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All sourcesNASA NTRSDOE OSTI
DOE OSTI2021

Evaluating Probability of Containment Effectiveness at a GCS Sites using integrated assessment modeling approach with Bayesian decision Networks

Improved scientific and engineering understanding of the behavior of geologic CO2 storage together with established regulatory framework and incentive structures raise the prospects for accelerated, large-scale deployment of this greenhouse gas emissions reduction approach. Incentive structures call for the establishment of appropriate verification and accounting approaches to support claims of the integrity of a geologic storage complex and to justify taking credit for long-term storage. In this study, we present a framework for assessing the probability of containment effectiveness over the lifetime of a geologic carbon storage site (e.g., after 70 years of injection and post-injection site performance) using forward stochastic model realizations based on site characterization data and using a monitoring-informed Bayesian network based on hypothetical detectability from surface seismic surveys over the site injection and post-injection phases. The National Risk Assessment Partnership’s open-source Integrated Assessment Model (NRAP-Open-IAM) was utilized to develop an ensemble of 10,000 a priori stochastic forecasts of CO2 containment. Those simulations were used to train the Bayesian network model to estimate the prior probabilities of the CO2 leakage mass into overlying, monitorable aquifers considering the uncertainties in the reservoir properties, permeability of potentially leaky wells and the overlying aquifers. The conditional probabilities in the Bayesian network were either learned from the NRAP-Open-IAM simulations or derived from the predefined detection thresholds for the monitoring method. Observations obtained from monitoring, over time during the site operation phases were then used to generate updated posterior probabilities of containment (and any loss from containment) in the Bayesian network by propagating the prior probabilities through the conditional probabilities. We demonstrate how to construct and use the Bayesian network for verifying the long-term storage complex effectiveness informed by monitoring based on the NRAP-Open-IAM simulations previously developed for the FutureGen 2.0 site. This approach may have relevance for stake holders to demonstrate secure geologic storage, provide a defensible, probabilistic approach to claim credit for geologic storage, and to estimate the likelihood that any fraction of the claimed credit may need to be refunded to the creditor based on available monitoring information.

Bayesian network, Risk assessment, Monitoring, car↗
DOE OSTI2014

Data dialogues: critical connections for designing and implementing future nanomaterial research

Individuals and organizations in the engineered nanomaterial (ENM) community have increasingly recognized two related but distinct concerns: 1) discordant data due to differences in experimental design (e.g., material characteristics, experimental model, exposure concentration) or reporting (e.g., dose metric, material characterization details), and 2) a lack of data to inform decisions about ENM environmental, health, and safety (EHS). As one way to help address these issues, this Commentary discusses the important role of “data dialogues” or structured discussions between ENM researchers in EHS fields (e.g., toxicology, exposure science, and industrial hygiene) and decision makers who use the data researchers collect. The importance of these structured discussions is examined here in the context of barriers, solutions, and incentives: barriers to developing research relevant for human and ecological risk assessments; potential solutions to overcome such barriers; and incentives to help implement these or other solutions. These barriers, solutions, and incentives were identified by a group of expert stakeholders and ENM community members at the December 2013 Society for Risk Analysis panel discussion on research needed to support decision making for multiwalled carbon nanotubes (MWCNTs). Key topics discussed by experts and ENM community members include: (1) the value of researchers collaborating with EHS decision makers (e.g., risk analysts, product developers, regulators) to design research that can inform ENM EHS-related decisions (e.g., occupational exposure limits, product safety determinations), (2) the importance of funding incentives for such collaborative research, (3) the need to improve mechanisms for data-sharing within and between sectors (e.g., academia, government, and industry), and (4) the critical need to educate the “next generation” of nanotechnology researchers in EHS topics (e.g., risk assessment, risk management). In presenting these outcomes, this Commentary is not intended to conclude the conversation that took place in December 2013 but rather to support a broader dialogue that helps ensure important risk assessment questions are answered for ENMs.

communication↗
DOE OSTI2019

Technoeconomic and Life-Cycle Analysis of Single-Step Catalytic Conversion of Wet Ethanol into Fungible Fuel Blendstocks

