SWEEET Public Workshop was successfully held on August 11, 2021 at Marston Hall, Iowa State University, Ames, Iowa. Iowa local utilities and independent power producers participated in the workshop to discuss about the plan for the future and how to apply engineering economic principles when making decisions about new sources of renewable power and new transmission lines.
The workshop explored the fundamentals behind making economic decisions to purchase new sources of generation and build new transmission lines. Planning for the future of Iowa electricity involves substantial uncertainty, including the future demand for electricity, possible carbon emission limits, requirements to use renewable resources, generation capabilities and efficiencies of new technologies, and the cost of different sources of generation. Incorporating these and other uncertainties into a utility’s planning and making good economic decisions in the midst of these uncertainties are challenging.
The workshop specifically explored the following topics:
- Knowing when and under what conditions new sources of energy should be installed
- Valuing new energy sources
- Managing risk, especially financial risk, for an electric utility
- Understanding how a utility’s risk attitude (e.g., risk aversion) should impact the utility’s risk management decisions and valuation of new energy sources
The presentations focused on the above topics in the workshop are:
- Electric Power Planning for a Transmission Network Under Demand Volatility
- Valuation of a generator option to a community
The workshop also showed how Excel can be used to solve for the optimal power flow in an electric bus network. Participants were provided with Excel workbooks to calculate the optimal power flow that minimizes total generation cost. The instruction of Excel exercises are:
- Optimal power flow and location marginal price calculations
- Valuation of a generator option to a community-Computing with Excel
This workshop is sponsored by the Iowa Energy Center.