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At least 19 records

PV O&M Cost Model and Cost Reduction

This is a presentation on PV O&M cost model and cost reduction for the annual Photovoltaic Reliability Workshop (2017), covering estimating PV O&M costs, polynomial expansion, and implementation of Net Present Value (NPV) and reserve account in cost models.

14 SOLAR ENERGY↗

Modeling Cost of Offshore Carbon Storage in Saline Reservoirs

Poster presentation to the AAPG-SEG-SPE CCUS 2024 Conference. Offshore saline reservoirs provide a significant and accessible resource for geologic carbon storage (CS). The offshore environment requires distinct approaches to site selection, operations, monitoring, and risk that affect the technoeconomic assessment of offshore CS projects. The National Energy Technology Laboratory (NETL) has developed a CS cost model for offshore saline reservoirs known as CO2_S_COM_Offshore. Based on NETL’s widely used CO2_S_COM cost model for onshore saline CS, CO2_S_COM_Offshore enables technoeconomic analysis of CS in offshore areas. This model comprehensively incorporates multiple facets of offshore CS projects, from regional evaluation and site selection to permitting, transport, operations, monitoring, site closure, and decommissioning. Developed to model cost for offshore United States (US) Exclusive Economic Zones, aspects of this model can be adapted to international projects. Presented at the SPE/AAPG/SEG Carbon Capture Utilization and Storage Conference in Houston, TX, March 11-13, 2024.

Mark-Moser, Mackenzie K.↗

Economic Competitiveness of U.S. Utility-Scale Photovoltaics Systems in 2015: Regional Cost Modeling of Installed Cost ($/W) and LCOE ($/kWh)

Utility-scale photovoltaics (PV) system growth is largely driven by the economic metrics of total installed costs and levelized cost of electricity (LCOE), which differ by region. This study details regional cost factors, including environment (wind speed and snow loads), labor costs, material costs, sales taxes, and permitting costs using a new system-level bottom-up cost modeling approach. We use this model to identify regional all-in PV installed costs for fixed-tilt and one-axis tracker systems in the United States with consideration of union and non-union labor costs in 2015. LCOEs using those regional installed costs are then modeled and spatially presented. Finally, we assess the cost reduction opportunities of increasing module conversion efficiencies on PV system costs in order to indicate the possible economic impacts of module technology advancements and help future research and development (R&D) effects in the context of U.S. SunShot targets.

14 SOLAR ENERGY↗

Three-Stage Production Cost Modeling Approach for Evaluating the Benefits of Intra-Hour Scheduling Between Balancing Authorities

This paper introduces a production cost modeling approach for evaluating the benefits of intra-hour scheduling among Balancing Authorities (BAs). System operation is modeled in a three-stage sequential manner: day ahead (DA)-hour ahead (HA) real time (RT). In addition to contingency reserve, each BA will need to carry out 'up' and 'down' load following and regulation reserve capacity requirements in the DA and HA time frames. In the RT simulation, only contingency and regulation reserves are carried out as load following is deployed. To model current RT operation with hourly schedules, a new constraint was introduced to force each BA net exchange schedule deviation from HA schedules to be within North American Electric Reliability Corporation (NERC) area control error (ACE) limits. Case studies that investigate the benefits of moving from hourly exchange schedules between Western Electricity Coordinating Council (WECC) BAs into 10-minute exchange schedules under two different levels of wind and solar penetration (11% and 33%) are presented.

