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DOE OSTI2023

Managing Uncertainty and Flexibility in Day-Ahead Electricity Markets

Net load imbalances from day ahead forecasts can lead to significant grid operations costs and are expected to increase as variable renewable energy adoption grows. We propose a new wholesale market product to manage the risk of net load imbalances called Flexibility Options. This product relies on probabilistic forecasts to estimate flexibility demand and would be co-optimized in the day-ahead market. We also propose stochastic methods that enable DER and flexible load aggregators to participate in flexibility markets while considering the uncertainty in weather and occupant behavior.

day-ahead market↗

DOE OSTI2020

A robust offering strategy for wind producers considering uncertainties of demand response and wind power

This paper proposes a risk-constrained decision-making approach for a wind power producer participating in the day-ahead market. In the developed model, a flexible demand response trading scheme between the wind power producer and different customers is employed. Through the proposed demand response mechanism, the wind power producer is able to trade demand response resource internally with different customers, and then trade energy externally with the market to increase the expected profit and the wind energy utilization. The uncertainties in the wind power and demand response are modeled by using the information gap decision theory approach from risk averse (robust) and risk-seeking (opportunistic) perspectives. The objective of the robust model is to maximize the robust level while satisfying the desired profit, whereas the opportunistic model aims to evaluate the possibility of achieving windfall profits with favorable uncertainties. The overall offering strategy problem is modeled as a bi-objective mixed integer nonlinear programming, which is linearized by proper techniques and solved efficiently by using the normal boundary intersection technique. In this work, simulation results show that utilizing demand response resource to mitigate wind power deviations can increase a wind power producer's profit and reduce potential risks. In addition, the results demonstrate that the proposed bi-objective optimization approach enables the wind power producer to select appropriate offering decisions with respect to uncertainties.

17 WIND ENERGY↗

DOE OSTI2026

Calibration of urban building energy model using smart meter data for district peak load prediction

Urban building energy modeling (UBEM) is a powerful approach to assessing baseline building energy performance and retrofits with new technologies across building stocks in cities. However, the accuracy of UBEM is often constrained by the limited availability of reliable data about building characteristics and operations, such as envelope efficiency levels, HVAC system performance, and end-use load patterns. Existing research has performed UBEM calibration using annual or monthly energy consumption data, which falls short when higher-resolution time series applications are needed, such as peak load prediction for utility operation planning. This study presents a new framework for calibrating building energy models at urban scale using smart meter data, targeting the accurate prediction of summer peak electricity loads to support robust grid planning. The framework first integrates various data sources to enhance baseline input assumptions for building models, and then calibrates the baseline models through a pattern-matching approach. A case study using CityBES and two years of AMI data from over 9000 residential customers in Portland, Oregon, demonstrated the workflow and its effectiveness. The calibrated models achieved a daily peak load mean absolute percentage error of 2.6 % during the heatwave in the calibration year, and 2.0 % in the validation year using another year of AMI data. Using the calibrated models, we analyzed the demand flexibility potential of the district building stock as an application of UBEM calibration. The findings affirm the appropriate use of UBEM for peak electric load forecasting and demand side management at the utility distribution system level.

AMI data↗

DOE OSTI2021

Controlling distributed energy resources via deep reinforcement learning for load flexibility and energy efficiency

