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Table of Contents 1 Executive Summary ...........................................................................................1-1 2 Introduction and Background ...........................................................................2-1 2.1 Distributed Generation Resources in California ..........................................2-1 2.1.1 Defining Distributed Generation ................................................................................. 2-1 2.1.2 Historical and Current Status of DG in California....................................................... 2-1 2.2 Costs and Benefits of DG Technologies .....................................................2-2 2.2.1 Drivers to DG Technology Costs................................................................................ 2-3 2.2.2 Drivers to DG Technology Benefits ............................................................................ 2-4 2.2.3 DG Cost-Effectiveness Project................................................................................... 2-6 3 Critical Inputs, Assumptions, and Cost-Effectiveness Methodology............3-1 3.1 Critical Inputs and Assumptions..................................................................3-1 3.1.1 Critical Inputs—Benefits ............................................................................................. 3-1 3.1.2 Critical Inputs—Costs ............................................................................................... 3-15 3.2 Cost-Effectiveness Methodology ..............................................................3-20 3.2.1 Societal Total Resource Cost Test and the Total Resource Cost Test.................... 3-20 3.2.2 Participant Test......................................................................................................... 3-25 3.2.3 Program Administrator Test ..................................................................................... 3-30 3.2.4 Levelized Results ..................................................................................................... 3-33 3.2.5 Modified Internal Rate of Return .............................................................................. 3-33 4 SGIPce Model Approach and Methodology .....................................................4-1 4.1 Overview.....................................................................................................4-1 4.2 Model Objectives ........................................................................................4-1 4.3 Model Approach..........................................................................................4-2 4.4 Model Structure ..........................................................................................4-3 4.4.1 Components ............................................................................................................... 4-3 4.4.2 Functionality ............................................................................................................... 4-5 4.4.3 Inputs.......................................................................................................................... 4-7 4.4.4 Outputs ....................................................................................................................... 4-9 5 Results and Observations .................................................................................5-1 5.1 Societal TRC Results..................................................................................5-1 5.1.1 Non-Combustion-Related Fuel Results...................................................................... 5-4 5.1.2 Natural Gas-Fueled Results ....................................................................................... 5-7 5.1.3 Directed Biogas Fuel Results ................................................................................... 5-13 5.1.4 On-site Biogas-Fueled Results................................................................................. 5-16 5.1.5 Internal Combustion Engines ................................................................................... 5-20 5.1.6 Fuel Cells.................................................................................................................. 5-23 5.1.7 Microturbines ............................................................................................................ 5-26 5.1.8 Gas Turbines ............................................................................................................ 5-27 5.2 Participant Cost Test Results....................................................................5-30 5.2.1 Statewide Results..................................................................................................... 5-30 Itron, Inc. i Table of ContentsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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