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All sourcesNASA NTRSDOE OSTI
DOE OSTI2023

Wildfire Risk Evaluation Framework for Grid Operations and Planning

The United States (US) environmental protection agency's (EPA's) climate change indicators for wildfires show a long-term trend of increased annual wildfire activity, larger wildfire size, and more variable dynamics in wildfire behavior. This has caused more frequent preemptive public safety power shutoff (PSPS) events in the regions with recognized high wildfire risk. These preemptive power shutoffs attempt to prevent the ignition of a wildfire but it nonetheless renders the transmission line non-operational, which often sheds load of downstream communities. As wildfires and PSPS events become more frequent, it is crucial to find the communities most at risk of load shedding. To that end, this paper proposes the wildfire risk evaluation of the system (WiRES) framework, which is a performance-based framework that translates extreme weather-related and PSPS event probabilities into a cumulative probability of a non-operational transmission line. This study also provides a geospatial visualization tool that breaks down the entire western electrical coordinating council (WECC) region into 50 km grid cells which can be used to 1) filter out transmission lines with higher than a threshold outage probability, and 2) graphically discover the affected regions and their biophysical and socioeconomic metrics. %such as the social vulnerability index, population density, gross domestic product, etc. Lastly, an impact assessment study is conducted which connects the results of the proposed framework to python and powerworld-based contingency analysis to highlight the applicability of the framework.

Wildfire, Resilience, Extreme Events, Grid Reslien↗
DOE OSTI2022

EERC Final Topical Report – Findings on Subtask 3.2 – Produced Water Management Through Geologic Homogenization, Conditions, and Reuse

The Energy & Environmental Research Center (EERC) was awarded a contract by the North Dakota Industrial Commission (NDIC) Oil and Gas Research Program (NDIC No. G-051-101) to conduct a study on the recycling of water used in oil and gas operations, also known as produced water, from oil- and gas-producing regions of North Dakota as directed by Section 19 of North Dakota House Bill 1014. This final report provides a compilation of results of the study, which include regulatory, scientific, technological, and feasibility methods and considerations associated with North Dakota produced water management. The report provides a synopsis of this project’s previously submitted produced water assessment report entitled “Produced Water Management and Recycling Options in North Dakota” (Energy & Environmental Research Center, 2020), with updated values provided as appropriate. The report provides the results from the investigation of a novel produced water management strategy, referred to as geologic homogenization, conditioning, and reuse (GHCR), which aims to use a subsurface geologic formation as a natural medium for managing produced water recycling and reuse. Water management is a significant technical and economic challenge for sustainable oil and gas production, and water volumes are intrinsically linked to oil production volumes. North Dakota oil production rose to over 1.5 million barrels (MMbbl)/day in 2019, and despite a downturn in oil price in early 2020, North Dakota oil production has recovered to 1.1 MMbbl/day as of August 2021. Bakken petroleum system development between 2008 and 2020 has resulted in a nearly fourfold increase in produced water volumes to 642 MMbbl/yr in 2020 after peaking at 740 MMbbl/yr in 2019 and a fivefold increase in saltwater disposal (SWD) volumes to 565 MMbbl/yr in 2020 after a peak of 682 MMbbl/yr in 2019. Produced water and SWD volumes are forecasted to double by 2030. SWD is the primary method of produced water management used in North Dakota, with approximately 95% of the SWD volume occurring through subsurface injection into sandstones of the Dakota Group (Dakota). Localized pressurization of the Dakota resulting from SWD and projected increases in produced water volumes could impact the economics of North Dakota oil production. As a result, there is an emerging need to pursue alternative produced water management approaches, including recycling and reuse. While produced water recycling is not yet widespread, commercial operators are making strides in overcoming the technical challenges of using high salinity produced water in completion operations (Marathon Oil, 2020). As water management continues to be a key focal point in companies’ environmental, social, and governance (ESG) initiatives, focus on water management, including recycling, will likely continue to increase. Laboratory column testing, field sample collection, geologic modeling and numerical simulation, and techno-economic analysis all indicate that GHCR could feasibly be implemented as a potential water management option. Laboratory column testing and field sample collection indicate that the Inyan Kara sandstone and native formation fluid are capable of homogenizing with the Bakken produced water to a point where the fluid composition appears to stabilize. Extracting that stabilized fluid could be considered homogeneous and capable of providing individual batches of hydraulic fracturing fluid. Numerical simulation results indicate that extraction of fluids from the Inyan Kara in a GHCR implementation scenario is capable of reducing formation pressure, which would help ease localized pressurization of the Inyan Kara and extend the available capacity for nearby existing SWD wells. Economic analysis indicates that there are scenarios where GHCR implementation can be a competitive or even lower-cost option than a conventional water management approach. Site-specific conditions will dictate the economic potential of GHCR, but potentially attractive sites for GHCR implementation will be those that are located above a pressurized zone of the Inyan Kara, need six or more Bakken infill wells, and face high costs for conventional SWD and/or freshwater. Based on the regulatory review, drilling into the Inyan Kara for SWD and to harness as a source water for industrial use have precedent in North Dakota, and a workable regulatory solution for GHCR seems likely. However, restrictions in the state regarding surface storage and transport of produced fluids may limit some activities, which will affect how GHCR could ultimately be implemented. In summary, this study reveals pursuing GHCR can be a viable approach to water management in North Dakota. The GHCR concept addresses some of the challenges that hinder the more traditional approaches to recycling in the industry. Furthermore, an assessment of the current landscape of water management within the state reveals the ongoing trend of increasing volumes of produced water and SWD. Projections reveal that the volumes of produced water that need to be managed are expected to double over the next decade (Energy & Environmental Research Center, 2020). With the continued development of the Bakken and continuing driving factors related to ESG initiatives, implementing a practice such as GHCR is a feasible approach to adding recycling of produced water to industry within the state. This subtask was cofunded through the EERC–U.S. Department of Energy Joint Program on Research and Development for Fossil Energy-Related Resources Cooperative Agreement No. DE-FE0024233. Nonfederal funding was provided by the North Dakota Industrial Commission Oil and Gas Research Program. References Energy & Environmental Research Center, 2020, Produced water management and recycling options in North Dakota: Final Report for North Dakota Legislative Management Energy Development and Transmission Committee and North Dakota Industrial Commission. Marathon Oil, 2020, Sustainability report: https://cdn.sanity.io/files/ghcnw9z2/website/ 91744eb6ef8fbe59505a911c6b8d2e8dd9a537fa.pdf?dl (accessed November 2021).