Behind-the-meter distributed energy resources (DERs), including building solar photovoltaic (PV) technology and electric battery storage, are increasingly being considered as solutions to support carbon reduction goals and increase grid reliability and resiliency. However, dynamic control of these resources in concert with traditional building loads, to effect efficiency and demand flexibility, is not yet commonplace in commercial control products. Traditional rule-based control algorithms do not offer integrated closed-loop control to optimize across systems, and most often, PV and battery systems are operated for energy arbitrage and demand charge management, and not for the provision of grid services. More advanced control approaches, such as MPC control have not been widely adopted in industry because they require significant expertise to develop and deploy. Recent advances in deep reinforcement learning (DRL) offer a promising option to optimize the operation of DER systems and building loads with reduced setup effort. However, there are limited studies that evaluate the efficacy of these methods to control multiple building subsystems simultaneously. Additionally, most of the research has been conducted in simulated environments as opposed to real buildings. This paper proposes a DRL approach that uses a deep deterministic policy gradient algorithm for integrated control of HVAC and electric battery storage systems in the presence of on-site PV generation. The DRL algorithm, trained on synthetic data, was deployed in a physical test building and evaluated against a baseline that uses the current best-in-class rule-based control strategies. Performance in delivering energy efficiency, load shift, and load shed was tested using price-based signals. The results showed that the DRL-based controller can produce cost savings of up to 39.6% as compared to the baseline controller, while maintaining similar thermal comfort in the building. The project team has also integrated the simulation components developed during this work as an OpenAIGym environment and made it publicly available so that prospective DRL researchers can leverage this environment to evaluate alternate DRL algorithms.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2023

Demand-side solutions in the US building sector could achieve deep emissions reductions and avoid over $100 billion in power sector costs

Buildings are energy-intensive and a primary source of US end-use sector carbon emissions. Although building emissions today are 25% below their 2005 peak, far deeper reductions are needed to reach the US 2050 net-zero emissions goal. However, plausible decarbonization pathways that consider both buildings and their interactions with the power grid remain poorly understood. Here, we couple detailed modeling of building energy use and the grid to quantify building decarbonization potential and associated grid impacts. We find up to a 91% reduction in building CO 2 emissions from 2005 levels by 2050 using a portfolio of building efficiency, demand flexibility, and electrification measures alongside rapid grid decarbonization. Building efficiency and flexibility could generate up to $107 billion in annual power system cost savings by 2050, offsetting over a third of the incremental cost of full grid decarbonization. Our results underscore multiple benefits of demand-side solutions for deep decarbonization of US buildings.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2022

Addressing Market Issues in Electrical Power Systems with Large Shares of Variable Renewable Energy

This paper reports recent findings from IEA Wind TCP Task 25, which compiles international experiences and research related to large-scale integration of wind and other renewable energy. In the paper, we address the main challenges for market integration of variable renewable energy, relating to price formation, cost recovery, balancing and other grid services. The paper gives an overview of recent scenario studies on electricity price impacts of (1) various generation, energy storage and demand types in different markets, and (2) different market designs and energy/climate policies. Studying markets with very high shares of variable renewable energy requires an improved set of analysis tools for forecasting market outcomes, estimating flexibility needs and sources, and assessing resource adequacy. Key market features need to be investigated within these improved analytical capabilities for systems transitioning to high shares of variable renewable energy, storage and flexible demand. System services that can be supported by markets will likely need to be revisited. Finally, this paper identifies open questions and suggested future market design work for supporting systems with very high shares of variable renewable energy, which are to be addressed in follow-up work of Task 25 collaborative research.

cost recovery↗

DOE OSTI2022

SolarPlus Optimizer: Integrated Control of Solar, Batteries, and Flexible Loads for Small Commercial Buildings

Building-level microgrids may be a key strategy to unlock the combined potential of flexible loads, renewable generation, and energy storage. However, few software options exist for integrated control of building loads and other distributed energy resources at this scale. The commercial software solutions on the market can force customers to adopt one particular ecosystem of products, thus limiting consumer choice. The SolarPlus Optimizer (SPO) is an open-source building-level microgrid control platform that uses Model Predictive Control to optimize both building loads and behind-the-meter energy storage to reduce energy bills and increase demand flexibility. This paper evaluates the capabilities of SPO in a small commercial building in Northern California under multiple electricity tariffs and demand response scenarios. Comparing SPO operation with an emulated battery and baseline operation employing a commercial optimization service, SPO reduced electricity bills by an estimated 7.3% in summer, 3.2% in spring, and 3.7% in winter. In a “load shape” scenario meant to counter the “duck curve”, SPO achieved 71% fewer violations from the load signal than the baseline control method. During a three hour long load shed event, SPO reduced cooling and refrigeration load by 38%. This research shows significant potential to provide load flexibility for building-level microgrids for this type of control systems. Finally, the paper discusses the future direction of research on open-source control systems.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2020

