may lead to higher system cost compared to a business-as-usual case, but it is not well-known how the cost of electricity generation varies at sub-regional level under the transition, and studies have rarely evaluated the trade-off between the cost and avoided climate damages, as well as the potential roles of negative emission technologies (NETs) in the electricity decarbonization. In this work, we present a regionally resolved national model to quantify the cost of decarbonizing the U.S. electricity system under a set of possible scenarios. The results show that, compared to the reference scenario without a decarbonization policy, reaching zero CO 2 emission by 2050 would incur, depending on the scenarios, 335-494 billion USD additional cost to the U.S. electric power sector during 2020-2050. The regional costs of electricity generation ranges from 2.4 to 4.7 cent/kWh, largely due to the generation profiles and renewable resources availability of those regions. The additional costs can be translated to an average CO 2 abatement cost of 29-59 USD/metric ton CO 2 (with 2%-7% discount rates), which are comparable to the social cost of carbon in the literature at around 4% discount rate. The results also show that the cost of mitigating the last few percent CO 2 emission from the U.S. electricity system may exceed the costs of NETs, indicating an opportunity for NETs to contribute to electricity decarbonization.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Cost Projections for Utility-Scale Battery Storage: 2023 Update

In this work we describe the development of cost and performance projections for utility-scale lithium-ion battery systems, with a focus on 4-hour duration systems. The projections are developed from an analysis of recent publications that include utility-scale storage costs. The suite of publications demonstrates wide variation in projected cost reductions for battery storage over time. We use the recent publications to create low, mid, and high cost projections. Projected storage costs are $245/kWh, $326/kWh, and $403/kWh in 2030 and $159/kWh, $226/kWh, and $348/kWh in 2050. Battery variable operations and maintenance costs, lifetimes, and efficiencies are also discussed, with recommended values selected based on the publications surveyed.

25 ENERGY STORAGE↗

Electrification Futures Study: Scenarios of Power System Evolution

Electrification of end-use technologies could have important implications for bulk power sector planning, operations, and impacts. By combining previously-defined electrification scenarios with capacity expansion modeling, we evaluate the potential challenges and opportunities associated with electrification. Our scenario analysis reveals that electrification reduces energy consumption and air emissions from across the energy sector, and its impacts on energy system costs are modest due, in part, to the abundance of low-cost resources in the United States.

43 PARTICLE ACCELERATORS↗

Insights from NREL’s Electrification Futures and LA100 Studies

Electrification of end-use technologies could have important implications for bulk power sector planning, operations, and impacts. By combining previously-defined electrification scenarios with capacity expansion modeling, we evaluate the potential challenges and opportunities associated with electrification. Our scenario analysis reveals that electrification reduces energy consumption and air emissions from across the energy sector, and its impacts on energy system costs are modest due, in part, to the abundance of low-cost resources in the United States.

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Competitiveness Metrics for Electricity System Technologies

The relative economic competitiveness of power generation technologies is a topic of much interest to diverse electric industry participants. However, assessing competitiveness can be challenging as it requires considering both total costs and total system value of each technology, which are complicated by the (1) numerous and diverse grid services needed to operate a reliable power system; (2) variations in the economic value of the grid services with system state and location, and over multiple timescales, due to the challenges of transporting and storing electricity; and (3) the unique characteristics of different electric system assets. Ideally, metrics designed or used to convey technology competitiveness must consider these complexities, but existing metrics often fall short. For example, the levelized cost of energy does not consider the system economic value of the various technologies nor does it consider services beyond electricity production. Various other metrics have been designed with the purpose of more-accurately communicating the economic viability of electric system technologies. In this report, we summarize the primary sources and components of costs and value and review the known competitiveness metrics by presenting their definitions, applications, advantages, and disadvantages. We also introduce a new set of competitiveness metrics, which we refer to as System Profitability metrics, that more-directly applies the economic principles of return-on-investment to electric system technologies. We use conceptual examples to show how the System Profitability metrics better reflect economic viability and relative technology competitiveness compared with existing metrics. We also describe how competitiveness metrics can be quantified using optimization-based models and demonstrate this capability using a U.S. electric sector capacity expansion model.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Updated Baseline Cost Model for Hydropower (2023)

The "Updated Baseline Cost Model (BCM) for Hydropower" is an empirical model for estimating the costs of US hydropower projects in six categories (Non-Powered Dam (NPD), New Stream Development (NSD), Canal/Conduit, Pumped Storage Hydro (PSH), Capacity Expansion, Generator Rewind). The model equations have been estimated with data on existing or planned projects obtained from various sources. NOTE: This is a macro-enabled workbook, so Excel may block it on the first opening. In that case: 1. Save the workbook to a local directory 2. Right-click on the workbook in the local directory and select “Properties” 3. Then check “Unblock” at the bottom of the “General” tab.

