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Electricity Markets and Long-Duration Energy Storage: A Survey of Grid Services and Revenue Streams

Purpose of Review Long Duration Energy Storage (LDES) is increasingly viewed as a potential resource for providing grid services that enhance the stability and flexibility of electricity systems. While some LDES services are integrated into existing market frameworks, traditional mechanisms may not fully account for their operational characteristics, potentially leading to undervaluation. Within this context, this paper reviews the literature and industry practices to assess potential grid services for LDES, evaluates existing compensation mechanisms, and identifies challenges to full market integration. Recent Findings We first review existing literature and identify key grid services unique to LDES, including enhancing grid resilience during extreme weather events, enabling long-term energy shifting, and providing flexible and firm energy in systems with limited dispatchable resources. Here, we also review how LDES services are compensated in current market frameworks and the challenges associated with the full realization of LDES values. Additionally, we summarize market mechanisms for storage technologies across U.S. wholesale markets. We find that some markets are adjusting incentive structures, such as incorporating storage duration in capacity accreditation, to better align with system needs and LDES contributions to the grid. However, further refinements in capacity remuneration and dispatch timeframes may be needed for more effective realization of LDES value. Summary This review evaluates potential grid services for LDES, examines existing compensation mechanisms for LDES technologies, and identifies gaps between these mechanisms and LDES operational characteristics. The review concludes by outlining potential market enhancements for more effective LDES integration and articulating additional research needs to support its efficient participation in future power systems.

Flexible resources

Market participation strategy of hybrid energy resources: A New York ISO case study

Drawing on existing market designs with independent resource participation in electricity markets, this study analyzes participation models for hybrid resources combining renewable generation and storage. Two models are considered: in the first, the components operate independently, with the Independent System Operator (ISO) managing the storage state of charge (SoC); in the second, the hybrid resource acts as an integrated unit, submitting offers as a “black box” and managing its SoC internally. Using a production cost model for the zonal New York Bulk Power System, we evaluate trade-offs in system reliability, market efficiency, and asset profitability. Our results provide several key insights for policymakers, showing that the ISO-managed granular model enhances social welfare through explicit SoC management, while the simpler integrated model is more computationally efficient, but may cause more real-time violations and lower overall profits.

Bansal, Rajni Kant

Prime Time for Model-Predictive Control? Assessing the Technical and Market Readiness of Advanced Controls in Buildings

Despite three decades of extensive research and field testing that have consistently validated the benefits of Model Predictive Control (MPC) in building applications, the technology has seen limited market adoption. This paper evaluates the readiness of MPC for widespread deployment, showcases recent demonstrations and field tests across diverse building types, including residential, small commercial, large commercial, and campus settings. Our results demonstrate that MPC can optimize system operations to achieve load shifting, minimize curtailment of on-site generation, and reduce energy costs by up to 80 %, while maintaining or improving occupant comfort. We also show that MPC can effectively control large assets, such as MW-sized thermal storage systems, and respond to dynamic pricing signals. However, achieving scale remains difficult due to labor-intensive workflows, reliance on a “PhD-in-the-loop” for MPC design and maintenance, susceptibility to fragile data infrastructure, and persistent workforce education and acceptance barriers. To bridge this gap, we outline a transition from bespoke, labor intensive prototypes toward streamlined, segment-targeted deployment strategies that leverage model templates, semantic tools, and generative AI. By automating control configuration and reducing engineering effort, these recommendations provide a pathway for transforming successful research demonstrations into scalable, market ready solutions for MPC-based controls.

Pritoni, Marco

U.S. ESCO Industry Report: Industry Size and Recent Market Trends, 2022- 2024

The latest edition of the U.S. Energy Service Company (ESCO) Industry Report by Lawrence Berkeley National Laboratory (LBNL) finds that the U.S. ESCO industry continues to show strong growth. The report draws from ESCO industry reported revenue data for the 2022-2024 period, detailing the current size and characteristics of the U.S. ESCO industry. Following 20 years of ESCO industry reports, the 2024 report explores significant revenue trends across market segments, geographic regions, ESCO size, financing structures, and business activities. New analysis in this report outlines customer priorities and non-energy benefit drivers of Energy Savings Performance Contract projects, adjusted revenue analysis detailing the impacts of inflation on industry growth, and project challenges by market segment.