17 WIND ENERGY↗

A Model for Hybrid Systems for Production Cost Modeling Studies Considering Ancillary Services: Preprint

This paper introduces a model for simulating hybrid plants participating in energy and ancillary services for bulk power system studies. The model considers a hybrid plant comprised of a renewable energy source, a thermal power unit, a storage unit, fixed power loads, or any combination of these technologies. The model focuses on Production Cost Modeling (PCM) studies under the assumption of centralized dispatch. We present an example case study to illustrate the use of the model in a single-stage production cost model similar to those conducted by planning agencies. We explore the allocation of behind-themeter ancillary services products and total energy participation to hybrid plant sub-assets and the resulting impacts on the system's ancillary service allocation. The model is implemented and simulated in a unit commitment problem in the RTS test system, which was modified to include a hybrid plant asset.

ancillary services↗

A Model for Hybrid Systems for Production Cost Modeling Studies Considering Ancillary Services

This paper introduces a model for simulating hybrid plants participating in energy and ancillary services for bulk power system studies. The model considers a hybrid plant comprised of a renewable energy source, a thermal power unit, a storage unit, fixed power loads, or any combination of these technologies. The model focuses on Production Cost Modeling (PCM) studies under the assumption of centralized dispatch. We present an example case study to illustrate the use of the model in a single-stage production cost model similar to those conducted by planning agencies. We explore the allocation of behind-the-meter ancillary services products and total energy participation to hybrid plant sub-assets and the resulting impacts on the system's ancillary service allocation. The model is implemented and simulated in a unit commitment problem in the RTS test system, which was modified to include a hybrid plant asset.

ancillary services↗

Integrated Agent-Based and Production Cost Modeling Framework for Renewable Energy Studies

The agent-based framework for renewable energy studies (ARES) is an integrated approach that adds an agent-based model of industry actors to PLEXOS and combines the strengths of the two to overcome their individual shortcomings. It can examine existing and novel wholesale electricity markets under high penetrations of renewables. ARES is demonstrated by studying how increasing levels of wind will impact the operations and the exercise of market power of generation companies that exploit an economic withholding strategy. The analysis is carried out on a test system that represents the Electric Reliability Council of Texas energy-only market in the year 2020. The results more realistically reproduce the operations of an energy market under different and increasing penetrations of wind, and ARES can be extended to address pressing issues in current and future wholesale electricity markets.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Improving Power System Modeling. A Tool to Link Capacity Expansion and Production Cost Models

Capacity expansion models (CEM) provide a high-level long-term view at the prospects of the evolving power system. In simulating the possibilities of long-term capacity expansion, it is important to maintain the viability of power system operation in the short-term (daily, hourly and sub-hourly) scales. Production-cost models (PCM) simulate routine power system operation on these shorter time scales using detailed load, transmission and generation fleet data by minimizing production costs and following reliability requirements. When based on CEM 'predictions' about generating unit retirements and buildup, PCM provide more detailed simulation for the short-term system operation and, consequently, may confirm the validity of capacity expansion predictions. Further, production cost model simulations of a system that is based on capacity expansion model solution are 'evolutionary' sound: the generator mix is the result of logical sequence of unit retirement and buildup resulting from policy and incentives. The above has motivated us to bridge CEM with PCM by building a capacity expansion - to - production cost model Linking Tool (CEPCoLT). The Linking Tool is built to onset capacity expansion model prescriptions onto production cost model inputs. NREL's ReEDS and Energy Examplar's PLEXOS are the capacity expansion and the production cost models, respectively. Via the Linking Tool, PLEXOS provides details of operation for the regionally-defined ReEDS scenarios.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Cost Impacts of Risk-Based Methods for Defining AoR and PISC Duration of a CO 2 Storage Project Using NRAP Tools and FE/NETL CO 2 Saline Storage Cost Model

