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

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

24/7

Techno-Economic Viability of Flexible Dispatch of Unconventional Geothermal Systems

Flexible geothermal operations could boost project returns through the allocation of improved power purchase agreements and/or exploitation of power price arbitrage opportunities. In this study, we investigated the techno-economic feasibility of variable flow rate control and time-of-day pricing in closed-loop geothermal systems. We considered U-shaped multilateral system configurations and modeled a variety of technical system parameters. These designs were simulated using a slender-body theory (SBT) model for transient heat transfer and fluid flow. This subsurface model was integrated into the flexible geothermal economic model (FGEM) tool to evaluate the overall flexible geothermal system techno-economics. Future hourly ambient temperature conditions were based on the Sup3rCC dataset. Published datasets were used for future hourly wholesale electricity prices. We analyzed four operating strategies: 1) baseload operation, 2) seasonal dispatch (high flow rate during summer and nominal flow rate during the rest of the year), 3) net generation maximization by varying flow rate to maximize net power output, and 4) revenue maximization by varying flow rate to maximize revenue. We ran all four scenarios for a multiloop configuration with 12 lateral passes, 7-km vertical depth and 87-km total drilling length. Furthermore, we assumed a 60 degrees C/km geothermal gradient and ambient temperature and wholesale electricity prices for New Mexico as a typical state location. The nominal flow rate was set to 80 kg/s. When considering drilling costs of $1,000/m and a discount rate of 7%, the generation maximization scenario resulted in the lowest levelized cost of electricity (LCOE) of ~$150/MWh. When considering project return on investment (ROI), defined as lifetime net income divided by upfront capital costs, all flexible operation scenarios performed better than the base case scenario. The highest ROI of 80% was obtained with the revenue maximization scenario. With drilling costs of $200/m and a discount rate of 5%, the generation maximization scenario resulted in LCOE of $49/MWh.

flexible geothermal

Navigating Integration: Key Challenges for Data Centers, Nuclear Stakeholders, and Utility Operators

he exponential growth of data centers—driven by artificial intelligence and cloud computing—is reshaping the U.S. energy landscape, presenting urgent challenges and transformative opportunities for data center developers, nuclear energy providers, and utility operators. As data centers are projected to consume up to 12% of U.S. electricity by 2028, stakeholders must address rapid deployment needs, grid congestion, and the demand for reliable, high-quality power. This presentation explores the multifaceted barriers to integrating data centers with nuclear and utility infrastructure, including land use constraints, public perception, regulatory complexity, and workforce alignment. It highlights the distinct priorities and operational cultures of each sector, and the friction that arises from misaligned planning horizons and risk tolerances. We examine collaborative strategies such as co-siting, hybrid power-purchase agreements, unified community engagement, and innovative financing models.

