Profit-Oriented False Data Injection on Electricity Market: Reviews, Analyses, and Insights
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Automation & Control Systems↗
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Search indexed NASA NTRS and DOE OSTI research on propulsion, heat transfer, battery materials and energy systems. Follow report and document links to the original sources.
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Optimization of Operating Profit for the FEED of the PZAS Process for CO 2 Capture on a 460 MW NGCC
A rating model of PZAS (Piperazine with the Advanced Stripper) for a 460 MW natural gas combined cycle was developed from vendor-provided equipment performance data. Surrogate rating models were built and used to optimize variable profit of the system subject to natural gas and electricity price at a fixed value for CO 2 of $\$80$/tonne. Several process constraints were considered between ambient temperatures of 4.4 and 40.5 °C. Lower lean loading resulted in lower reboiler heat duty of about 2.2 GJ/tonne. Lean loading at 0.2 mol/equiv N was sufficient at an ambient temperature of 4.4 °C to maximize variable profit. Solvent precipitation was avoided even at low lean loading (0.18 mol/mol) in the absence of a trim cooler for the lean solvent between the absorber and the cold cross exchanger. Optimal CO 2 removal was always higher than the design case removal of 90% and achieved a peak of 93.6% for 4.4 ºC ambient temperature. Lean solvent rate was a significant driver of profitability. The maximum capacity of the compressor was a significant constraint on profitability. Increasing compressor capacity by 20–30% could increase variable profit by about 21% in the case of 0.18 lean loading at 4.4 °C ambient temperature. Furthermore, this increase in profit was lower at higher ambient temperature and higher lean loading. The breakeven gas price was $\$4.6$/MMBtu at high lean loading of 0.22 mol/mol. Below this value, profit was maximized by increasing the boiler heat rate. Above this value, profit could not be increased by burning additional natural gas, requiring a reduction in boiler heat rate and consequently, specific heat duty. At lower lean loading (0.2, 0.18 mol/mol), this transition in heat duty was not observed due to the lower heat duty. As the ambient temperature increased, a similar trend in heat duty was observed at 0.22 lean loading, but the transition to lower heat duty occurred earlier at $\$4$/MMBtu. This was because of the lower CO 2 production at higher ambient temperature, making the process unprofitable at a gas price higher than $\$3$/MMBtu unless the heat duty of the stripper and natural gas boiler is steeply decreased.
37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗
Determining spatially varying profit‐maximizing management practices for miscanthus and switchgrass production in the rainfed United States
Abstract Determining optimal management practices for the profitable production of perennial energy crops is critical for scaling up production beyond experimental levels. Although many experimental field studies have examined the effects of management practices on the performance of miscanthus and switchgrass, there are no recommendations for economically optimal nitrogen (N) application rates and how they should vary spatially and with the age of the energy crop as well as on optimal rotation age of the energy crop to maximize profits. We develop a modeling framework to determine economically optimal crop management decisions and simulate the variability under various scenarios for miscanthus and switchgrass production across 2287 counties in the rainfed United States. We find that profit‐maximizing N recommendations for these crops vary across maturity stages and regions and can increase the landowner's profits compared with a uniform N rate across ages and regions. We also find that the optimal rotation for these crops is shorter than the productive physical lifespan (15–20 and 10 years for miscanthus and switchgrass, respectively). Specifically, the N rate that maximizes the economic returns is negligible for miscanthus and 111 kg ha −1 for switchgrass production at age 2. The mean profit‐maximizing N rate increases with age for miscanthus, peaking at 151 kg ha −1 at age 11 before declining to 114 kg ha −1 at the optimal rotation age of 13 years while that for switchgrass is 150 kg ha −1 for middle‐aged stands and declines to 114 kg ha −1 at the optimal rotation of 8–9 years. We find that miscanthus is the most profitable energy crop in the northern region of the rainfed United States while switchgrass is most profitable in the south of the rainfed United States. Our findings are useful for improving assessments of the profitability of energy crops and guiding future management decisions by landowners.