Chelminski, Kathryn

A review of United States energy-only generator interconnection service policy and considerations for reform

Grid interconnection has emerged as a significant obstacle to the development of new electricity resources. There is growing interest in energy-only interconnection, which is an interconnection service option meant to allow the interconnection of new generators without ensuring their energy deliverability during all hours through the transmission system to customers. This approach potentially avoids upfront congestion-related transmission upgrades but could increase curtailment risk. Interest in energy-only interconnection is shaped by incomplete understanding of how interconnection policy functions in different jurisdictions, a knowledge gap that makes it difficult to determine how energy-only interconnection might be better used or re-designed. In this paper, we provide a regulatory review of energy-only interconnection in U.S. interconnection policy and practice, identifying jurisdictions in which rules are close to -or farther from-the theoretical concept of energy-only interconnection service. We find substantial jurisdictional differences in how energy-only interconnection is implemented, driven by differences in resource adequacy frameworks, real-time transmission operations, and state-level procurement practices. U.S. regulators have preferred local jurisdictional flexibility over federal prescription of interconnection study methods and procedures, which also contributes to differences among regions. Such findings raise fundamental questions about whether competition policies in electricity markets should extend beyond spot energy markets and into more prescriptive guidelines around interconnection rules and market entry. This paper sheds light on tensions that energy-only interconnection raises in allowing generators to access the transmission system on an as available basis and discusses how controlling thresholds for congestion-related network upgrades may be a barrier to electricity market entry.

Gorman, Will

Storing Affordability: Battery Storage as an Asset to Reduce Data Center Cost Shifts

This report examines how battery energy storage systems (BESS) can help utilities accommodate large load growth while protecting affordability for existing ratepayers. Rapid growth in electricity demand from artificial intelligence (AI) data centers is straining the U.S. grid. Furthermore, many new data centers are entering rural markets, which could offer economic benefits but may also pose implementation challenges for smaller utilities. At the same time, retail electricity prices are increasing faster than inflation, elevating customer affordability as a key challenge. While data centers have not been the primary driver of increases in residential prices to date, they have pushed wholesale energy and capacity prices higher in several markets. Fundamental utility cost-allocation principles show that data center growth can be rate-positive for existing customers only if new peak demand grows faster than the costs a utility must incur to serve it. Several factors, including a utility’s degree of wholesale market exposure, forecast uncertainty and stranded-asset risk, and tariff design can determine the outcome of load growth on retail rates. Energy storage can make several affordability contributions in the face of this landscape of uncertainty and market volatility, including deferral of higher-cost grid investments through improved utilization of existing assets and flexibility of new large loads, insulation from volatile wholesale prices through peak shaving, and reliability support to address grid risks stemming from the behavior of AI data center loads. Different potential BESS deployment pathways—utility-scale front-of-the-meter systems, aggregated small-scale storage installations, and data center-sited behind-the-meter storage—are compared against each other and against conventional capacity alternatives. This framework is intended as a conceptual resource to utilities, particularly smaller public utilities with rural service territories, who may be considering the role that energy storage can play in insulating existing ratepayers from data center cost shifts.

25 ENERGY STORAGE

Quantifying System Strength From Grid-Forming Resources Using Frequency Scan Approach: Preprint

Current industry practices for quantifying the system strength contribution from grid-forming (GFM) resources to ensure stability of power systems dominated by inverter-based resources (IBRs) are primarily based on iterative electromagnetic transient (EMT) time-domain simulation studies. While feasible, these approaches are resource-intensive, lack scalability and intuition, and might not evaluate the system strength contribution over the entire frequency range of interest. This paper introduces a novel, frequency-domain approach to quantify system strength support provided by a GFM resource using frequency scans. The proposed method uses transfer functions from the grid voltage magnitude (V) and phase (?), respectively, to the reactive (Q) and active power (P) output of a GFM resource for quantifying its contribution to system strength. These transfer functions provide a direct measure of the ability of a GFM resource to behave as a stiff voltage source behind a reactance over a specified frequency range, enabling robust quantification of its system strength contribution. The key innovation of this work is the development of a frequency domain system strength metric called the dynamic short-circuit ratio (dSCR) that is suitable for IBR-dominated power systems and is directly related with the familiar short circuit ratio (SCR) metric. The new metric, dSCR, enables the assessment of system strength contributions from both synchronous machines and converter-based GFM resources using a unified benchmark, which is not possible with the traditional SCR metric. The paper also demonstrates how impedance scans could identify if an unstable condition observed during weak grid conditions is a result of the lack active or reactive power support or both. By leveraging the proposed frequency-domain dSCR metric for quantifying system strength contribution from GFM IBRs, the paper demonstrates targeted mitigation strategies for weak grid instabilities without resorting to repeated, time-consuming time-domain simulations. The result is a scalable and efficient approach to remediate stability challenges in power systems with high shares of IBRs and accelerating the integration of GFM technologies for system strength support in power systems.

