Energy Economics for Next-Generation Power Grid

The goal of this project is to develop solutions that enable efficient resource allocation in power grids while promoting (i) energy efficiency and reliability, and (ii) the adoption of new energy resources in a market-driven manner. As part of these efforts, we develop new market design options to integrate variable and energy-limited resources into wholesale electricity markets that help understand and mitigate asset- and system-level risks. We also develop methods that support system reliability by informing operators about points of no return in operational decisions through reachability analyses. In addition, for more long-term planning tasks, we create methods to better estimate the production capabilities of offshore wind power (e.g., via probabilistic AEP assessments) and to characterize the flexibility of next-generation nuclear reactors for providing ancillary services. We analyze the impact of low-cost transmission options, such as grid-enhancing technologies (dynamic line ratings), and support stakeholders in complying with FERC Order 1920, standardizing interfaces for offshore wind integration, and designing incentives that encourage system-beneficial participation. The overarching objective of these efforts is to ensure that next-generation power grids operate on sound economic principles and grow in a financially sustainable manner.