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Methods for Translating ReEDS Solutions to Production Cost Modeling Tools

Capacity expansion modeling tools are increasingly being utilized to investigate a wide range of potential future scenarios, particularly with high penetrations of variable and energy-constrained resources that may be operated differently than current dispatch paradigms. While capacity expansion models are particularly adept at making investment decisions for future years, they must make compromises in operational aspects to maintain computational tractability. However, it is of high interest to determine if such future systems would be able to maintain reliability during a variety of grid conditions, and to identify any potential operational challenges for these systems at finer temporal resolution than is typically captured in CEMs. As such, there is value in having an automated tool that can convert many CEM investment pathways into inputs for a more detailed production cost model, in this case the PLEXOS commercial software package. This paper describes the methodology used to make that translation for the NREL-developed ReEDS model, making use of two internally developed tools - PIDG and beetle - along with a set of processing scripts. We describe the current assumptions, data sets, and important operational characteristics of these translations along with an example of the extended analyses that may be done through this connection.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Infrastructure and resource development needs to support a significant expansion of US nuclear capacity

In December 2023, the United States pledged at a United Nations conference to triple nuclear energy by 2050. In May of 2025 a new administration announced plans to quadruple nuclear energy by 2025, setting a new target that requires understanding the key infrastructure and resources needed to achieve large-scale deployment. This study attempts to quantify “what it takes” to deploy an additional 200 GWe of nuclear capacity. It projects demand levels for workforce, fuel, uranium mining and enrichment, waste management, supply chain, land, licensing, and water. Demand growth is also contextualized. For example, the peak number of construction workers required is approximately 215,000, a 37 % increase in the current US utility construction workforce. Up to 80,000 MT/year of mined uranium will be needed, necessitating a 60-fold increase in US mining production or a doubling of global mining if sourced externally. Advanced reactor fuels, uranium mining, and nuclear-grade equipment production would need substantial expansion. Operational workforce, enrichment needs, and licensing submissions also face significant increases. Although water consumption may see relatively lower increases, securing water rights poses unique challenges. This study consolidates various demand metrics in a broad context, highlighting the necessity of early preparations, such as workforce training, to support a tripling of nuclear energy. While it outlines the demand-side requirements, it does not assess the difficulties of ramping up or other supply-side issues. The findings also shed light on the impact of reactor size and reactor technology on various demand metrics.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Impacts of Renewable Energy and Green Hydrogen Policies on Uttar Pradesh's Power Sector Future

This report is part of a broader program focused on supporting Indian states with long-term power system planning. More information about this program can be found at the National Renewable Energy Laboratory's "Supporting India's States With Renewable Energy Integration" web page at https://www.nrel.gov/international/india-renewable-energy-integration.html. The power sector in Uttar Pradesh, India's most populous state, is poised to transform over the next few decades due to a combination of national and state-level policies impacting both the supply and demand of electricity. The Government of Uttar Pradesh has policies and plans to develop in-state solar PV, pumped storage hydropower, and green hydrogen. Power system policymakers and utilities in Uttar Pradesh are faced with the challenges of planning a system that incorporates increasing amounts of renewable energy and storage resources, meets rising electricity demand due to economic development and green hydrogen production, and satisfies operational and reliability requirements. To support these various objectives, the National Renewable Energy Laboratory (NREL), RMI, and the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) evaluated the least-cost pathways for the state's power sector through 2050. NREL developed a capacity expansion model that identifies investment and operational decisions for every year (2024-2050) for all of India, with detailed representation for the state of Uttar Pradesh, which can provide a framework for recurring planning studies. The main insights from this study can also help inform policy development and investment decisions.