24 POWER TRANSMISSION AND DISTRIBUTION

From Bricks to Clicks: Mapping the White Space in Building Innovation

It is a critical national imperative to transform the buildings sector, yet innovation is impeded by deployment failures that leave promising technologies stranded. Conventional market reports and techno-economic analysis provide an insufficient understanding of markets and resource allocation for emerging building technologies. They omit crucial commercialization factors such as ecosystem maturity and adoption friction, where the coordinated participation of a network of suppliers, contractors, financiers, regulators, and integrators is required to scale solutions. This study addresses these gaps by introducing an evaluation framework grounded in front-line data from six years of the DOE's IMPEL incubator, comprising experience from 300 building-sector innovators and the adjacent, complex ecosystem. Our methodology synthesizes top-down market analysis with bottom-up, practitioner-level data across five megatrends: (M1) Affordable materials and industrialized construction; (M2) Healthy and efficient mechanical systems; (M3) Intelligent building operations; (M4) Buildings as grid assets; and (M5) High-density power and cooling for data centers and therein identify twelve "white space" technology opportunities. Next, we develop a multi-criteria scoring rubric to rank these opportunities based on parameters, i.e., Affordability, Quality of Life, Reliability, and Security, yielding composite ‘Demand’ and ‘Maturity’ indices. Our results indicate that the most significant white spaces may not be incremental products but a new class of ‘Ecosystem Enablers’, such as logistics platforms, orchestration layers, and automated compliance software that solve structural deployment gaps. This paper summarizes this transparent, evidence-based, practitioner-informed evaluation framework for policymakers and investors to re-evaluate policy and resource allocation and unlock scalable market transformation.

Singh, Reshma

Techno-Economic Evaluation of a 600MW Pumped Storage Hydropower Plant using the Pumped Storage Hydropower Valuation Tool

This paper presents a techno-economic evaluation of the proposed 600 MW, 8-hour Craig – Hayden pumped storage hydropower project using the U.S. Department of Energy’s Pumped Storage Hydropower Valuation Tool. The analysis integrates plant technical characteristics, regional grid conditions, and market-based operating assumptions to quantify stacked value streams from energy arbitrage, capacity, ancillary services, transmission congestion relief, and reliability. Both price taker and price influencer frameworks are applied to examine the impact of market participation and system interactions on lifecycle economic performance using Benefit - Cost Analysis and Multi - Criteria Decision Analysis. The results show that the price taker approach provides higher revenue estimates based on exogenous price signals, while the price influencer approach captures production cost savings, renewable curtailment reduction, and market price formation, yielding more conservative but system-representative outcomes. The study demonstrates the strategic value of long-duration PSH for enhancing operational flexibility, resource adequacy, and grid reliability in a high-renewable Western Interconnection.

Bhattacharyya, Arjun [ORNL] (ORCID:000900060976046

Effectively Considering the Distribution System in Integrated Resource Plans

While electricity planning practices vary by state and utility based on utility type and market structure, integrated resource planning (IRP) remains a prominent vehicle — even in states with centrally-organized wholesale electricity markets. IRP focuses on meeting forecasted long-term electricity needs. Typically, utilities have not considered impacts of design and operation of the low-voltage distribution network in IRP. With advanced capabilities of grid-edge technologies to generate and store electricity and provide load flexibility, and large utility investments in distribution systems, it's increasingly important to consider at least some distribution planning elements in IRP. This report considers the value proposition for doing so, such as reducing utility costs through resource co-optimization and strategic siting of grid-edge resources, and idenfities the most important touchpoints between planning for bulk power and distribution systems and provide a range of tactics for integrating these two processes.

