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CPUC Avoided Transmission and Distribution Cost Study to Support the Avoided Cost Calculator: Avoided Transmission Costs Draft Research Plan

Pacific Northwest National Laboratory (PNNL) and Lawrence Berkeley National Laboratory (LBNL) have been contracted by the California Public Utilities Commission (CPUC) Energy Division (ED) to perform a study which explores and selects an improved methodology to estimate avoided electricity transmission and distribution (T&D) infrastructure costs that can be attributed to the presence of distributed energy resources (DERs). PNNL is performing the study for avoided electricity transmission infrastructure costs and LBNL is performing the study for avoided electricity distribution infrastructure costs. This document summarizes CPUC’s research questions related to avoided transmission infrastructure costs and PNNL’s proposed technical approach to answer these questions.

24 POWER TRANSMISSION AND DISTRIBUTION

Manufacturing Cost Analysis for PEM Electrolyzers and Perspectives for Future Cost Reduction

Electrolyzer capital costs strongly influence the total levelized cost of hydrogen production and have implications for hydrogen deployment. Current electrolyzer costs are high, and large cost reductions may be needed to achieve competitive hydrogen costs and targets. Understanding pathways for cost reduction via R&D and deployment is a critical research area for informed energy planning and enabling hydrogen use. This work presents bottom-up cost estimates of polymer electrolyte membrane (PEM) electrolyzer systems tied to design specifications and discusses perspectives for cost reduction opportunities based on ongoing research. We use a detailed manufacturing and process model for a 1 MW PEM electrolyzer stack and balance of plant (BOP) for rigorous cost estimation. This allows for robust estimates of component and manufacturing costs and examination of key cost contributors. Stack costs are dominated by material costs such as iridium and platinum catalysts, especially at high manufacturing rates; power electronics and hydrogen purification equipment are the largest contributors to BOP cost. At higher manufacturing rates, better equipment utilization could reduce stack costs significantly, and we estimate that experience and bulk purchasing will allow for cost reductions to some BOP components. Still, many well-established BOP technologies and stack material costs are less likely to see significant cost reductions at high manufacturing rates. As such, manufacturing scale is limited in how much it can reduce electrolyzer costs, and additional advances for cost reduction may be needed to achieve cost targets. It will likely take many combined strategies to achieve significant cost reductions for electrolyzers and enable low-cost hydrogen production. We can use our manufacturing cost model to quantify potential cost reductions from the considerations described above and demonstrate pathways to lower cost electrolyzers. This allows for better understanding of cost reduction strategies and enables more informed research, development, and deployment for electrolyzers.

cost

Soft costs and EVSE – Knowledge gaps as a barrier to successful projects

There has been a recent push to increase access to electric vehicle (EV) charging infrastructure. The National Electric Vehicle Infrastructure (NEVI) program, part of the Bipartisan Infrastructure Law (BIL) has made significant funding available for major charging infrastructure projects along state thruways, and many state and local incentives exist for EV owners to install chargers in their homes. However, deployment of these chargers has not kept up with demand, primarily due to issues in project planning, permitting processes, and unforeseen delays. This paper serves as a review of the current understanding of these and other non-hardware costs in EV charging infrastructure projects (collectively known as “soft costs”). We found that soft costs in EV charging infrastructure projects are not well understood. Specifically, there is little agreement on how soft costs should be categorized and tracked, and less agreement still on best practices for controlling these costs and lowering barriers to infrastructure deployment. A broader review of EV charging infrastructure cost analyses shows that these costs can have significant impacts on project outcomes. EV charging infrastructure projects may be able to examine the success of the solar industry in lowering soft costs, and a similar effort may lower project costs significantly. Further work on standardizing and collecting data on EV charging infrastructure costs is required to begin addressing and controlling these costs.