54 ENVIRONMENTAL SCIENCES↗
How profitable is switchgrass in Illinois, USA? An economic definition of marginal land
Decisions regarding the conversion of land from an existing crop to bioenergy crops are critical for the sustainable production of both food and fuels. This study seeks to establish criteria for delineating land as “economically marginal”, and thus suited for growing switchgrass. In this case study of an Illinois agricultural field, the profitability of switchgrass, with farmgate prices of $\$44$ Mg –1 , $\$66$ Mg –1 , or $\$88$ Mg –1 , was compared to corn and soybean crop prices. Further, the study also evaluates the profitability of switchgrass when replacing corn-based yield estimates from the Soil Productivity Index (SPI) of Illinois. Based on a dry-matter yield of 10.45 Mg ha –1 , switchgrass can compete with soybeans only at the high price of $\$88$ Mg –1 , but depending on location, can compete with corn at $\$66$ Mg –1 . Across Illinois, at $\$88$ ha –1 , all Illinois land with SPI < 100% and 95% of land under SPI class C (SPI 100–116) is profitable under switchgrass. Switchgrass may not be profitable relative to corn grown in the SPI class A (SPI > 133) and only 7% of class B (SPI 117–132). Our results show that land with drainage and erosion limitations is economically marginal when corn and soybean yields are low, and the farmgate price for switchgrass is greater than $\$66$ Mg –1 . However, this may not be possible on land where switchgrass is replacing frequent soybean rotations (corn–soybean ratio ≤ 1). Land used to produce only soybeans may only be marginal at the farmgate price of $\$88$ Mg –1 . Further studies need to be conducted to identify how much land can be converted to switchgrass without harming corn production.
09 BIOMASS FUELS↗
Optimal scheduling for profit maximization of energy storage merchants considering market impact based on dynamic programming
This paper analyzes how electricity merchants' market impact affects merchants' profit. Energy storage has long been studied for its role in maximizing profit, and merchant decisions are assumed to have no impact on market prices. However, the trading decisions of large-scale energy storage merchants (e.g., pumped storage hydro) will affect the market prices. This paper employs dynamic programming theory to investigate merchants' optimal economic dispatch considering the market impact and physical characteristics of storage systems. Our findings show that the State-of-Charge (SOC) based analytical solution significantly facilitates energy storage merchants' decision-making. The SOC range is segmented into three regions by two optimal SOC reference points, which depend on the available energy in storage, given prices, and market impact. By comparing the current storage SOC with the reference points, the merchant can get the corresponding optimal actions. We analytically show that if the merchant neglects the market impact on the power market, she will exaggerate her expected profit when the price-taker and price-maker merchants have the same generating and pumping upper limits offered to Independent System Operators (ISOs). Furthermore, the profit-maximizing merchant must, therefore, assay to balance the trade-off correctly between the intensity of market impact and the dispatched power. Our findings are verified by numerical simulation, and results demonstrate the ramifications for electricity merchants in energy arbitrage decisions.
25 ENERGY STORAGE↗
Impoverishing Roots Will Improve Wheat Yield and Profitability Through Increased Water and Nitrogen Use Efficiencies
We report that more than a 60% increase in crop production is required by the 2050's to feed a growing world population. Understanding how plant functional traits and field management affect crop yields has the potential to improve agricultural productivity, minimize economic and environmental losses, and maximize food security. We explored the influence of winter wheat root characteristics and management on winter wheat growth, yield, and profit using a mechanistic and well-tested ecosystem and crop model, ecosys. We applied and further tested ecosys at an agricultural farm growing winter wheat in Ardmore, Oklahoma, United States. The model accurately predicted observed shoot carbon (R 2 = 0.95), soil moisture (R 2 = 0.67), soil temperature (R 2 = 0.91), and yield (percent error = 17%). Numerical optimization experiments were conducted to explore potential improvements of winter wheat yield and profit by modifying root characteristics, including root radius and root:shoot carbon transfer conductance, and fertilizer inputs. Our results show the potential for simultaneously improving winter wheat yields and profits. The optimum conditions were found to be in the range of root radius between 0.1 and 0.3 mm, carbon transfer conductance between 0.004 and 0.01 h -1 , and the currently applied fertilizer rate of 112 kg ha -1 . Under these conditions, improvements in yields and profits of up to approximately 25% and 110%, respectively, were modeled compared to those under baseline root traits. These improvements were achieved by impoverishing root structures, thereby increasing nutrient allocation to grains. Our results also demonstrate and motivate model structures that integrate the complex network of plant physiology, soil nutrient biogeochemistry, hydrology, and management.