Robust and resilient coordination of feeders with uncertain distributed energy resources: from real-time control to long-term planning

To enable flexible demand and ensure reliable and economical operation of distribution systems, we present a novel hierarchical scheme that actively coordinates responsive behind-the-meter grid resources, including distributed energy resources (DERs), to reliably manage each unbalanced distribution feeder and exploits the available flexibility to economically optimize the entire network. Each layer of the scheme employs advanced optimization methods at different timescales to ensure that the system operates within both grid and device limits. The hierarchy is validated in a large-scale realistic simulation based on data from the industry. Simulation results show that coordination of flexibility improves both system reliability and economics, and enables greater penetration of solar PV. Discussion is also provided on the practical viability of the required communications and controls to implement the presented scheme within a large DSO.

14 SOLAR ENERGY↗

DOE OSTI2019

Game-Theoretic Approach for Electricity Pricing Between Distribution System Operator and Load Aggregators

Transactive energy has emerged and gained more and more attention in recent years along with smart grid two-way communication technologies. Electricity pricing strategies play a critical role in influencing and shaping the customers’ energy load profile. In this paper, we investigate the electricity pricing strategy between a distribution system operator (DSO) and load aggregators (LAs) by adopting a bi-level Stackelberg game approach. With the purpose of maximizing its own operating revenue as well as better serving its customers, the upper level DSO will determine the price considering how lower level LAs will respond to it. Peak-to-average ratio of the total demand is modeled as a constraint and peak load is penalized at the upper optimization level. Classical backward induction is used to obtain a Nash equilibrium for the formulated bi-level Stackelberg game. Numerical results demonstrate the effectiveness of the proposed game approach in leveraging flexible demand potential to benefit both DSO and LAs.

Chen, Yang↗

DOE OSTI2024

Optimizing Grid-interactive Efficient Building Designs with Stacked Value Streams

Grid-interactive efficient buildings (GEBs) are those characterized by the combination of energy efficiency and demand flexibility with smart technologies and communications to not only deliver greater affordability and comfort to buildings, but also help utilities manage grid operations and lower system costs. This paper presents an innovative techno-economic assessment framework to effectively examine different GEB design options, explore various use cases, define technically achievable benefits, and thereby assist in informed decision-making. In particular, building load flexibility, thermal storage, and battery energy storage are considered. Advanced optimal dispatch problem is formulated to maximize the stacked value streams from multiple, competing use cases, subject to the physical capabilities and operational flexibility associated with different designs and configurations. Comprehensive case studies were performed for a real-world building to evaluate the cost-effectiveness of different GEB designs and offer in-depth insights. It was found that the proposed assessment method could effectively capture the costs and benefits linked to each GEB design option. Furthermore, the study revealed that outage mitigation and demand response are the two most significant sources of benefits for GEBs.

Ma, Xu↗

DOE OSTI2018

Assessment of Optimal Flexibility in Ensemble of Frequency Responsive Loads

Potential of electrical loads in providing grid ancillary services is often limited due to the uncertainties associated with the load behavior. A knowledge of the expected uncertainties with a load control program would invariably yield to better informed control policies, opening up the possibility of extracting the maximal load control potential without affecting grid operations. In the context of frequency responsive load control, a probabilistic uncertainty analysis framework is presented to quantify the expected error between the target and actual load response, under uncertainties in the load dynamics. A closed-form expression of an optimal demand flexibility, minimizing the expected error in actual and committed flexibility, is provided. Analytical results are validated through Monte Carlo simulations of ensembles of electric water heaters.