02 PETROLEUM↗
DOE OSTI2022

Quantifying Movement Motivations, Demand, and Inflow-Outflow Dynamics in Four Cities (New York, Chicago, Austin, and San Diego) During COVID-19

The COVID-19 pandemic has impacted a wide range of human activities, from food delivery habits to major moving and travel decisions. Results indicate multiple pandemic-related factors have influenced millions of relocation decisions by Americans (e.g., health risk, financial pressures, more space, and employment), and there are various positive economic and social outcomes of this influence (e.g., remote work and education), enabling more affordable living and opportunity. This paper addresses COVID-19 impacts on mobility, especially involving permanent relocations. Survey design and data analysis with U-Haul targeted customers in Austin, New York, San Diego, and Chicago to understand mobility, new moving dynamics, and motivations.

ADVANCED PROPULSION SYSTEMS,ENERGY PLANNING, POLIC↗
DOE OSTI2021

Sensitivity of Infrastructure Sectors to the Disruption of Commercial Electric Power

Electric power is crucial to the function of other infrastructures, as well as to the stability of the economy and the social order. Disruption of commercial electric power service, even for brief periods of time, can create significant consequences to the function of other sectors, and make living in some environments untenable. This analysis, conducted in 2017 for the United States Department of Energy (DOE) as part of the Grid Modernization Laboratory Consortium (GMLC) Initiative, focuses on describing the function of each of the other infrastructure sectors and subsectors, with an eye towards those elements of these sectors that depend on primary electric power service through the commercial electric power grid. It leverages the experience of Sandia analysts in analyzing historical disruptive events, and from the development of capabilities designed to identify the physical, logical, and geographic connectivity between infrastructures. The analysis goes on to identify alternatives for the provision of primary electric power service, and the redundancy of said alternatives, to provide a picture of the sector’s ability to withstand an extended disruption.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2026