The purpose of this analysis is to assess the fiscal impact of using risk-based methods to define the area of review (AoR) and post-injection site care (PISC) duration for a geologic carbon dioxide (CO 2 ) storage project. The Office of Fossil Energy (FE)/National Energy Technology Laboratory (NETL) CO 2 Saline Storage Cost Model (“cost model”) was utilized to evaluate CO 2 storage economics in this study. The cost model is a widely used tool for evaluating CO 2 storage costs in geologic settings. It estimates costs for storage operations conducted under compliance to the United States Environmental Protection Agency (EPA) Underground Injection Control (UIC) Class VI regulations. This analysis evaluates and compares the costs of storage (on a first-year break-even dollar per tonne [2018$] basis) at the proposed FutureGen 2.0 site as a case study storage location by implementing different approaches to determine AoR and PISC given the prevailing geologic conditions and injection volume and duration considerations. The approaches include the use of 1) risk-based methods to define AoR and PISC duration, 2) an EPA-approved AoR and PISC documented in the FutureGen 2.0 UIC Class VI permit applications, and 3) cost model default settings that utilize uncertainty multipliers to estimate CO 2 plume and pressure front extent as part of AoR determination, as well as a 50-year PISC default. From all three sources, the AoR and PISC specified in the Class VI permit applications for FutureGen 2.0 were the largest and longest relative to the other two sources.

54 ENVIRONMENTAL SCIENCES↗

Structural Health and Prognostics Management for Offshore Wind Turbines: Sensitivity Analysis of Rotor Fault and Blade Damage with O&M Cost Modeling

Operations and maintenance costs for offshore wind plants are significantly higher than the current costs for land-based (onshore) wind plants. One way to reduce these costs would be to implement a structural health and prognostic management (SHPM) system as part of a condition based maintenance paradigm with smart load management and utilize a state-based cost model to assess the economics associated with use of the SHPM system. To facilitate the development of such a system a multi-scale modeling and simulation approach developed in prior work is used to identify how the underlying physics of the system are affected by the presence of damage and faults, and how these changes manifest themselves in the operational response of a full turbine. This methodology was used to investigate two case studies: (1) the effects of rotor imbalance due to pitch error (aerodynamic imbalance) and mass imbalance and (2) disbond of the shear web; both on a 5-MW offshore wind turbine in the present report. Sensitivity analyses were carried out for the detection strategies of rotor imbalance and shear web disbond developed in prior work by evaluating the robustness of key measurement parameters in the presence of varying wind speeds, horizontal shear, and turbulence. Detection strategies were refined for these fault mechanisms and probabilities of detection were calculated. For all three fault mechanisms, the probability of detection was 96% or higher for the optimized wind speed ranges of the laminar, 30% horizontal shear, and 60% horizontal shear wind profiles. The revised cost model provided insight into the estimated savings in operations and maintenance costs as they relate to the characteristics of the SHPM system. The integration of the health monitoring information and O&M cost versus damage/fault severity information provides the initial steps to identify processes to reduce operations and maintenance costs for an offshore wind farm while increasing turbine availability, revenue, and overall profit.

17 WIND ENERGY↗

Grid Integration of Aggregated Demand Response, Part 2: Modeling Demand Response in a Production Cost Model

This report is one of a series stemming from the U.S. Department of Energy (DOE) Demand Response and Energy Storage Integration Study. This study is a multi-national-laboratory effort to assess the potential value of demand response (DR) and energy storage to electricity systems with different penetration levels of variable renewable resources and to improve our understanding of associatedmarkets and institutions. This report implements DR resources in the commercial production cost model PLEXOS.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

NETL CO 2 Injection and Storage Cost Model

The basic framework for this model provides costs for compliance with various sections of EPA's Class VI regulation and Subpart RR of the GHG Reporting Program. Cost analysis at two levels is provided by this model: site specific where the modeler can enter their own reservoir and cost data and regional in the form of cost supply curves. This model includes costs from initial regional geologic evaluation through site characterization, permitting, injection/MVA operations, post-injection site care to final site closure and transfer to long-term stewardship. A geologic and cost database was developed to support this model.