Technoeconomic and life-cycle analyses are presented for catalytic conversion of ethanol to fungible hydrocarbon fuel blendstocks, informed by advances in catalyst and process development. Whereas prior work toward this end focused on 3-step processes featuring dehydration, oligomerization, and hydrogenation, the consolidated alcohol dehydration and oligomerization (CADO) approach described here results in 1-step conversion of wet ethanol vapor (40 wt% in water) to hydrocarbons and water over a metal-modified zeolite catalyst. A development project increased liquid hydrocarbon yields from 36% of theoretical to >80%, reduced catalyst cost by an order of magnitude, scaled up the process by 300-fold, and reduced projected costs of ethanol conversion 12-fold. Current CADO products conform most closely to gasoline blendstocks, but can be blended with jet fuel at low levels today, and could potentially be blended at higher levels in the future. Operating plus annualized capital costs for conversion of wet ethanol to fungible blendstocks are estimated at $2.00/GJ for CADO today and $1.44/GJ in the future, similar to the unit energy cost of producing anhydrous ethanol from wet ethanol ($1.46/GJ). Including the cost of ethanol from either corn or future cellulosic biomass but not production incentives, projected minimum selling prices for fungible blendstocks produced via CADO are competitive with conventional jet fuel when oil is $100 per barrel but not at $60 per barrel. However, with existing production incentives, the projected minimum blendstock selling price is competitive with oil at $60 per barrel. Life-cycle greenhouse gas emission reductions for CADO-derived hydrocarbon blendstocks closely follow those for the ethanol feedstock.

09 BIOMASS FUELS↗
DOE OSTI2026

Utility Finder (U-Finder) Tool

U-Finder allows users to search for and identify local utility partners and electric vehicle charger incentives by state or ZIP code. U-Finder pulls from the Homeland Infrastructure Foundation-Level Database of Electric Retail Service Territories to identify utility service territories. Utility incentive listings are provided by utility associations, and state government incentive listings are pulled from the Alternative Fuels Data Center Laws and Incentives website. ![U Finder landing page](ufinder-landing.png)

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2018

Performance-Based Regulation In A High Distributed Energy Resources Future

Performance-based regulation (PBR) of utilities has emerged as an important ratemaking option in the last 25 years. It has been implemented in numerous jurisdictions across the United States and is common in many other advanced industrialized countries. PBR’s appeal lies chiefly in its ability to strengthen utility performance incentives relative to traditional cost-of-service regulation (COSR). Some forms of PBR can streamline regulation and provide utilities with greater operating flexibility. Ideally, the benefits of better performance are shared by the utility and its customers. The shortcomings of traditional COSR in providing electric utilities with incentives that are aligned with certain regulatory goals are becoming increasingly clear. In particular, COSR can provide strong incentives to increase electricity sales and utility rate base. Further, some parties express concern that traditional COSR does not provide utilities with appropriate financial incentives to address evolving industry challenges such as changing customer demands for electricity services, increased levels of distributed energy resources (DERs), and growing pressure to mitigate carbon dioxide emissions. In addition, attention to potential new regulatory models to support the “utility of the future” has renewed interest in PBR. This report describes key elements of PBR and explains some of the advantages and disadvantages of various PBR options. We present pertinent issues from the perspectives of utilities and customers. In practice, these different perspectives are not diametrically opposed. Nonetheless, this framework is useful for illustrating how various aspects of PBR may be viewed by those key groups. Regulators have a unique perspective, in that they must balance consumer, utility, and other interests with the goal of achieving a result that is in the overall public interest.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2018

California CO 2 Storage Assurance Facility Enterprise (C2SAFE): Final Technical Report

