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At least 19 records

Representing Carbon Dioxide Transport and Storage Network Investments within Power System Planning Models

Carbon dioxide (CO 2 ) capture and storage (CCS) is frequently identified as a potential component to achieving a decarbonized power system at least cost; however, power system models frequently lack detailed representation of CO 2 transportation, injection, and storage (CTS) infrastructure. In this paper, we present a novel approach to explicitly represent CO 2 storage potential and CTS infrastructure costs and constraints within a continental-scale power system capacity expansion model. In addition, we evaluate the sensitivity of the results to assumptions about the future costs and performance of CTS components and carbon capture technologies. We find that the quantity of CO 2 captured within the power sector is relatively insensitive to the range of CTS costs explored, suggesting that the cost of CO 2 capture retrofits is a more important driver of CCS implementation than the costs of transportation and storage. Finally, we demonstrate that storage and injection costs account for the predominant share of total costs associated with CTS investment and operation, suggesting that pipeline infrastructure costs have limited influence on the competitiveness of CCS.

24 POWER TRANSMISSION AND DISTRIBUTION↗

New Resource Adequacy Criteria for the Energy Transition: Modernizing Reliability Requirements

The transition toward a cleaner and more weather-dependent power system brings with it unprecedented challenges and opportunities for maintaining resource adequacy—namely, a future that includes rapid load growth, plant retirements, and a shift toward variable and energy-limited resources. Resource adequacy analyses, capacity accreditation, and the resource adequacy planning criteria are becoming increasingly important for power system planning and investment decisions. While previous ESIG reports evaluated the changing resource adequacy risks and planning practices created by the energy transition, none specifically examined potential changes to the resource adequacy criterion used for planning. The resource adequacy criterion sets the level of supply- and demand-side resources that are required for a given power system to meet reliability objectives. It is a pivotal standard that influences billions of dollars of investment decisions.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Proactive Operations and Investment Planning via Stochastic Optimization to Enhance Power Systems’ Extreme Weather Resilience

We present scalable stochastic optimization approaches for improving power systems’ resilience to extreme weather events. We consider both proactive redispatch and transmission line hardening as alternatives for mitigating expected load shed due to extreme weather, resulting in large-scale stochastic linear programs (LPs) and mixed-integer linear programs (MILPs). We solve these stochastic optimization problems with progressive hedging (PH), a parallel, scenario-based decomposition algorithm. Our computational experiments indicate that our proposed method for enhancing power system resilience can provide high-quality solutions efficiently. With up to 128 scenarios on a 2,000-bus network, the operations (redispatch) and investment (hardening) resilience problems can be solved in approximately 6 min and 2 h of wall-clock time, respectively. Additionally, we solve the investment problems with up to 512 scenarios, demonstrating that the approach scales very well with the number of scenarios. Moreover, the method produces high quality solutions that result in statistically significant reductions in expected load shed. Our proposed approach can be augmented to incorporate a variety of other operational and investment resilience strategies, or a combination of such strategies.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Role of Renewable Energy, Storage, and Demand Response in Karnataka's Power Sector Future

Karnataka ranks fourth among Indian states in installed capacity of renewable energy, which accounts for over 50% of its resource mix. The state is positioned to play a leading role in India's energy transition and contribute to meeting national targets for renewable energy thanks, in part, to ambitious state goals to develop Karnataka's abundant zero carbon energy resources and plans to phase out new investments in thermal plants. Power system stakeholders in Karnataka are faced with the challenge of planning a generation portfolio that accounts for the variability of wind and solar resources, meets increasing and shifting electricity demand, and satisfies operational and reliability requirements. The objective of this study is to evaluate least-cost pathways for Karnataka's electric power system through 2050. The capacity expansion model developed for this study identifies power system investment and operational decisions for every year (2020-2050) for all of India, with detailed representation of the state of Karnataka. The study led to five high-level results and provides a framework for recurring planning studies to meet changing system conditions and needs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Decision-Dependent Uncertainty-Aware Distribution System Planning Under Wildfire Risk

