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At least 19 records

The impact of market design and clean energy incentives on strategic generation investments and resource adequacy in low-carbon electricity markets

Well-designed electricity markets play a crucial role in maintaining reliable electric power systems, which are critical in modern society. Here, this study examines the impact of different electricity market designs and clean energy incentive schemes on supporting renewable energy integration and achieving clean energy goals. To this end, we utilize a game-theoretical generation expansion planning model where generation companies make investment and retirement decisions to maximize their expected profit. The model is structured as an equilibrium problem with equilibrium constraints (EPEC) and solved using a diagonalization approach combined with progressive hedging. We analyze three types of electricity market designs: an energy-only market, a capacity market, and a clean energy market, and consider a wide range of market parameters resulting in 14 total scenarios. Wind and solar capacity comprise the majority of new investments in all considered scenarios, but the resultant system planning reserve margin (PRM) can differ significantly depending on market parameters. We also find that profit-driven investments lead to lower PRMs than a traditional system cost minimization approach. These individual scenario results further demonstrate how different market designs and clean energy incentive schemes may influence investor decision-making and impact resource adequacy throughout the clean energy transition.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Calculating Behind-the-Meter Energy Storage Incentives on an Avoided Cost Basis

Behind-the-meter (BTM) energy storage offers the potential for shared investment by utilities and their customers, in which both parties share in the costs and benefits of battery investment. Several utilities and a handful of states have begun providing incentives to help customers purchase BTM energy storage, and in exchange, operate that battery on behalf of the customer to realize grid benefits such as meeting peak capacity needs. But there is wide variation in the value and structure of these incentives, suggesting a lack of clarity on the value of BTM storage to the grid and to non-participating customers who fund the incentives for participating customers. This paper provides an objective framework for establishing BTM energy storage incentives based on the avoided cost of generation from a marginal, gas-fired peaking plant. It also conducts several sensitivity analyses to see how those avoided costs vary with emissions pricing, gas prices, plant heat rates, and utility capital structures. This work may be of use to utilities, regulators, and energy system stakeholders in providing a value-based framework for BTM incentive programs that can be used in the absence of policy guidance.

Twitchell, Jeremy B.↗

Supply analysis of preferential market incentive for energy crops

This analysis explores the valuation of feedstock quality attributes of switchgrass and miscanthus – two energy crops poised for future expansion – and compares the relative economic availability of these two crops under two scenarios: (i) uniform price assumptions (i.e., no incentive for quality), and (ii) a scenario of a price premium based on convertibility (i.e., an incentive for quality). Given data on cellulose content, hemicellulose content, and their relative convertibility, miscanthus is expected to be 11% more efficient at conversion to biofuels than switchgrass under the biochemical conversion route. Based on this scenario of improved conversion efficiency and associated profit, we simulate an 11% price premium for miscanthus over other feedstocks in a base-case scenario. By adding this price premium, supplies of miscanthus increase over the base case by about 4 million (44%), 94 million (64%), and 166 million (94%) tons in year 0, 10, and 20 after simulated contracts for production are initiated respectively. These results emphasize that custom simulations are needed to quantify feedstock availability if supplies are intended to reflect grower response to industry demands for feedstock quality specifications. Farmers can grow ‘peas or carrots’, and price signals from biorefineries will influence what energy crops they produce. Recognizing that the energy crop mix is tractable according to quality characteristics is relevant both for near-term and long-term biofuels research and development. Here, we recommend accounting for market preferences for quality attributes when estimating potential future supplies of energy crops.