The California CO 2 Storage Assurance Facility Enterprise (C2SAFE) project conducted a preliminary study into the feasibility of a commercial-scale carbon dioxide (CO 2 ) storage complex located in California’s Southern San Joaquin Valley (SSJV). The work represents the first phase of a multi-phased development approach outlined by the United States Department of Energy’s (DOE’s) Carbon Storage Assurance and Facility Enterprise (CarbonSAFE) program meant to develop carbon storage sites capable of permanently storing 50 million metric tonnes of CO 2 , or greater, injected over a typical facility life of 20 to 30 years. This report represents the culmination of work performed under C2SAFE and outlines a phased implementation plan for large-scale, industrial carbon capture and permanent storage in California’s SSJV. The report is meant to be a standalone document and as such provides high-level summaries of all tasks of the project, but is also meant to complement the other three topical reports issued by the project – reports referenced herein. The study considered multiple scenarios including an east-side storage facility, a west-side storage facility, and potential multi-site storage facilities. The east-side storage facility is to be located at Clean Energy Systems, Inc.’s Kimberlina Power Plant, or nearby, and the west-side facility will be located at the California Resources Corporation’s (CRC’s) Elk Hills oil field. The majority of carbon emissions are planned to be captured from existing sources and transported to the selected and verified storage site(s). Capture from the single closest source to the eastern storage facility and the sources within the Elk Hills field would meet the CarbonSAFE storage goal of 50 million tonnes. The study has shown there is sufficient storage capacity to meet this requirement and more; thus, capture from any of the numerous additional large nearby sources would substantially leverage the CarbonSAFE investment. A comparison of preliminary CO 2 capture, transportation, and storage costs to economic value and incentives in the state shows current market conditions make it economically feasible to develop large-scale industrial storage sites in California’s SSJV. The business case for Carbon Capture and Storage (CCS) in California’s SSJV appears economically viable today for large CO 2 point sources involved in the production of transportation fuels, such as oilfield cogeneration units and steam boilers. The overall levelized CCS cost is estimated at roughly 125 per tonne of CO 2 , which includes CO 2 amine-solvent post-combustion capture, transportation, and storage. The levelized CO 2 capture cost is based on today’s technology, with no future cost reduction factored in for technology improvement. The sum of the value of incentives and revenue from California Low Carbon Fuel Standard (LCFS) credits (discounted roughly 20% from their current transaction value), sale of California cap-and-trade emission allowances, and Section 45Q tax credits—either for saline storage or the Enhanced Oil Recovery (EOR) credit plus CO 2 sales revenue—is about 165/tonne-CO 2 . The economic viability of CCS for Natural Gas Combined Cycle (NGCC) power plants in the SSJV is more site-specific. A plant providing power solely to the electric grid, if it added CCS, should be eligible for Section 45Q tax credits and could sell its excess cap-and-trade emission allowances, but it would not generate LCFS credits. Using the cost and incentive values detailed in this report, it would not be economical for such a plant to add CCS today, barring other considerations. An NGCC plant within an oilfield (e.g., CRC Elk Hills and NRG Sunrise) that provides power to the oilfield as well as to the grid should receive “partial credit” in terms of generating LCFS credits if it added CCS (pro-rated for the fraction of power going to the oilfield). Such a plant should also be eligible for Section 45Q tax credits and garner revenue from selling its excess cap-and-trade emission allowances. Using the cost and incentive values described in this report, the economic viability of adding CCS today would depend on the relative fractions of electricity supplied to the oilfield and the grid. As the value of cap-and-trade emission allowances grows over time (either by market forces or the escalating floor price), the relative fraction of power needing to remain in the oilfield to achieve “breakeven” would diminish. At some point, even plants providing all their power to the grid would be candidates for economical CCS application. The C2SAFE team has proposed to expand upon the knowledge gained during this study by conducting a detailed feasibility assessment under a follow-on phase of the program, Phase II – Feasibility. This would include detailed data collection at the two sites, analysis, reporting, stakeholder outreach, and risk mitigation activities to support the development of a commercial carbon storage complex in the SSJV.

58 GEOSCIENCES↗
DOE OSTI2018

Incentivizing Adoption of Plug-in Electric Vehicles: A Review of Global Policies and Markets

This report summarizes current government policies that seek to increase deployment of light-duty, plug-in electric vehicles (PEVs) in the United States, Europe, and China. The paper also describes recent PEV market trends in these three regions. By comparing combinations of PEV policies and trends of PEV sales in different regions at national and subnational levels, the authors make several observations and draw general conclusions, using supporting examples for the findings. One finding, consistent with earlier studies, is that multiple, complementary PEV incentives and deployment policies are generally more effective in increasing adoption of PEVs within a given market than single policie s. In most regions, financial incentives, especially point -of -sale incentives, are effective in increasing adoption, particularly when generous and combined with other supporting polices, such as increasing charging station availability, which contributes to ease of use. The authors also observed differences in policies and market trends between regions. In Europe, where taxes on vehicles are high, tax credits provide strong incentives for PEV adoption, whereas in several Chinese cities, where restrictions on vehicle registration or use are imposed, relaxation of restrictions on PEVs effectively promote PEV adoption. In addition, governments are replacing some policies based on technical specifications (e.g., battery capacity) with policies based on performance metrics (e.g., vehicle range and electricity consumption rate per distance).