54 ENVIRONMENTAL SCIENCES↗

Validation of the NLR Pumped Storage Hydropower Cost Model

The National Laboratory of the Rockies (NLR) first released its pumped storage hydropower (PSH) cost model in 2023 as the most detailed bottom-up PSH cost model available to the public. It is available both as a spreadsheet and an interactive web tool, enabling users with a variety of PSH interests to transparently characterize costs of alternative PSH sites and designs. The PSH cost model cannot replace detailed site-level studies and design, but it is important to validate it against other industry PSH cost estimates. The initial model methodology report validated the cost model for a single proposed site, the Eagle Mountain Project in California. This slide deck documents an expanded validation exercise using cost data from six other sites: Goldendale (Washington), Seminoe (Wyoming), Gordon Butte (Montana), Swan Lake (Oregon), White Pine (Oregon), and Lewis Ridge (Kentucky). It compares itemized costs from Federal Energy Regulatory Commission (FERC) applications and other reported costs with NLR PSH cost model outputs after customizing inputs for each site. The validation exercise finds that the NLR model's conservative indirect cost assumptions often drive overall cost overestimation, with direct cost comparisons typically agreeing more closely. All cost model estimates are well within an Association for the Advancement of Cost Engineering (AACE) Class 5 estimation range (-50% to +100%), with five within the AACE Class 4 range (-30% to +50%) and four being within 15%. This result is considered reasonable performance for a parametric model applied at a preliminary design stage.

13 HYDRO ENERGY↗

Cost Model for Pumped Storage Hydropower Geomembrane Lining Systems

The Cost Model for Pumped Storage Hydropower Geomembrane Lining Systems offers an approximation of geomembrane lining system costs for pumped storage hydropower (PSH) reservoirs. Geomembrane lining systems have been used around the world for over 60 years for the construction of dams and reservoirs. Although geomembrane lining systems have found widespread use in the construction of canals and waste containment systems, they have not been utilized in the construction of new PSH facilities in the United States since the Mount Elbert PSH powerplant in Colorado. For this reason, PSH developers in the United States expressed the need for a tool that would allow them to estimate the costs of geomembrane lining systems for their PSH projects. To meet this need, the Cost Model for Pumped Storage Hydropower Geomembrane Lining Systems was developed by Oak Ridge National Laboratory with support from Argonne National Laboratory and Stantec, Inc. This Cost Model will enable PSH developers to develop a preliminary estimate of the cost of geomembrane lining systems and to better understand different reservoir lining options and their cost and performance characteristics, thus enabling them to make informed decisions related to preferred reservoir lining systems for their PSH projects.

DeNeale, Scott [Oak Ridge National Laboratory (ORN↗

Molten Salt Power Tower Cost Model for the System Advisor Model (SAM)

This report describes a component-based cost model developed for molten-salt power tower solar power plants. The cost model was developed by the National Renewable Energy Laboratory (NREL), using data from several prior studies, including a contracted analysis from WorleyParsons Group, which is included herein as an Appendix. The WorleyParsons' analysis also estimated material composition and mass for the plant to facilitate a life cycle analysis of the molten salt power tower technology. Details of the life cycle assessment have been published elsewhere. The cost model provides a reference plant that interfaces with NREL's System Advisor Model or SAM. The reference plant assumes a nominal 100-MWe (net) power tower running with a nitrate salt heat transfer fluid (HTF). Thermal energy storage is provided by direct storage of the HTF in a two-tank system. The design assumes dry-cooling. The model includes a spreadsheet that interfaces with SAM via the Excel Exchange option in SAM. The spreadsheet allows users to estimate the costs of different-size plants and to take into account changes in commodity prices. This report and the accompanying Excel spreadsheet can be downloaded at https://sam.nrel.gov/cost.

14 SOLAR ENERGY↗

1.2.2.404 – Improving the Representation of Hydropower in Production Cost Models

This project's goal is to improve hydropower's representation in power system models by actively coupling river basin (hydrologic) models with grid operations (production cost) models. Near term, this work provides a foundation that allows improved available flexibility and operational constraints representation. Longer term, the work will provide a template that can be used by commercial production cost modeling software vendors to capture the nuances of hydropower operations in their software offerings.

HYDRO ENERGY↗