Kundu, Soumya↗

DOE OSTI2023

Open Building Operating System: An Open-Source Grid Responsive Control Platform for Buildings

Grid-interactive efficient buildings (GEBs) with flexible loads are a promising method to decarbonize buildings, shift loads during peak hours, and lower energy use and electricity costs. Despite the promising benefits of GEBs, automation systems that manage flexible loads in response to energy prices or other grid signals are still uncommon in small and medium commercial buildings. Recent literature demonstrates such control solutions, but they often rely on custom integrations lacking the tools and drivers needed for scalability. To address these gaps, our team has created a fully open-source software stack capable of integrating heterogeneous flexible building loads and implementing integrated portable control applications called the Open Building Operating System (OpenBOS). The software can be deployed over existing control architecture with a small capital cost. OpenBOS leverages semantic models, which have been the subject of recent investigations to facilitate application portability. The use of semantic data reduces the labor and expense required to deploy and update smart control applications, increasing scalability. In this paper, the semantic modeling schema "Brick" was used, but the proposed approach can also be applied to ASHRAE standard 223P, when released. This paper describes the methodology and software components of OpenBOS and demonstrates its functionality with a rule-based demand flexibility control application configured using a semantic model. This application was tested at a real building in NY that uses a dual-fuel heating system made up of five ductless heat pump mini-splits and a central furnace serving a single zone. The demonstration reduced electricity costs at the site by 27%, demand during a shed event by 49%, and furnace usage by 35%.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2022

End-Use Load Profiles for the U.S. Building Stock: Practical Guidance on Accessing and Using the Data

End-use load profiles (EULP), which quantify how and when energy is used, are critically important to utilities, public utility commissions, state energy offices, and other stakeholders. Applications of EULPs focus on understanding how efficiency, demand response, and other distributed energy resources are valued and used in R&D prioritization, utility resource and distribution system planning, and state and local energy planning and regulations. Consequently, high-quality EULPs are critical for widespread adoption of electrification, demand flexibility, and grid-interactive efficient buildings. For example, EULPs can be used to forecast energy savings in buildings or to identify energy using activities that can be shifted to different times of the day.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2022

Capacity Markets for Transactive Energy Systems

Capacity markets provide important incentives for resource adequacy in electricity markets and may become more important for providing sufficient revenue and generation capacity with changes to energy market prices driven by increasing levels of zero marginal cost resources. However, current capacity market designs also have important shortfalls that may limit the benefits they can provide to the future grid. Current capacity markets are primarily designed for participation from conventional thermal generators, but markets are evolving with increasing levels of variable renewable energy resources. However, further reforms may be necessary to enable more participation from DERs and demand-side resources. To understand the benefits and shortfalls of current capacity market design, we review the historical reasons electricity markets have needed capacity markets or capacity payments for resource adequacy, and how current capacity market designs may create challenges for incorporating increasing levels of DERs and demand-side resources. We then consider how transactive systems, which allow the coordination of bids and offers for DERs and demand-side resources through a market interaction approach, administered by a Distribution System Operator (DSO), can address traditional resource adequacy problems due to inelastic consumer demand. We also consider the need for a DSO-level capacity market in helping to meet resource adequacy, reliability, and other electricity market objectives. We find that because the missing money in electricity markets is largely driven by incentives to meet resource adequacy goals, and the bulk grid would always supply power to the DSO, that resource adequacy is unlikely to be a determining factor in the need for a DSO-level capacity market. Many current reliability problems could also be addressed by the incorporation of more flexible demand enabled with transactive energy systems. However, other DSO objectives, including resilience, reactive power, voltage control, environmental policies, and energy equity could lead to specific challenges that could be aided by a DSO-level capacity market. We consider the possibility of a DSO-level capacity market in addressing these challenges as well as its potential role in coordinating with the Independent System Operator (ISO) who operates the wholesale market. We conclude with suggestions for future research, including the need to develop analytical models of DSO-level capacity market designs to address these potential objectives and examine their implications for DSOs and consumers.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2022

