DSO+T: Valuation Methodology and Economic Metrics (DSO+T Study: Volume 4)

Technical Report · Sat Jan 01 04:00:00 EST 2022

DOI:https://doi.org/10.2172/1842491· OSTI ID:1842491

Pratt, Robert G. ^[1]; Bender, Sadie R. ^[1]; Reeve, Hayden M. ^[1]; Barrows, Sarah E. ^[1]; Yin, Tianzhixi ^[1]; Hardy, Trevor D. ^[1]

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1. Pacific Northwest National Lab. (PNNL), Richland, WA (United States)

This report summarizes a rigorous valuation analysis methodology used by the Distribution System Operator with Transactive (DSO+T) study to estimate the financial benefits and costs of adopting Transactive Energy coordination of distributed energy resources for key stakeholders (for example distribution system operators and customers). This was achieved by modeling the value exchanges between stakeholders and determining the annualized costs and revenues experienced by stakeholders, enabling the evaluation of overall impact on stakeholder’s annualized cash flow. Extensive work was conducted developing methods to estimate the operating costs of distribution system operators at a level of granularity that would allow the financial impact of implementing a transactive energy approach to be estimated. This work included developing parametric models for labor and software costs, distribution system capital and maintenance costs, growth rates, and factors to determine annualized costs of capital investments. Simulation results were used to calculate wholesale energy costs and revenues from retail sales. Valuation analysis methods were also developed for other stakeholders including customers, the transmission system operator, independent system operator, and generators. The resulting capability allows a complete mapping of the flow of financial value between stakeholders that can be directly integrated with the results of demand flexibility simulations. Example results are provided for a business-as-usual case and compared to a transactive energy case as well as to actual cost data.

• Research Organization: Pacific Northwest National Laboratory (PNNL), Richland, WA (United States)
• Sponsoring Organization: USDOE Office of Electricity (OE), Advanced Grid Research & Development
• DOE Contract Number: AC05-76RL01830
• OSTI ID: 1842491
• Report Number(s): PNNL-32170-4
• Country of Publication: United States
• Language: English

Related Subjects

24 POWER TRANSMISSION AND DISTRIBUTION
29 ENERGY PLANNING, POLICY, AND ECONOMY
Grid Analysis and Integration
Transactive Energy Systems
Valuation Methodology