22 - GENERAL STUDIES OF NUCLEAR REACTORS

Preliminary Analysis of Nuclear-Powered Data Center Scenarios

This report provides a comprehensive analysis of the potential for nuclear energy to meet the growing energy demands of data centers (DCs). It evaluates the technical, economic, and socio-environmental implications of coupling Nuclear Power Plants (NPPs) with DCs, providing initial responses to several key research questions: What is the potential increased energy demand from DCs in the U.S., in the short, medium and long term? The U.S. is experiencing a rapid increase in energy demand from DCs, with projections indicating a total increase of 24-74 GWy(e) by 2028. Meeting this demand with nuclear energy would require 27–85 GWe of installed capacity. While this surge is expected to slow in the long term, the DC industry needs reliable, scalable, and clean energy sources. How much nuclear capacity can be deployed to meet DC demand and in which timeframe? Several pathways for increasing nuclear capacity were identified, including uprates, restarts of recently retired reactors, power purchase agreements with existing fleet, and new construction. Approximately 20‒28 GWe of nuclear capacity could be dedicated to DCs by the early 2030s. How much High Assay Low Enriched Uranium (HALEU) would be needed to support some nuclear deployment scenarios for DCs? Meeting the deployment targets announced by Google and Amazon for the Kairos Power Fluoride-Salt-Cooled High-Temperature Reactor or KP-FHR (~500 MWe by 2035) and the Xe-100 (~1 GWe by 2040), respectively, requires ramping up 19.75% enriched HALEU production to ~6 t/yr by 2040. What types of nuclear energy/DC coupling options exist, and what are the different benefits/challenges? Five coupling options were analyzed, ranging from grid-connected configurations to colocated, behind-the-meter setups. Key design considerations include the proximity to high- and/or medium-voltage transmission lines, the desired internal fault tolerance, and the sources of alternative/backup power during outages. Each coupling option offers unique benefits and challenges in terms of reliability, system costs, regulation, timeline, etc. A list of NPP/DC deployment scenarios was developed, considering existing or newly built NPP or DC projects. Colocated DCs with new small modular reactors or large reactors on greenfield and brownfield sites are the focus of this report. What types of reactors, especially what size, may be incentivized by DCs? Reactor sizing optimization revealed that the ideal reactor size and number of units depend on DC demand, coupling configurations defined in this report, and other economic factors. Larger reactors are preferred for high-demand DCs and grid-connected systems, while larger number of smaller reactors are better suited for DC configurations without grid backup. Which sites may be compatible with co-located nuclear-powered DCs? Siting those projects is a complicated evaluation factoring local water resources, grid connection availability and reliability, IT infrastructure, local work force, proximity to population zones, etc. For this effort greenfield and brownfield sites such as retired coal-fired plants were used to evaluate this question. This evaluation is not meant to recommend any particular site but it highlights key siting criteria and demonstrates large-scale site availability. What are the socio-economic impacts of co-located nuclear-powered DCs? Those projects generate substantial economic benefits to the local economy, particularly in urban settings. Hyperscale DCs colocated with nuclear power plants (sized around 1 GW of power) can create nearly 1,700 jobs for annual operations and more than 7,300 jobs among the supply chain and local businesses as a result of increased household spending. Rural projects also provide significant benefits, but at lower magnitudes compared to urban deployments.

22 GENERAL STUDIES OF NUCLEAR REACTORS

Concentrating solar thermal power in the U.S.: lessons from setbacks at Ivanpah, light for the future

Concentrating solar thermal power (CSP) exhibits promise as a source of firm electricity. The proposed termination of Ivanpah’s power purchase agreement hinders confidence in the country’s CSP future. This work highlights how the lack of thermal energy storage (TES) undermined the first-of-a-kind plant’s economics as California’s grid transformed. Then, possible futures of the Ivanpah facility are analyzed; results show retrofitting with state-of-the-art TES systems could provide better returns.

14 SOLAR ENERGY

Electric Grid and Markets 101 [Slides]

This presentation covers aspects of operating the bulk power system with a focus on the regulatory levels of the US grid at a pretty introductory level. It was meant ot help inform a request from USDA for a "101" presentation that spoke to how electricity markets, contracting and regulation interact with the engineering and physics of operating the bulk power system. They are presently moving to being able to more directly fund PPAs or other non-co-op owned assets for member co-ops, is my understanding.

24 POWER TRANSMISSION AND DISTRIBUTION

Nine Canyon Long-Duration Energy Storage: A Feasibility Study

The Nine Canyon Long Duration Energy Storage (LDES) Feasibility Study explores the technical and economic viability of deploying advanced energy storage technologies at Energy Northwest's (EN) Nine Canyon (9C) Wind Project site in Benton County, Washington. Supported by the Washington State Department of Commerce and the U.S. Department of Energy’s Office of Electricity under its LDES Voucher Program, the study represents a collaborative effort between EN, Pacific Northwest National Laboratory (PNNL), and ARES North America. At the core of this effort is the development of a generalized techno-economic modeling framework and evaluation tool designed to assess the value proposition of LDES projects across a variety of contexts. The modeling tool is technology-agnostic and accommodates user-defined parameters such as rated power, energy duration, round-trip efficiency, capital and operational costs, and dispatch constraints. It also integrates economic inputs, including market prices, energy revenue structures, and financing parameters to evaluate performance through key metrics. The tool provides utilities with a transparent, adaptable platform to support decision-making, investment prioritization, and portfolio planning for various storage technologies. To guide scenario design and interpretation, the study first surveyed the LDES technology landscape, including lithium-ion batteries, flow batteries, non-hydro gravity storage, and thermo-mechanical systems, comparing cost trajectories, technical performance, safety and hazards, materials sourcing and recyclability, and spatial/siting considerations. This literature-grounded review highlights technology trade-offs and reinforces the need to align technology choice with site characteristics, use cases, and project objectives. A companion chapter examines ownership structures (EN ownership, third-party ownership, shared models) and offtake options (energy marketing, capacity/energy PPAs, time-of-use PPAs, block-delivery PPAs, and tolling), where PPAs (power purchase agreements) represent contractual arrangements for buying and selling electricity. The chapter also highlights implications for risk allocation, capital access, operational control, and revenue certainty. The study also evaluates supervisory control and data acquisition (SCADA) and transmission interconnection pathways, options include upgrading the existing SCADA or deploying a dedicated LDES controller, with attention to protection schemes, data telemetry, cybersecurity, and regulatory coordination with BPA. In addition, an ARES-specific geotechnical and hydrology assessment presented in the appendix screens multiple corridors for slope stability, bearing capacity, cut-and-fill magnitude, and stormwater behavior.