Life Cycle Inventories and Data Gap Analysis for Rare Earth Elements: Neodymium and Dysprosium from Mining to Magnets

The United States demand for Neodymium-Iron-Boron (NdFeB) magnets, produced from rare earth elements (REEs) such as (Nd) and Dysprosium (Dy), far exceeds its nascent domestic production capacity, rendering it reliant on vulnerable global supply chains dominated by China. To guide research and development investments in securing U.S. REE supply, defensible benchmark metrics across environmental, economic, and social dimensions are needed. In this study, we built globally-representative, process-based cradle-to-cradle life cycle inventories for Nd and Dy in NdFeB magnets lifecycles, encompassing primary material acquisition, beneficiation, smelting and refining, metal processing, specialty alloy and chemical transformation, subcomponent manufacturing, consumer application (use phase) and end-of-life management. We carried out detailed literature review, and applied process engineering principles to build industry-representative upscaled life cycle inventories for both metals. We used these models to conduct bottom-up literature review and gap analysis on existing literature, compilation of data sources for each life cycle stage (and transformations where necessary), and a preliminary technoeconomic analysis (TEA)/life cycle costing analysis (LCCA). Findings from this work emphasize the need for metal specific, representative REE LCIs to establish robust benchmarks for advancing sustainable REE technologies and guiding R&D in REE supply chains.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2026

Poisson-response Tensor-on-Tensor Regression and Applications

We introduce Poisson-response tensor-on-tensor regression (PToTR), a novel regression framework designed to handle tensor responses composed element-wise of random Poisson-distributed counts. Tensors, or multi-dimensional arrays, composed of counts are common data in fields such as inter national relations, social networks, epidemiology, and medical imaging, where events occur across multiple dimensions like time, location, and dyads. PToTR accommodates such tensor responses alongside tensor covariates, providing a versatile tool for multi dimensional data analysis. We propose algorithms for maximum likelihood estimation under a canonical polyadic (CP) structure on the regression coefficient tensor that satisfy the positivity of Poisson parameters and then provide an initial theoretical error analysis for PToTR estimators. We also demonstrate the utility of PToTR through three concrete applications: longitudinal data analysis of the Integrated Crisis Early Warning System database, positron emission tomography (PET) image reconstruction, and change-point detection of communication patterns in longitudinal dyadic data. These applications highlight the versatility of PToTR in addressing complex, structured count data across various domains.

97 MATHEMATICS AND COMPUTING↗
DOE OSTI2023

Trade and Climate Mitigation Interactions Create Agro–Economic Opportunities With Social and Environmental Trade–Offs in Latin America and the Caribbean

The Latin America and the Caribbean (LAC) region plays key roles in both meeting global agricultural demands and maintaining carbon sinks due to its abundant land and water resources. In this study we use the Global Change Analysis Model (GCAM) to evaluate the opportunities and challenges posed by two global-scale drivers: agricultural market integration (i.e., reduction of trade barriers) and land-based climate mitigation policy. We evaluate their potential individual and combined impacts on agricultural production and trade revenues across LAC’s economies through mid-century, as well as the resulting impacts on agricultural consumers and integrated land-water-climate systems across the region’s diverse sub-regions. Increased global market integration results in increased agricultural production and trade revenues for many LAC economies driven by their evolving comparative advantages. Climate mitigation measures on CO 2 and non-CO 2 greenhouse gases increase revenues due to increased agricultural prices from land competition and emissions abatement. The combined outcomes from both drivers are complex and sometimes non-linear, highlighting the importance of understanding the interactions between multiple drivers. Our results show that increased agricultural production and trade opportunities pose significant trade-offs that require careful multi-sectoral planning, such as emissions reduction challenges, potential loss of livestock production when pursuing land-based climate mitigation strategies, increased consumer expenditures, and changes in land-use or water withdrawals, resulting in deforestation or water scarcity pressures. There is considerable heterogeneity in economic and environmental outcomes across LAC sub-regions and agricultural commodities, illustrating the value of considering outcomes at finer scales.

