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Cost-Effectiveness of Distributed Generation Technologies

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Cost-Effectiveness of Distributed Generation Technologies ( cost-effectiveness-distributed-generation-technologies )

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Cost-Effectiveness of Distributed Generation Technologies DG technologies evaluated in this study include technologies currently eligible under the SGIP or that have been eligible in the past under the SGIP, as well as technologies the CPUC requested be evaluated. As such, evaluated DG technologies include 25 different configurations of wind turbines; fossil-fueled as well as biogas-fueled4 internal combustion (IC) engines, microturbines, small-scale gas turbines, and fuel cells; Organic Rankine Cycle (ORC) systems; and electrical storage systems.5 The SGIP cost-effectiveness model (called SGIPce) developed in this study for evaluating cost- effectiveness of DG technologies is based on a variety of interwoven DG technology performance, cost, financial, and environmental information. In evaluating the cost-effectiveness of DG technologies, it became evident that interactions between these different components prevent “easy to see” patterns, especially within the Participant Cost test. Combinations of graphs and tables that identify cost and benefit components are presented in the Results section of this study to help identify the underlying reasons behind the results. In addition, the SGIPce model allows users to change inputs into the model to “test” different assumptions and better understand critical factors leading to the cost-effectiveness results. Results of the STRC test show that nearly all of the evaluated DG technologies are cost-effective to society at either 2010 or 2016 given the input assumptions used in the Base Scenario. Exceptions include medium or large storage, and gas turbines in the 1,000 kW size range fueled by natural gas, directed biogas or on-site biogas. To review more of the results in detail for the STRC please see Section 5, pages 5-1 through 5-29. We have provided a summary of the 2016 results below as Figure 1-1. 4 treatment facilities, food processing plants and ponds (or lagoons) that store animal wastes. Biogas refers to gas produced from the biological breakdown of organic matter occurring in landfills, wastewater 5 cost-effectiveness study by Energy and Environmental Economics (E3). Solar photovoltaic (PV) systems were not evaluated in this study because they were examined under the CSI Itron, Inc. 1-2 Executive Summary

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