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At least 19 records

U.S. energy sector impacts of technology innovation, fuel price, and electric sector CO2 policy: Results from the EMF 32 model intercomparison study

We study the impact of fuel prices, technology innovation, and a CO2 emissions reduction policy on both the electric power and end-use sectors by comparing outputs from four U.S. energy-economic models through the year 2050. Achieving innovation goals decreases CO2 emissions in all models, regardless of natural gas price, due to increased energy efficiency and low-carbon generation becoming more cost competitive. For the models that include domestic natural gas markets, achieving innovation goals lowers wholesale electricity prices, but this effect diminishes as projected natural gas prices increase. Higher natural gas prices lead to higher wholesale electricity prices but fewer coal capacity retirements. A CO2 electric power sector emissions cap influences electric sector evolution under reference technology assumptions but has little to no incremental influence when added to innovation goals. Long-term, meeting innovation goals achieves a generation mix with similar CO2 emissions compared to the CO2 policy but with smaller increases to wholesale electricity prices. In the short-term, the relative effect on wholesale prices differs by model. Finally, higher natural gas prices, achieving innovation goals, and the combination of the two, increases the amount of renewable generation that is cost-effective to build and operate while slowing the growth of natural-gas fired generation, which is the predominant generation type in 2050 under reference conditions.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

How structural differences influence cross-model consistency: An electric sector case study

Multiple models are often employed to describe a range of possible outcomes for one or more scenarios, yielding insights into causal relationships and their uncertainties. Electric sector capacity expansion scenarios are a common topic of such efforts due to the economic influence of the electric sector, but model results typically span a broad solution space despite efforts to harmonize input assumptions, making decision implications difficult to discern. This study investigates the relationship between input harmonization and cross-model scenario consistency under disparate electric sector scenarios. We compare cross-model consistency between two state-of-the-art electric sector capacity expansion models (GCAM-USA and ReEDS) for six electric sector scenarios comprising alternate assumptions about fossil fuel resource availability, technology innovation, and long-term economy-wide transitions under four harmonization configurations varying model representations of electricity demand, fuel prices, renewable resources, and capacity retirements. These comparisons reveal that cross-model consistency can vary across scenarios under a given harmonization configuration, suggesting that harmonization efforts must often be scenario-specific if comparable cross-model consistency is desired. Model structural differences can hinder consistency, and the impact of these differences can depend on the scenario. Ultimately, thorough harmonization can reveal insights into cross-model consistency, which can be used to tighten uncertainty bounds and improve the decision-making implications of multi-model activities.

Cohen, Stuart↗

Evolution of Electric Sector Water Use Under Alternative Electricity Futures

Increasing competition for water resources in the United States could create future challenges for allocating and using thermal cooling water in the U.S. electric power sector. While thermal power plant retirements and the growth of wind and solar technologies can reduce national aggregate power sector cooling water use, local water constraints and growing demand for agricultural or municipal supply could create greater needs for higher-cost alternative water supplies such as groundwater or recycled wastewater. For some regions, these incentives could change future electricity planning and operational decisions. These relationships and impacts are studied here using the National Renewable Energy Laboratory (NREL) Regional Energy Deployment System (ReEDS), a national electric sector planning model that has recently been upgraded to include a highly detailed representation of thermal cooling water demand and supply. Thermal power technologies are differentiated by both cooling technology and water source type to track and constrain thermal cooling water use in a way that incorporates both physical and legal water considerations in the United States. This capability is exercised under a range of electricity sector futures with alternative technology costs, fuel prices, and water constraints to illustrate ways that U.S. electric sector water use could evolve under uncertain future electric sector drivers. In exploring changes to regional generation and transmission planning and operation, water requirements, and cost, we highlight the environmental and economic impacts of future power sector water decisions.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Load Forecasting for the Moroccan Electricity Sector

The Moroccan electricity sector is undergoing rapid transformation as it seeks to increase its utilization of renewable energy from its abundant domestic supply. Key to implementing variable renewable energy is understanding current electricity demand and forecasting this demand on the long, medium, and short timescales. This report leverages existing Moroccan electricity sector data to build basic load forecasts on these timescales. Taking these forecasts, the report recommends next steps in terms of additional algorithms, mathematical models, data collection, and scenarios (such as vehicle electrification or high levels of distributed generation) that should be examined for advanced load forecasts.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