54 ENVIRONMENTAL SCIENCES↗
DOE OSTI2022

A Method for Measuring Coupled Individual and Social Vulnerability to Environmental Hazards

Although models of social vulnerability to environmental hazards are commonly developed to support policy interventions in emergencies and disasters, their utility is hindered by a lack of contextual information on individuals exposed to and affected by hazards. We develop a novel approach to model social vulnerability that couples individuals and their varying forms of protective capacity with the social fabric of the communities in which they reside. The backbone of our model is the Public-Use Microdata Sample (PUMS), a product of the U.S. Census Bureau that preserves a representative sample of completed responses to the American Community Survey (ACS). The PUMS enables us to understand the full range of individual protective capacities against a hazard in an exposed area, which we term individual vulnerability profiles (IVPs). In this case, we examine IVPs in the Coney Island-Brighton Beach section of New York City, which suffered severe impacts during Hurricane Sandy in 2012. To manage the large number of unique IVPs in Coney Island-Brighton Beach, we perform a segmentation analysis to generalize them into thematic cohort vulnerability profiles (CVPs) representing a typology of vulnerable people in Coney Island-Brighton Beach during Sandy. From synthetic populations of CVPs, we then estimate how individuals in varying housing types were coexposed to Sandy at the census tract level by classifying these areas into community social vulnerability profiles (SVPs). Our results provide a topology of social vulnerability that simultaneously links individual, community, and population-wide concerns, enabling a more holistic understanding of resources and interventions beneficial to human security during events like Sandy than is attainable with area-level metrics.

54 ENVIRONMENTAL SCIENCES↗
DOE OSTI2023

Riders’ perceptions towards transit bus electrification: Evidence from Salt Lake City, Utah

While battery electric buses (BEBs) can lead to energy savings and reduced emissions, BEB adoption is developing slowly. Although BEBs offer quieter operations, better acceleration, and no smell of diesel or gas fumes, little focus has been placed on the user’s perspective. Here, this study investigates bus riders’ preferences toward BEBs. To achieve these objectives, a survey was designed and administered to solicit riders’ typical travel behaviors and patterns as well as preferences and opinions about BEBs’ performance in terms of emissions and noise. Statistical analysis showed that several factors influence rider perceptions towards transit bus electrification that include trip purpose, attitudes towards environmental issues and environmental impacts of BEBs, and certain non-instrumental ride factors such as ride comfort and social image. A better understanding of the importance of electrification to transit riders can help transit service providers adjust their marketing decisions and their systemwide operations to accommodate preferences towards BEBs.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2022

NPD Classification Tools – User Guide NPD Explorer and NPDamCAT Apps

The existing infrastructure at non-powered dams (NPDs) presents a variety of opportunities from generating electricity and economic value to the myriad services they provide. However, it also presents a significant challenge because aging structures must be maintained, and changes to the ecosystems and river systems by NPDs must be managed. The various stakeholders interested in these opportunities and challenges require varying information about NPDs; in many cases, interest in NPDs can extend across the entire population of dams. Even when interest is more narrowly focused on an individual dam or a small subset of dams, understanding how these dams relate to the broader context of NPD infrastructure can be important. As noted in TM 2021/2155, “Each NPD has unique characteristics describing its design, operation, environmental impacts, social impacts, and economic potential. The large number of dams, the diversity of interests related to dams, the variety of dam characteristics, and the types of data required to describe dams all pose major challenges to an analysis of the entire dam population." This user guide describes two web-based tools that facilitate exploration of dams from a variety of perspectives: the NPD Explorer and the NPD Custom Analysis and Taxonomy (NPDamCAT). These tools facilitate access to information about dams and help users interact with the information, making small- to large-scale analyses more convenient for a broad set of stakeholders.