54 ENVIRONMENTAL SCIENCES↗
An evaluation of electricity system technology competitiveness metrics: The case for profitability
In this work we develop standardized functional forms for electricity technology competitiveness metrics and show how the mathematical relationship between value and cost can affect the robustness of the metric. Here, we make the case to replace established metrics with economic profitability metrics – including a new profitability-based adjustment to LCOE. These profitability metrics are shown to be more robust for evaluating technology competitiveness by keeping comparisons on an equivalent monetary basis.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Data for Determining Spatially Varying Profit-Maximizing Management Practices for Miscanthus and Switchgrass Production in the Rainfed United States
The compiled datasets include county-level variables used for simulating miscanthus and switchgrass production in 2287 counties across the rainfed US including 5-year (2012-2016) averaged growing season degree days (GDD), 5-year (2012-2016) averaged growing season cumulative precipitation, National Commodity Crop Productivity Index (NCCPI) values, regional dummies (only for miscanthus), the regional-level random effect of the yield response function, N price, land cash rent, the first year fixed cost (only for switchgrass), and separate datasets for simulating an alternative model assuming a constant N rate. The GAMS codes are used to run the simulation to obtain the main results including the age-varying profit-maximizing N rate, biomass yields, and annual profits for miscanthus and switchgrass production across counties in the rainfed US. The STATA codes are used to merge and analyze simulation results and create summary statistics tables and key figures.
Age↗
A comparison study on trading behavior and profit distribution in local energy transaction games
With the increasing integration of distributed energy resources, localized peer-to-peer energy transactions are receiving more attention since they could absorb more distributed renewables locally and stabilize the power grid. To better study the trading behavior and provide guidance for a viable local market design, different game-theoretical frameworks including cooperative and non-cooperative games are established and compared here. For the cooperative grand coalition, the maximum social welfare is guaranteed, the Shapley value and bargaining based approaches are implemented for further profit redistribution. It is shown that the asymmetrical bargaining power can be critical in the final payment clearing and it is equivalent to the Shapley value allocation if prosumers bargain based on their marginal contributions. Non-cooperative trading is formulated by using a Stackelberg bilevel model in which the upper level has the privilege in internal price setting. However, system optimum is not obtained due to competition, and the selfish leader could take away 89% of the collective benefit by price-gap based arbitraging. Aiming for a long-lasting trading market, a virtual benevolent leader and a uniform price structure in which purchase price equals selling price are tested. Experimental results indicate that maximum social welfare and a fairer profit allocation can be achieved with a uniform price structure, regardless of the selfish or benevolent attitude.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Opportunities for Industry to Provide Flexibility While Increasing Profitability
Supply and demand flexibility will both be needed to ensure the electricity system functions properly as the share from variable renewable generation continues to grow. Industrial manufacturing currently consumes about a third of primary energy worldwide, and electricity is projected to supply an increasing share of this demand as the global economy decarbonizes. Therefore, the ability for industry to flex demand poses an enticing opportunity to enable grid flexibility. However, large capital outlays prevent industry from voluntarily altering demand. Here we show that as battery costs continue to fall, industry will soon be able to profitably alter demand in accordance with electricity price variations. Focusing on two established industries– chlor-alkali and electric arc furnaces – and two industries with large future potential – methane pyrolysis and atmospheric CO 2 capture, we use a linear program (LP) optimization to assess the technoeconomic feasibility of flexible industrial demand across both historical and future-looking wholesale day-ahead marginal prices for the Electricity Reliability Council of Texas (ERCOT). We find positive net present values (NPV) from $\$$400K to $\$$50M using projected 2050 battery prices for industrial purchase of behind-the-meter batteries, using only arbitrage as a source of value. These results indicate that, with projected battery prices, profit-seeking industrial players could voluntarily play a future role in stabilizing a high-renewables grid where electricity prices act as accurate signals of grid needs.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Profitability, Scalability and Optimized Siting for Waste-to-Energy Supply Chains: A Case Study on Hydrothermal Liquefaction
