We consider electricity capacity expansion models, which optimize investment and retirement decisions by minimizing both investment and operation costs. In order to provide credible support for planning and policy decisions, these models need to include detailed operations and time-coupling constraints, consider multiple possible realizations of weather-related parameters and demand data, and allow modeling of discrete investment and retirement decisions. Such requirements result in largescale mixed integer optimization problems that are intractable with off-the-shelf solvers. Hence, practical solution approaches often rely on carefully designed abstraction techniques to find the best compromise between reduced computational burden and model accuracy. Benders decomposition offers scalable approaches to leverage distributed computing resources and enable models with both high resolution and computational performance. In this study, we implement a tailored Benders decomposition method for large-scale capacity expansion models with multiple planning periods, stochastic operational scenarios, time-coupling policy constraints, and multi-day energy storage and reservoir hydro resources. Using multiple case studies, we also evaluate several level-set regularization schemes to accelerate convergence. We find that a regularization scheme that selects planning decisions in the interior of the feasible set shows superior performance compared to previously published methods, enabling high-resolution, mixed integer planning problems with unprecedented computational performance.
Direct air capture (DAC) of carbon dioxide (CO2) is energy intensive given the low concentration ( 0.1%) of CO2 in ambient air, but offers relatively strong verification of removals and limited land constraints to scale. Lower temperature solid sorbent based DAC could be coupled on-site with low carbon thermal generators such as nuclear power plants. Here, we undertake a unique interdisciplinary study combining process engineering with a detailed macro-energy system optimization model to evaluate the system-level impacts of such plant designs in the Texas electricity system. We contrast this with using grid power to operate a heat pump to regenerate the sorbent. Our analysis identifies net carbon removal costs accounting for power system impacts and resulting indirect CO emissions from DAC energy consumption. We find that inefficient configurations of DAC at a nuclear power plant can lead to increases in power sector emissions relative to a case without DAC, at a scale that would cancel out almost 50% of the carbon removal from DAC. Net removal costs for the most efficient configurations increase by roughly 18% once indirect power system-level impacts are considered, though this is comparable to the indirect systems-level emissions from operating grid-powered heat pumps for sorbent regeneration. Our study therefore highlights the need for DAC energy procurement to be guided by consideration of indirect emission impacts on the electricity system. Finally, DAC could potentially create demand pull for zero carbon firm generation, accelerating decarbonization relative to a world without such DAC deployment. We find that DAC operators would have to be willing to pay existing or new nuclear power plants roughly $30–80/tCO2 or $150–400/tCO2 respectively, for input energy, to enable nuclear plants to be economically competitive in least cost electricity markets that do not have carbon constraints or subsidies for nuclear energy.
As the availability of weather-dependent, zero marginal cost resources such as wind and solar power increases, a variety of flexible electricity loads, or ‘demand sinks’, could be deployed to use intermittently available low-cost electricity to produce valuable outputs. This study provides a general framework to evaluate any potential demand sink technology and understand its viability to be deployed cost-effectively in low-carbon power systems. We use an electricity system optimization model to assess 98 discrete combinations of capital costs and output values that collectively span the range of feasible characteristics of potential demand sink technologies. We find that candidates like hydrogen electrolysis, direct air capture, and flexible electric heating can all achieve significant installed capacity (>10% of system peak load) if lower capital costs are reached in the future. Demand sink technologies significantly increase installed wind and solar capacity while not significantly affecting battery storage, firm generating capacity, or the average cost of electricity.
As decarbonisation agendas mature, macro-energy systems modelling studies have increasingly focused on enhanced decision support methods that move beyond least-cost modelling to improve consideration of additional objectives and tradeoffs. One candidate is modelling to generate alternatives (MGA), which systematically explores new objectives without explicit stakeholder elicitation. This paper provides comparative testing of four existing MGA methodologies and proposes a new Combination vector selection approach. We examine each existing method’s runtime, parallelizability, new solution discovery efficiency, and spatial exploration in lower dimensional (N ⩽ 100) spaces, as well as spatial exploration for all methods in a three-zone, 8760 h capacity expansion model case. To measure convex hull volume expansion, this paper formalizes a computationally tractable high-dimensional volume estimation algorithm. We find random vector provides the broadest exploration of the near-optimal feasible region and variable Min/Max provides the most extreme results, while the two tie on computational speed. The new Combination method provides an advantageous mix of the two. Additional analysis is provided on MGA variable selection, in which we demonstrate MGA problems formulated over generation variables fail to retain cost-optimal dispatch and are thus not reflective of real operations of equivalent hypothetical capacity choices. As such, we recommend future studies utilize a parallelized combined vector approach over the set of capacity variables for best results in computational speed and spatial exploration while retaining optimal dispatch.
Enhanced geothermal systems (EGS) are one of a small number of emerging energy technologies with the potential to deliver firm carbon-free electricity at large scale, but are often excluded from macro-scale decarbonization studies due to uncertainties regarding their cost and resource potential. Here we combine empirically-grounded near-term EGS cost estimates with an experience curves framework, by which costs fall as a function of cumulative deployment, to model EGS deployment pathways and impacts on the United States electricity sector from the present day through 2050. We find that by initially exploiting limited high-quality geothermal resources in the western US, EGS can achieve early commercialization and experience-based cost reductions that enable it to supply up to a fifth of total US electricity generation by 2050 and substantially reduce the cost of decarbonization nationwide. Higher-than-expected initial EGS costs could inhibit early growth and constrain the technology’s long-run potential, though supportive policies can counteract these effects.