13 HYDRO ENERGY↗
DOE OSTI2023

Dataset Repository for Investigating Suicide Risk Using Social and Environmental Determinants of Health

Suicide is frequently modeled as a function of genetics and environment, where the latter refers to factors other than direct biological consequences, such as air quality, financial level, social connectivity, transportation and food access, and homelessness status. According to the World Health Organization, clean air, a stable climate, adequate water, sanitation and hygiene, safe chemical use, radiation protection, healthy and safe workplaces, sound agricultural practices, health-supportive cities and built environments, and a preserved natural environment are all prerequisites for good health. Understanding the relationships between these determinants and mental health outcomes requires standardized data that can be included in healthcare programs and health outcome models. There is a wealth of publicly available data on social and environmental factors provided by various US organizations that can benefit the design of health care systems and public health interventions, as well as improve our comprehension of factors that impact health. Such information would not only help improve the understanding of individual and community risk but also identify new risk factors that have not previously been therapeutically targeted, especially in terms of their impact on mental health. However, curating and standardizing such datasets is challenging because they are often recorded at numerous geographical and temporal resolutions and with varying spatial and temporal granularities. To address this challenge, we launched an endeavor in conjunction with the Veterans Health Administration to collect publicly available socioeconomic and environmental determinants of health statistics in the US. In this manuscript, we describe a social and environmental determinants of health (SEDH) datasets repository, data curation documentation, and a pipeline framework for data generation; This effort started in 2020, when we began constructing a scalable pipeline to automate the download, extraction, preparation, analysis, and production of datasets. These datasets have been made available to the VHA and may be shared upon agreement with collaborating organizations.

60 APPLIED LIFE SCIENCES↗
DOE OSTI2025

Roughrider Carbon Storage Hub (Final Report)

The Roughrider Carbon Storage Hub was a 2-year project (October 2023 – September 2025) conducted by the Energy & Environmental Research Center (EERC) focused on advancing the feasibility of a commercial-scale carbon dioxide (CO 2 ) geologic storage hub in McKenzie County, North Dakota. The project’s objective was to investigate the potential that stacked storage complexes (multiple deep saline formations) can safely and economically store at least 50 million tonnes of CO 2 within 30 years. The captured CO 2 would be sourced from industrial emitters including project partner ONEOK, Inc.’s gas-processing plants and a planned gas-to-liquids facility. Drilling of the Roughrider 1 stratigraphic test well (14,979-ft total depth) was completed in November 2024. The wellbore intersected four candidate storage formations: Inyan Kara, Broom Creek, Mission Canyon, and Black Island–Deadwood. Operational challenges, including a stuck drill string, were resolved without long-term impact. A comprehensive logging and coring program was conducted, followed by successful well abandonment and site reclamation. Over 660 ft of 4-in. whole core was retrieved. Core plug samples were processed and analyzed for petrophysical and geochemical properties. Results confirmed promising porosity and permeability in the Inyan Kara and Broom Creek Formations and removal of the Mission Canyon and Black Island–Deadwood horizons from further investigation. Data derived from the logging and coring program were used to improve initial geologic models built from legacy data. CO 2 injection simulations showed that the Inyan Kara alone can feasibly store the target mass of CO 2 . Because of subtle differences in geologic structure and porosity trends between the formations, a stacked storage scenario using the Broom Creek and Inyan Kara Formations resulted in a larger overall plume area than using the Inyan Kara alone. Preliminary CO 2 pipeline routes from the industrial sources were mapped utilizing existing rights of way and evaluated for capacity and cost using U.S. Department of Energy Office of Fossil Energy and Carbon Management/National Energy Technology Laboratory models and U.S. Environmental Protection Agency emissions data. Integrating capture, transport, and storage cost estimates with policy incentives (e.g., 45Q credits) provided a total cost-per-ton analysis. Results indicate that the small scale of the volumes to be transported over the cumulative large distances does not support the project’s financial viability. However, the groundwork laid during this project from geological, regulatory, and social perspectives positions the Roughrider hub site as a promising candidate for commercial carbon storage in North Dakota, especially if the economy of scale is introduced for CO 2 transportation to the hub site.