The Distribution System Operator with Transactive (DSO+T) Study

The Distribution System Operator with Transactive (DSO+T) study investigates the engineering and economic performance of a transactive energy retail market coordinating a high penetration of customer-side flexible energy assets. The study seeks to answer whether such an implementation is cost effective for customers, recovers sufficient revenue for DSOs, and is equally applicable and beneficial to a range of flexible asset types, renewable generation scenarios, and market assumptions. Using a highly interdisciplinary co-simulation and valuation framework, this assessment encompasses the entire electrical delivery system from bulk system generation and transmission, through the distribution system, to the modeling of individual customer buildings and flexible assets (including heating, ventilation, and air conditioning [HVAC] units, water heaters, batteries, and electric vehicles). The study exercises a transactive energy retail market coordination scheme designed to integrate with an existing day-ahead and real-time competitive wholesale electricity market. Software decision-making agents are designed for the retail market operator as well as various price-responsive flexible assets. The engineering and economic performance of the transactive energy scheme is studied for two separate flexible asset deployments: flexible loads (HVAC units and residential water heaters) and behind-the-meter batteries. The results of each transactive case are compared to a business-as-usual case. These cases are subject to two different renewable generation scenarios, a moderate renewable generation scenario, representative of current levels of renewable generation deployment, and a future high renewables scenario, including the increased deployment of rooftop solar photovoltaic and electric vehicles. The transactive coordination scheme is shown to produce effective and stable control and decrease peak loads 9–15%. The resulting annual demand flexibility provides net economic savings of $3.3–5.0B per year for a region the size of Texas. Detailed analysis shows that net benefits were seen for a range of distribution system operator, customer, and flexible asset types. Both participating customer (with transactive flexible assets) and nonparticipating customers (with nonflexible assets) see reductions in annual utility bills and net annual energy expenses in the range of 10–16%.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2022

Distribution System Operator with Transactive (DSO+T) Study: Volume 1 (Main Report)

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2022

DSO+T: Expanded Study Results DSO+T Study: Volume 5

The Distribution System Operator with Transactive (DSO+T) study investigates the engineering and economic performance of a transactive energy retail market coordinating a high penetration of customer-side flexible energy assets. The study seeks to answer whether such an implementation is cost effective for customers, recovers sufficient revenue for DSOs, and is equally applicable and beneficial to a range of flexible asset types, renewable generation scenarios, and market assumptions. This report volume provides a detailed set of results for the DSO+T study extending results presented in Volumes 1, 2, and 4. The engineering and economic performance of the transactive energy scheme is presented for two separate flexible asset deployments: flexible loads (HVAC units and residential water heaters) and behind-the-meter batteries. The results of each transactive case are compared to a business-as-usual case. These cases are subject to two different renewable generation scenarios, a moderate renewable generation scenario, representative of current levels of renewable generation deployment, and a future high renewables scenario, including the increased deployment of rooftop solar photovoltaic and electric vehicles. The transactive coordination scheme is shown to produce effective and stable control and decrease peak loads 9–15%. The resulting annual demand flexibility provides net economic savings of $3.3–5.0B per year for a region the size of Texas. Detailed analysis shows that net benefits were seen for a range of distribution system operator, customer, and flexible asset types. Both participating customer (with transactive flexible assets) and nonparticipating customers (with nonflexible assets) see reductions in annual utility bills and net annual energy expenses in the range of 10–16%.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2024

Consumer Benefits of Clean Energy: Energy Efficiency

Meeting national and state decarbonization goals requires a transition to clean energy technologies. Energy efficiency, demand flexibility, renewable energy and storage can reduce consumers’ electricity bills, lower total electricity system costs, and provide health and resilience benefits. Berkeley Lab developed a series of briefs that explore these consumer benefits of a clean energy transition. This brief focuses on energy efficiency benefits, and builds on prior analysis from Berkeley Lab’s Cost of Saved Energy database. We show that energy efficiency remains a low-cost energy and capacity resource; the levelized cost of saving energy for the programs included in the analysis is $\$0.02$/kilowatt-hour and the cost of saving peak demand is less $\$120$/kilowatt. Understanding the impact of the program mix, portfolio size, and duration of implementation for customer-funded energy efficiency portfolios can guide regulatory oversight of these programs, help utilities better utilize energy efficiency as a resource, and inform building energy decarbonization policies.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