Waste-to-Energy (WtE) conversion technologies have the potential to simultaneously reduce waste volumes, treatment-related emissions, and carbon intensity while producing valuable energy services. However, questions remain regarding under which conditions emerging WtE technologies are feasible to deploy. In this project, we develop an optimized siting method for WtE technologies to assess cost-effective WtE processor locations, throughput scales, and profitability. We apply the model using Hydrothermal Liquefaction (HTL) as an example WtE technology. We develop calibrated capital and operating expense cost curves based on literature data to study the techno-economic characteristics of WtE supply chains. Prior to solving the siting optimization, we analyze the model parameters to describe organic waste management system behavior under four different HTL deployment configurations: Co-Processing, where HTL plants send biocrude to existing conventional refineries via assumed pipelines; Co-Location, where biorefineries are co-located with HTL plants; and two alternative Standalone Biorefining cases, where distributed HTL plants transport biocrude intermediate via either assumed pipelines or trucking to centralized biorefineries. We also define and apply several feedstock gate fee calculations, representing different revenue distribution options, to investigate how bioproduct value could impact WtE supply chain economics in terms of waste producer and processor profit or cost reduction.
09 BIOMASS FUELS↗
Agro-IBIS/THMB Modeled Yield, Nitrogen Loss, and Profitability Maps for the Raccoon River Basin, Iowa, USA
This data was used to assess the potential for improving water quality in this watershed when integrating miscanthus, a bioenergy perennial grass, on to areas of low profit under current corn-soybean management and areas of high nitrogen leaching under both current and future climate conditions. This dataset includes all observations (yield, streamflow, nitrogen loads) and model simulation data used from Dr. Kelsie Ferin’s (former PhD student with Dr. Andy VanLoocke, ISU Dept. of Agronomy) dissertation and publication in Global Change Biology – Bioenergy (DOI: 10.1111/gcbb.13078). Modeled output included in this dataset includes corn, soybean, and miscanthus yields, nitrogen leaching rates, net mineralization rates, land use cover fractions with and without the inclusion of miscanthus, profitability maps, additional soil property maps, and simulated streamflow and nitrogen loads near the outlet of the Raccoon River Basin (Van Meter, Iowa) for both historical and future climate conditions. This dataset includes a mixture of netCDF, .tiff, .csv, and .xlsx files. See README.pdf for more information.
Ferin, Kelsie↗
Characterizing the Payback and Profitability for Automated Heavy Duty Vehicle Platooning
Heavy duty vehicle platooning under highway operating conditions has been projected to provide significant fuel economy gains based on aerodynamic drag improvements of the platooning vehicles. Realizing these benefits and the economic viability under real-world operating conditions presents several challenges. The objective of this paper (the third as part of a series) is to analytically quantify the payback and profitability of heavy-duty vehicles platooning across the U.S. Interstate highway system. In this paper, a rigorous assessment of several factors that influence the platooning system payback for an end-user as well as the revenue potential for suppliers who may be utilizing an equipment lease model dependent on end-user savings, is presented. In this assessment key interactions explored include market adoption rates, platooning velocities, platoon-able daily mileage, platooning likelihood, variations in baseline powertrain fuel economy (diesel or electric), price of fuel (diesel or electricity), platooning fuel economy benefits, price of the added technology, and the impact of natural platooning due to traffic interactions. Further, the paper explores the economic impact of higher levels of vehicle automation for the trailing vehicles in the platoon, where extending the driver Hours of Service (HoS) may provide additional financial benefits. While the approach makes use of a limited fidelity vehicle analytical model for longitudinal dynamics and operations economics, the narrative provides application decision personnel with a mechanism and well-defined set of impact factors to consider as part of their architectural selection process.
