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- All Subjects: Power resources
- Creators: Arizona State University. Center for Earth Systems Engineering and Management
- Creators: Hedman, Kory
Sonoma County, CA is on an ambitious pathway to meeting stringent carbon emissions goals that are part of California Assembly Bill 32. At the county-level, climate planners are currently evaluating options to assist residents of the county in reducing their carbon footprint and also for saving money. The Sonoma County Energy Independence Program (SCEIP) is one such county-level measure that is currently underway. SCEIP is a revolving loan fund that eligible residents may utilize to install distributed solar energy on their property. The fund operates like a property tax assessment, except that it only remains for a period of 20 years rather than in perpetuity.
This analysis intends to estimate the potential countywide effect that the $100M SCEIP fund might achieve on the C02 and cost footprint for the residential building energy sector. A functional unit of one typical home in the county is selected for a 25 year analysis period. Outside source data for the lifecycle emissions generated by the production, installation and operations of a PV system are utilized. Recent home energy survey data for the region is also utilized to predict a “typical” system size and profile that might be funded by the SCEIP program. A marginal cost-benefit calculation is employed to determine what size solar system a typical resident might purchase, which drives the life cycle assessment of the functional unit. Next, the total number of homes that might be financed by the SCEIP bond is determined in order to forecast the potential totalized effect on the County’s lifecycle emissions and cost profile.
The final results are evaluated and it is determined that the analysis is likely conservative in its estimation of the effects of the SCEIP program. This is due to the fact that currently offered subsidies are not utilized in the marginal benefit calculation for the solar system but do exist, the efficiency of solar technology is increasing, and the cost of a system over its lifecycle is currently decreasing. The final results show that financing distributed solar energy systems using Sonoma County money is a viable option for helping to meet state mandated goals and should be further pursued.
Locational marginal pricing scheme is the core pricing scheme in energy markets. Locational marginal prices are good pricing signals for dispatch marginal costs. However, the locational marginal prices alone are not incentive compatible since energy markets are non-convex markets. Locational marginal prices capture dispatch costs but fail to capture commitment costs such as startup cost, no-load cost, and shutdown cost. As a result, uplift payments are paid to generators in markets in order to provide incentives for generators to follow market solutions. The uplift payments distort pricing signals.
In this thesis, pricing schemes in electric energy markets are studied. In the first part, convex hull pricing scheme is studied and the pricing model is extended with network constraints. The subgradient algorithm is applied to solve the pricing model. In the second part, a stochastic dispatchable pricing model is proposed to better address the non-convexity and uncertainty issues in day-ahead energy markets. In the third part, an energy storage arbitrage model with the current locational marginal price scheme is studied. Numerical test cases are studied to show the arguments in this thesis.
The overall market and pricing scheme design is a very complex problem. This thesis gives a thorough overview of pricing schemes in day-ahead energy markets and addressed several key issues in the markets. New pricing schemes are proposed to improve market efficiency.
The Food-Energy-Water (FEW) nexus is the interaction and the interdependence of the food, energy and water systems. These interdependencies exist in all parts of the world yet little knowledge exists of the complexity within these interdependent systems. Using Arizona as a case study, systems-oriented frameworks are examined for their value in revealing the complexity of FEW nexus. Industrial Symbiosis, Life Cycle Assessment (LCA) and Urban Metabolism are examined. The Industrial Symbiosis presents the system as purely a technical one and looks only at technology and hard infrastructure.
The LCA framework takes a reductionist approach and tries to make the system manageable by setting boundary conditions. This allows the frameworks to analyze the soft infrastructure as well as the hard infrastructure. The LCA framework also helps determine potential impact. Urban Metabolism analyzes the interactions between the different infrastructures within the confines of the region and retains the complexity of the system. It is concluded that a combination of the frameworks may provide the most insight in revealing the complexity of nexus and guiding decision makers towards improving sustainability and resilience.