An Overview of Policies Influencing Air Pollution from the Electricity Sector in South Asia

The electricity sector is a substantial source of air pollution and associated health problems in South Asia and elsewhere. Fossil-fueled power plants emit a wide variety of harmful pollutants. Those with the greatest health impacts are particulate matter and ozone. Once released into the atmosphere, there is no practical way to remove air pollutants, which means that policies designed to improve air quality have to limit the pollutants before release. However, tackling such pollution is challenging because developing economies also need to provide electricity as a basic necessity for their citizens and as an engine of economic growth. This report provides examples of policies impacting air pollution from the fossil-fuel electricity sector in the South Asian countries of Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka. Some of this information was difficult to locate, so this is not a comprehensive study, but rather an overview or "scan" of the sector that includes examples of (1) policies that directly regulate air quality by limiting emissions from specific point sources (by restricting operating hours, for instance), and (2) indirect policies that incentivize or disincentivize polluting activities, such as policies to encourage fuel switching, for example. The report shows (1) the great variation among the policy instruments used in each country, (2) that many countries, especially those that have a mismatch between seasonal demand and resource availability, could improve energy security and reduce air pollution through increased cross-border electricity trade, and (3) some countries have contradictory policies (promoting both coal and renewables, for instance).

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

An Overview of Policies Influencing Air Pollution from the Electricity Sector in Central Asia

The electricity sector is a substantial source of air pollution and associated health problems in Central Asia and elsewhere. Fossil-fueled power plants emit a wide variety of harmful pollutants and their chemical precursors. The pollutants with the greatest health impacts are particulate matter and ozone. Once released into the atmosphere, there is no practical way to remove air pollutants, which means that policies designed to improve air quality have to limit the pollutants before release. However, tackling such pollution is challenging, particularly in developing economies, due to the need to provide electricity as a basic necessity for citizens and as an engine of economic growth. This report provides examples of policies impacting air pollution from the electricity sector in the Central Asian countries of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. It is a partner publication to an earlier report that addressed policies in South Asia. As with the South Asia report, information on policies in some countries was difficult to locate; therefore, this is not a comprehensive study, but rather an overview or "scan" of the sector that includes examples of: (1) policies that directly regulate air quality by limiting emissions from specific point sources (by restricting operating hours, for instance); and (2) indirect policies that incentivize or disincentivize polluting activities, such as policies to encourage fuel switching to or from cleaner renewable resources. Note that this report was prepared before the Russia-Ukraine conflict and therefore doesn't address consequences of that war for Central Asia. The report finds: (1) That Central Asian countries typically have relatively few policy instruments available for regulating national air emissions; (2) That many countries, especially those that have a mismatch between seasonal demand and resource availability, could improve energy security and reduce air pollution through increased cross-border electricity trade; (3) That some countries have seemingly contradictory policies (promoting both coal and renewables, for instance). This report is also available in Russian: https://www.nrel.gov/docs/fy23osti/85192.pdf.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Future evolution of virtual water trading in the United States electricity sector

Abstract Future transformations in the electricity sector could entail major shifts in power sector technology mixes and electricity trade, with consequences for the trading of virtual water. Previous virtual water trade studies largely focus on historical timeframes. We explore, for the first time, future—through 2050—virtual water trade driven by electricity trade under a range of future electricity sector transformation scenarios using the United States as an example. Under a business-as-usual scenario, virtual water trading in 2050 decreases by 3% relative to 2015 levels. By contrast, virtual water trading increases respectively by 3%, 26%, and 32%, in scenarios characterized by higher socioeconomic growth, higher potential for transmission expansion, and low-carbon transitions. These increases are driven by electricity generation expansion in the western U.S., resulting in higher virtual water trade to the east. In addition, we find that as electricity generation shifts west, an increased amount of nonrenewable groundwater will be consumed to generate electricity that is supplied to the east. Independent of scenario, the US electricity grid largely relies on virtual water exports from only a few states. Our study highlights the need for integrated and national strategies to manage the water and electric systems.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Climate Impacts on U.S. Electric Sector Evolution and Water Use Under Varying Market Futures: Are Some Energy Technologies and Regions More Affected by Climate Than Others?