Relf, Grace [Lawrence Berkeley National Laboratory

Comparative Assessment of Battery Carbon Footprint Calculation Frameworks to Support U.S. Battery Manufacturing

A “battery passport” is a digital record that provides comprehensive information about an individual battery across its life cycle. This concept has been introduced by Battery Regulation (EU) 2023/1542 [1], which applies to batteries for electric vehicles (EVs), industrial batteries with a capacities greater than 2 kWh, and batteries for light means of transport (LMT) greater than 2kWh sold in the European Union (EU) market – impacting manufacturers and exporters across multiple jurisdictions globally. Among its reporting mandates, a key feature of battery passports is the requirement for a carbon footprint (CF) calculation methodology supported by enhanced data granularity to enable traceable and verifiable CF results. While no other jurisdictions have yet adopted formal battery passport requirements like the EU’s, some are developing CF calculation methods to comply with the EU Battery Regulation or are creating CF-related regulations that could evolve in a similar direction, reflecting the growing importance of battery CF guidelines for manufacturers seeking to remain competitive in global markets.

Zhang, Jingyi [Argonne National Laboratory (ANL),

BLEECAM™ (Benchmarking Life Cycle Environmental, Economic, and Social Metrics for Critical and Advanced Minerals and Materials) [SWR-25-125]

The National Laboratory of the Rockies' (NLR) Benchmarking Life Cycle Environmental, Economic, and Social Metrics for Critical and Advanced Minerals and Materials (BLEECAM™) is an open-source, integrated decision-support tool for evaluating the impacts, risks, and trade-offs across U.S. and global materials supply chains. Funded by the U.S. Department of Energy, BLEECAM supports supply chain and market analysis. The tool integrates multi-objective supply chain optimization, system dynamics, network design, lifecycle assessment, techno-economic modeling, and social impact assessment methods to evaluate how supply chains evolve over time, geography, and deployment scenarios. BLEECAM also supports analysis related to energy infrastructure, data centers and digital infrastructure, advanced manufacturing, and other sectors that depend on critical materials.

Khalifa, SherifA. [National Laboratory of the Rock

Scaling Real Estate Development Innovation With Emerging Local Area Developers

These case studies provide tangible examples within the development field that show how true innovation in real estate and property development hinges on shaping and optimizing diverse connections and relationships to create widely available, market-viable, and high-performance buildings.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI

Hybrid Power Purchase Agreements for Flexible 24/7 Energy Delivery – A Comprehensive Review of Current Practices and Research Pathways

Power Purchase Agreements (PPAs) are becoming increasingly preferred among large energy consumers, such as data centers, to secure cost-effective energy and meet accelerating demand growth. Traditionally, variable renewable energy (VRE)-based PPAs operate on a pay-as-produced basis, balancing supply and demand for a relatively longer duration (e.g., annually). However, the focus is shifting toward matching supply and demand on an hourly basis to fully meet energy needs. This shift requires the integration of flexible energy resources, such as hydropower, thermal generation, and energy storage, to complement VRE sources like wind and solar, forming the foundation for 24/7 PPA. This work contributes by: (i) reviewing emerging market trends and current practices in PPA procurement, supported by data on PPA prices and technology portfolios; (ii) synthesizing the existing literature on modeling approaches for contract pricing, quantities, hybrid resource procurement, and risk management in 24/7 PPA design, while identifying key research gaps; and (iii) proposing an integrated 24/7 PPA design framework along with two contracting mechanisms from the perspectives of both PPA providers and consumers. The proposed framework highlights critical modeling challenges, risk-allocation issues, and future research opportunities for 24/7 PPA design.

24/7

BISON analyses of TRISO fuel performance, its dependence on time-at-temperature, and possible implications for fuel design and qualification