32 - ENERGY CONSERVATION, CONSUMPTION, AND UTILIZA

NE-COST plug-in: Expanding ACCERT's Capabilities for Life-Cycle Cost Modeling

The Algorithm for the Capital Cost Estimation of Reactor Technologies (ACCERT) is a structured methodology and software tool designed to simplify and standardize cost estimation for nuclear reactor technologies [1]. By utilizing a relational database structure and modular cost estimation algorithms, ACCERT delivers a robust, flexible, and scalable framework for evaluating costs across various reactor types and configurations [2]. The recent integration of the NE-COST plugin further expands ACCERT’s scope by introducing detailed life-cycle cost modeling and probabilistic analysis of uncertainties. This addition enables users to evaluate costs across front-end processes such as uranium enrichment and fabrication, as well as back-end activities including waste disposal and geologic storage. Through Monte Carlo statistical cost simulations, the plugin provides probabilistic insights into cost ranges, offering critical decision-making support for stakeholders including reactor developers, policymakers, and researchers.

Zhou, Jia

The Energy Costs of Dewatering Feedstock Microalgae Species Using Conventional Implementations of Ultrasonic and Crossflow Filtration Technologies

The use of microalgae as a feedstock for biofuels and other products continues to be explored, but large-scale biomass production faces persistent high costs. One major cost contributor is the energy required for harvesting and dewatering, a challenge resulting from the dilute nature of microalgae cultures as well as the properties of microalgae cells. This study investigated the energy demands of concentrating three diverse microalgae species (Nannochloropsis salina, Scenedesmus obliquus, and Chlorella luteoviridis) exhibiting different settling velocities, a key harvesting property, using conventional ultrasonic and crossflow membrane filtration. Membrane-free ultrasonic filtration removed 60-80% of the microalgae largely in steady-state operations, increasing concentrations 20-100 times, while consuming 1-6 kWh/m3 - similar to centrifugation. In contrast, crossflow membrane filtration retained nearly 100% of the microalgae, increasing concentrations over 20-fold, but consumed 158 kWh/m3 - over 10 times the energy of centrifugation. Both approaches exceeded the 10% energy target suggested in the 2010 National Algal Biofuel Technology Roadmap. This study also highlights potential sources of energy savings. For ultrasonic filtration, attention to an innovative, dynamic property of the ultrasonic chamber called the Energy Efficiency Factor, could lead to energy reductions by no more than 10-fold and improve the favorability of two of the microalgae species studied. For membrane filtration, a dead-end configuration could reduce energy consumption by no more than 1000-fold, making it favorable for all three species. This study not only highlights the need to further increase the energy content of microalgae cultures, but also the critical importance of continued development of ultrasonic filtration and other harvesting technologies to achieve low-cost, energy-sustainable algal biofuels.

09 BIOMASS FUELS

Policy and Cost Allocation Considerations for Large Electric Load Interconnections: Emerging Policy Trends in Rate Structures, Interconnection, and Cost Impacts on Other System Users

Load growth in the United States is rapidly increasing: load from data centers alone has tripled over the past decade, and this growth is forecasted to continue accelerating. These and other large electric loads (LELs) promise economic benefits at the state and local level, but their deployment has also led to increasing concerns about grid impacts and potential cost shifts onto other ratepayers. Legislators, regulators, and other stakeholders are increasingly proposing and enacting policies in effort to balance these and other considerations. This white paper reviews state-level legislation, selected utility rate cases, and relevant federal orders in an effort to describe and categorize relevant trends in policies related to LEL cost allocation, interconnection, and deployment. Policy categories identified through this review include tax incentives, rate actions, and requirements related to interconnection, permitting, and reporting. By offering a taxonomy of policies, this white paper aims to offer a resource to policymakers and other stakeholders navigating this transformative moment for the grid.