Taking aim at one of the largest greenhouse gas emitting sectors, the US Environmental Protection Agency (EPA) finalized new regulations on power plant greenhouse gas emissions in May 2024. These rules take the form of different emissions performance standards for different classes of power plant technologies, creating a complex set of regulations that make it difficult to understand their consequential impacts on power system capacity, operations, and emissions without dedicated and sophisticated modeling. Here, we enhance a state-of-the-art power system capacity expansion model by incorporating new detailed operational constraints tailored to different technologies to represent the EPA’s rules. Our results show that adopting these new regulations could reduce US power sector emissions in 2040 to 51% below the 2022 level (vs 26% without the rules). Regulations on coal-fired power plants drive the largest share of reductions. Regulations on new gas turbines incrementally reduce emissions but lower overall efficiency of the gas fleet, increasing the average cost of carbon mitigation. Therefore, we explore several alternative emission mitigation strategies. By comparing these alternatives with regulations finalized by EPA, we highlight the importance of accelerating the retirement of inefficient fossil fuel-fired generators and applying consistent and strict emissions regulations to all gas generators, regardless of their vintage, to cost-effectively achieve deep decarbonization and avoid biasing investment decisions towards less efficient generators.
Runtime and memory requirements for typical formulations of energy system models increase non-linearly with resolution, computationally constraining large-scale models despite state-of-the-art solvers and hardware. This scaling paradigm requires omission of detail which can affect key outputs to an unknown degree. Recent algorithmic innovations employing decomposition have enabled linear increases in runtime and memory use as temporal resolution increases. Newly tractable, higher resolution systems can be compared with lower resolution configurations commonly employed today in academic research and industry practice, providing a better understanding of the potential biases or inaccuracies introduced by these abstractions. We employ a state-of-the art electricity system planning model and new high-resolution systems to quantify the impact of varying degrees of spatial, temporal, and operational resolution on results salient to policymakers and planners. We find models with high spatial and temporal resolution result in more realistic siting decisions and improved emissions, reliability, and price outcomes. Errors are generally larger in systems with low spatial resolution, which omit key transmission constraints. We demonstrate that high temporal resolution cannot overcome biases introduced by low spatial resolution, and vice versa. While we see asymptotic improvements to total system cost and reliability with increased resolution, other salient outcomes such as siting accuracy and emissions exhibit continued improvement across the range of model resolutions considered. We conclude that modelers should carefully balance resolution on spatial, temporal, and operational dimensions and that novel computational methods enabling higher resolution modeling are valuable and can further improve the decision support provided by this class of models.
Expanding transmission capacity is likely a bottleneck that will restrict variable renewable energy (VRE) deployment required to achieve ambitious emission reduction goals. Interconnection and inter-zonal transmission buildout may be displaced by the optimal sizing of VRE to grid connection capacity and by the co-location of VRE and battery resources behind interconnection. However, neither of these capabilities is commonly captured in macro-energy system models. We develop two new functionalities to explore the substitutability of storage for transmission and the optimal capacity and siting decisions of renewable energy and battery resources through 2030 in the Western Interconnection of the United States. Our findings indicate that modeling optimized interconnection and storage co-location better captures the full value of energy storage and its ability to substitute for transmission. Optimizing interconnection capacity and co-location can reduce total grid connection and shorter-distance transmission capacity expansion on the order of 10% at storage penetration equivalent to 2.5-10% of peak system demand. The decline in interconnection capacity corresponds with greater ratios of VRE to grid connection capacity (an average of 1.5-1.6 megawatt (MW) PV:1 MW inverter capacity, 1.2-1.3 MW wind:1 MW interconnection). Co-locating storage with VREs also results in a 10-15% increase in wind capacity, as wind sites tend to require longer and more costly interconnection. Finally, co-located storage exhibits higher value than standalone storage in our model setup (22-25%). Given the coarse representation of transmission networks in our modeling, this outcome likely overstates the real-world importance of storage co-location with VREs. However, it highlights how siting storage in grid-constrained locations can maximize the value of storage and reduce transmission expansion.
Scheduled maintenance is likely to be lengthy and therefore consequential for the economics of fusion power plants. The maintenance strategy that maximizes the economic value of a plant depends on internal factors such as the cost and durability of the replaceable components, the frequency and duration of the maintenance blocks, and the external factors of the electricity system in which the plant operates. This paper examines the value of fusion power plants with various maintenance properties in a decarbonized United States Eastern Interconnection circa 2050. Seasonal variations in electricity supply and demand mean that certain times of year, particularly spring to early summer, are best for scheduled maintenance. Seasonality has two important consequences. First, the value of a plant can be 15% higher than what one would naively expect if value were directly proportional to its availability. Second, in some cases, replacing fractions of a component in shorter maintenance blocks spread over multiple years is better than replacing it all at once during a longer outage, even through the overall availability of the plant is lower in the former scenario.