01 COAL, LIGNITE, AND PEAT↗
DOE OSTI2022

Looking Beyond Bill Savings to Equity in Renewable Energy Microgrid Deployment

Microgrids powered by renewable energy can provide backup power to critical infrastructure during grid outages. These systems can also play an important role in advancing energy justice by providing economic, environmental, health, and resilience benefits for underserved communities. The value of microgrids is often measured by the economic savings and resilience provided, but there are other energy justice factors that should be considered. This paper describes a methodology for quantifying broader costs and benefits including utility bill savings, value of resilience, social cost of carbon, public health costs, and jobs associated with the construction and operation of microgrids. We evaluate these factors at three case study sites and find that including energy justice values in the cost-benefit analysis of microgrids can change investment decisions. When climate, health, resilience, and job creation are considered, cost-optimal microgrids include more renewable generation, leading to a 52-82% reduction in emissions and diesel fuel use. The net present values of the microgrids grow from negative $626,000-843,000 in the diesel only case to $10-16 million in the hybrid microgrid case and $12-19 million in the renewable microgrid case, indicating potential for greater microgrid deployment if energy justice values are incorporated in decision making. However, we also see large increases in capital expenses, which could limit deployment unless accompanied by innovative financing measures. These findings may be useful to communities as they seek to strengthen resilience to natural disasters while also improving public health, meeting climate goals, and providing economic opportunity for residents.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2022

Analysis of Energy Justice and Equity Impacts from Replacing Peaker Plants with Energy Storage

Transitions to low-carbon energy systems are essential to mitigating and adapting to climate change. Energy storage systems are a key component in achieving a viable decarbonized electric grid. However, decarbonization alone does not guarantee a fairer, more inclusive, or socially just energy system. Energy equity and justice should be integrated in energy system transitions to ensure benefits and burdens are shared equitably. In this paper, we discuss the relationship between energy storage and social equity by assessing the use of energy storage to replace natural gas-fired (NG) peaker plants. Peaker plants are disproportionately located near disadvantaged communities and tend to be older and high emitters of health-affecting fine particulate matter and other pollutants. This paper investigates the equity implications of NG peaker plant replacements with battery energy storage in the context of Washington State’s peaker plants to highlight the human-centered values of retiring the plants. The study performed production cost simulations using the latest Western Electric Coordinating Council Anchor Dataset 2030 case and found that total generation cost, locational marginal price, and total annual emissions were reduced with the replacements. These reductions will have equity benefits on local communities including access to clean air, enhanced health outcomes, and energy burden reductions.

Tarekegne, Bethel W.↗
DOE OSTI2022

Quantifying Movement Motivations, Demand, and Inflow-Outflow Dynamics in Four Cities (New York, Chicago, Austin, and San Diego) During COVID-19: Preprint

COVID-19 has impacted human activities ranging from food delivery habits to major moving and travel decisions. It’s clear that multiple pandemic-related factors have influenced millions of relocation decisions by Americans (e.g. health risk, financial pressures, more space, employment). There are positive economic and social outcomes of this influence (e.g. remote work and education) enabling more affordable living and opportunity. This paper addresses COVID-19 impacts on mobility, especially the mobility that involves permanent relocation from place to place. Survey design and data analysis with U-Haul targeted customers in Austin, New York, San Diego, and Chicago to understand mobility, new moving dynamics, and motivations.

ADVANCED PROPULSION SYSTEMS↗
DOE OSTI2024

Cyber Resilience and Social Equity: Twin Pillars of a Sustainable Energy Future

This paper examines the intersection of security and accessibility within energy systems amidst the rise of grid modernization and digitization, especially considering the regulatory changes and the imperatives of inclusive energy strategies. It addresses the dual need for secure, resilient infrastructure and a commitment to mitigate energy poverty while maintaining equitable access to energy. Amid escalating cybersecurity and physical threats, the paper advocates for sustainable energy delivery systems that ensure robust defenses without compromising the goals of reducing energy poverty and ensuring energy security. This paper identifies the pressing need for Cyber-Informed Engineering (CIE) and Secure-by-Design (SbD) principles, highlighting how these strategies can protect critical infrastructure and democratize access to secure energy, particularly for disadvantaged communities. The analysis underscores the challenges presented by the expansion of attack surfaces, interoperability requirements, and grid-edge analytics, offering innovative solutions that leverage advanced technologies and data-driven insights. Furthermore, this paper addresses the workforce development gap, emphasizing the necessity for public-private partnerships and vendor engagement in creating a skilled cybersecurity workforce. This paper has a dual focus on both the technological aspect of cybersecurity and the social dimension of equity within the context of sustainable energy development. It suggests a comprehensive examination of how these two critical elements interact and support the overarching goal of a sustainable energy future.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2023

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↗