As the grid adapts to a changing energy landscape, its traditional role must evolve to balance cost, reliability, and emerging system priorities through fresh thinking in technology, markets, and institutional design, says Mark O’Malley.
As power systems transition toward inverter-based resource (IBR)-dominated grids, traditional system strength definitions and metrics are becoming increasingly inadequate to characterize upcoming stability challenges. Emerging definitions characterize system strength in terms of "voltage source behind impedance (VSBI)" characteristics. Similarly, Grid-ForMing (GFM) IBRs are expected to contribute voltage stiffness by exhibiting near-constant VSBI characteristics in the (sub-)transient time frame. To quantify VSBI characteristics as a measure of system strength or grid-forming capability, this paper proposes the Jacobian Voltage Stiffness Metric (JVSM), derived from the frequency-domain Jacobian. JVSM provides a measure of both small-signal voltage magnitude and phase-angle stiffness. JVSM is demonstrated to serve as a compliance criterion for evaluating the VSBI characteristics of GFM IBRs. When applied for grid strength assessment, it more effectively identifies small-signal stability problems than state-of-the-art strength metrics. The proposed JVSM is validated through electromagnetic transient simulation case studies using the National Laboratory of the Rockies (NLR, formerly NREL) and WECC-approved industry-standard GFM IBR models and on a modified IEEE 39-bus system.
Recent changes to the principal causes of energy shortage events on the electric grid have necessitated are thinking of paradigms for resource adequacy (RA) assessment and the related topic of procurement of a reliable portfolio. Prior studies have laid out elements of a modern paradigm for these planning activities, but there does not exist a comprehensive overview of the topic spanning academic and gray literature, and the relationship of these suggested paradigms to methods used in industry has also not been surveyed. In this paper we review recent literature establishing best practices for RA assessment and reliable portfolio procurement, and survey current practices used in industry in relation to these best practices. We establish seven key best practices for RA assessment, cover a modern methodology for capacity accreditation, and find that industry practices are not far behind the identified best practices, though some key gaps remain. We also present a suggested agenda for both academic research on the topic and opportunities for advancement in the industry.
This paper develops a novel optimization framework for synthesizing inverter-based resource (IBR) controllers to enhance robust large-signal dynamic performance in inverter-dominated power systems (IDPSs) via coordinated selection of control architectures and parameter tuning. Despite extensive research on grid-forming and grid-following control architectures, systematic control design methods that explicitly account for large-signal dynamics and robustness across a range of operating conditions and disturbances remain limited. This paper addresses this gap by formulating a robust optimal control problem that integrates control design, dispatch, disturbance, and dynamic models within a unified min-max optimization framework. To solve the resulting problem, a solution method combining direct collocation, mesh refinement, local reduction, nonlinear programming, and electromagnetic-transient simulations is proposed, fundamentally differing from conventional power system optimization approaches. Application to the IEEE 9-bus system demonstrates that the method captures key large-signal effects with high fidelity, including nonlinear transients arising from current saturation. Moreover, results show improved robust dynamic performance relative to conventional control design practices and reveal the strong sensitivity of system behavior to control architecture allocation and parameter tuning, underscoring control design optimization as an effective mechanism for enhancing power system security, resilience, and stability.
This thesis presents a fundamental rethink of electricity market design at the wholesale and balancing layers. Rather than treating markets as static spot clearing mechanisms, it reframes them as a continuously online, event driven dynamical control system: a two sided marketplace operating directly on grid physics. Existing energy only, capacity augmented, and zonal market designs are shown to admit no shock robust Nash equilibrium under realistic uncertainty, instead relying on price caps, uplift, and regulatory intervention to preserve solvency and security. In response, the thesis develops a holarchic Automatic Market Maker (AMM) in which prices are bounded, exogenous control signals derived from physical tightness rather than emergent equilibrium outcomes. The AMM generalises nodal and zonal pricing through nested scarcity layers, from node to cluster to zone to region to system, such that participant facing prices inherit from the tightest binding constraint. Nodal and zonal pricing therefore emerge as special cases of a unified scarcity propagation rule. Beyond pricing, the AMM functions as a scarcity aware control system and a digitally enforceable rulebook for fair access and proportional allocation under shortage. Fuel costs are recovered through pay as bid energy dispatch consistent with merit order, while non fuel operating and capital costs are allocated according to adequacy, flexibility, and locational contribution. Large scale simulations demonstrate bounded input bounded output stability, controllable procurement costs, zero structural waste, and improved distributional outcomes. The architecture is climate aligned and policy configurable, but requires a managed transition and new operational tools for system operators and market participants.
