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Results for “Capacity bidding”

Search indexed NASA NTRS and DOE OSTI research on propulsion, heat transfer, battery materials and energy systems. Follow report and document links to the original sources.

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DOE OSTI2026

Demand response event simulator and risk-aware bidding tool for industrial customers

Incentive Based Demand Response (IBDR) program participation delivers financial benefits to the consumers and resiliency benefits to the electricity grid. Effectively participating in these programs as an industrial consumer requires bidding strategies that balance financial risk with operational constraints. Existing bidding tools tend not to fully incorporate stochastic IBDR event modeling, program specific baseline and payment/penalty calculations, or demand reduction process control schemes that account for the cascading impacts of shutdown in complex facilities. Here, this work presents an IBDR event simulator and risk-aware bidding framework tool integrating three key components: a flexible, parameterized demand response event generator that rigorously accounts for program structures and stochasticity, a demand response operational simulation model that generates explicit control strategies for load reduction, and a Monte Carlo simulator to evaluate financial risk for varied capacity bids. A case study at a wastewater treatment plant participating in PG&E's Capacity Bidding Program demonstrates the framework's utility. In the peak capacity price month of August, optimal bidding by the wastewater treatment plant nets a mean IBDR benefit of $101,000 (67% of the August electricity bill) with 0.4% probability of a financial loss. This framework enables industrial operators to make informed bidding decisions, negotiate better program terms with demand response load aggregators, and analyze energy flexibility investments at their facilities. Ultimately, this work reduces participation barriers in IBDR programs and supports the broader goal of enhancing grid reliability and renewable energy integration.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2025

A grid-scale study of demand bidding by large industrial users

A demand bidding mechanism for engaging large industrial electricity users in the operation of the power grid is presented. Demand bidding is formulated as an optimization problem based on a modified version of the alternating current optimal power flow problem, and can be interpreted as a tâtonnement process between the grid operator and electricity users. Here, the work provides the first – to the authors’ knowledge – grid-scale case study of demand bidding, using a synthetic grid structure in the footprint of the grid of Texas. Results reveal that the demand bidding lowers overall power generation costs, but economic benefits plateau as the number of participants increases. Transmission line and transformer capacity constraints become the limiting factors, revealing that expanding and fortifying the transmission infrastructure is key to expanding demand-side participation. Demand bidding does not substantially alter the optimal operation of existing bidding entities when the number of bidders increases, thereby supporting existing bidders to stay in the system and encouraging new ones to join.

Chlor-alkali plant↗

DOE OSTI2024

Funding a Just Transition Away from Coal in the U.S. Considering Avoided Damage from Air Pollution

Abstract Coal is declining in the U.S. as part of the clean energy transition, resulting in remarkable air pollution benefits for the American public and significant costs for the industry. Using the AP3 integrated assessment model, we estimate that fewer emissions of sulfur dioxide, nitrogen oxides, and primary fine particulate matter driven by coal’s decline led to $300 billion in benefits from 2014 to 2019. Conversely, we find that job losses driven by less coal plant and mining activity resulted in $7.84 billion in foregone wages over the same timeframe. While the benefits were greatly distributed (mostly throughout the East), costs were highly concentrated in coal communities. Transferring a small fraction of the benefits to workers could cover these costs while maintaining societal net benefits. Forecasting coal fleet damages from 2020 to 2035, we find that buying out or replacing these plants would result in $589 billion in air quality benefits, which considerably outweigh the costs. The return on investment increases when policy targets the most damaging capacity, and net benefits are maximized when removing just facilities where marginal benefits exceed marginal costs. Evaluating competitive reverse auction policy designs akin to Germany’s Coal Exit Act, we find that adjusting bids based on monetary damages rather than based only on carbon dioxide emissions – the German design – provides a welfare advantage. Our benefit–cost analyses clearly support policies that drive a swift and just transition away from coal, thereby clearing the air while supporting communities needing assistance.

Dennin, Luke R. (ORCID:0000000205405520)↗

DOE OSTI2024

Model Formulations: Integrating Distributed Energy Resources (DER) using Advanced Unit Commitment Models and DER Aggregation Methodologies

A distribution energy resource aggregator (DERA) constitutes a group of distribution energy resources with small generation capacities which meet the threshold to participate in the electricity wholesale market. This document provides the proposed DERA model formulation that will be implemented in the SCUC simulation’s architecture for the SCUC-DER project. Different economical assessment methodologies have been developed to incorporated bids for individual distributed resources, which include solar cost dispatch and cost model, BESS opportunity cost offer algorithm, and price sensitive demand response model. Detailed methods are proposed to aggregate individual cost offers to a DERA cost curve to bid in SCUC market while three methods are proposed to simulate DER actual dispatch. Based on the DERA models in this document, the SCUC-DER project will be able to assess the impacts of DERA on the distribution system’s operation and reliability.

24 POWER TRANSMISSION AND DISTRIBUTION↗