33 ADVANCED PROPULSION SYSTEMS↗
Determining the profitability of energy storage over its life cycle using levelized cost of storage
Levelized cost of storage (LCOS) can be a simple, intuitive, and useful metric for determining whether a new energy storage plant would be profitable over its life cycle and to compare the cost of different energy storage technologies. However, researchers and industry decision makers still use conflicting definitions of LCOS. For example, some include charging cost, while others only include round trip efficiency (RTE) losses. Additionally, inputs to the existing formulations are not specific enough to generate repeatable results across studies, which reduces trust in the metric. To push for standardization in economic assessment of batteries and other energy storage devices, the authors review existing definitions of LCOS and identify the desired characteristics for a standard. They then propose a new definition and demonstrate that it fits these characteristics very well relative to other prominent options. Unit analysis is applied to this proposed definition to provide a deeper understanding of the equations and to demonstrate its effectiveness. Finally, the sensitivity of LCOS to different input parameters is investigated to help users understand how to compare analyses from literature to their own. The authors also provide a spreadsheet and a Python script to streamline adoption of the proposed definition.
25 ENERGY STORAGE↗
Designing an innovation system to support profitable electro- and bio-catalytic carbon upgrade
Carbon capture, utilisation, and storage (CCUS) can mitigate an estimated 14–20% of CO 2 emissions by 2050. Here, we evaluate an integrated electrocatalysis and biocatalysis CCUS pathway, using externally-supplied renewable electricity to convert over 12 MtCO 2 to poly(3-hydroxybutyrate) via methanol and formate intermediates. A techno-economic and policy-innovation analysis provides insight into global CCUS innovation. Results suggest that innovation should focus on improving methanol faradaic efficiency, formate biocatalysis efficiency, electrocatalysis current density, and catalyst performance. Methanol and formate composition influences performance, but higher formate content can improve economics by US$3.8B over a 30 year lifetime. Profitable scenarios hinge on reducing methanol separation costs – through innovation or reduced energy usage – along with cheap renewable electricity and/or carbon pricing. Our evaluation of the global innovation status signifies that coordinated strategies are required to realise emissions cuts from CCUS. Innovation can be spurred by targeted investments and policies that promote emissions reductions.
37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗
Hybrid-Energy-Powered Electrochemical Ocean Alkalinity Enhancement Model: Plant Operation, Cost, and Profitability
Electrochemical ocean alkalinity enhancement is a form of marine carbon dioxide removal, a rapidly growing industry that is powered by efficient onshore or offshore energy sources. As more and larger deployments are being planned, it is important to consider how variable energy sources like tidal energy can impact plant performance and costs. An open-source Python-based generalizable model for electrodialysis-based ocean alkalinity enhancement has been developed that can capture key system-level insights of the electrochemistry, ocean chemistry, acid disposal, and co-product creation of these plants under various conditions. The model additionally accounts for hybrid energy system performance profiles and costs via the National Laboratory of the Rockies’ H2Integrate tool. The model was used to analyze an example theoretical plant deployment in North Admiralty Inlet, including how the plant is impacted by the available energy sources in the region and the scale at which plant costs are covered by the co-products it generates, such as recycled concrete aggregates, without requiring carbon credits. The results show that the example plant could be profitable without carbon credits at commercial scales of 100,000 to 1 million tons of carbon dioxide removal per year, so long as it uses low-cost electricity sources and either sells acid or recovers recycled concrete aggregates with about 1 molar acid concentrations, though more research is needed to confirm these results.
hybrid energy↗
LCOE Alternatives: System Value and Other Profitability Metrics
This presentation was given at the 5th Wind Energy Systems Engineering Workshop.
17 WIND ENERGY↗
Profit assessment of home energy management system for buildings with A-G energy labels
Not Available
Yousefi, Mojtaba↗