The U.S. electric power sector is in the early stages of transitioning from a reliance on carbon intensive generation sources to a system based on low-carbon sources. In this thesis, I present analyses of four different aspects of this transition, with an emphasis on the PJM Interconnection. The effects of bulk electricity storage on the PJM market I analyze the value of three storage technologies in the PJM day-ahead energy market, using a reduced-form unit commitment model with 2010 data. I find that large-scale storage would increase overall social welfare in PJM. However, the annualized capital costs of storage would exceed social welfare gains. Consumers would save up to $4 billion annually, largely at the expense of generator surplus. Storage modestly increases emissions of CO2 and other pollutants. The external costs and benefits of wind energy in PJM Large deployments of wind create external costs and benefits that are not fully captured in power purchase agreements. I find that wind’s external costs in the PJM market are uncertain but significant when compared to levelized PPA prices. Pollution reduction benefits are very uncertain but exceed external costs with high probability. The climate and health effects of a USA switch from coal to gas electricity generation I analyze the emission benefits created by a hypothetical scenario in which all U.S. coal plants are switched to natural gas plants in 2016. The net effect on warming is unclear; results are highly sensitive to the rate of fugitive methane emissions and the efficiency of replacement gas plants. However, the human health benefits of such a switch are substantial. The costs of building and operating new gas plants likely exceed the health benefits. Robust resource adequacy planning in the face of coal retirements Over the next decade, many U.S. coal-fired power plants are expected to retire, posing a challenge to system planners. I investigate the resource adequacy requirements of the PJM Interconnection, and how procuring less capacity may affect reliability. I find that PJM’s 2010 reserve margin of 20.5% was sufficient to achieve the stated reliability standard with 90% confidence. PJM could reduce reserve margins to 13% and still achieve levels of reliability accepted by other power systems.

Deregulation of the electricity industry has altered the investment landscape for new resources. Multiple resource adequacy constructs are in use today around the world and represent diverging opinions of how much interaction regulators should have on the procurement of new resources. The report compares the resource adequacy constructs in Australia, Texas, California and the Northeast of the United States and discusses the future of resource adequacy. The report concludes that a hybridized construct that blends the high offer caps of energy-only markets, the prescriptive nature of resources in capacity markets and a strong price-responsive demand will likely be the future of resource adequacy. / text

