Metrics for Assessing the Economic Impacts of Power Sector Climate and Clean Electricity Policies

Modeling tools are increasingly used to inform and evaluate proposed power sector climate and clean electricity policies such as renewable portfolio and clean electricity standards, carbon pricing, emissions caps, and tax incentives. However, claims about economic and environmental impacts often lack transparency and may be based on incomplete metrics that can obscure differences in policy design. This paper examines model-based metrics used to assess the economic efficiency impacts of prospective electric sector policies. The appropriateness of alternative metrics varies by context, model, audience, and application, depending on the prioritization of comprehensiveness, measurability, transparency, and credible precision. This paper provides guidance for the modeling community on calculating and communicating cost metrics and for consumers of model outputs on interpreting these economic indicators. Using an illustrative example of clean electricity standards in the U.S. power sector, model outputs highlight strengths and limitations of different cost metrics. Transformations of power systems with lower-carbon resources and zero-marginal-cost generation may entail shifts in when and where system costs are incurred, and given how these changes may not be appropriated reflected in metrics that were commonly reported in the past such as wholesale energy prices, showing a decomposition of system costs across standard reporting categories could be a more robust reporting practice. Ultimately, providing better metrics is only one element in a portfolio of transparency-related practices, and although it is insufficient by itself, such reporting can help to move dialogues in more productive directions and encourage better modeling practices.

Financial Situation Unique Indicator for Electric Sector Firms

This paper develops a unique indicator to identify the financial situation of firms in the electric sector in Brazil. The National Electric Energy Agency (ANEEL) regulates this sector through five dimensions: indebtedness, efficiency, investment, profitability, and pay-out ratio. Each of these dimensions contains one or two indicators. Based on these indicators, we develop a unique indicator that shows companies' financial situation. To create a unique indicator, we follow the idea of Altman’s solvency indicator. But, we use a logit regression. Our dependent variable is Global Performance of Continuity which indicates the financial situation of the firm. Our independent variables are based on the five dimensions of the ANEEL indicators for financial situation. We collect data from 2011 to 2018. This research follows three main steps: (1) Collection of the data from the ANEEL database; (2) Creation of variables based on ANEEL’s five dimensions of performance; and (3) Econometric proceedings with variables according to ANEEL’s data and indicators of each dimension. First, we estimate one regression with all variables created based on ANEEL’s five dimensions. Then, we make improvements to find a more suitable model with different combinations of variables. We chose the best model by analysing the Akaike information criterion (AIC). Our results show that the unique indicator we create to evaluate firm performance is based on Debt, Efficiency, Investment (CapexA) and the Pay-out Ratio.

An Innovative Ford Sedan with Enhanced Stylistic Design Engineering (SDE) via Augmented Reality and Additive Manufacturing

The design of an E segment, executive, midsize sedan car was chosen to fill a gap in the market of the Ford brand and to achieve the goal of innovation looking towards the future. Ford has not owned an E-segment flagship sports sedan for years, since the historic 1960s Falcon. Starting from the latter assumption and considering that the major car manufacturers are currently investing heavily in E-segment cars, it is important to design a new model, which has been called the Eagle. This model proposed here is to fill the gap between Ford and other companies that are already producing sport cars for the electric sector and to complete Ford’s proposal. The presented methodology is based on SDE, on which many design tools are implemented, such as Quality Function Deployment (QFD), Benchmarking (BM), and Top Flop Analysis (TPA). A market analysis follows in order to identify the major competitors and their key characteristics considering style and technology. The results are used to design an innovative car. Based on the most developed stylistic trends, the vehicle is first sketched and then drawn in the 2D and 3D environments for prototyping. This result leads to the possibility of 3D printing the actual model as a maquette using the Fused Deposition Modelling (FDM) technology and testing it in different configurations in Augmented Reality (AR). These two final applications unveil the possibilities of Industry 4.0 as enrichment for SDE and in general rapid prototyping.

The Resilience of the electric sector after COVID-19 and the impacts on the photovoltaic solar energy market

INTRODUCTION. The Brazilian electricity sector and parts of society are experiencing the impacts of COVID-19, which spreads throughout the world, paralyzing all or part of its activities. The reduction in electricity consumption leads to an analysis of the stability of the Brazilian energy matrix that serves different social segments. OBJECTIVE. The objective of this work was to carry out an analysis of the electric power generation sector and its standardization, the perspectives of its post-Covid-19 behaviour and the role of renewable energy sources, in particular the photovoltaic industry. METHOD. An analysis was made of the electric power generation sector and its standardization, the prospects for its post-Covid-19 behaviour and the role of the solar photovoltaic systems. RESULTS. Scenarios evaluated: updating of the regulatory framework for the Brazilian electric sector, the solar energy market photovoltaic, electricity consumption and the solar photovoltaic systems as a complementary source in this climate change scenario. DISCUSSION AND CONCLUSIONS. It is concluded that sustainable transitions on the planet, associated with economic growth, promote human development for a low carbon community.

Impact of carbon dioxide removal technologies on deep decarbonization of the electric power sector

Carbon dioxide removal technologies, such as bioenergy with carbon capture and direct air capture, are valuable for stringent climate targets. Previous work has examined implications of carbon removal, primarily bioenergy-based technologies using integrated assessment models, but not investigated the effects of a portfolio of removal options on power systems in detail. Here, we explore impacts of carbon removal technologies on electric sector investments, costs, and emissions using a detailed capacity planning and dispatch model with hourly resolution. We show that adding carbon removal to a mix of low-carbon generation technologies lowers the costs of deep decarbonization. Changes to system costs and investments from including carbon removal are larger as policy ambition increases, reducing the dependence on technologies like advanced nuclear and long-duration storage. Bioenergy with carbon capture is selected for net-zero electric sector emissions targets, but direct air capture deployment increases as biomass supply costs rise.