A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies

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A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies ( a-manual-economic-evaluation-energy-efficiency-and-renewable )

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Capabilitye Peak capability Energy capability Seassnalhourly profile Availability" Intemittence Forced outages Maintenance requirements Efficiency Heat rate Dispatchability Fully dispatchable Curtailable Base-loaded Location" Delivery point Modularity" Incremental size Construction/Preconsttuctionleadtime costs Construction O&M Fuel Decomissioningcosts Incentives Tax creditsb Shareholder incentivesb Emission allowance incentives Risk-Diversity" Startup delay Construction cost overrun Fuel costs O&M costs Reliability problems Premature retirement Diversity External Costs" Air and water emissions Land use Waste disposal Public safety AttribUtes Table4-14. ResourceAttributes Renewable Energy Technologies Hydro, solar, and,wind options typically have pronouncedseasonal profiles. Solar and wind options also have pronounced hourly profiles. Hydro capability is dependent on hydrological conditions. Plants on the same river system are tightly correlated. Wind and solar are intemittent. Efficiency is generally not an issue for renewables because they typically rely on zero- or low-cost energy sources. Run-of-riverhydro is nondispatchable. Pondage hydro is dispatchable. Wind is nondispatchable. Soiar thermal is dispatchable. Other solar options are nondispatchable. Biomass, landfill methane, and municipal solid waste (MSW) options are @picallynondispatchable.Geothermalis typicaItynondispatchable. Connected at transmission or distribution level. Can be targeted to defer transmission or distribution upgrades. Incremental sizes and lead times of renewable energy technologies, except for MSW, are typically smaller and shorter than for conventionaloptions. LeadtimesforMSWare3to4years. Typically no fuel costs, except biomass. These technologies provide diversification of the fuel supply portfolio. The 1992 National Energy Policy Act provides a 1.5 centdkWh tax credit for renewable energy producers. The 1990 Clean Air Act Amendments provide bonus emission credits for renewable energy production. Less mature technologies may have greater construction and operating risks than conventional technologies. Renewable resources generally enhance diversity, except for hydro additions to a predominantly hydro system. Land use and fish habitats are significant issues for hydro generation. Noise and visual impacts are issues for wind energy resources. a. Key attributes for renewable resources. b. Applicable only to investor-ownedutilities. c. External costs are defined to exclude impacts that are accounted for in other cost categories, Source: D.Logan, C. Neil, A. Taylor. (1994) ModelingRenewable Energy Resources in Megrated Resource Planning, National Renewable Energy Laboratory, NREL/lP-462-6436. 44

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