33 ADVANCED PROPULSION SYSTEMS↗
DOE OSTI2021

Affordable and Accessible Solar for All: Barriers, Solutions, and On-Site Adoption Potential

Solar energy technologies can be used as part of a suite of tools to reduce the energy burden of low-income customers, but to date, low- and moderate-income (LMI) customers have not adopted solar at the same rate as other income groups. This paper summarizes the barriers of LMI solar adoption related to finance and funding, community engagement, site suitability, policy and regulatory, and resilience and recovery and discusses existing and potential future solutions to address these barriers. In addition, we model future LMI on-site solar adoption, using the National Renewable Energy Laboratory's (NREL's) dGen model. We model future scenarios assuming no changes in the current LMI solar policy and program environment, and we add two incentives to low-income households for adopting solar: a $\$$3,000 incentive and a full incentive (i.e., the full cost of a PV system). While we model a financial incentive, this dollar reduction in cost could also come from other efforts, for example, reductions in solar soft costs. We find that by 2050, 48-49% of LMI households adopt solar, resulting in $\$$69- $\$$101 billion in first year utility bill savings to these consumers.

14 SOLAR ENERGY↗
NASA NTRS1976

Public policy for solar heating and cooling

Recent analyses indicated that solar heating and cooling systems for residential buildings are nearly economically competitive with conventional fossil fuel or electric systems, the former having higher initial cost but a lower operating cost than the latter. The paper examines obstacles to the widespread acceptance and use of solar space conditioning systems and explores some general policies which could help to overcome them. The discussion covers such institutional barriers limiting the adoption of solar technologies as existing building codes, financing constraints, and organizational structure of the building industry. The potential impact of financial incentives is analyzed. It is noted that a tax incentive of 25% could speed the use of solar energy by 7 to 8 years and produce an 8% reduction in fossil fuel use by 1990. A preliminary incentive package which could be helpful in promoting solar energy both at federal and state levels is proposed, and the necessary incentive level is analysed.

Hirshberg, A. S.↗
DOE OSTI2014

Customer Engagement in AEP gridSMART Residential Transactive System

— In 2013, AEP Ohio (AEP) operated a 5-minute real-time price (RTP) electricity market system on 4 distribution feeders as part of their gridSMART® demonstration project. The RTP households were billed for their electricity usage according to an RTP tariff approved by the Public Utility Commission of Ohio. They were given the incentive that their annual bill would be no greater than if they were on the flat-rate tariff, but they had financial incentives to shift consumption from high price periods to low price periods. Incentives were also available for response under high prices from local events, such as reaching the distribution feeder capacity or a critical peak pricing event. An analysis of this transactive system experiment was completed in early 2014. This paper describes the incentive provided to the customer, the nature of their interaction with the smart thermostat that provided automated response to the transactive signal, and their level of satisfaction with the program.

Widergren, Steven E.↗
DOE OSTI2016

An Assessment of Causes of PEV Success Across U.S. Metro Areas

Using 2014 U.S. light duty PEV registrations by make and model, this paper assesses the causes of Plug-in Electric Vehicle (PEV) success across U.S. states focusing on areas that had incentive and utility programs supporting PEV adoption. Market segments investigated were (1) luxury/performance (>$60,000 list price), (2) mid-market ($40-50,000), (3) mass market (<$40.000), and (4) total. States with either exclusive or preferential BEV incentives are a focus. BEV-biased incentives proved to be very effective in promoting mass market BEVs. After controlling for these attributes, case studies for several utility service areas were conducted to gauge whether PEVs were more or less successfully implemented via outreach by those utilities. These investigations suggest ways that utilities can successfully increase PEV registrations, after taking local climate and state incentives into consideration.