08 HYDROGEN↗

PR100 One-Year Progress Summary Report: Preliminary Modeling Results and High-Resolution Solar and Wind Data Sets

The Puerto Rico Grid Resilience and Transitions to 100% Renewable Energy Study (PR100) is a 2-year study by the U.S. Department of Energy's (DOE's) Grid Deployment Office and six national laboratories to comprehensively analyze stakeholder-driven pathways to Puerto Rico's clean energy future. In Year 1 of the study, the PR100 team rigorously modeled and analyzed scenarios that meet Puerto Rico's renewable energy targets and achieve short-term recovery goals and long-term energy resilience. This report, which summarizes PR100 progress in Year 1, provides considerations that can inform potential funding and implementation decisions by key federal and local agencies and stakeholders. The summary report follows the publication in July 2022 of a PR100 Six-Month Progress Update (in English and Spanish), as well as public webinars in February 2022 to kick off the study and in July 2022 to present the 6-month update. A final written report and web-based visuals will be published in late 2023. All publications and public events associated with the study will be available in Spanish and English. This report is also available in Spanish https://www.nrel.gov/docs/fy23osti/85144.pdf.

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National Transmission Planning Study - Long-Term Modeling Results

The National Transmission Planning Study (NTP Study) analyzed the transformation needed to ensure the U.S. transmission system continues to reliably meet electricity demand as the power sector evolves. The study linked several long- and short-term power systems models to test numerous interregional and regional transmission buildout scenarios. The results included in this dataset are from the long-term capacity expansion modeling, completed with NREL's ReEDS model. This includes nearly 100 future transmission scenarios with a wide range of economic, reliability, and resilience conditions. The dataset includes all the results visualized in the Tableau Public site, as linked below.

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Can Wholesale Electricity Markets Achieve Resource Adequacy and High Clean Energy Generation Targets in the Presence of Self-Interested Actors?

Wholesale electricity markets are intended to incentivize system generation investments and operations outcomes that meet evolving system needs. In this work, we evaluate the effectiveness of wholesale market structures, rules and policies in achieving system resource adequacy (RA) and clean energy targets in the presence of self-interested generation investors using the Electricity Markets and Investment Suite Agent-based Simulation (EMIS-AS) model. Results highlight that both capacity markets and operating reserve demand curves (ORDCs) can help achieve a reliable system but with different RA compliance timelines and distribution of generation technologies. Structures with capacity markets tend to favor more capital-intensive peaking technologies while reducing wind and solar build-outs due to suppressed energy and clean energy market prices, particularly in the absence of strong clean energy targets. Conversely, ORDCs improve the commitment of available generation units, but this comes at the expense of higher system costs and renewable generation curtailment. We also find that well-calibrated static capacity demand curves can yield similar reliability and total cost compared to capacity market demand curves informed dynamically by resource adequacy while also yielding stable annual capacity prices. Different approaches to formulating ORDC curves can also yield key trade-offs, namely that a more efficient treatment of storage chronology results in lower ORDC curves and prices, yielding less investment and cost but at the expense of reliability. Finally, the effectiveness of wholesale electricity markets in practically achieving very high clean energy generation targets highly depends on the cost-competitiveness of clean energy technologies that can support critical balancing needs across multiple timescales.

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Technology Pathways Could Help Drive the U.S. West Coast Grid's Exposure to Hydrometeorological Uncertainty

Abstract Previous studies investigating deep decarbonization of bulk electric power systems and wholesale electricity markets have not sufficiently explored how future grid pathways could affect the grid's vulnerability to hydrometeorological uncertainty on multiple timescales. Here, we employ a grid operations model and a large synthetic weather ensemble to “stress test” a range of future grid pathways for the U.S. West Coast developed by ReEDS, a well‐known capacity planning model. Our results show that gradual changes in the underlying capacity mix from 2020 to 2050 can cause significant “re‐ranking” of weather years in terms of annual wholesale electricity prices (with “good” years becoming bad, and vice versa). Nonetheless, we find the highest and lowest ranking price years in terms of average electricity price remain mostly tied to extremes in hydropower availability (streamflow) and load (summer temperatures), with the strongest sensitivities related to drought. Seasonal dynamics seen today involving spring snowmelt and hot, dry summers remain well‐defined out to 2050. In California, future supply shortfalls in our model are concentrated in the evening and occur mostly during periods of high temperature anomalies in late summer months and in late winter; in the Pacific Northwest, supply shortfalls are much more strongly tied to negative streamflow anomalies. Under our more robust sampling of stationary hydrometeorological uncertainty, we also find that the ratio of dis‐patchable thermal (i.e., natural gas) capacity to wind and solar required to ensure grid reliability can differ significantly from values reported by ReEDS.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Wholesale Electricity Markets and Resource Adequacy with High Clean Energy Generation Targets