24 POWER TRANSMISSION AND DISTRIBUTION

A cost and community perspective on the barriers to microbiome data reuse

Microbiome research is becoming a mature field with a wealth of data amassed from diverse ecosystems, yet the ability to fully leverage multi-omics data for reuse remains challenging. To provide a view into researchers’ behavior and attitudes towards data reuse, we surveyed over 700 microbiome researchers to evaluate data sharing and reuse challenges. We found that many researchers are impeded by difficulties with metadata records, challenges with processing and bioinformatics, and problems with data repository submissions. We also explored the cost constraints of data reuse at each step of the data reuse process to better understand “pain points” and to provide a more quantitative perspective from sixteen active researchers. The bioinformatics and data processing step was estimated to be the most time consuming, which aligns with some of the most frequently reported challenges from the community survey. From these two approaches, we present evidence-based recommendations for how to address data sharing and reuse challenges with concrete actions for future work.

59 BASIC BIOLOGICAL SCIENCES

Cost-effective valorization of 2,3-butanediol to high-value chemicals and jet fuel

Here, this work outlines an optimized process for converting 2,3-butanediol (BDO) into sustainable aviation fuel (SAF) and C4 chemicals. BDO is reactively separated from fermentation broth by forming dioxolanes, which are converted to isobutyraldehyde, methyl ethyl ketone (MEK), and 1,3-butadiene. These intermediates are reduced and dehydrated over Cu/ZSM-5 to form alkenes, which can be oligomerized and hydrotreated to jet-range alkanes. Previous BDO-dioxolane-alkene processes are limited by the requirement for a continuous aldehyde source for dioxolane formation. Brønsted acidic zeolites catalyze dioxolane deacetalization to form isobutyraldehyde and MEK in a >2:1 molar ratio, providing an internal, recyclable aldehyde source. Dioxolane formation optimization was performed to achieve >95% dioxolane yields over Amberlyst-15 and minimize isobutyraldehyde recycle. The overall BDO-dioxolane-fuel process yields an alkane mixture that enables at least a 50% v/v blend with Jet-A. Techno-economic analyses and life cycle assessments for this BDO-dioxolane-fuel process yield scenarios with <$2.50 per gallon gas equivalent and >58% reduction in CO2 emissions.

2,3-butanediol

Q1-2024 Solar Cost Benchmarks

Each year, the U.S. Department of Energy’s (DOE) Solar Energy Technologies Office (SETO) and its national laboratory partners develop cost benchmarks for U.S. solar photovoltaic (PV) systems. These benchmarks track progress toward reducing solar costs and guide R&D priorities. Unlike typical studies that report only $/W, SETO uses intrinsic units (e.g., $/m² for mounting structures) to better capture how technology improvements such as module efficiency would impact system costs. This allows flexible modeling where inputs can vary significantly to assess cost sensitivity. Costs are reported in two ways: Minimum Sustainable Price (MSP): Long term, financially viable price under stable market conditions. Modeled Market Price (MMP): Actual market price, influenced by short term distortions such as tariffs or subsidies. Three national labs collect cost data from industry stakeholders, ensuring no duplication in outreach to stakeholders. Data reflects real transactions (primarily from Q1) and is weighted based on the number of sources per cost element. The PV System Cost Model (PVSCM) divides total installed system cost into eight categories: 1. Module (PV) 2. Inverter 3. Energy Storage System (ESS) 4. Structural BOS (SBOS) 5. Electrical BOS (EBOS) 6. Fieldwork 7. Office work 8. Other (developer/EPC costs) The first five are hardware costs, while the last three are soft costs. Each category includes fixed and variable cost components, where “size” depends on context (e.g., manufacturing capacity for modules vs. system capacity for installation costs). Variable costs are expressed using appropriate intrinsic units. The model reflects the owner’s upfront overnight capital cost, excluding tax credits. Tariffs and subsidies are treated as temporary market distortions affecting MMP but not MSP. PVSCM is implemented in Excel, where cost elements are aggregated into total system cost. Additional sheets handle unit conversions and operation & maintenance (O&M), with O&M costs levelized over the system’s lifetime.