Climate impacts on air temperatures and water availability have the potential to alter future electricity sector investment decisions as well as the reliability and performance of the U.S. power system. Different electricity sector configurations are more or less vulnerable to climate-induced changes. For example, once-through cooled thermal facilities are very efficient under cooler and wetter conditions but can be more vulnerable under warmer and drier conditions. Non-thermal renewable technologies are essentially 'drought-proof' but have other reliability challenges. Prior efforts have explored the impacts of climate change on electric sector for a limited set of climate and electricity scenarios. Here, we provide a comprehensive suite of scenarios that evaluate how different electricity sector market futures in the U.S. could be affected by a range of climate and water resource conditions. We use four representative concentration pathway (RCP) scenarios under five global circulation models (GCM) as climate drivers to a Water Balance Model (WBM), for twenty unique future climate-water conditions modeled through 2050. The electric sector impacts of these climate-water futures are then evaluated by the Regional Energy Deployment Systems (ReEDS) electricity capacity expansion model. To explore a breadth of possible electricity market futures, four electricity sector scenarios are considered to represent different carbon emission and water usage conditions: (1) business-as-usual, (2) CO2 cap, (3) CO2 cap with high renewable energy costs and extended nuclear lifetimes, and (4) continued coal reliance that maintains the existing coal fleet through 2050. Thus, we examine 84 possible futures in total when including a static climate representation of each market scenario. Results indicate that U.S. electric sector responds to climate change by constructing a combination of gas-fired and low-carbon generating sources, and the balance between technologies are determined by fuel prices, technology costs and policy. The cost for power sector to respond to climate change are generally proportional to the costs of electricity system components, while the relative sensitivity and vulnerability to climate pressures will vary across different generating technologies and different regions.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

2022 Standard Scenarios Report: A U.S. Electricity Sector Outlook

This report documents the eighth edition of the annual Standard Scenarios. It summarizes 70 forward-looking scenarios of the U.S. electricity sector that have been designed to capture a wide range of possible futures. In August 2022, the United States Congress passed the Inflation Reduction Act (IRA), a law aimed at accelerating U.S. decarbonization, clean energy manufacturing, and deployment of new power and end-use technologies. This year’s scenarios include representations of the main electricity-sector provisions from IRA and the potential impact on electricity demand. The Standard Scenarios are simulated using the Regional Energy Deployment System (ReEDS) model, which projects utility-scale electricity sector evolution for the contiguous United States using a system-wide, least-cost approach subject to policy and operational constraints. A subset of the scenarios are simulated in the PLEXOS production cost model to obtain a broader suite of metrics at the hourly resolution, which are made available through the National Renewable Energy Laboratory’s (NREL’s) annual Cambium data sets. The scenarios can be viewed and downloaded from NREL’s Scenario Viewer. Annual results are available for the full suite of scenarios in the Standard Scenarios projects in the viewer, whereas the Cambium projects contain hourly data for a subset of scenarios. The Standard Scenarios includes a scenario called the Mid-case, which has central or median values for core inputs such as technology costs and fuel prices, moderately paced demand growth averaging 1.3% per year, and electricity sector policies as they existed in September 2022 (including IRA). The remaining 69 scenarios are created by varying inputs such as technology and fuel prices, resource availability, demand growth, whether nascent generation technologies are allowed, and by introducing national decarbonization constraints.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Impacts of High Variable Renewable Energy Futures on Wholesale Electricity Prices, and on Electric-Sector Decision Making

Increasing penetrations of variable renewable energy (VRE) can affect wholesale electricity price patterns and make them meaningfully different from past, traditional price patterns. Many long-lasting decisions for supply- and demand-side electricity infrastructure and programs are based on historical observations or assume a business-as-usual future with low shares of VRE. Our motivating question is whether certain electric-sector decisions that are made based on assumptions reflecting low VRE levels will still achieve their intended objective in a high VRE future. We qualitatively describe how various decisions may change with higher shares of VRE and outline an analytical framework for quantitatively evaluating the impacts of VRE on long-lasting decisions. We then present results from detailed electricity market simulations with capacity expansion and unit commitment models for multiple regions of the U.S. for low and high VRE futures. We find a general decrease in average annual hourly wholesale energy prices with more VRE penetration, increased price volatility and frequency of very low-priced hours, and changing diurnal price patterns. Ancillary service prices rise substantially and peak net-load hours with high capacity value are shifted increasingly into the evening, particularly for high solar futures. While in this report we only highlight qualitatively the possible impact of these altered price patterns on other demand- and supply-side electric sector decisions, the core set of electricity market prices derived here provides a foundation for later planned quantitative evaluations of these decisions in low and high VRE futures.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