The increasing amount of renewable energy being connected to the power grid, and the intermittent nature of these resources, calls for increased grid flexibility to ensure operational safety and stability. An effective solution to address this need could be through wider implementation of various energy storage technologies. Stationary lithium-ion battery energy storage systems have already been successfully deployed at various locations around the world and has a proven track record of providing valuable services to the grid. The increasing number of battery electric vehicles could imply a vast untapped resource of flexibility as they rely on similar battery technology.Realising this potential could be achieved through the successful implementation and adoption of vehicle-to-grid technology, enabling bi-directional charging between BEVs and the power grid. This thesis first explores the concept of vehicle-to-grid technology through a literature review. The second part of this thesis aims to quantify the revenue potential from one identified value stream for vehicle-to-grid enabled vehicles. This is done through the development of a model, quantifying the revenues generated from participation on the Swedish balancing markets with a fleet of electric trucks over one year. The literature review reveals over 100 documented projects worldwide with physically implemented vehicle-to-grid technology. Different AC- and DC system configurations are being tested as well as the implementation of standards and protocols developed by stakeholders in the vehicle-to-grid ecosystem. Key focus areas have been to ensure interoperability and safety, whilst social aspects of vehicle-to-grid technology remains inadequately explored in existing literature. Numerous value streams can be derived from vehicle-to-grid enabled vehicles and like stationary energy storage systems, its full economic potential can be unlocked by stacking these value streams. Focusing solely on one value stream, the model presented in the second part of this thesis indicates a yearly revenue potential ranging from EUR 6,577 to EUR 85,503 per electric truck participating in the FCR-D Up market in Sweden. However, as the developed model does not consider any costs associated with enabling this participation, no further insights regarding the profitability of V2G-enabled vehicles can be derived from the case study and should be subject for future work. / Den ökande mängden förnybar energi som ansluts till elnätet, och den intermittenta karaktären hos dessa resurser, kräver ökad flexibilitet i elnätet för att säkerställa driftsäkerhet och stabilitet. En lösning för att tillgodose detta behov kan vara genom en bredare implementering av olika energilagerteknologier. Stationära energilager med litium-jonbatterier används redan framgångsrikt på olika platser runt om i världen, och har bevisat sig kunna tillhandahålla värdefulla tjänster till elnätet. Det ökande antalet elektriska fordon skulle kunna innebära stora volymer av ytterligare flexibilitetsresurser eftersom de bygger på liknande batteriteknologier. Realiserande av denna potential skulle kunna uppnås genom en framgångsrik implementering och användning av ’vehicle-to-grid’ (V2G) teknik (svenska fordon-till-nät), som innebär möjliggörandet av dubbelriktad laddning mellan elfordon och elnätet. Detta kanditatarbete utforskar först konceptet med V2G genom en litteraturstudie. I den andra delen av arbetet kvantifieras intäktspotentialen för en av de identifierade värdeströmmarna för V2G möjliggjorda fordon. Detta görs genom utvecklandet av en modell som beräknar de intäkter som kan tänkas genereras av en flotta elektriska lastbilar som deltar på den svenska balansmarknaden under ett år, givet ett antal antaganden. Litteraturstudien visar att det finns över 100 dokumenterade projekt världen över med fysiskt implementerad V2G teknik. Viktiga fokusområden för ett framgångsrikt genomförande är interoperabilitet och säkerhet, där utvecklingen av branschstandarder pågår med en hög grad av internationellt samarbete mellan aktörer involverade i ekosystemet för V2G. Tester av olikatekniska utföranden som konfigurationer för AC- och DC systemlösningar pågår, medan sociala aspekter av V2G är mindre utforskade i befintlig litteratur. Många värdeströmmar kan fångas med V2G teknik och i likhet med stationära energilagringssystem kan dess fulla ekonomiska potential realiseras om dessa värdeströmmar staplas. Modellen som presenteras i den andra delen av detta arbete fokus emellertid endast på en av dessa, men indikerar en årlig intäktspotential på mellan 6 577 EUR och 85 503 EUR per elektrisklastbil som deltar på FCR-D Upp marknaden i Sverige. Den utvecklade modellen tar dock inte hänsyn till kostnader som är förknippade med möjliggörandet av detta deltagande, och av denna kan lönsamheten för V2G möjliggjorda fordon ej bedömas med denna fallstudie, utan bör vara ämne för framtida arbete.

Most modern electricity markets do not guarantee that generation is reliable and sufficient to provide all consumer’s electricity needs at all times. This is due to design-flaws and regulatory intervention. During the coming decades, increased electricity demand and decarbonization trends will affect the electricity market greatly. As the share of wind and solar power increases in the generation mix, the inertia in the power system is expected to decrease. This can potentially increase the systems exposure to blackout risk. Therefore, it is important to ensure that electricity is traded in a way that ensures enough supply even during scarcity events. The study aims to compare six different capacity market designs that are widely discussed in the scientific literature. Furthermore, this study uses MATLAB to simulate how the utility for the strategic reserve in Sweden has changed over the past few years. The study finds no ideal capacity market design but concludes that different solutions come with their own advantages and trade-offs. The simulation results show that the utility of the strategic reserve in Sweden has increased during the last few years. Additionally, the simulation results suggest that demand for the strategic result varies on a daily time frame. / De flesta moderna elmarknader kan inte garantera pålitlig och tillräcklig produktion för att tillgodose konsumenters elbehov under alla tillfällen. Detta har att göra med brister i designen av elnätet och regleringar. Under de kommande decennierna kommer trender inom avkarbonisering att ha stor inverkan på elmarknaden. Med en ökande andel vind och solkraft som kraftproduktionsslag förväntas trögheten i kraftsystemet att minska. Detta kan potentiellt höja systemets utsatthet för strömavbrott. Därför är det viktigt att el handlas på ett sätt som försäkrar tillräcklig elförsörjning även under fall då produktionen är begränsad. Med målet att jämföra sex olika designer av kapacitetsmarknader som är etablerade i tidigare forskningsstudier. Vidare använder denna studie MATLAB för att simulera hur behovet av effektreserven i Sverige har ändrats under de senaste åren. Studien finner ingen ideal design för en kapacitetsmarknad, men fastställer att olika lösningar har sina egna fördelar och avvägningar. Studien finner vidare att behovet av effektreserven har ökat under de senaste åren. Dessutom indikerar simuleringsresultaten att behovet av effektreserven varierar med elbehovet under dag. / Kandidatexjobb i elektroteknik 2022, KTH, Stockholm