The Advanced Gas Reactor Fuel Development and Qualification (AGR) program has established a substantial technical foundation to support private entry into the U.S. high-temperature gas-cooled reactor market. However, emerging tristructural isotropic (TRISO)-fueled reactor applications include small modular reactors and microreactors with longer fuel residence times, which may expose fuels to higher time-at-temperature (TAT) values than were explored by the AGR program. Increased TAT could affect diffusive and thermomechanical behaviors such as Pd penetration, fission gas release, creep, and fission product transport. In this work, we applied multiscale best-estimate BISON fuel performance modeling to assess these effects within a representative design space based on the AGR-5/6/7 experiment and analyzed trends in predicted particle and compact fuel performance metrics with possible implications for near-term fuel design and qualification. BISON unambiguously predicted that TRISO fuel performance is sensitive to TAT. Increasing TAT was not predicted to increase the magnitude of failure-inducing tangential stresses in particle coating layers. Predictions obtained using a mechanistic model for Pd penetration indicated that penetration depth does not depend strongly on TAT. While these observations suggest that AGR testing provides a conservative upper bound for the steady-state operation of TRISO particles at lower powers and higher residence times, BISON also predicted that the release of poorly retained Ag would increase with TAT. Because these analyses applied models to extrapolate beyond the available experimental data, the authors recommend performing targeted experiments to confirm these predictions. Nevertheless, these predictions may provide reactor developers with enough confidence to make near-term design decisions associated with the potential fuel performance trade-offs of increasing TAT.

11 - NUCLEAR FUEL CYCLE AND FUEL MATERIALS

Renewable Energy and Efficiency Technologies in Scenarios of U.S. Decarbonization in Two Types of Models: Comparison of GCAM Modeling and Sector-Specific Modeling

Energy system projections from analytic models inform actions ranging from short-term and local decisions, such as technology and infrastructure deployment, to global and long-term negotiations and targets. Computational limits require the designers of these models to trade off between coverage and resolution. Some models, such as the Global Change Analysis Model (GCAM), represent all energy sources and uses but at a relatively coarse level of resolution. GCAM balances global supply and demand of all energy carriers by endogenously projecting prices for energy sources and costs of greenhouse gas mitigation while capturing interlinkages between the energy system, water, agriculture and land use, the economy, and the climate. This global model was used to frame the Long-Term Strategy released by the White House in 2021 and has been used to inform national and global economy-wide decarbonization discussions and strategy development for decades. Other models instead focus on a portion of the energy sector with greater detail and resolution. The Regional Energy Deployment System (ReEDS) electricity-sector model, for example, projects capacity expansion with an emphasis on integration of variable renewable energy into the grid of the future. The Transportation Energy and Mobility Pathway Options (TEMPO) transportation-sector model enables analysis of household choices in adoption, charging, and use of electric vehicles. The Scout buildings-sector model supports detailed consideration of the policies and markets that can accelerate the adoption of energy conservation measures in buildings. Such sector-specific models are instrumental in informing technology research, sectoral planning strategies, and sector-specific aspects of greenhouse gas (GHG) mitigation strategies in the United States. These global and sector-specific modeling approaches can complement each other. The global approach ensures consistent, endogenous energy pricing and resource allocation, which can substantially diverge from current conditions in transformative scenarios, while the sector-specific approach facilitates representation of granular details across spatial, temporal, technological, and market dimensions that enable exploration of particular interactions and trade-offs. This report presents the results of recent work to explore the differences and tradeoffs between these approaches by comparing GCAM with the sector-specific ReEDS, TEMPO, and Scout models. The report compares both model structures and results, and discusses their potential relevance and applications.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Optimizing Renewable Ammonia Production for a Sustainable Fertilizer Supply Chain Transition

Local renewable ammonia production using electrolytic hydrogen is an emerging approach to alleviate emissions attributed to synthetic nitrogen fertilizer production while also insulating against fluctuations in fertilizer prices and mitigating transportation costs and emissions. However, replacing ammonia currently produced using fossil fuels will not be immediate. To this end, we develop a supply chain transition model, which first optimizes the design and hourly operation of new renewable ammonia facilities to minimize production costs and then optimizes the annual installation timing, production scale, and location of these new renewable facilities along with ammonia transportation to meet county resolution demands. The objective is to augment and eventually replace conventional ammonia market imports in an economically competitive manner. We performed a case study for Minnesota's ammonia supply chain and found that a full transition to in-state renewable production by 2032 is optimal. This is incentivized by the U.S. federal government's clean hydrogen production credits. This transition results in 99 % reduction in carbon intensity along with stable supply costs below $475 per metric tonne. New renewable production facilities are an order of magnitude smaller than existing conventional plants. They use both wind and solar resources and operate dynamically to minimize expensive battery and hydrogen storage capacities.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH