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DOE OSTI2022

Price Formation and Grid Operation Impacts from Variable Renewable Energy Resources

Increasing amounts of Variable Renewable Energy Resources (VREs) impact electricity markets and their operation. VREs are intermittent, zero marginal cost resources that tend to displace emissions-intensive generators in electricity dispatch, reducing emissions, but impacting price formation, revenue sufficiency, reliability, and market power mitigation processes of electricity markets. But VREs are not the only factor that affects operational and financial challenges in electricity markets. Declining natural gas prices, changing resource mixes, as well as different electricity market designs and regulatory policies all factor into the challenges both electricity market participants and operators face in today’s electricity markets. With this in-depth examination of electricity markets and related literature review, we aim to inform on key challenges of market design and operation for successful integration of large amounts of zero marginal cost resources. We’ve identified several areas, including VREs impact on price formation, revenue sufficiency, reliability, market power monitoring and mitigation, as well as how state-level incentives and market design impact VREs and these challenges. With each key challenge, we survey the literature to answer the question: To what extent is the problem, and how has it evolved over time? We first conduct a thorough review of ongoing challenges in electricity markets to understand the problem and review the empirical literature to capture important findings on how VREs, specifically, impact the problem. From this review, we highlight metrics that are important to understanding VRE integration and how market designs and outcomes are evolving with increasing levels of VREs. We propose several empirical models for future research to determine the impact of VREs on these identified challenges.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2020

Impacts of Price Formation Efforts Considering High Renewable Penetration Levels and System Resource Adequacy Targets

Future markets with very high penetrations of renewable energy could have many low- to zero-cost periods, which would reduce energy revenues for the generation fleet. This can impact the ability of resources that are needed for long-term reliability to recover operating and capital costs. This paper explores the impact of an alternative pricing mechanism, relaxed minimum pricing, on revenue sufficiency on existing and future resource mixes, including those with high penetrations of wind and solar. This study evaluates eight scenarios encompassing three different sensitivity categories: (1) one alternative pricing mechanism versus traditional LMP pricing, (2) high versus low renewable penetration levels, and (3) using a resource mix that has been adjusted to a preset resource adequacy target versus one that contains a full set of resources. Results show renewable penetration has a greater impact on pricing and resulting profits than does the adjusted resource mix, the two pricing methods have modest variations in profits, and prices under the higher renewable penetration case were higher than under low renewable penetration. These conclusions are not intended to be direct predictions for future outcomes but rather to lead to additional research on the impacts of pricing on investment incentives and future resource adequacy targets.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2022

The Distribution System Operator with Transactive (DSO+T) Study

The Distribution System Operator with Transactive (DSO+T) study investigates the engineering and economic performance of a transactive energy retail market coordinating a high penetration of customer-side flexible energy assets. The study seeks to answer whether such an implementation is cost effective for customers, recovers sufficient revenue for DSOs, and is equally applicable and beneficial to a range of flexible asset types, renewable generation scenarios, and market assumptions. Using a highly interdisciplinary co-simulation and valuation framework, this assessment encompasses the entire electrical delivery system from bulk system generation and transmission, through the distribution system, to the modeling of individual customer buildings and flexible assets (including heating, ventilation, and air conditioning [HVAC] units, water heaters, batteries, and electric vehicles). The study exercises a transactive energy retail market coordination scheme designed to integrate with an existing day-ahead and real-time competitive wholesale electricity market. Software decision-making agents are designed for the retail market operator as well as various price-responsive flexible assets. The engineering and economic performance of the transactive energy scheme is studied for two separate flexible asset deployments: flexible loads (HVAC units and residential water heaters) and behind-the-meter batteries. The results of each transactive case are compared to a business-as-usual case. These cases are subject to two different renewable generation scenarios, a moderate renewable generation scenario, representative of current levels of renewable generation deployment, and a future high renewables scenario, including the increased deployment of rooftop solar photovoltaic and electric vehicles. The transactive coordination scheme is shown to produce effective and stable control and decrease peak loads 9–15%. The resulting annual demand flexibility provides net economic savings of $3.3–5.0B per year for a region the size of Texas. Detailed analysis shows that net benefits were seen for a range of distribution system operator, customer, and flexible asset types. Both participating customer (with transactive flexible assets) and nonparticipating customers (with nonflexible assets) see reductions in annual utility bills and net annual energy expenses in the range of 10–16%.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2022

Distribution System Operator with Transactive (DSO+T) Study: Volume 1 (Main Report)

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2022

DSO+T: Expanded Study Results DSO+T Study: Volume 5

The Distribution System Operator with Transactive (DSO+T) study investigates the engineering and economic performance of a transactive energy retail market coordinating a high penetration of customer-side flexible energy assets. The study seeks to answer whether such an implementation is cost effective for customers, recovers sufficient revenue for DSOs, and is equally applicable and beneficial to a range of flexible asset types, renewable generation scenarios, and market assumptions. This report volume provides a detailed set of results for the DSO+T study extending results presented in Volumes 1, 2, and 4. The engineering and economic performance of the transactive energy scheme is presented for two separate flexible asset deployments: flexible loads (HVAC units and residential water heaters) and behind-the-meter batteries. The results of each transactive case are compared to a business-as-usual case. These cases are subject to two different renewable generation scenarios, a moderate renewable generation scenario, representative of current levels of renewable generation deployment, and a future high renewables scenario, including the increased deployment of rooftop solar photovoltaic and electric vehicles. The transactive coordination scheme is shown to produce effective and stable control and decrease peak loads 9–15%. The resulting annual demand flexibility provides net economic savings of $3.3–5.0B per year for a region the size of Texas. Detailed analysis shows that net benefits were seen for a range of distribution system operator, customer, and flexible asset types. Both participating customer (with transactive flexible assets) and nonparticipating customers (with nonflexible assets) see reductions in annual utility bills and net annual energy expenses in the range of 10–16%.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2022

Capacity Markets for Transactive Energy Systems

Capacity markets provide important incentives for resource adequacy in electricity markets and may become more important for providing sufficient revenue and generation capacity with changes to energy market prices driven by increasing levels of zero marginal cost resources. However, current capacity market designs also have important shortfalls that may limit the benefits they can provide to the future grid. Current capacity markets are primarily designed for participation from conventional thermal generators, but markets are evolving with increasing levels of variable renewable energy resources. However, further reforms may be necessary to enable more participation from DERs and demand-side resources. To understand the benefits and shortfalls of current capacity market design, we review the historical reasons electricity markets have needed capacity markets or capacity payments for resource adequacy, and how current capacity market designs may create challenges for incorporating increasing levels of DERs and demand-side resources. We then consider how transactive systems, which allow the coordination of bids and offers for DERs and demand-side resources through a market interaction approach, administered by a Distribution System Operator (DSO), can address traditional resource adequacy problems due to inelastic consumer demand. We also consider the need for a DSO-level capacity market in helping to meet resource adequacy, reliability, and other electricity market objectives. We find that because the missing money in electricity markets is largely driven by incentives to meet resource adequacy goals, and the bulk grid would always supply power to the DSO, that resource adequacy is unlikely to be a determining factor in the need for a DSO-level capacity market. Many current reliability problems could also be addressed by the incorporation of more flexible demand enabled with transactive energy systems. However, other DSO objectives, including resilience, reactive power, voltage control, environmental policies, and energy equity could lead to specific challenges that could be aided by a DSO-level capacity market. We consider the possibility of a DSO-level capacity market in addressing these challenges as well as its potential role in coordinating with the Independent System Operator (ISO) who operates the wholesale market. We conclude with suggestions for future research, including the need to develop analytical models of DSO-level capacity market designs to address these potential objectives and examine their implications for DSOs and consumers.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2024

EverGREEN 2045: An Energy Mix to Decarbonize Washington State

Washington State’s future resource mix is likely to be comprised of intermittent renewables and carbon-free generation including hydropower by 2045. Generation will likely be comprised of wind, solar photovoltaic (PV), batteries, pumped storage hydropower (PSH), existing nuclear power plants, and potentially enhanced geothermal systems and advanced nuclear reactor technologies. To assess the cost and stability of the future resource mix, we partner with X-energy (advanced reactor design) and AltaRock Energy (enhanced geothermal system) for proprietary cost data. After estimating the costs of these two new technologies, we design plausible future resource mix scenarios to meet Washington State’s Clean Energy Transformation Act which transitions the state to carbon-free generation by 2045. We assess the cost and stability of the future resource mix with power system analysis tools, finding revenues are sufficient to cover variable operating and maintenance costs for most technologies providing power in 2030 and 2045, but capacity payments or power purchase agreements will likely be necessary for flexible resources, including enhanced geothermal systems and advanced nuclear reactors, to participate in the future resource mix.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2020