09 BIOMASS FUELS↗

The evolution of grain boundary energy in textured and untextured Ca–doped alumina during grain growth

The role of anisotropic grain boundary energy in grain growth is investigated using textured microstructures that contain a high proportion of special grain boundaries. Textured and untextured Ca–doped alumina was prepared by slip casting inside and outside a high magnetic field, respectively. At 1600°C, the textured microstructure exhibits faster growth than the untextured microstructure and its population of low–angle boundaries increases. Atomic force microscopy (AFM) is employed to measure the geometry of thermal grooves to assess the relative grain boundary energy of these systems before and after growth. In the textured microstructure, the grain boundary energy distribution narrows and shifts to a lower average energy. Conversely, the energy distribution broadens for the untextured microstructure as it grows and exhibits abnormal grain growth. Further analysis of the boundary networks neighboring abnormal grains reveals an energy incentive that facilitates their growth. These results suggest that coarsening is not the only dominant grain growth mechanism and that the system can lower its energy effectively by replacing high energy boundaries with those of low energy. The faster growth of lower energy boundaries suggests that isotropic simulations do not adequately account for anisotropic grain growth mechanisms or anisotropic mobility.

36 MATERIALS SCIENCE↗

Foundations of an Electric Mobility Strategy for the City of Mexicali

The Foundations of an Electric Mobility Strategy for the city of Mexicali aligns with numerous energy, environmental, and transport plans and will help Mexicali meet multiple related goals. Mexicali’s energy mix, with 28% renewables, already enables plugin electric vehicles (PEVs) to reduce the mass of greenhouse gases (GHGs) per km driven 2/3 below that of their conventional counterparts. This GHG benefit will increase should Mexicali take steps to further increase their share of renewables in their electricity supply. Beyond increasing renewables, Mexicali could possibly deploy PEVs so that electric load is added in the right location (depending on further analysis of substations and feeders) and at the right time (between 21:00 and 11:00) in order to minimize grid upgrade costs. There are a handful of charge timing control mechanisms –at various stages of development– that Mexicali could implement. Transport electrification can facilitate mass transit by powering buses, trains, and small vehicles that get people from their homes or work to the transit stations and vice versa. Mexicali could utilize fleets as early PEV adopters in order to gain acceptance and add electric vehicle supply equipment (EVSE). Recommended prioritization of different types of fleets are suggested in this report: transit buses, school buses, airport ground support equipment (GSE), refuse trucks, taxis, shuttle buses, campus vehicles, delivery trucks, utility trucks, and finally semitrailers. There are a handful of policy options that Mexicali could use to incentivize fleets to purchase PEVs, including mandates, economic incentives, energy performance contracts, waivers to access restrictions, electricity discounts, and EVSE requirements in building codes. Mexicali’s taxi fleet was an early adopter of PEVs and had experienced some challenges—mostly related to the insufficient range of the taxis due to hot weather. In this report, we strategize ways to extend the range of the current electric taxis, including ways to make charging more convenient to the drivers, and more suggestions for appropriate vehicles to purchase in the future. This report also includes the groundwork of geotracking Mexicali’s taxi fleet so that more detailed recommendations can be made in the future. Once fleets have increased PEV acceptance and EVSE installations, the market will be ready to expand to private vehicle owners. In order to do this, more EVSE needs to be installed in the right locations. This mobility strategy lays out general local areas where EVSE could be well utilized, based on traffic patterns, land use, and demographic data. Mexicali could approach businesses within these areas that would likely make suitable hosts, based on how well they can profit from the additional business that EVSE would bring. Mexicali could then adopt a series of purchase incentives (including sales tax waivers or access to high-occupancy vehicles [HOV] lanes) that would encourage private vehicle owners to purchase PEVs. Purchase incentives run the risk of creating equity issues, which can be countered by promoting electrification in mass transit, creating more HOV lanes that have PEV exemptions, and installing EVSEs in underserved communities. Private PEV ownership will require a set of experts that Mexicali can help train, including PEV repair technicians, EVSE installation electricians, and first responders.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Driving Investment in Wind Energy: An Introduction to Incentives and the Inflation Reduction Act [Slides]

