Asset Deployment and Valuation
Assessing the Value of Future Electric Technologies
The Cascade team has worked extensively with the Electric Power Research Institute (EPRI) to evaluate the potential impact of new generation technologies on the U.S. electric system over the next 40 years. The Cascade team developed a regional model of the U.S. electric power system that simulates capacity expansion and system dispatch decisions, under alternative demand, fuel price, regulatory, and technology cost and performance scenarios. By performing an optimal hourly system dispatch for each scenario, the model forecasts the variability in hourly marginal prices for each regional market over the 40-year model horizon. These marginal prices are then used to explicitly measure the short- and long-term profitability of each type of generating asset included in the capacity mix of each region.
EPRI has successfully applied the Cascade methodology in a range of applications to better:
- Prioritize R&D in new technologies, including advanced nuclear plants, renewable technologies (wind, solar and biomass), and CO2 capture for advanced coal plants.
- Evaluate the impact of regulations, including climate-change policies, federal and state Renewables Portfolio Standards, and a range of tax credits for new technologies
- Plan for future electricity markets, including long-term trends in generation capacity and electricity prices, given alternative market and regulatory scenarios.