14 SOLAR ENERGY

Generator Interconnection Costs to the Transmission System in non-ISO Balancing Authorities [Slides]

Electric transmission system operators—including Independent System Operators (ISOs), Regional Transmission Organizations (RTOs), and utilities—require proposed power plants to undergo a series of interconnection studies before connecting to the grid. These studies assess what transmission upgrades or new infrastructure may be necessary and assign the associated costs to the project. Lawrence Berkeley National Laboratory has compiled, aggregated, and cleaned interconnection cost data, originally for ISOs/RTOs, and now for five non-ISO Balancing Authorities: PacifiCorp, Bonneville Power Authority, Duke Energy Progress, Duke Energy Carolinas and Duke Energy Florida. Insufficient transparency in interconnection cost data may contribute to rapidly expanding interconnection queues, with active queue capacities tripling between 2020 and 2024 in the studied BAs. Most projects withdraw after receiving high interconnection cost estimates. Interconnection costs have increased since the early 2000s, with average costs for "complete" projects reaching $194/kW between 2018 and 2024. Active queue projects and withdrawn projects incur substantially higher costs, primarily due to rising network upgrade costs. Recent interconnection costs in non-ISO balancing authorities are higher than in ISO regions, potentially due to a greater willingness to pay among developers. Utility-scale solar, wind, and storage projects have interconnection costs that exceed those for natural gas. However, when focusing on projects that do not withdraw from the queue, the interconnection costs for these technologies are more similar to natural gas projects. Other key findings include: (1) Larger generation projects benefit from lower proportional interconnection costs, (2) capacity transmission service (NRIS) often requires additional network investments, and (3) projects with high network upgrade costs are often clustered geographically. The dataset includes results from 2,104 interconnection studies conducted between 2000 and 2024, covering projects that are operational, withdrawn, or still progressing through the study process. The Excel file contains (a) the complete project-level interconnection cost dataset, and (b) seven additional tabs summarizing cost metrics across dimensions such as time, market structure, cost category (point of interconnection vs. broader network upgrades), fuel type, service type (ERIS vs. NRIS), generator size, and geography.

24 POWER TRANSMISSION AND DISTRIBUTION

Reported Energy and Cost Savings from the DOE ESPC IDIQ Program: FY 2024

Energy Savings Performance Contracts (ESPCs)are a contractual mechanism that allow a federal agency to procure energy savings and facility improvements without upfront capital costs to reduce costs and resiliency. ESPCs are covered under FAR Part 23.2, and 42 USC § 8287. Section 8287(a)(2)(A) of Title 42 of the U.S. Code requires that each energy savings performance contract (ESPC) undergo an annual energy audit, resulting in a separate audit report for every project. The objective of the present report is to compile and analyze all annual ESPC audit reports issued between October 1, 2023, and September 30, 2024, for projects awarded under Generations 1, 2, and 3 of DOE’s ESPC IDIQ contracts. During this period, 205 measurement and verification (M&V) reports were produced for 200 projects; the total number of reports exceeds the number of projects because some projects generated more than one report(for example, a few projects measure savings twice per year and produce two audit reports annually, each covering a different six-month period). By aggregating the results from these individual audits, the report determines the portfolio-wide realization rate of energy and cost savings for all active ESPC projects awarded under DOE’s IDIQ program. For all 205audit reports, sufficient information was available to compare project-level estimated, reported, and guaranteed cost savings. Reported cost savings accounted for ESCO verified savings per each project’s M&V plan. The total reported cost savings for the period addressed were $\$$647.8million,compared with the total guaranteed cost savings of $\$$601.6million. On average across the reported projects: •ESPC contractors guaranteed 92.8% of the estimated cost savings• projects reported achieving 100.0% of the estimated cost savings• projects reported achieving 107.7% of the guaranteed cost savings. The M&V performed for the period indicated adjustments for government operations and maintenance impacts to savings amount to$\$$43.9millionandcould be restored with the original operational parameters for impacted projects. Accounting for this potential cost savings impact, these projects still realized 100.4% of the guaranteed cost savings. The information on estimated and reported energy savings was collected and compared for all 205of the reports examined. Based on site energy, estimated savings totaled 14.88million MMBtu, and reported savings were 15.33million MMBtu; 3.1% greater than the estimated energy savings. All of the reports examined contained sufficient information to calculate source energy savings. Based on site-adjusted source energy, total estimated energy savings were 20.90 million MMBtu, and reported savings were 21.22million MMBtu, 101.5% of the estimated energy savings. For water savings, the estimated savings were 11,539,055 kGal and the reported savings were 13,315,930 kGal. This means 1,776,875 kGal more water was saved than estimated, which is about 15% higher than the estimate. These results indicate that, overall, the reported energy savings slightly exceeded the estimated values, while estimated water savings significantly exceeded estimated values, suggesting that the projects achieved greater cost savings than originally projected. The total annual expense for the ESCOs to perform annual M&V audits and reporting was $\$$10.02million. Through this effort, $\$$647.8 million in annual cost savings was verified. The M&V results indicated that $\$$43.9 million of these verified savings reflected adjustments due to government operations A-6and maintenance impacts, which could be restored under the original operational parameters for the affected projects. These findings show the value of M&V that only costs 1.7%of the guaranteed cost savings to ensure guarantees are met.