Modeling Market Interactions

This slide deck provides a high-level overview of wholesale electricity market design model development activities occurring at NREL. The motivation for this work, as well as the broader NREL modeling landscape in which it belongs, is first presented. Then the various model formulations and features are described.

agent-based simulation↗

DOE OSTI2024

EverGREEN 2045: An Energy mix to Decarbonize Washington State

The Clean Energy Transformation Act transitions Washington State to 100% clean energy by 2045. As the future resource mix will likely include intermittent renewables, hydropower, and new, carbon-free, flexible technologies including advanced nuclear reactors and enhanced geothermal systems, we assess the cost and feasibility of the future resource mix with proprietary cost data from our industry partners for new technologies. For plausible future resource mix scenarios, we find that revenues are sufficient to cover variable operations and maintenance costs for most technologies, but capacity payments or power purchase agreements will be necessary for new, flexible resources to participate in the future resource mix.

clean energy, energy policy, energy transition, re↗

DOE OSTI2022

Alternative Approaches to Traditional Net Energy Metering

Most jurisdictions in the United States originally implemented net energy metering (NEM) tariffs to support the deployment and interconnection of distributed generation (DG) resources (e.g., rooftop solar photovoltaic systems). Since then, NEM has proven effective in promoting adoption of DG resources. Recently, due to concerns about sufficient recovery of utilities’ revenue requirements and cost-shifting, there is increasing interest in—or statutory requirements to pursue—alternative compensation approaches, especially in U.S. states and territories with robust growth in distributed solar. Recent increases in other forms of distributed energy resources (DERs) that can potentially send power to the distribution grid (e.g., distributed battery energy storage system (BESS)) are further driving compensation reforms. This brief provides an overview of design elements associated with alternative approaches to traditional NEM, summarizes common arguments for and against them, and identifies implementation issues that utilities may need to address. Although this brief may be most useful in jurisdictions that are interested in or required to move beyond NEM, it is also applicable to those jurisdictions that have already done so—and are looking to further implement reforms to their existing compensation mechanisms. In the broadest sense, there are three primary tariff-related components when interconnecting a DER onto the local utility’s distribution system (adapted from Zinaman et al., 2017): 1. Metering and Billing Arrangements: How utilities measure and bill electricity consumption and production. 2. DER Export Tariff Design: The structure under which utilities compensate customers for electricity they export to the grid. 3. Consumption Tariff Design: The structure under which customers pay for electricity they consume from the grid. When implementing changes to any of these primary tariff-related components, there are likely implications for a utility’s metering system, billing system, and other technology systems. Where applicable, this brief explicitly identifies such implementation challenges.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2021

The Distribution of U.S. Electric Utility Revenue Decoupling Rate Impacts from 2005 to 2017

Investments in energy efficiency and distributed generation reduce electric utility retail sales. Since electric utilities have historically collected a large portion of revenues from volumetric energy rates (¢/kWh), such reductions in sales can impact the utility’s ability to sufficiently recover non-production costs. Regulatory mechanisms that “decouple” utility revenues from sales were implemented to help make the utility indifferent to energy efficiency and distributed generation by ensuring the utility is able to collect an allowed level of revenue each year regardless of its sales. However, noticeable and consistent surcharges over time may create the perception of an incorrectly designed or implemented decoupling mechanism. To date, there are limited quantitative analyses of the rate adjustments due to decoupling mechanisms implemented among U.S. electric utilities (see Morgan, 2013). Given the recent rapid increase in distributed energy resource (DER) adoption in some states and utility service territories, consumers may be facing more prevalent and ongoing decoupling surcharges. This, in turn, may undermine stakeholder support for implementation of decoupling mechanisms and the associated utility support for energy efficiency and DERs. To determine the size of retail rate adjustments associated with decoupling mechanisms and whether they have a tendency towards bill surcharges or credits, we analyzed a large dataset of historical annual decoupling rate adjustments for 21 electric utilities in 11 states between 2005 and 2017. We found that decoupling mechanisms adjusted rates, both up and down, between rate cases, and the majority of those adjustments (54 percent) are small (within a range of -1 to 1 percent). However, we also found that 64 percent of the rate adjustment observations in our sample showed a positive rate adjustment. Importantly, once a surcharge is applied there is an 86 percent chance that there will be a surcharge in the next year as well. While our analysis did not seek to understand the root causes for such results, some possible factors include the accuracy of revenue requirement forecasts, emerging structural changes in customer use and production of energy, misaligned financial motivation, and other factors that influence sales (e.g., economic recession).

