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Nation-wide Transmission Overlay Design and Benefits Assessment for the U S

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Abstract

A U.S. nation-wide transmission overlay is a high capacity, multi-regional transmission grid, potentially spanning all three interconnections, designed as a single integrated system to provide economic and environmental benefits to the nation. The objective of this paper is to identify benefits to building a national transmission overlay and to lay out essential elements to facilitate continued dialog on this topic. A preliminary study performed on a national scale using a long term investment planning software illustrated that a national transmission overlay, under a high renewable penetration scenario, could result in cost-reduction of between one quarter trillion and one-half trillion dollars over a 40-year period, while promising to increase infrastructure resilience and flexibility.

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... Nonetheless, limited attention has been paid to developing a comprehensive methodology to determine the benefits that each network user or national/local system is expected to obtain from expansion projects, especially when said projects are part of large expansion plans. Typically, benefits and beneficiaries are assessed for the whole plan, and not for each individual project [21,22]. However, allocation of the benefits of the whole expansion plan to each of the individual projects that comprise it remains largely unexplored. ...
... If the variable leaving the basis in step k is the production of generation unit g 0 , the relative contribution of an expansion project l to the change in the production of this unit (Cgp l g 0 ) is computed according to (21). This results from dividing the total change caused by this project in the production of g 0 (Vgp l g 0 ), which is calculated according to the new AS game using (22), by the sum of the overall changes caused by every project of the plan in the production of this same unit. ...
... , respectively. The overall change in the level of the variable leaving the basis caused by each project l, Vgp l g 0 , previously computed as in(22), should be replaced, both in(21) and(22), by Vens l ...
Article
The objective of this paper is to propose a novel methodology to compute the benefit obtained by the individual transmission network users from each of the transmission expansion projects within an expansion plan. The benefits computed should be coherent with the technical and economic principles that underlie the development of the expansion plan. Thus, this methodology is based on the idea that the benefits produced by each project of a plan should be determined considering all projects jointly, instead of individually. Some benefits obtained by users from projects evolve continuously with the deployment of the expansion plan, while others are discrete, since they occur at certain points of the deployment of this plan. A separate Aumann-Shapley game is solved to allocate continuous benefits, and each discrete one. In the second case, the standard Aumann-Shapley algorithm for the allocation of benefits is modified to cope with the fact that the function of each user’s benefits is not continuous with the size of projects deployed. Two case studies are used to compare the methodology proposed with existing ones and demonstrate its applicability to real-life decision making processes. The results show that the methodology proposed is able to overcome problems detected in other methodologies, providing more accurate and sound results. The good properties of the methodology proposed make it applicable to problems related to network expansion regulation, such as the cost allocation of new investments. Although the methodology proposed is particularized to electric power systems, its concept and fundamentals can also be applied in other energy sectors, such as gas.
... Consequently, benefits calculations for transmission expansion should consider not only fuel savings resulting from reduced transmission congestion, as is traditionally done in production costing studies, but also capital cost savings from more efficient generation investment. By modeling interactions between transmission and generation economics, cooptimization models promise solutions that are less expensive in total compared to decoupled optimization (transmission-only, generation-only, or iteration between the two) [1,2]. ...
... A complete mathematical formulation of an ACOPF-based generation and transmission planning model (ACOPF-GTEP) is presented as equations (1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) in Section A.1 of the appendix. The integer variables and non-linear constraints that render the problem a MINLP are shown in equations (2)(3)(4)(5)8). ...
... A complete mathematical formulation of an ACOPF-based generation and transmission planning model (ACOPF-GTEP) is presented as equations (1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) in Section A.1 of the appendix. The integer variables and non-linear constraints that render the problem a MINLP are shown in equations (2)(3)(4)(5)8). If a strategy for dividing the problem into investment and operating (OPF) subproblems is pursued, then the OPF is a continuous nonlinear optimization problems (NLPs). The OPF can be solved by iterative methods involving basic line-search steps [40], where an initial solution x 0 at k=0 is chosen, and then a search direction d k and an appropriate step size s k are selected to update the solution vector x k ; this search is repeated until the convergence criterion is met. ...
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The recognition of transmission’s interaction with other resources has motivated the development of co-optimization methods to optimize transmission investment while simultaneously considering tradeoffs with investments in electricity supply, demand, and storage resources. For a given set of constraints, co-optimized planning models provide solutions that have lower costs than solutions obtained from decoupled optimization (transmission-only, generation-only, or iterations between them). This paper describes co-optimization and provides an overview of approaches to co-optimizing transmission options, supply-side resources, demand-side resources, and natural gas pipelines. In particular, the paper provides an up-to-date assessment of the present and potential capabilities of existing co-optimization tools, and it discusses needs and challenges for developing advanced co-optimization models.