The interaction between power systems and wildfires can be dangerous and costly. Distribution grids can be liable for the outbreak of wildfires during extreme weather. In wildfire-prone areas, investment planning should consider the impact of operational actions on wildfire-related uncertainties affecting line failure likelihood. Here, in this case, endogenous-based uncertainty modeling should comprise the backbone of the investment planning model viz-a-viz the inability of standard exogenous-based uncertainty modeling. Therefore, we propose a decision-dependent uncertainty (DDU) aware methodology to optimize investment portfolios for distribution systems, considering that high power-flow levels in high-threat areas can ignite wildfires and increase line failure probability. The methodology identifies the best combination of upgrades (new lines, hardening existing lines, and placing switching devices). Methodologically, we propose a two-stage distributionally robust planning optimization problem with DDU that considers the distribution system's multiperiod operation. The first stage determines optimal switching actions and line investments, and the second stage evaluates the worst-case expected operational cost under a DDU framework designed to account for the endogenous impact of power-flow levels and hardening investment decisions in the line failure probabilities. An iterative method is tailored to handle the problem and numerical experiments demonstrate a more prepared grid to deal with wildfire risk.

Power systems investment planning↗

Hydroclimate-coupled framework for assessing power system resilience under summer drought and climate change

Extreme drought, exacerbated by climate change, increasingly threatens power system resilience, and a systematic assessment of such impacts is challenging due to the unpredictability of drought and their associated modeling complexity. Here, to address the challenge, this research develops a hydroclimate-coupled power system resilience assessment framework that enables systematic modeling of drought and climate change impacts on generation, transmission, and demand sectors. Applying the framework to the 2025 Eastern U.S. power grid — comprising 6,055 at-risk generators — under climate-induced summer drought scenarios (including SSP126, SSP245, SSP370, and SSP585) from 2023 to 2100, the study finds that climate-induced droughts could jeopardize the power system’s reliability to a greater extent than historical events, potentially leading to widespread load shedding. More specifically, the study reveals that under the twenty-one representative drought scenarios, the loss of load expectation (LOLE) of the grid could range from 34.77 to 91.48 days per summer. The simulations indicate that implementing resilience enhancement strategies is crucial to ensure reliable system operation, which encompasses initiatives such as demand response, upgrading open cooling systems, and transmission expansion. In all, these findings underscore the urgent need for proactive planning and investment in resilient U.S. power systems to mitigate the impacts of extreme drought events.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Assessing compounding climate-related stresses and development pathways on the power sector in the central U.S.

Future configurations of the power system in the central region of the USA are dependent on relative costs of alternative power generation technologies, energy and environmental policies, and multiple climate-induced stresses. Higher demand in the summer months combined with compounding supply shocks in several power generation technologies can potentially cause a “perfect storm” leading to failure of the power system. Potential future climate stress must be incorporated in investment decisions and energy system planning and operation. We assess how projected future climate impacts on the power system would affect alternative pathways for the electricity sector considering a broad range of generation technologies and changes in demand. We calculate a “potential supply gap” metric for each pathway, system component, and sub-region of the US Heartland due to climate-induced effects on electricity demand and power generation. Potential supply gaps range from 5% in the North Central region under mild changes in climate to 21% in the Lakes-Mid Atlantic region under more severe climate change. We find increases in electricity demand to be more important in determining the size of the potential supply gap than stresses on power generation, while larger shares of renewables in the power system contribute to lower supply gaps. Our results provide a first step toward considering systemic climate impacts that may require changes in managing the grid or on potential additional capacity/reserves that may be needed.