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2020

The distribution of U.S. electric utility revenue decoupling rate impacts from 2005 to 2017

Electric utilities have historically relied on volumetric energy rates. Reductions in sales can have an adverse effect on a utility's ability to sufficiently recover its costs. Decoupling mechanisms, when properly designed, diminish the link between revenues and sales. Additionally, analysis of annual rate adjustments from decoupling mechanisms indicate the majority of those adjustments are small. However, once a surcharge is applied there is an 86 percent chance there will be a surcharge in the next year.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2025

The impact of climate change on Korea’s agricultural sector under the national self-sufficiency policy

Evolving environmental conditions due to climate change have brought about changes in agriculture, which is required for human life as both a source of food and income. International trade can act as a buffer against potential negative impacts of climate change on crop yields, but recent years have seen breakdowns in global trade, including export bans to improve domestic food security. For countries that rely heavily on imported food, governments may institute policies to protect their agricultural industry from changes in climate-induced crop yield changes and other countries’ potential trade restrictions. This study assesses the individual and combined effects of climate impacts and food self-sufficiency policies in Korea, which is highly dependent on imports. We use the Global Change Analysis Model (GCAM), a global integrated assessment model, to explore (1) the direct impact of climate change on Korea’s agricultural yields, (2) the full impacts of global climate change on agricultural production, including trade-induced changes due to yield changes in other regions, (3) the impacts of food self-sufficiency policy, and (4) the interactive impact of climate change and self-sufficiency policies. We find that, in Korea, the direct impact of climate change on agricultural yields would be overshadowed by the impact of global climate change due to changing trade patterns. Second, global climate change leads to a rise (rice and wheat) or a decline (soybeans) in Korean producer revenues, while simultaneously raising consumer expenditures on both staples and non-staples. Third, implementing self-sufficiency policies for wheat and soybeans in Korea boosts the nation’s producer revenues, in conjunction with the effects of climate change, at the cost of additional increases in consumer expenditures for both staples and non-staples.

Science & Technology - Other Topics↗

DOE OSTI2024

Performance analysis of integrated Nuclear-Solar Energy system sharing same molten salt thermal energy storage

Advanced nuclear reactors may be deployed with integrated thermal energy storage to improve flexibility and maximize revenue. This presents opportunities for thermal integration with concentrating solar power (CSP) to generate component synergies and/or improve performance. Here in this study, a computational model is developed for an integrated nuclear and CSP system that both share the same molten salt thermal energy storage (TES). Optimized dispatch schedules are developed subject to various market conditions, and the ratio of the nuclear to CSP thermal output is also varied. Performance of the combined system is compared to separate nuclear and solar plants, to determine if there is an overall benefit that can be derived from sharing the TES. Given sufficient volatility in electricity prices (e.g., under CAISO market conditions), synergies of up to 8% in net revenue are observed as a result of sharing the same TES, primarily due to improved revenue from enabling operation of the turbine closer to its design point, as well as being able to better take advantage of higher electricity prices. The synergy benefits are largest when the nuclear and solar plants have similar thermal output. However, when prices are less volatile the opposite behavior can be observed and it can be preferable to operate the nuclear plant as a baseload generator.