25 ENERGY STORAGE

The State of the U.S. Voluntary Power Market (2024 Data)

NLR has tracked the voluntary power market since its inception in the 1990s to help corporate purchasers, utilities, and others selling renewable energy products understand available renewable options and move renewable energy forward. As a part of this report we publish a slide deck, a datebook, a Top 10 utilities and CCA list, and the report.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Energy Finance Training [Slides]

The Energy 101: Energy Financing Training presentation, developed for the Energy Technology Innovation Partnership Project (ETIPP), provides an overview of energy project financing. It covers fundamental concepts, technologies, considerations, case studies, and additional resources.

24 POWER TRANSMISSION AND DISTRIBUTION

NASA follow-on on the Fiji South Pacific Severe Storm Warning System Project (SPSSD/WS)

The follow-on agreement will implement needed systems enhancements of the satellite ground station installed under the previous SPSSD/WS project. These enhancements include the purchase and installation of an Uninterruptible Power Supply (UPS) and lightning protection unit, hardware modifications to provide system redundancy and increased data storage capacity, software modifications for the new Japanese GMS digital data, upgrades of the image processing software, and both hardware maintenance and tropical cyclone analysis training, and a non-renewable grant to provide emergency field repairs and replacement/spare parts. In March 1988, the UPS and lightning protection unit was installed at the Fiji Meteorological Service by NASA personnel. A tape recorder and demodulator was shipped to Fiji to record the new digital GMS data. Data tapes are not yet available from the Japanese Meteorological Service of the new digital format. This data is required to test the GMS digital software being developed for the Fiji SPSSD/WS facility.

Vermillion, C.

The SGI/Cray T3E: Experiences and Insights

The NASA Goddard Space Flight Center is home to the fifth most powerful supercomputer in the world, a 1024 processor SGI/Cray T3E-600. The original 512 processor system was placed at Goddard in March, 1997 as part of a cooperative agreement between the High Performance Computing and Communications Program's Earth and Space Sciences Project (ESS) and SGI/Cray Research. The goal of this system is to facilitate achievement of the Project milestones of 10, 50 and 100 GFLOPS sustained performance on selected Earth and space science application codes. The additional 512 processors were purchased in March, 1998 by the NASA Earth Science Enterprise for the NASA Seasonal to Interannual Prediction Project (NSIPP). These two "halves" still operate as a single system, and must satisfy the unique requirements of both aforementioned groups, as well as guest researchers from the Earth, space, microgravity, manned space flight and aeronautics communities. Few large scalable parallel systems are configured for capability computing, so models are hard to find. This unique environment has created a challenging system administration task, and has yielded some insights into the supercomputing needs of the various NASA Enterprises, as well as insights into the strengths and weaknesses of the T3E architecture and software. The T3E is a distributed memory system in which the processing elements (PE's) are connected by a low latency, high bandwidth bidirectional 3-D torus. Due to the focus on high speed communication between PE's, the T3E requires PE's to be allocated contiguously per job. Further, jobs will only execute on the user specified number of PE's and PE timesharing is possible but impractical. With a highly varied job mix in both size and runtime of jobs, the resulting scenario is PE fragmentation and an inability to achieve near 100% utilization. SGI/Cray has provided several scheduling and configuration tools to minimize the impact of fragmentation. These tools include PScheD (the political scheduler), GRM (the global resource manager) and NQE (the Network Queuing Environment). Features and impact of these tools will be discussed, as will resulting performance and utilization data. As a distributed memory system, the T3E is designed to be programmed through explicit message passing. Consequently, certain assumptions related to code design are made by the operating system (UNICOS/mk) and its scheduling tools. With the exception of HPF, which does run on the T3E, however poorly, alternative programming styles have the potential to impact the T3E in unexpected and undesirable ways. Several examples will be presented (preceeded with the disclaimer, "Don't try this at home! Violators will be prosecuted!")

Bernard, Lisa Hamet