In a webinar hosted by the U.S. Department of Energy's WINDExchange initiative, experts from the North Carolina Clean Energy Technology Center and the National Renewable Energy Laboratory introduce attendees to the key incentives supporting investment in wind energy deployment and manufacturing in the United States, as well as the role that the Inflation Reduction Act (IRA) plays in shaping those investments. Over the past few decades, incentives like the production tax credit and investment tax credit have supported the growth of wind energy deployment, while manufacturing-related incentives have helped scale up domestic manufacturing of wind energy components. With its passage in 2022, the IRA ushered in a new wave of investment in wind energy and other renewable technologies, as well as introducing new workforce requirements and equity provisions. This presentation explores the history and impact of major incentives, unpacks some of the complex provisions of the IRA, and highlights the ways federal incentives and policies will continue to shape the wind energy industry.

17 WIND ENERGY↗

Distribution Grid Incentive Design with Unknown Agent Behavior

Motivation: During extreme events, traditional grid regulation methods (e.g., energy prices, net power injection limits) may be insufficient. While system operators typically lack control over end-user grid interactions, (e.g., energy demand), incentives can influence behavior - for example, a user that receives a grid-driven incentive may adjust their consumption or expose relevant control variables in response. Problem: Optimize for the best incentive subject to system stability constraints. However, user behavior is unknown to the SO - i.e., for a given incentive, the amount of curtailed load or control variables exposed is unknown.

feedback based control↗

American Made Energy Infrastructure - Evolution of Federal Incentives and Requirements

This presentation, "Evolution of Federal Incentives and Requirements," explores the development and impact of federal cybersecurity regulations, tax credits, and domestic content requirements on the energy sector. It covers key legislation such as the ARRA of 2009, IIJA, and IRA, and their implications for grid modernization, manufacturing, and deployment of energy technologies. The presentation also addresses definitions and restrictions related to Foreign Entities of Concern (FEOC) and their impact on federal procurement. Additionally, it introduces the DOE's cybersecurity framework for energy supply chains and practical actions for compliance planning.

25 - ENERGY STORAGE↗

Data and Code for 'GHG Mitigation and Land Use Change Implications of Sustainable Aviation Fuel in the United States'

BEPAM, Biofuel and Environmental Policy Analysis Model, models the agricultural sector and determines economically optimal land-use and feedstock mix at the US scale by maximizing the sum of agricultural sector consumers’ and producers’ surplus subject to various resource balances, land availability, and technological constraints under a range of biomass prices, from zero to $140 Mg-1 over the 2016-2030 period. Here BEPAM is used to model SAF production using energy crops and crop residues. BEPAM uses the GAMS format and uses yield and GHG balance projections from the biogeochemical model, DayCent.

09 BIOMASS FUELS↗

U.S. Solar Siting Regulation and Zoning Ordinances

A machine readable collection of documented solar siting ordinances at the state and local (e.g., county, township) level throughout the United States. The data were compiled based on a locality-by-locality review zoning ordinances after completing an initial review of scholarly legal articles. The citations for each ordinance are included in the spreadsheet.

Array↗

Assessment of Commercial Building Lighting as a Frequency Regulation Resource

This paper evaluates the potential for automated lighting control as a resource for frequency regulation of the electric grid system in the context of current energy policies, economic incentives, and technological trends. The growing prevalence of renewable energy has increased the need for ancillary services to maintain grid frequency and stability. While demand side resources like heating, ventilating, and air-conditioning systems, as well as water treatment plants are already evaluated as regulation service providers, the potential application to electrical lighting systems has largely been ignored. Yet, aggregations of lighting systems that are retrofitted with intelligent controls could conceivably contribute to frequency regulation services with little impact on user comfort. To further explore the feasibility of lighting potential, this paper explores (1) how lighting control systems are limited by visual comfort perception and acceptability, (2) how such limitations impact the performance of the lighting system as an frequency regulation resource, and (3) how the market potential of lighting systems as demand side resources compares in different regional transmission organizations. Finally, the impact of developing technologies on the application of lighting systems for frequency regulation is discussed.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Long-Duration Energy Storage Grid Integration-Valuation Framework and Incentive Gaps