Gurgel, Angelo Costa↗

Multi-Stage and Multi-Timescale Robust Co-Optimization Planning for Reliable and Sustainable Power Systems. Final Report

In this project, Clarkson University, in collaboration with Southern Methodist University and University of Pittsburgh, conducted the research to model, design, and implement a sophisticated generation and transmission co-optimization planning decision tool, called Multi-stage and Multi-timescale robust Co-Optimization Planning (MMCOP). The MMCOP decision tool intends to facilitate generation and transmission co-optimization planning of emerging power systems, while mitigating risks and uncertainties in both short-term operation dynamics and long-term policy and technology changes. Long-term power system planning aims at optimizing asset utilization by investing in a proper mix of various generation technologies and transmission lines to supply the future load growth. In particular, the Clean Power Plan (CPP), which is designed to combat climate change and reduce carbon emissions by setting a national limit on carbon pollution from power plants, may dramatically change the landscape of the power industry by further promoting clean energy and phasing out emissions-intensive generation technologies. In addition, novel non-wire alternatives (e.g., demand response (DR), distributed generation (DG), energy efficiency (EE), and smart grid technologies) and the computational complexity for large-scale systems significantly complicate the system planning procedure even further. However, existing conventional planning approaches neglect short-term variability and uncertainty of renewable energy, hourly chronological operation details, and physical nonlinear characteristics of the alternating current transmission network. As a result, existing conventional planning approaches may not work properly, and power systems reliability could be in jeopardy. In observing the limitations of existing conventional planning approaches and addressing new challenges of emerging power systems, the main scope of this project to develop co-optimization planning models within a multi-stage and multi-timescale framework. In particular, random contingencies, key uncertainty factors, and AC power flows are included to derive expansion plans while considering both long-term reliability and short-term flexibility.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Recent advances and challenges in optimization models for expansion planning of power systems and reliability optimization

Optimization models for expansion planning of power systems aim to determine capacities, investment timing, and location of power systems to satisfy the power demands while minimizing the total cost. The models have become complex in recent years to reflect both regulations on conventional energy sources and the increasing penetration of renewable energy sources (RES). This paper reviews the basic concepts and optimization models for expansion planning of power systems. We first explain the definition and features of generation expansion planning (GEP), transmission expansion planning (TEP), and generation and transmission expansion planning (GTEP). To address the computational challenges of large-scale expansion planning problems, we review several simplifications including temporal and spatial aggregation, and decomposition methods. This paper also addresses power system reliability defined as the probability of satisfying the load demand while withstanding failures of components. Finally, the goal of this paper is to provide a research overview, discuss trends in expansion planning of power systems, and suggest directions for future research.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗

Pathways for Tamil Nadu’s Electric Power Sector: 2020 - 2030

This report is part one of a two-part series that represents a year-long collaboration with the Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) and Tamil Nadu Transmission Corporation Limited (TANTRANSCO) on power sector planning. This Pathways for Tamil Nadu’s Electric Power Sector 2020-2030 report outlines NREL’s work with TANGEDCO's electricity sector planning department to develop a model of the State power system and evaluate multiple scenarios of system evolution given resource constraints, costs of technologies, and power sector policies. A broad stakeholder group comprised of TANGEDCO leadership, developers, regulators, and researchers from within the power sector community in Tamil Nadu helped to guide the main objectives of the study and provided technical feedback to the research team. The outcomes of this effort include multiple pathways for power sector growth to 2030 and a robust model of Tamil Nadu's power system that can be used to continually analyze the impact of new policies, regulations, or system changes. The second report in this series will build on the bulk system analysis by focusing on the rapidly transforming distribution network in the State. The report will outline a framework developed by NREL and TANGEDCO's distribution utility to quickly and accurately analyze the impacts of integrating renewable energy onto Tamil Nadu's distribution system. Together these studies help to prepare Tamil Nadu for a rapidly transforming power system.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Exploring sustainable electricity system development pathways in South America’s MERCOSUR sub-region