Demand flexibility can offset some of the variability introduced on the supply-side by variable renewable generation. However, most efforts (e.g. control of residential vehicle charging) focus on short durations -- typically on the scale of minutes to hours. This paper investigates whether a fully electrified supply chain (transport and manufacturing) could provide demand flexibility over longer durations, exploiting the latency that typically exists between the processing of raw material to the delivery of finished product. Using a case study of the cement industry along the East Coast of the United States, we demonstrate that electrified supply chains could shift gigawatt-hours (GWh) of electricity demand for durations of more than a week, largely following wind power variability. Furthermore, we show that this occurs using low levels of carbon taxing (below $50/tn), at which battery storage is not economically viable. A sensitivity analysis shows potential to provide flexibility in all considered cost scenarios, although where the flexibility comes from can change (e.g. transport vs manufacturing). We show that today's cost of electrified heavy goods vehicles are the most significant parameter -- with substantially lower costs yielding a more demand-flexible supply chain.
The share of wind power in power systems is increasing dramatically, and this is happening in parallel with increased penetration of solar photovoltaics, storage, other inverter-based technologies, and electrification of other sectors. Recognising the fundamental objective of power systems, maintaining supply–demand balance reliably at the lowest cost, and integrating all these technologies are significant research challenges that are driving radical changes to planning and operations of power systems globally. In this changing environment, wind power can maximise its long-term value to the power system by balancing the needs it imposes on the power system with its contribution to addressing these needs with services. A needs and services paradigm is adopted here to highlight these research challenges, which should also be guided by a balanced approach, concentrating on its advantages over competitors. The research challenges within the wind technology itself are many and varied, with control and coordination internally being a focal point in parallel with a strong recommendation for a holistic approach targeted at where wind has an advantage over its competitors and in coordination with research into other technologies such as storage, power electronics, and power systems.
As consumer flexibility becomes expected, it is important that the market mechanisms which attain that flexibility are perceived as fair. We set out fairness issues in energy markets today, and propose a market design to address them. Consumption is categorised as either essential or flexible with different prices and reliability levels for each. Prices are generated by an Automatic Market Maker (AMM) based on instantaneous scarcity and resource is allocated using a novel Fair Play algorithm. We empirically show the performance of the system over 1 year for 101 UK households and benchmark its performance against more classical approaches.
Climate change is expected to intensify the effects of extreme weather events on power systems and increase the frequency of severe power outages. The large-scale integration of environment-dependent renewables during energy decarbonization could induce increased uncertainty in the supply–demand balance and climate vulnerability of power grids. This Perspective discusses the superimposed risks of climate change, extreme weather events and renewable energy integration, which collectively affect power system resilience. Insights drawn from large-scale spatiotemporal data on historical US power outages induced by tropical cyclones illustrate the vital role of grid inertia and system flexibility in maintaining the balance between supply and demand, thereby preventing catastrophic cascading failures. Alarmingly, the future projections under diverse emission pathways signal that climate hazards — especially tropical cyclones and heatwaves — are intensifying and can cause even greater impacts on the power grids. High-penetration renewable power systems under climate change may face escalating challenges, including more severe infrastructure damage, lower grid inertia and flexibility, and longer post-event recovery. Towards a net-zero future, this Perspective then explores approaches for harnessing the inherent potential of distributed renewables for climate resilience through forming microgrids, aligned with holistic technical solutions such as grid-forming inverters, distributed energy storage, cross-sector interoperability, distributed optimization and climate–energy integrated modelling. Increasing grid penetration of renewables coupled with intensifying climate extremes under climate change presents superimposed risks to future power systems. This Perspective analyses the critical factors influencing the resilience of renewable power systems under climate risks and proposes climate-resilient solutions towards a net-zero future.