Given these challenges and current modeling gaps on Long Duration Energy Storage (LDES), enhancing the structure and design of existing planning, operations, and organized wholesale markets can better characterize the value of LDES to the power system. To more thoroughly assess the gaps and barriers to LDES investment and readiness for integration into a future grid, we conducted stakeholder outreach through an online survey, interviews with individual independent system operators/regional transmission organizations, and a literature review. Based on this assessment, we identified a set of opportunities for LDES focused development, including a framework to quantify the contributions of LDES on resource adequacy, reliability, and resiliency. Specifically, we identify the potential demand for and benefits of an open-source, LDES-centric evaluation framework that can guide future planning, operations, market design, and policy reforms.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Data-driven occupant-behavior analytics for residential buildings

Many advances have been made in building technology to help save energy, but influencing the behavior of the occupants is still necessary to achieve low-energy use targets. One of the most practical ways to influence and change occupant behaviors is through incentives. Developing incentives for energy-saving and quantifying the impact of occupant behaviors are both active areas of research. Here, we propose a data analytics framework for detecting changes in occupant behaviors, which will help build an analytics feedback loop from behavior impact to incentive design. The framework has two major parts. The first forecasts energy consumption for each occupant, while the second determines a probability distribution for changes in energy consumption. The parts are interchangeable with other existing machine learning and statistical methods. A specific instantiation of the framework, using kernel ridge-regression for forecasting and k-means to find an empirical behavior distribution, is described in detail. An HVAC use-case with 5 different incentivized behaviors is used as an example to show that the framework can detect behavior changes induced by incentives. Furthermore, we show that some simpler behavior-change detection methods do not work, further justifying the use of advanced analytics.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Dynamically Learning Incentives for Load Control

As electrical generation becomes more distributed and volatile, and loads become more uncertain, controllability of distributed energy resources (DERs), regardless of their ownership status, will be necessary for grid reliability. Grid operators lack direct control over end-users' grid interactions, such as energy usage, but incentives can influence behavior -- for example, an end-user that receives a grid-driven incentive may adjust their consumption or expose relevant control variables in response. A key challenge in studying such incentives is the lack of data about human behavior, which usually motivates strong assumptions, such as distributional assumptions on compliance or rational utility-maximization. In this paper, we propose a general incentive mechanism in the form of a constrained optimization problem -- our approach is distinguished from prior work by modeling human behavior (e.g., reactions to an incentive) as an arbitrary unknown function. We propose feedback-based optimization algorithms to solve this problem that each leverage different amounts of information and/or measurements. We show that each converges to an asymptotically stable incentive with (near)-optimality guarantees given mild assumptions on the problem. Finally, we evaluate our proposed techniques in voltage regulation simulations on standard test beds. We test a variety of settings, including those that break assumptions required for theoretical convergence (e.g., convexity, smoothness) to capture realistic settings. In this evaluation, our proposed algorithms are able to find near-optimal incentives even when the reaction to an incentive is modeled by a theoretically difficult (yet realistic) function.

demand response↗

Foreign Entity of Concern Requirements in the One Big Beautiful Bill Act

The One Big Beautiful Bill Act (OBBB), enacted July 4, 2025, makes billions of dollars in federal energy tax credits conditional on supply chain independence from China and other foreign entities of concern. The OBBB simultaneously creates powerful economic incentives to reshore energy supply chains to the United States and allied nations. Through such incentives, the OBBB elevates digital assurance and supply chain verification from voluntary best practices into critical capabilities for demonstrating tax credit eligibility. The OBBB uses tax credit eligibility requirements to simultaneously address national security concerns regarding foreign supply chain dependencies and incentivize domestic energy manufacturing. This brief details how organizations should operationalize these requirements through baseline compliance audits, interim documentation systems, supply chain diversification strategies, and long-term institutional integration of digital assurance capabilities that turn compliance burdens into competitive advantages

29 - ENERGY PLANNING, POLICY AND ECONOMY↗