... However, if the required capacity for ancillary services is estimated and represented in the long-term investment planning tool [71], then such devices' capacity subject to their utilization factor [139] can be considered in the overall portfolio planning. ...
... (a) National level electric (13 electric regions) and transportation (freight and personal vehicles in 48 states) portfolio planning [59] (b) Nation-wide transmission overlay design and benefit assessment (13 electric regions, no transportation) [71] • ...
... Fuel sources represented within energy sector[71] ...
... Consequently, benefits calculations for transmission expansion should consider not only fuel savings resulting from reduced transmission congestion, as is traditionally done in production costing studies, but also capital cost savings from more efficient generation investment. By modeling interactions between transmission and generation economics, cooptimization models promise solutions that are less expensive in total compared to decoupled optimization (transmission-only, generation-only, or iteration between the two) [1,2]. ...
... A complete mathematical formulation of an ACOPF-based generation and transmission planning model (ACOPF-GTEP) is presented as equations (1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) in Section A.1 of the appendix. The integer variables and non-linear constraints that render the problem a MINLP are shown in equations (2)(3)(4)(5)8). ...
... A complete mathematical formulation of an ACOPF-based generation and transmission planning model (ACOPF-GTEP) is presented as equations (1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) in Section A.1 of the appendix. The integer variables and non-linear constraints that render the problem a MINLP are shown in equations (2)(3)(4)(5)8). The convergence and computational challenges of solving that problem make it impractical to apply for real world applications [38]. ...
... A 2% yearly discount rate applied to the cost information within the optimization. Data for energy side of the national network is provided in [10,15], which includes electric network divided into 13-regions as defined by the DOE for NEMS, and the modeling details of fuel network (i.e., regional coal (production capacities and cost) and natural gas (cost and capacities of production, pipeline transportation and storage)). The cost, capacity and efficiency data used for hydrogen production, transmission and distribution network were provided in Tables 4 and 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 ...
... NETPLAN is developed to perform assessments over extended time periods, on the order of 40 or more years, in comparison to the traditional 20-30 year planning horizon required by most state and federal regulatory bodies today. NETPLAN has been applied in several studies; results of representative studies are reported in [11,12,13,14,15,16]. ...
... A 2% yearly discount rate applied to the cost information within the optimization. Data for energy side of the national network is provided in [10,15], which includes electric network divided into 13-regions as defined by the DOE for NEMS, and the modeling details of fuel network (i.e., regional coal (production capacities and cost) and natural gas (cost and capacities of production, pipeline transportation and storage)). The cost, capacity and efficiency data used for hydrogen production, transmission and distribution network were provided in Tables 4 and 5 ...
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This paper assesses using hydrogen as alternative fuel in U.S light-duty vehicle (LDV) transportation system. Firstly, the paper develops the hydrogen network model consisting of multiple production pathways that eventually lead to the fuel-cell vehicles (FCVs) for passenger transportation; such that the interdependency of hydrogen network with energy system and the competition of FCVs with other LDV modes (plug-in hybrid electric vehicles and gasoline vehicles) are captured. Then, the evaluation of economics and environmental impact of large-scale hydrogen deployment in national LDV market is analyzed by simulating long-term energy and transportation infrastructure planning studies, and the factors that influence the penetration of FCVs are assessed from the national economics and sustainability standpoint. It is seen from the results that economics and sustainability of PHEV penetration is very much dependent on the availability of low cost renewables, and given a practical limit on renewable generation expansion and tighter imposition of carbon policies, FCVs do prove to be highly valuable in rendering the national LDV portfolio sustainable and resilient against petroleum related events. With improvements in FCV investment cost of about 11-19%, they can outperform PHEVs and gasoline vehicles as the economic and sustainable LDV option under high renewable power generation portfolio.
... The NET-PLAN tool will be used in this paper to simulate various long-term capacity expansion scenarios, and assess the role of biorenewables. NETPLAN in the past has been used to perform various planning studies with an intent to assess long-term cost, emissions and resilience associated with nation-wide infrastructure planning, including assessing the impact of high-speed rail (HSR) on U.S. passenger transportation [18], designing high capacity interregional transmission overlay under high renewable scenarios [19,35], designing resilient energy infrastructure against catastrophic events [36], and planning national light duty vehicle portfolio [37]. NETPLAN is written in Cþþ, and the code and the data are made public 3 . ...
... The investment cost of geothermal generation technology varies with geography due to the varying drilling depth required to reach suitable temperature underground. These investment costs and the geographically varying capacity factors for wind and solar generation (as shown in Table 9) for the 13 regions are provided in Ref. [35]. The model also considers coal, IGCC, and NGCC units with carbon capture and sequestration (CCS) installations. ...