The reliability of the electric grid has in recent years become a larger concern for regulators, planners, and consumers due to several high-impact outage events, as well as the potential for even more impactful events in the future. These concerns are largely the result of decades-old resource adequacy (RA) planning frameworks being insufficiently adapted to the current types of uncertainty faced by planners, including many sources of deep uncertainty for which probability distributions cannot be defensibly assigned. There are emerging methodologies for dealing with these new types of uncertainty in RA assessment and procurement frameworks, but their adoption has been hindered by the lack of consistent understanding of terminology related to RA and the related concept of resilience, as well as a lack of syntheses of such available methodologies. Here we provide an overview of RA and its relationship to resilience, a summary of available methods for dealing with emerging types of uncertainty faced by RA assessment, and an an overview of procurement methodologies for operationalizing RA in the context of these types of uncertainty. This paper provides a synthesis and guide for both researchers and practitioners seeking to navigate a new, much more uncertain era of power system planning.
The growing share of uncertain and variable power generation sources has led independent system operators (ISOs) to seek resources with fast ramp rates for frequency regulation. Recent improvements in battery energy storage systems (BESSs) have increased their use in ancillary service markets. The Federal Energy Regulatory Commission also made a provision for ISOs to facilitate the participation of BESSs in the clearing of energy and ancillary service markets by incorporating their physical and operational characteristics through Order No. 841. However, frequent BESS cycling causes degradation that results in decreased battery life. Thus, battery degradation should be incorporated into the usage pricing in different markets. This paper proposes a mathematical formulation to model the degradation cost of different battery technologies. Further, a market-clearing framework for the co-optimized energy and performance-based regulation markets is proposed. The effects and costs associated with battery degradation are considered in both energy and regulation scheduling. Suitable case studies comparing the effect of the degradation cost of different battery technologies in the proposed market-clearing framework are performed on the standard IEEE test system.
With the increasing penetration of inverter based resources (IBRs) in present and future power systems, it is important to consider the different grid services needed from/provided by IBRs. To ensure network stability after a contingency such as trip of a synchronous generator or a fault, a grid may require services (for example, fast voltage control) from various IBRs. New IBRs to be installed with future capabilities (inherent blackstart capability) are often seen as a potential source for such services. However, the capability of many existing IBRs today are underutilized and if the capability from existing IBRs is utilized efficiently, it could greatly improve the network performance and reduce services needed from the future IBRs. This paper provides few illustrative examples detailing some of the services that may be needed by an IBR-dominated grid and the impact of asking these services from future IBRs and/or supplementing with services from existing IBRs.
The primary objective of electricity grids is to reliably meet the electricity demand at a minimum cost. This objective can be broken down into a set of needs that are met through services. These services are procured by mandating them either in grid codes or via market mechanisms. While grids in different countries/regions share common features in terms of needs and services, there are variations arising in physical, regulatory, and policy contexts. With the increased use of inverter-based resources (IBRs), such as wind and solar photovoltaic (PV) power and battery energy storage systems (BESSs), grids are undergoing changes that are altering the balance between needs and services. This balance is crucial in managing changes that will ensure that grids will continue to be able to meet demands. As increasingly more synchronous machines (SMs) are replaced by IBRs, the services inherently provided by the remaining SMs are dwindling, thus requiring the IBRs to contribute where they can.
Historically, investment in power system infrastructure has been modeled from the perspective of individual utilities or a central planner, with limited consideration of the diversity of individual consumers’, individual suppliers’, and societal objectives, incentives, and actions. However, the actual power system involves a variety of stakeholders with different, and sometimes conflicting, objectives. In this article, we introduce an integrated methodology for capturing the characteristics and behavior of these multi-stakeholder systems with diverse objectives as well as its implementation in the flexible and extensible Holistic Electricity Model (HEM). HEM was developed to simultaneously analyze the interacting decisions of different stakeholders, whose objectives, decision-making processes, and constraints are all configurable. This approach enables analysts, decision makers, and other stakeholders to directly compare electricity systems in different regulatory and policy environments on a consistent basis. We illustrate HEM's capabilities in a case study of distributed photovoltaics adoption in a stylized bulk power system comprised of natural gas and utility-scale photovoltaic generators. The simultaneous and cross-comparable illustration of multiple key dynamics between stakeholders and how they depend on regulatory and policy environment demonstrates the advantages of the integrated analysis approach embodied in HEM.