Zhou, Y.↗
DOE OSTI2017

Personalized Infrastructure: Leveraging Behavioral Strategies for Future Mobility

For decades, the transportation system has been built to position the personal automobile at the pinnacle of mobility options. This prominence is strongly reflected in individual and population behaviors, and supported by coevolved transportation policy, social norms, funding, and physical structures. Such has been the status quo for the living memory of the U.S. population. However, with the advent of emergent, technologically driven mobility options, the transportation system is in an era of rapid and disruptive change. No longer is transportation infrastructure an externality predominantly composed of physical elements; it is also now a personalized interface carried in the pockets of the majority of the population. Perceptions of personal mobility are evolving, in large part because of the proliferation of smartphone technology and the related Internet of Things (IoT), which will become increasingly essential within future transportation systems. With the emergence of personalized mobility infrastructure, many intervention approaches to influence transportation behavior do not adequately acknowledge the complexity of the social/digital environment within which transportation decisions are made. Transportation decisions are influenced by multiple facets, including costs and benefits in time and money, but also by sociocultural elements shaped by social norms and diffusion of ideas. Understanding of factors that lead to transportation behaviors can help to identify incentives and leverage points whereby alternative choices may be most accepted by individuals, and which, if well coordinated, may lead to improved transportation energy outcomes. How can change be initiated to shift away from the transportation status quo? Is it possible to use technologically delivered incentives to produce meaningful changes in transportation behavior? What types of incentives and at what perceived value is necessary to induce changes in behavior? As transportation agencies look toward an ever more complex mobility landscape, and with a quickly growing population, we look for answers to these questions as the core of developing strategies for the future of transportation. Using available data from emergent modes, and experiments conducted as part of an Advanced Research Projects Agency - Energy (ARPA-E) Traveler Response Architecture using Novel Signaling for Network Efficiency in Transportation (TRANSNET) project, we look at how the sharing economy and transportation mobility services have begun to radically alter transportation behavior, while operating in parallel with traditional transportation infrastructure. Emerging modes and practices are affecting car dependence and enabling multimodality. We weigh influences on travel behaviors, identify decision breakpoints where inelastic behavior becomes elastic, incentives, and societal leverage points.

25 ENERGY STORAGE↗
DOE OSTI2021

Markets and Economic Requirements for Fission Batteries and Other Nuclear Systems

Fission Batteries (FBs) are nuclear reactors defined by five characteristics which enable large-scale deployment: cost competitive, standardized sizes for economic mass production, easy installation and removal, secure and safe unattended operation with high reliability. FBs are not defined by technology or power level. Technical and market considerations suggest that most FBs will produce 20 to 30 MWt. This proceedings reports on the outcomes of two workshops that were held in January 2021 to better define markets and economic challenges for FBs. Three major markets were identified. The largest market is the industrial and commercial heat market. There are about 4000 industrial users (excluding utilities) that require more than one megawatt of heat. The number of customers versus size of heat demand was determined. In a low-carbon world there is the potential for many additional customers—including expanded biofuels production and district heat. The second market is for non-grid electricity. This includes co-generation plants that produce heat and electricity for a single customer. The third market is the maritime market with ~100,000 ships worldwide. In the United States, natural gas is the low-cost energy option today and will remain so unless constraints or taxes impact its use. If restrictions on greenhouse gas emissions, the FB competition includes natural gas with carbon capture, biofuels, hydrogen and grid electricity. Natural gas with carbon capture is not economically viable on a small scale. Biofuels may be expensive but may be the economically preferred option for locations with small energy demands of a few megawatts. Hydrogen is a potential competitor with many of the characteristics of natural gas. Grid electricity is not a competitive source of heat. For FBs to be economically competitive, the price of delivered heat must be $20-50/MWh ($6-15/million BTU). The economically competitive range for non-grid electricity is estimated at $70-100/MWh. These electricity prices are competitive with the retail prices of electricity in many parts of the United States for the customer. FBs are not expected to be competitive selling wholesale electricity to the grid. To achieve the aforementioned cost targets for heat and electricity markets, FB designers must (1) maximize the power output within the constraints of a FB (e.g., truck transportability, passive decay heat removal), (2) drastically reduce the size of onsite staff, (3) adopt core designs with low fuel costs (enrichment and fabrication), and (4) develop a system design that is efficiently manufactured in factories. The business case depends upon more than being just a replacement for natural gas. The largest incentives for adoption of FBs is where they create new markets and new sources of revenue. An example is the paper and pulp industry that burns biomass wastes to provide heat and electricity to make paper. An external heat source could meet the demand for heat and electricity by the paper process and enable converting waste biomass into liquid biofuels rather than burning to provide heat. Other markets, such as data centers, are driven by special energy requirements such as extreme reliability. Most customers are not in the energy business but need heat and electricity to produce a product—a manufactured good, education, retail sales (shopping malls), marine transport or some other product. As a consequence, there will be large incentives to lease rather than own FBs. Leasing avoids the regulatory challenges that remain with the owner of the FB. Leasing creates large incentives for FP standardization of sizes and transportability to maintain the value of the FB at the end of the lease—similar to the leasing of jet engines and aircraft. The economic constraints combined with technical constraints suggest competitive FBs will likely have outputs exceeding 10 MWt. There appear to be little incentives for very long-lived reactor cores because such machines require much larger inventories of fuel. Maintenance requirements and the options to provide technology updates may favor shorter lifetimes (~5 years). The assessment is that there is the potential for FBs to be economically viable and play a major role in global decarbonization in three markets: heat, non-grid electricity and maritime applications.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗
DOE OSTI2017