South America has abundant natural water and energy resources, and exploiting these resources to achieve a clean energy future is central to the continent’s economic and sustainable development objectives for the next several decades. Designing pathways to achieving this clean energy future requires better understanding the structural, techno-economic, and policy forces that may influence the future development of the electricity sector in the region. Here, we focus on an interconnected electricity system of five South American countries – Argentina, Brazil, Chile, Paraguay, and Uruguay – which represent major electricity generation, consumption, and trade dynamics in the region. We explore the implications of various forces that could shape the future composition of the power sector in the sub-region, including: evolving renewable energy cost and performance, natural gas prices, cross-border interconnection facilities, early retirement of installed hydropower, and different decarbonization goals. We use a model framework based on a power system planning platform (GridPath) to co-optimize investment and operations of generation, storage, and transmission facilities out to 2050. Our results in a Reference scenario indicate that the electricity system can maintain a relatively clean energy portfolio by leveraging existing hydropower capacity and integrating increasingly cost-competitive wind and solar power. However, dependence on natural gas in the region is likely to remain high. A low-carbon electricity system can cost-effectively be achieved through policy interventions (e.g., renewable portfolio standards) and by diversifying investments in wind, solar, battery storage, and some new hydropower capacity. We also find that existing hydropower is critical for maintaining reliable future grid operations. Enhanced regional electricity trade, mostly based on existing interconnection capacities with nominal investment in new transmission, can significantly benefit the clean energy transition in the region.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Policy and Regulatory Environment for Utility-Scale Energy Storage: India

This report is part of a series investigating the potential for utility-scale energy storage in South Asia. The first part of the work is focused on opportunities and barriers for energy storage within existing policy and regulatory frameworks in the region. This report applies the previously-developed Energy Storage Readiness Assessment to evaluate the policy and regulatory environment for energy storage in India. Forthcoming reports will expand this analysis to other countries in South Asia. These evaluations are designed to provide insights on the opportunities and barriers for energy storage growth and deployment in each country. The second part of this work consists of techno-economic analysis to understand the drivers of energy storage investments in South Asia. Using NREL’s power system planning and operational models of South Asia, this analysis will identify potential storage applications and growth under various cost, policy, and demand growth scenarios. In addition, the regulatory and policy barriers and incentive mechanisms identified in the first task will be incorporated into the modeling task to understand their impact on energy storage deployment and operation. Together these studies will inform the applications and value of energy storage on South Asia power systems and policy and regulatory pathways to realize this value.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Optimal Gas-Electric Energy System Decarbonization Planning

As energy utilities implement climate change mitigation policies, system planners require strategies for achieving affordable emissions reductions. Coordinated planning of electric power and natural gas systems will allow synergistic investments to address cross-sector operational constraints, competing uses for net-zero emissions fuels, and shifts in energy demands across energy carriers. In this study, we develop a novel optimization program that finds the cost-minimizing mix of infrastructure expansion or reduction across gas and electric systems to satisfy sector-specific emissions constraints. Alongside energy supply resources, our framework allows for central-planning of end-use equipment stocks to allow switching between gas and electric appliances upon failure or premature replacement. The proposed model is used to simulate case study scenarios for a benchmark 24-pipe gas network coupled to a 24-node power system test network. We find that electrification of greater than 80% of core gas demands is a component of the least-cost solution for modeled energy systems. Despite this substitution, the gas system is maintained to service difficult-to-electrify customers and to deliver net-zero emissions gas to electricity generators in times of peak electricity demand. Restricting electrification of gas appliances increases reliance on power- to-gas technologies and increases annual costs by 15% in 2040. Neglecting constraints on pipeline blending of hydrogen can produce a misleading result that relies on hydrogen blend fractions of greater than 50%. In all cases, we find the average costs of delivered gas increase nearly 5-fold across the decarbonization transition, highlighting the importance of future work investigating cost-allocation strategies for ensuring an equitable energy transition.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Disjunctive optimization model and algorithm for long-term capacity expansion planning of reliable power generation systems