29 ENERGY PLANNING, POLICY, AND ECONOMY

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

Long-term hydro-economic analysis tool for evaluating global groundwater cost and supply: Superwell v1.1

Abstract. Groundwater plays a key role in meeting water demands, supplying over 40 % of irrigation water globally, with this role likely to grow as water demands and surface water variability increase. A better understanding of the future role of groundwater in meeting sectoral demands requires an integrated hydro-economic evaluation of its cost and availability. Yet substantial gaps remain in our knowledge and modeling capabilities related to groundwater availability, recharge, feasible locations for extraction, extractable volumes, and associated extraction costs, which are essential for large-scale analyses of integrated human–water system scenarios, particularly at the global scale. To address these needs, we developed Superwell, a physics-based groundwater extraction and cost accounting model that operates at sub-annual temporal and at the coarsest 0.5° (≈50 km × 50 km) gridded spatial resolution with global coverage. The model produces location-specific groundwater supply–cost curves that provide the levelized cost to access different quantities of available groundwater. The inputs to Superwell include recent high-resolution hydrogeologic datasets of permeability, porosity, aquifer thickness, depth to water table, recharge, and hydrogeological complexity zones. It also accounts for well capital and maintenance costs, as well as the energy costs required to lift water to the surface. The model employs a Theis-based scheme coupled with an amortization-based cost accounting formulation to simulate groundwater extraction and quantify the cost of groundwater pumping. The result is a spatiotemporally flexible, physically realistic, economics-based model that produces groundwater supply–cost curves. We show examples of these supply–cost curves and the insights that can be derived from them across a set of scenarios designed to explore model outcomes. The supply–cost curves produced by the model show that most (90 %) nonrenewable groundwater in storage globally is extractable at costs lower than USD 0.57 m−3, while half of the volume remains extractable at under USD 0.108 m−3. The global unit cost is estimated to range from a minimum of USD 0.004 m−3 to a maximum of USD 3.971 m−3. We also demonstrate and discuss examples of how these cost curves could be used by linking Superwell's outputs with other models to explore coupled human–environmental system challenges, such as water resources planning and management, or broader analyses of multisectoral feedbacks.

Global Change Analysis Model (GCAM)

Low-Cost, High-Performance Carbon Fiber for Compressed Natural Gas Storage Tanks (Final Technical Report – Down Select Report)