Cities and “budget-based” management of the energy-water-climate nexus: Case studies in transportation policy, infrastructure systems, and urban utility risk management

This article reviews city case studies to inform a framework for developing urban infrastructure design standards and policy instruments that together aim to pursue energy efficiency and greenhouse gas mitigation through city carbon budgets and water use efficiency and climate risk adaptation through city water budgets. Here, this article also proposes combining carbon and water budgeting at the city-scale for achieving successful coupled city carbon and water budget (CCCWB) programs. Under a CCCWB program, key actors including local governments, infrastructure designers/operators, and households would be assigned a GHG emissions and water 'budget' and be required by state or federal levels to keep within this budget through the use of flexibility mechanisms, incentive programs, and sanctions. Multiple incentives and cross-scale governance arrangements would be tied to energy-water systems integration, resource-efficient transportation and infrastructure development, and effective monitoring and management of energy use, emissions, climate risks to, and security of energy-water-transport-food and other critical systems. As a first step to promote strategies for CCCWB development, we systematically review approaches of and shortcomings to existing budget-based programs in the UK and US, and suggest improvements in three areas: measurement, modeling effectiveness of interventions for staying within a budget, and governance. To date, the majority of climate action or sustainability plans by cities, while mentioning climate impacts as a premise for the plan, do not address these impacts in the plan. They focus primarily on GHG mitigation while ignoring resource depletion challenges and energy-climate-water linkages, whereby water supplies can begin to limit energy production and energy shifts to mitigate climate change can limit water availability. Coupled carbon-water budget plans, programs, and policies - described in this study- may address these concerns as well as the emerging trends that will exacerbate these problems - e.g., including population growth, climatic changes, and emerging policy choices that are not coordinated. Cities and 'Budget-Based' Management of the Energy-Water-Climate Nexus: Case Studies to Inform Strategy for Integrated Performance- and Incentive-Based Design and Policy Instruments.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2016

On the Path to SunShot: Emerging Opportunities and Challenges in Financing Solar

This report analyzes solar financing strategies and their role in achieving the U.S. Department of Energy's SunShot goals. Financing is critical to solar deployment, because the costs of solar technologies are paid up front, while their benefits are realized over decades. Solar financing has been shaped by government solar incentives, particularly federal tax incentives, which have spawned complex tax-equity structures that monetize tax benefits for project sponsors who otherwise could not use them efficiently. Although these structures have helped expand solar deployment, they are relatively costly and inefficient. This has spurred solar stakeholders to develop lower-cost financing solutions such as securitization of solar project portfolios, solar-specific loan products, and methods for incorporating residential solar's value into home values. To move solar further toward an unsubsidized SunShot future, additional financial innovation must occur. Development of a larger, more mature U.S. solar industry will likely increase financial transparency and investor confidence, which in turn will enable simpler, lower-cost financing methods. Utility-scale solar might be financed more like conventional generation assets are today, non-residential solar might be financed more like a new roof, and residential solar might be financed more like an expensive appliance. Assuming a constant, SunShot-level installed photovoltaic (PV) system price, such financing innovations could reduce PV's levelized cost of electricity (LCOE) by an estimated 25%-50% compared with historical financing approaches. These results suggest that financing can adapt to changing conditions and might ease the transition away from a reliance on tax incentives while driving solar's LCOE toward the SunShot goals.