This paper proposes a new optimization model and algorithm for long-term capacity expansion planning of reliable power generation systems. The model optimizes both investment decisions (e.g., size, location, and time to install, retire and decommission facilities) and operation decisions (e.g., on/off status, operating capacity, and expected power output). It is also able to optimize reserve systems (or backup systems), as well as the main systems, to improve power systems reliability. An impact of operational strategies of generators (i.e., participating in electricity production vs. remaining as idle units during operation) on power systems reliability is considered. Probability of equipment failures and capacity failure states are used to rigorously estimate the power systems reliability depending on design and operation strategies. The optimization model is formulated with Generalized Disjunctive Programming (GDP), which is reformulated as a mixed-integer linear programming (MILP) model using the Hull relaxation. Two reliability-related penalties, such as downtime penalty and unmet demand penalty, are included in the objective function to maximize reliability while minimizing the total net present cost. Furthermore, a bilevel decomposition with tailored cuts is developed to reduce computational times of the multi-scale optimization model. The effectiveness of the proposed model is shown by comparing the results with the results obtained from the expansion planning models that do not explicitly consider reliability. In conclusion, we also show that the proposed bilevel decomposition is computationally efficient for solving large scale problems through 5-years and 10-years planning case studies.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

A Multistage Stochastic Transmission Expansion Algorithm for Wide-Area Planning under Uncertainty

The overall objective for this project was to develop and demonstrate a set of methods for solving the transmission investment problem for a large network considering many possible scenarios of future conditions and multiple decision points when investments can be made. Project sub-objectives achieved this goal through a succession of extending the methods to apply to problems with increasing complexity or additional features, including the number of decision points, whether generation and transmission are co-optimized, and whether AC or DC power flow is used. A transmission model was developed for the Western Electric Coordinating Council (WECC) region, the high-voltage transmission system that serves the western third of the continental U.S. Using a dataset provided by WECC and by researchers from John Hopkins University, we have validated and demonstrated the model and used it to compare the new method for solving multi-stage stochastic transmission planning to several state-of-the-art techniques. The project has resulted in several key outcomes and achievements: The covariance-based method for choosing a small set of hours to represent short-term variability has superior performance in terms of accuracy to existing methods, including K-means clustering and Importance Sampling; The combined partitioning method for long-term uncertainty with the nested clustering approach for choosing representative hours for each long-term group has superior accuracy for equivalent computational effort compared with existing methods; Using the partitioning/clustering method combined with Sample Average Approximation provides both statistical bounds on the quality of the solution and at the same time, a complete investment plan for all contingencies in the full uncertainty set; no existing methods can provide both at the same time; The method is demonstrated to work well for choosing both transmission and generation investments; A variant on the method allows for both scenario selection and simultaneous correction for the error from the DC power flow approximation to provide a tractable method for AC power flow-based transmission planning under uncertainty; The method applied to the WECC case study demonstrates the additional value to the system operator and the consumer of identifying flexible investment options in the near-term decisions. In particular, the case study exhibits significant option value in postponing some transmission additions that appear useful but in some long-term system states create new congestion problems.

24 POWER TRANSMISSION AND DISTRIBUTION↗

A Fast Flexibility-Driven Generation Portfolio Planning Method for Sustainable Power Systems

We are witnessing an acceleration in the uptake of renewable energy in power systems. Because of the associated variability and uncertainty of renewables, power systems need to have an adequate supply of flexibility to allow for suitable management of short-term operations. So far most of the work in this area has neglected how flexibility needs associated with renewables are fulfilled as part of dispatchable generation capital investments decisions. To address this challenge, we propose an approach to plan the dispatchable generation mix of a power system as needed to counteract variability and uncertainty associated with significant shares of variable renewable generation. The approach exploits the linear time-invariant feature of variable generation variability using historical phase planes of capacity (in MW) and ramp (in MW/min) to bridge the gap between long-term capacity planning and short-term intra-hour flexibility needs. This approach is much more computationally tractable than other proposals, while also being able to capture adequately short-term operational features like ramping and net load variability. Numerical tests are performed on realistic datasets to substantiate the effectiveness of the approach.

bulk power system planning↗