Article
Bio-power and biofuels are promising alternative energy resources. This paper investigates their role in the long-term U.S. national energy and transportation portfolio planning, while considering the competition among other energy options. The paper presents a systematic modeling framework for integrating biomass pathways to the energy and transportation systems, and also captures the geographical variation in the feedstock availability and cost across the U.S. The paper then presents two different case studies-energy sector planning and integrated energy & transportation sectors planning. The studies reveal long-term cost and emission savings from bio-renewables, where the bulk of benefits are observed due to biofuels (with bio-power production limited by feedstock prices). Under a 40% CO2 emissions reduction scenario over the next 40 years, penetration of bio-renewables promise up to 10-Trillion USD (2010$) savings in system costs (investments and operational). Simulations also show that the impediment with bio-renewable penetration is mostly influenced by the availability of low-cost feedstock, specifically for bio-power production. According to current estimation of long-term feedstock availability, U.S will be able to power upto 150 Billion Gallons Year (BGY) (or approx. 560*109 L per year) bio-refinery capacity around 2020s, and about 200 BGY (or approx. 750*109 L per year) by 2050.
... In [2,20], we describe three distinct paths that could be pursued to realize continentwide interregional transmission design: market driven investment, federal initiative, and interregional coordination. There are elements of each of these three approaches ongoing today. ...
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The U.S. Department of Energy's national congestion study [1] indicates that electric transmission congestion has become more severe inhibiting interregional power exchange. High quality renewable resources in the U.S. are generally remote from load centers; thus, renewable growth is inhibited by insufficient transmission as electric transmission is the only way to move renewable energy. A recent report on this issue [2] concludes that a national transmission overlay, defined as high-capacity, multi-regional grid that spans all interconnections, provides economic, environmental, and system performance benefits. Such an interregional transmission grid is of increased interest when the cost of generation resources reflects high geographical variation as do renewables such as wind, solar, and geothermal. References [3]-[4] perform interconnection-wide planning studies, focusing on renewable deliverability. References [5]-[7] provide national overlay conceptual designs. These designs differ widely in terms of network topology and transmission technology. European efforts towards a similar 'supergrid' concept are well-documented [7]. The problem of designing an integrated national overlay is inherently different from transmission design that occurs in regional planning processes. First, economic justification typically requires a long planning horizon, at least 20 years but preferably longer, to account for economic value of investments having long lifetimes. Second, an integrated transmission overlay joining all interconnections is a large-scale, comprehensive addition to the existing grid, in contrast to more incremental additions that have driven the transmission planning process for decades. In this paper, we introduce a planning approach for interregional transmission design at the national or continental level, for high renewable futures, and we apply it to the U.S. system to design transmission overlays under a high-renewable future. Benefits of the designed overlay are compared to those of the same renewable penetration but with interregional transmission capacity fixed at today's levels. Associated simulation results suggest that such an overlay provides social, economic and environmental benefits, by optimizing investment and production costs, reducing carbon emissions, creating renewable-related employment opportunities and lowering overall electricity prices.
... Our literature review also found some particular research works focused on the co-planning between energy and transportation systems (Table A10 -Appendix A). A long-term investment planning model has been developed by [180] using the National Long-term Energy and Transportation Planning (NETPLAN) software focused on a 40-year planning period for both the United States energy and freight transportation systems. This research focused on identifying the possible benefits of building a national transmission overlay in the country. ...
Article
Co-optimization for power system operation and expansion planning is reviewed. The majority of short-term studies have grown up around energy and reserve markets. Co-optimization might lead to less costly solutions than traditional techniques. The need to coordinate the necessary data from multiples actors is a challenge. Integrating supply and demand-side options has been recognized as a current need. https://authors.elsevier.com/a/1dn7o15eif0fES
... This fact can be aggravated if in the future new massive renewable generation is located far from load centres and new overlay transmission networks or supergrids are built to distribute this energy throughout a continental area. Even though in some regions the HVDC option is now preferred [10], in others could be more convenient the HVAC traditional solution [11,12]. ...
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This work tackles in a practical way the problem of short-term voltage stability at bulk power systems from the point of view of the overhead lines parameters: length and compactness. With that aim the 9-bus IEEE test system, properly modified to tailor the needs of the study, is simulated in Simulink under high load conditions for different line parameters, analysing the effects of these parameters on the severity of the instability and the recovery rate of the system under different scenarios: no FACTS, SVC and STATCOM. The main findings of the study are included in the conclusions.
... George and Banerjee (2011) do likewise for a specific Indian region. The benefits of an overlay transmis- sion grid network in the United States are outlined in Krishnan et al. (2013), who indicate that variability of renewable energy justifies investments into a resilient, flexible overlay grid. None of the mentioned studies cover the European dimension addressed specifically here in this chapter. ...