14 SOLAR ENERGY↗
DOE OSTI2018

Next-Generation Performance-Based Regulation. Volume 1: Introduction - Global Lessons for Success; Volume 2: Primer - Essential Elements of Design and Implementation; Volume 3: Innovative Examples from Around the World

Performance-based regulations (PBRs) provide a regulatory framework to connect goals, targets, and measures to utility performance or executive compensation. Well-designed PBRs provide incentives for utility performance, benefiting consumers and utility owners alike. This report considers the role of both PBRs and more discrete performance incentive mechanisms (PIMs) in 21st century power sector transformation. Innovative technologies are transforming the way electricity is generated, delivered, and consumed. PBRs have the potential to realign utility, investor, and consumer incentives and mitigate emerging challenges to the utility business model, renewable integration, and even cyber security.The goals of PBRs in the form of multi-year rate plans are in many respects the same in terms of providing reasonably priced and reliable service to customers. However, today's technologies have changed, and there is more emphasis on clean energy. Thus, the pathways and the potential outcomes are different than they were in the 20th century when centralized generator stations and large infrastructure additions dominated the utility landscape. Given unprecedented changes underway in the electricity sector, PBRs - by specifying expectations of utility performance and outcomes for consumers, while staying agnostic to the exact means of delivery - constitute a form of prescient regulation that harnesses disruption. PBRs are one tool in a broader toolbox in the transition toward flexible regulatory and market structures that rewards utilities that adapt or evolve in reaction to market and technology change. PBRs and PIMs have great value for the electric industry when designed well and can be applied to many different situations. How exactly PBR mechanisms are most effectively enacted will vary based on the utility ownership model, institutional arrangements, and a variety of other local factors. PBRs should be tailored to the needs and goals of each jurisdiction, and perhaps each utility, to most effectively achieve the needs of a 21st century power grid in that jurisdiction. Presented in three volumes, this report highlights the lessons learned from their evolving history, explores essential elements of their design and implementation as well as considerations for how they may be best applied, and examines leading examples of PBRs from the United Kingdom, New York, Denmark, Mexico, and South Africa. The full report, 'Next-Generation Performance Based Regulation - Emphasizing Utility Performance to Unleash Power Sector Innovation,' published in September 2017, can be accessed at https://www.nrel.gov/docs/fy17osti/68512.pdf.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2021

Relative Cost-Effectiveness of Electricity and Transportation Policies as a Means to Reduce CO2 Emissions in the United States: A Multi-Model Assessment

Two common energy policy instruments in the United States are tax incentives and technology standards. Although these instruments have been shown to be less cost-effective as a means to reduce CO2 emissions than direct emissions pricing mechanisms, it can be challenging to compare the CO2 emissions reduction costs of such policies across sectors, given the wide range in estimates for any given policy and inconsistencies in how such estimates are constructed across studies. This study addresses this analytical gap by simultaneously comparing the cost-effectiveness of policies across the electricity and transportation sectors using three publicly available US energy system models (EM-NEMS, ReEDS, and GCAM-USA). Four policies are explicitly compared: wind and solar tax credits, a renewable portfolio standard (RPS), a renewable fuel standard (RFS), and an electric vehicle (EV) tax credit. An economy-wide carbon tax is used as a benchmark for cost-effectiveness. Results from this study confirm prior insights about the cost-effectiveness of economy-wide carbon pricing relative to sectoral instruments but also reveal several novel insights about particular sectoral policies. Specifically, this study finds that (1) current electricity tax incentives provide uneven support for wind and solar technologies, (2) despite known inefficiencies, renewable energy policies in the electricity sector are less expensive than earlier estimates due to technology advancement and changes in market conditions, (3) within transportation, an expanded RFS with increasing advanced biofuel targets is more cost-effective than an EV tax credit extension under plausible assumptions, (4) EV incentives lead to a rebound in conventional vehicle fuel economy that further erodes cost-effectiveness, and (5) the change in policy costs over time is not known a priori, but the relative cost ordering among these policies does not depend on the timeframe of analysis. These results are largely robust to the underlying modeling framework, increasing the confidence with which they can be applied to climate policy evaluation.

economics↗