Investment decisions in the electricity sector are complex and depend on wholesale market and policy structures, attributes of investor firms that impact risk and financing, and the location-specific economics of investment options. This paper introduces the Electricity Markets and Investment Suite - Agent-Based Simulation (EMIS-AS), which models the evolution of the electricity generation mix under various market structures while explicitly capturing the aforementioned investment factors and imperfect information. EMIS-AS advances the state-of-the-art of generation expansion planning and agent-based modeling by incorporating various aspects of investor heterogeneity (e.g., differences in financial characteristics, technology preferences, and attitudes towards risk under uncertainty), a robust price prediction methodology, a methodology for updating investors’ forecast parameters using Kalman Filters, and endogenous representation of a customizable set of wholesale electricity markets including energy, ancillary services, capacity, and renewable energy certificate markets. Implementation of EMIS-AS on a test system highlights the strong role that firms’ heterogeneous attributes have on the investment decisions, generation portfolio, and resulting resource adequacy. In multiple instances, investment and retirement results diverge not only due to each firm’s own parameters, but also due to the actions and characteristics of other firms. Results also demonstrate how imperfect information and risk preferences can lead to suboptimal investment outcomes, which can require firm-level recourse actions with severe profitability implications. In addition, a comparison with a traditional generation expansion planning model highlights the ability of EMIS-AS to capture resource scarcity and early retirements caused by real-world imperfections that traditional models cannot represent.
The penetration of variable renewable energy (VRE) resources (wind and solar Photovoltaic (PV)) is increasing rapidly across the world and in many regions by capacity is the dominant new generation that is connecting to the grid. This is part of an accelerating trend that dates back several decades. With this rapid increase in VRE there has been a trend in the popular press and in parts of the academic literature to claim that 100% renewables is not only a desirable end point but is relatively easily achievable – there is also a totally counter narrative that says you cannot possibly have a grid with very high penetrations of VRE and certainly not 100%. Neither of these narratives are useful or constructive. It is certainly technically possible to get to 100% VRE grids but is far from easy and certainly with our current technology and societal expectations around electricity it would be very expensive. A more balanced and correct statement would be “it is possible to get to 100% VRE grids but there are many challenges that need to be solved” and this is the subtext for this special section on the development of a 100% Renewable Energy System”.
The demand for low carbon energy calls for close to 100% renewable power systems, with decarbonization of other energy sectors adding to the anticipated paradigm shift. Rising levels of variable inverter-based renewable energy sources (VIBRES) are prompting questions about how such systems will be planned and operated when variable renewable generation becomes the dominant technology. Here, we examine the implications of this paradigm shift with respect to planning, operation and system stability, also addressing the need for integration with other energy vectors, including heat, transport and Power-to-X. We highlight the knowledge gaps and provide recommendations for improved methods and models needed as power systems transform towards 100% VIBRES.
Wind energy is anticipated to play a central role in enabling a rapid transition from fossil fuels to a system based largely on renewable power. For wind power to fulfill its expected role as the backbone – providing nearly half of the electrical energy – of a renewable-based, carbon-neutral energy system, critical challenges around design, manufacture, and deployment of land and offshore technologies must be addressed. During the past 3 years, the wind research community has invested significant effort toward understanding the nature and implications of these challenges and identifying associated gaps. The outcomes of these efforts are summarized in a series of 10 articles, some under review by Wind Energy Science (WES) and others planned for submission during the coming months. This letter explains the genesis, significance, and impacts of these efforts.
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 CO2 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.
Understanding the technical and economic challenges of achieving 100% renewable energy (RE) electric power systems is critical, given the increasing number of United States regional and state commitments toward this goal. Although no detailed study of a major utility of large interconnection under 100% RE system has been published, considerable literature explores the potential to greatly increase RE penetration, This literature, combined with real-world experience with increased RE deployment, points to two main challenges associated with achieving 100% RE across all timescales: (1) economically maintaining a balance of supply and demand and (2) designing technically reliable grids using largely inverter-based resources. The first challenge results in a highly nonlinear increase in costs as the system approaches 100% RE, in large part because of seasonal mismatches. The second challenge might require new inverter designs, depending on the mix of RE technologies. Analysis and experience to date point to no fundamental technical reasons why a 100% RE electric power system cannot be achieved, but the economic challenges indicate the need for advancements in several technologies and careful consideration of the suite of options that could be used to achieve equivalent carbon-reduction goals, Previous work also points to the need for analytic tool development, and techno-economic feasibility analysis must also consider the host of regulatory, market, and policy issues that might limit the ability to deploy mixes of resources that are suggested by least-cost modeling exercises.