2017 Standard Scenarios Report: A U.S. Electricity Sector Outlook

The 2017 Standard Scenarios includes a suite of U.S. electricity sector scenarios. The report explores four power sector storylines, including the growth in natural gas and renewable energy, the relative competitiveness of wind and solar PV, the potential impact of low-cost battery storage, and the impact of nuclear lifetimes on the capacity expansion of the power sector.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

2024 Standard Scenarios: A U.S. Electricity Sector Outlook

This data corresponds to the 2024 Standard Scenarios report, which contains a suite of forward-looking scenarios of the possible evolution of the U.S. electricity sector through 2050. These files contain modeled projections of the future. Although we strive to capture relevant phenomena as comprehensively as possible, the models used to create this data are unavoidably imperfect, and the future is highly uncertain. Consequentially, this data should not be the sole basis for making decisions. In addition to drawing from multiple scenarios within this set, we encourage analysts to also draw on projections from other sources, to benefit from diverse analytical frameworks and perspectives when forming their conclusions about the future of the power sector. For further discussions about the limitations of the models underlying this data, see section 1.4 of the "ReEDS Documentation" linked below. For scenario descriptions, input assumptions, and metric definitions for the data in these files, see the "2024 Standard Scenarios Report" linked below.

2050↗

Improving the Cyber and Physical Security Posture of the Electric Sector (Final Report)

Cooperative electric utilities represent an integral part of the larger electric grid and are part of the nation’s critical infrastructure. The National Rural Electric Cooperative Association (NRECA) has a unique relationship with approximately 900 cooperatively owned and operated electric utilities and engaged in a program with the Department of Energy (DOE) to promote a culture of cybersecurity and resiliency within the electric cooperative community. The Rural Cooperative Cybersecurity Capabilities (RC3) Program, funded under a Cooperative Agreement with DOE (Project DE-OE-0000807), focused on improving the cybersecurity and resiliency capabilities of small and mid-sized electric distribution cooperatives. This segment of electric utilities faces many challenges, but also embraces a culture of cooperation that presents opportunities. A customized approach is needed to reach these utilities – one that emphasizes collaboration, more focused and personalized training, use of trusted and familiar experts that can be deployed as needed, software security services that require limited in-house cybersecurity expertise, and shared resource models that enable access to more expensive cybersecurity options.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Bridging Climate Change Resilience and Mitigation in the Electricity Sector Through Renewable Energy and Energy Efficiency: Emerging Climate Change and Development Topics for Energy Sector Transformation

Reliable, safe, and secure electricity is essential for economic and social development and a necessary input for many sectors of the economy. However, electricity generation and associated processes make up a significant portion of global greenhouse gas (GHG) emissions contributing to climate change. Furthermore, electricity systems are vulnerable to climate change impacts - both short-term events and changes over the longer term. This vulnerability presents both near-term and chronic challenges in providing reliable, affordable, equitable, and sustainable energy services. Within this context, developing countries face a number of challenges in the energy sector, including the need to reliably meet growing electricity demand, lessen dependence on imported fuels, expand energy access, and improve stressed infrastructure for fuel supply and electricity transmission. Energy efficiency (EE) and renewable energy (RE) technical solutions described in this paper can bridge action across climate change mitigation and resilience through reducing GHG emissions and supporting electric power sector adaptation to increasing climate risk. Integrated planning approaches, also highlighted in this paper, play an integral role in bringing together mitigation and resilience action under broader frameworks. Through supporting EE and RE deployment and integrated planning approaches, unique to specific national and local circumstances, countries can design and implement policies, strategies, and sectoral plans that unite development priorities, climate change mitigation, and resilience.

54 ENVIRONMENTAL SCIENCES↗