14 SOLAR ENERGY↗

DOE OSTI2020

Conceptual Design and Rationale for a New Agrivoltaics Concept: Pastured-Raised Rabbits and Solar Farming

Land-use conflicts created by the growth of solar photovoltaics (PV) can be mitigated by applying the concept of agrivoltaics, that is, the co-development of land for both PV and agricultural purposes, to commercial-scale solar installations. In this study, we present a conceptual design for a novel agrivoltaic system based on pasture-fed rabbit farming and provide the technical, environmental and economic analyses to demonstrate the viability of the concept. Included in our analysis are the economic advantages to the PV operator of grazing rabbits at a density sufficient to control vegetative growth, thus reducing the economic and environmental costs of mowing; the dual-revenue stream from the sale of both rabbits and electricity, contrasted with estimates of the capital-investment costs for rabbits co-located with, and also independent of, PV; and the economic value to the rabbit farmer of higher colony-growth rates (made possible by the shading and predator protection provided by the PV arrays and of reduced fencing costs, which are the largest capital cost, by being able to leverage the PV systems for rabbit fencing. We also provide an environmental analysis that suggests that rabbit-PV farming is a pathway to a measurable reduction in agriculturally-generated greenhouse-gas emissions. Here, our calculations indicate that the co-location of solar and rabbit farms is a viable form of agrivoltaics, increasing overall site revenue by 2.5%-24.0% above projected electricity revenue depending on location and rental/ownership of rabbits, while providing a high-value agricultural product that, on a per weight basis, has significantly less environmental impact than cattle.

14 SOLAR ENERGY↗

DOE OSTI2023

Assessment of Nuclear Energy to Support Negative Emission Technologies

The feasibility and performance of nuclear energy coupled with Negative Emission Technology (NET) processes were investigated in this report. Three overarching questions from nuclear NET systems guided this research: which NET would be able to use heat and/or electricity from nuclear power plants (NPPs); what is the performance and cost of a nuclear NET system; and what would be the market outlook for this system? Among the various NETs that are actively being developed, several were found to potentially benefit from coupling with an NPP via (1) large amounts of decarbonized and constant-output electricity; (2) free waste heat or cheap low-temperature heat; or (3) high-temperature heat. NPPs were found to be compatible with Direct Air Capture (DAC) systems, and a detailed techno-economic analysis of coupled NPP&DAC systems was performed. Preliminary analysis also indicated that biomass and water-based NETs are potentially compatible with NPPs, but further work is needed to quantify the performance of these nuclear NET systems. Design and performance analyses were completed for both liquid solvent DAC (L-DAC) and solid sorbent DAC (S-DAC) technologies. A 1.0-GWth NPP coupled with L-DAC and S-DAC was found to be able to capture 12–15 Mt CO 2 /yr and 1.0–1.5 Mt CO 2 /yr, respectively. While the L-DAC process enables much greater CO 2 capture than the S-DAC process when both are sized with a 1 GWth NPP, the NPP&L-DAC system considered also requires >2 GWth natural gas oxy-combustion to reach adequate temperature in the calciner. CO 2 generated from natural gas combustion is also captured as part of the calcination process, in addition to the CO 2 captured from air, resulting in overall CO 2 sequestration of close to 30% more than what is captured from air. The cost of carbon capture calculated with the levelized cost of DAC (LCOD) had a range of $\$170–260$/tCO 2 for NPP&L-DAC systems and a range of $\$650–680$/tCO 2 for NPP&S-DAC systems. For both DAC systems, the NPP provides economic benefit when compared to previous National Energy Technology Laboratory (NETL) studies of non-nuclear DAC systems, leading to reduction of LCOD by 5–7% for L-DAC, and 8–13% for S-DAC. For the NPP&DAC systems, a preliminary market analysis reviewed potential CO 2 market prices and eligibility for incentives. The estimated potential revenues for CO 2 capture (coming from federal incentive, CO 2 commodity markets, or offset market) is in the range of $\$170–979$ tCO 2 , and the results show that because of lower LCOD, the NPP&L-DAC process would be more attractive to a market than the NPP&S-DAC process. The large investment needed for NPP&DAC processes would require long-term certainty of sufficient market size, CO 2 prices, and incentives. Enabling NPPs to ramp DAC operation up or down based on electricity market price is not expected to significantly increase revenues of the NPP&DAC system. This is because the revenues from CO 2 sequestration are required to be very high to justify the deployment and continuous operation of the very expensive DAC technologies. In this analysis, several new research questions were uncovered, and follow-up analyses are recommended for further investigation, including a detailed feasibility study of NPP coupled with other NET systems such as biomass pyrolysis and gasification with carbon capture and storage, and seawater carbon capture.

