Systems Analysis in Electric Power Sector Modeling: A Review of the Recent Literature and Capabilities of Selected Capacity Planning Tools

The electric power sector continues to evolve dynamically, displaying increases in renewable energy technologies, distributed energy resources, and energy storage; shifting consumer participation in end-use energy choices; and continued innovation and technological change. To remain useful, the modeling tools used to analyze this sector must keep pace with these rapid developments. The physical and socio-economic interactions between the component parts of the power system are numerous and complex, often requiring a "systems approach" to capture different subsectors and their important feedbacks.

This report summarizes contemporary research in electric power sector systems analysis, and the capabilities of a selected set of long-range capacity planning models for exploring systems analysis concepts. Four key areas of recent systems analysis research are reviewed in detail with respect to improving the capabilities of long-range planning models: improving temporal resolution, improving spatial resolution, representing end-use details, and representing uncertainty. Likewise, a series of popular long-range utility-scale, national-scale, and multi-sector planning models are reviewed for their systems analysis capabilities along these dimensions.

Through the review, the report finds the following as immediate research needs: (1) the integration of hourly or sub-hourly chronology and unit-level details within intertemporal optimization frameworks; (2) better representation of the transmission network, its power flows, and expansion opportunities in capacity planning models with wide geographic coverage; (3) integration of endogenous end-use models within capacity planning models; and (4) development of stochastic optimization models to explicitly account for uncertainty and craft flexible capacity plans.

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