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This dissertation uses three models to analyze different decarbonization strategies for combating global climate change: The cost minimizing mixed-integer model CCTS-Mod examines the economics of Carbon Capture, Transport, and Storage (CCTS) for the electricity and industry sector; the welfare maximizing quadratically constrained model ELMOD focuses on different trajectories for renewable energy sources (RES) and transmission grid expan-sions; and the equilibrium model ELCO combines the insights of the individual sectors to a combined CCTS and electricity investment and dispatch model. Modeling results show that an investment in CCTS is beneficial for the iron and steel sector once the CO2 certificate price exceeds 50 €/t CO2. The threshold is 75 €/t CO2 for the cement industry and 100 €/t CO2 for the electricity sector. Additional revenues from using CO2 for enhanced oil recovery (CO2-EOR) lead to an earlier adoption of CCTS in the North Sea region. The lack of economies of scale results in increasing CO2 storage costs of more than 30%, while transport costs even double. Research from the last years, however, indicates that CCTS is unlikely to play an important role in decarbonizing the electricity sector. The identified reasons for this are incumbents’ resistance to structural change, wrong technology choices, over-optimistic cost estimates, a premature focus on energy projects instead of industry, and the underestimation of transport and storage issues. Keeping global temperature rise below 2°C therefore implies the phase-out of fossil-fueled power plants and, in particular, of CO2-intensive coal power plants. The low CO2 price established by the European Emissions Trading Scheme is insufficient to induce a fuel switch in the medium term. Therefore, supplementary national measures are necessary to reduce coal-based power generation; i.a. feed-in tariffs for RES, minimum CO2 prices, or emissions performance standards. Analyses for Germany show that a coal phase-out before 2040 is possible without risking resource adequacy at any point. Enabling a smooth transition en-courages other countries to take the German Energiewende as a blueprint to combat global warming, even if this implies a coal phase-out.
... modeled as 13 regions, as defined by the U.S. Department of Energy (DOE) Energy Information Administration (EIA) for NEMS (U.S. Energy Information Administration, 2000). The average electric demand and generation mix within each region in the reference year (2009), andcapacities for the aggregated inter-regional transmission lines are provided in(Krishnan, 2013a). The annual average demand for electricity and natural gas is assumed to increase at a rate of 1.5% and 1% per year, respectively, and the annual peak electric demand is assumed to increase at 2% per year. ...
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This paper presents a long-term investment planning model that co-optimizes infrastructure investments and operations across transportation and electric infrastructure systems for meeting the energy and transportation needs in the United States. The developed passenger transportation model is integrated within the modeling framework of a National Long-term Energy and Transportation Planning (NETPLAN) software, and the model is applied to investigate the impact of high-speed rail (HSR) investments on interstate passenger transportation portfolio, fuel and electricity consumption, and 40-year cost and carbon dioxide (CO2) emissions. The results show that there are feasible scenarios under which significant HSR penetration can be achieved, leading to reasonable decrease in national long-term CO2 emissions and costs. At higher HSR penetration of approximately 30% relative to no HSR in the portfolio promises a 40-year cost savings of up to $0.63 T, gasoline and jet fuel consumption reduction of up to 34% for interstate passenger trips, CO2 emissions reduction by about 0.8 billion short tons, and increased resilience against petroleum price shocks. Additionally, sensitivity studies with respect to light-duty vehicle mode share reveal that in order to realize such long-term cost and emission benefits, a change in the passenger mode choice is essential to ensure higher ridership for HSR.
... George and Banerjee (2011) do likewise for a specific Indian region. The benefits of an overlay transmission grid network in the United States are outlined in Krishnan et al. (2013), who indicate that variability of renewable energy justifies investments into a resilient, flexible overlay grid. None of the mentioned studies cover the European dimension addressed specifically here in this article. ...
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This article presents a quantitative assessment of the need for electricity transmission capacity investments in Germany for 2030. Congestion is analyzed and its possible relief through appropriate grid reinforcements as those described in the Ten Year Network Development Plan (TYNDP) of the European Commission. Congestion is investigated in three scenarios which differ in the location of power resources and the line expansion projects accomplished. Results show that the TYNDP and overlay line projects proposed in 2011 are not sufficient measures to cope with the increasing demand for transmission capacity. The paper also concludes that if power generation resources are moved closer to demand centers grid bottlenecks can be partly relieved by 2030. The introduction of a high-voltage direct current (HVDC) backbone grid does not relieve congestion significantly.
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Modeling Interregional Transmission Congestion in the National Energy Modeling System, LBNL 59076 A multiobjective optimization approach to the operation and investment of the national energy and transportation systems
  • E Gumerman
  • P Chan
  • B Lesieutre
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