21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS↗

DOE OSTI2020

Impacts of storage dispatch on revenue in electricity markets

Not Available

McPherson, Madeleine↗

DOE OSTI2023

Grid-Integrated Production of Fischer-Tropsch Synfuels from Nuclear Power

Idaho National Laboratory (INL) investigates the relative economic profitability of an integrated energy system (IES) coupling an NPP with a synfuel production process at selected case study locations across the United States. In the synfuel IES, a high-temperature steam electrolysis (HTSE) plant is thermally and electrically coupled with an NPP to produce zero-carbon hydrogen. The synthetic fuel is produced from this H 2 combined with a CO 2 supply using the reverse water gas shift process followed by the Fischer-Tropsch (FT) reaction. This analysis considers a system in which the CO 2 is sourced from regional CO 2 emitters via the construction and operation of pipeline-based CO 2 supply networks. Locating the FT plant at the same site as the NPP and HTSE plants enables the NPP to provide zero-carbon heat and power to the HTSE plant and zero-carbon power to the FT plant as well as avoid the requirement for long-distance H 2 product transport from the HTSE plant to the FT plant. Hydrogen storage is used to enable the NPP to dispatch power to the electrical grid (instead of the HTSE plant) when grid demand increases, thus enabling the FT plant to continue to operate in a steady-state production mode. The ability to cease hydrogen production for several hours within each day enables the NPP to provide power to the grid to balance the electricity market during peak periods and maximize revenues for the nuclear synfuel IES. The FT process design considered has a 99% carbon conversion efficiency. The use of nuclear energy and nuclear energy-derived hydrogen enables synfuel production to achieve this high level of carbon utilization. Additionally, the life-cycle carbon emissions of the nuclear-based synfuel production process are very low, with WTW emissions of approximately 25 gCO 2 e/MJ, including steam credits (generated from FT process excess heat), and approximately 7 gCO 2 e/MJ, if steam credits are excluded. This compares favorably with the WTW emissions of 90.5 gCO 2 e/MJ for a compression-ignition, direct injection (CIDI) vehicle with a fuel economy of 31.6 miles per gallon gasoline equivalent (MPGGE), using low-sulfur diesel produced using conventional petroleum production and refining processes. Several NPPs in various regions of the U.S. are considered as case study analyses. Supply locations and transportation via pipeline of the CO 2 feedstock to the NPP site are analyzed through the National Energy Technology Laboratory (NETL) CO 2 Transport Cost model. The team finds that the amount of CO 2 generated by different sectors is sufficient for the synfuel production process at all locations considered. The CO 2 transportation costs are functions of the distance of the source to the NPP location, the CO 2 capture cost at the source, and the quantity of CO 2 transported. Historical electricity prices for the NPP case study locations are collected and analyzed. Monthly average prices, price range, and duration of negative-price periods vary among these locations. For each location, an auto-regressive moving average (ARMA) model is trained on historical electricity price data. ARMA validation is done to ensure the synthetic price distributions represent one of historical prices with high fidelity. Synthetic time series from these ARMA models are used in a coupled dispatch and system optimization in the Holistic Energy Resource Optimization Network (HERON) to compute the differential net present value (NPV) of the IES. The team finds that this econometric is positive, ranging from $14M–1.3bn (2020) depending on the location. The optimal synfuel IES configuration to obtain this increase in NPV often maximizes the size of the synfuel production process with regards to the size of the NPP. However, the team shows that the NPP still plays a stabilizing role for the grid: In periods of high prices and high loads, more electricity from the NPP is sent to the grid. A high variability of electricity prices and extreme maximum prices tend to drive up electricity production. While it requires significant investment, the synfuel IES could increase the economic profitability for the existing fleet of LWRs across the country while still maintaining the grid stabilizer role of NPPs. During its lifetime, the main costs for the nuclear synfuel IES are the carbon feedstock transportation costs, followed by the capital expenses (CAPEX) and operation and maintenance (O&M) costs while the revenue comes first from the IRA H 2 production tax credit (PTC) and then from the sales of synfuel products. The profitability of the synfuel IES is most sensitive to the value of the hydrogen PTC and the synfuel products as well as the cost of the carbon feedstock, highlighting the importance of governmental incentives regarding hydrogen, carbon emissions, and synfuel in driving the deployment of future nuclear synfuel IESs.

08 HYDROGEN↗