Wholesale electricity markets are intended to incentivize system generation investments and operations outcomes that meet evolving system needs. In this work, we evaluate the effectiveness of wholesale market structures, rules and policies in achieving system resource adequacy (RA) and clean energy targets in the presence of self-interested generation investors using the Electricity Markets and Investment Suite Agent-based Simulation (EMIS-AS) model. Results highlight that both capacity markets and operating reserve demand curves (ORDCs) can help achieve a reliable system but with different RA compliance timelines and distribution of generation technologies. Structures with capacity markets tend to favor more capital-intensive peaking technologies while reducing wind and solar build-outs due to suppressed energy and clean energy market prices, particularly in the absence of strong clean energy targets. Conversely, ORDCs improve the commitment of available generation units, but this comes at the expense of higher system costs and renewable generation curtailment. We also find that well-calibrated static capacity demand curves can yield similar reliability and total cost compared to capacity market demand curves informed dynamically by resource adequacy while also yielding stable annual capacity prices. Different approaches to formulating ORDC curves can also yield key trade-offs, namely that a more efficient treatment of storage chronology results in lower ORDC curves and prices, yielding less investment and cost but at the expense of reliability. Finally, the effectiveness of wholesale electricity markets in practically achieving very high clean energy generation targets highly depends on the cost-competitiveness of clean energy technologies that can support critical balancing needs across multiple timescales.

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plexosdb: A Modular Library for Programmatic PLEXOS Model Construction

plexosdb is a lightweight Python library for constructing PLEXOS models using a SQLite-backed data structure. It provides a clear, modular interface that maps relational data directly to model components. By leveraging SQLite and idiomatic Python, it enables fast iteration and reproducible workflows. The result is a performant, composable foundation for scalable PLEXOS model development.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Discrete versus continuous: Enhancing battery optimization in capacity expansion models

This study compares two battery modeling approaches for capacity expansion models: discrete-duration and continuous-duration formulations. In the discrete approach, battery duration is fixed, and power capacity is optimized. In the continuous approach, both power and energy capacities are decision variables, allowing storage duration to be optimized endogenously. Although both discrete-duration and continuous-duration battery formulations are used in long-term power system planning models, the literature has provided limited direct, systematic comparisons of their implications within a common modeling framework. To address this gap, this study implements both approaches in the Regional Energy Deployment System (ReEDS TM ) capacity expansion model using two resource adequacy methods, across a range of future system conditions, and with varying battery cost projections. Results show continuous-duration and high-resolution discrete approaches produce similar capacity expansion outcomes. The continuous formulation achieves faster runtimes compared to discrete-duration runs with many discrete-duration options. However, the discrete-duration approach allows users to choose to have limited fidelity for storage duration options, which in some cases can outperform the continuous formulation. The continuous formulation has the lowest overall system costs, indicating its ability to fine-tune storage duration to better meet specific system needs. This study's findings provide a side-by-side evaluation of discrete and continuous battery modeling approaches and offer guidance for improving the representation of real-world systems, flexibility, and computational efficiency for representing energy storage in long-term power system planning models.

25 ENERGY STORAGE↗

The role of hydrogen as long-duration energy storage and as an international energy carrier for electricity sector decarbonization

With countries and economies around the globe increasingly relying on non-dispatchable variable renewable energy (VRE), the need for effective energy storage and international carriers of low-carbon energy has intensified. This study delves into hydrogen's prospective, multifaceted contribution to decarbonizing the electricity sector, with emphasis on its utilization as a scalable technology for long-duration energy storage and as an international energy carrier. Using Japan as a case study, based on its ambitious national hydrogen strategy and plans to import liquefied hydrogen as a low-carbon fuel source, we employ advanced models encompassing capacity expansion and hourly dispatch. We explore diverse policy scenarios to unravel the timing, quantity, and operational intricacies of hydrogen deployment within a power system. Our findings highlight the essential role of hydrogen in providing a reliable power supply by balancing mismatches in VRE generation and load over several weeks and months and reducing the costs of achieving a zero-emission power system. The study recommends prioritizing domestically produced hydrogen, leveraging renewables for cost reduction, and strategically employing imported hydrogen as a risk hedge against potential spikes in battery storage and renewable energy costs. Furthermore, the strategic incorporation of hydrogen mitigates system costs and enhances energy self-sufficiency, informing policy design and investment strategies aligned with the dynamic global energy landscape.

08 HYDROGEN↗