The aim of this project is to reduce the cost of Type IV, carbon fiber (CF) composite overwrap compressed gas storage tanks by reducing the cost of CF and CF composites. The project team worked to reduce the cost of CF by exploring and testing opportunities for a low-cost alternative precursor material for CF production to supplant market-dominant and costly polyacrylonitrile (PAN). Concurrently, the team aimed to reduce the cost of the tanks at the composite level by improving the interfacial adhesion between the fibers and the matrix resin through the incorporation of low-cost nanoparticles recycled from waste materials, which would reduce the volume of costly CF required to achieve the same tank performance. At the end of the first year, the project team selected mesophase pitch as the primary precursor candidate from a field of materials based on the superior mechanical performance and cost-saving potential. During the second year, the team produced CFs derived from mesophase pitch achieving an average tensile strength of 365.6 ksi and average tensile modulus of 40.74 Msi. Facility availability for spinning and converting these fibers at greater scale has hindered scale-up demonstration, but the team has identified opportunities to conduct this work in the near term. Cost modeling shows that these mesophase pitch-derived CFs can be up to 40% less expensive than PAN-derived CFs due to the lower cost of the feedstock material, higher throughput, greater conversion yield, and lower cost spinning method and compared to PAN. Additionally, the team has demonstrated at lab-scale that nanoparticle coating CFs can significantly increase the interfacial shear strength and load transfer efficiency of CFs in a matrix. Single filament pull-out testing showed a 27% average increase in max interfacial shear strength due to this coating. A continuous method of applying these coatings to a tow of CF has been developed for scale-up. 26 m tows of coated CFs were produced using this system and formed into composite ring samples for ASTM ring burst testing. Issues with the testing protocol have limited assessment of these results. A prototype Type IV tank was designed to meet ANSI HGV2 standards, and the design criteria set out by DOE, using the CF properties developed by the team paired with a proprietary resin matrix, a polyamide liner, and aluminum end bosses. The tank weighs 153.1 kg and with a total capacity of 5.8 kg H2 (5.6 kg usable), which yields a gravimetric capacity of 1.17 kWh/kg. Cost modeling predicts that the tank will have a projected cost of $15.73/kWh. Tank performance modeling does not include considerations for fiber-matrix load transfer efficiency improvements offered by nanoparticle coating method.

08 HYDROGEN

Nature of innovations affecting photovoltaic system costs

Innovations improve technology costs through various kinds of engineering advancements, including changes to materials choices and device or process designs. Understanding how these innovations relate to cost change can reveal aspects of the process of technology evolution, yet developing such understanding is often not possible with a strictly quantitative approach due to data limitations. In this paper we develop a hybrid quantitative-qualitative framework for relating specific innovations to cost change by using the variables in a quantitative technology cost change model as an organizing principle. We demonstrate this framework by applying it to the cost decline in photovoltaic (PV) systems over the last five decades. This framework generates new understanding of a set of innovations that contributed to PV modules’ sustained cost decline and the more modest trends observed in balance-of-system (BOS) costs. The results show the great diversity of innovations that affected PV costs, drawing on wide-ranging fields of expertise within scientific research and practice. We find that there are differences in the characteristics of innovations that reduced the cost of PV modules compared to innovations influencing BOS costs. Numerous module innovations reduced costs by advancing manufacturing tools and processes that improved material quality. Many BOS innovations reduced costs through a combination of component design changes, integration, automation, digitalization, and standardization. Overall, most innovations in our sample affected PV hardware. However, some also target ‘soft technologies’ such as task durations through innovations like fast-track permitting, which require improved collaboration and process streamlining. This framework also provides insight into the nature of knowledge spillovers between technologies. Both module and BOS hardware innovations show the benefits of PV’s position within an ‘ecosystem’ of continuously advancing technologies in many industries, in particular semiconductors and electronics, and also point to the importance of public institutions for accelerating testing, permitting, and training.

14 SOLAR ENERGY

Pumped Storage Hydropower Operation & Maintenance Cost Estimation

The National Laboratory of the Rockies (NLR) develops and hosts a pumped storage hydropower (PSH) cost model that is 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 NLR PSH cost model was designed originally to consider only upfront capital costs only. This slide deck describes methodology to expand the cost model to include operations and maintenance (OM) costs. OM costs are characterized as five distinct components with unique sources and methods for cost estimation. By combining methods for each of these components into a cumulative OM cost estimate, these methods allow a more complete estimation of total OM costs that agrees with existing literature values. The methods are scalable and transparent, allowing them to be readily to applied to any prospective PSH facility for a representative preliminary OM cost estimate in advance of detailed site-specific engineering and other studies.

13 HYDRO ENERGY