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Cost-Effectiveness of Distributed Generation Technologies Figure 2-1: Learning Curve for PV Module Prices (1976-2005) Source: Kung, Harriet, “Basis Energy Sciences,” presentation at Board on Physics and Astronomy Spring Meeting, April 24, 2009 from www.science.doe.gov/bes/presentations/ppt/Kung_24APR09.ppt Fuel costs can also strongly influence overall DG costs. Some renewable-based technologies, such as wind and solar PV, have no on-going fuel costs. DG technologies that are combustion- based employ conventional (e.g., natural gas) or renewable resources (e.g., biogas) for fuel. In the case of natural gas, costs can be volatile but historically have trended upward.13 For combustion-fueled technologies, the monetary value of the technology’s GHG emissions influences the costs of the technology from a total resource perspective. As society has become more aware of the potential hazard associated with GHG, the monetary value or costs assigned to these emissions has trended upward. 2.2.2 Drivers to DG Technology Benefits Bill savings can be one of the single largest benefits accruing to host sites employing DG technologies, while avoided electricity production is the single largest benefit accruing to society. For DG technologies displacing retail rate electricity, future bill savings are tied to the DG technologies continued electricity production, the technology’s rate of degradation, and changes in electricity rates and rate structures. 13 For example, see R. Tavares, “Natural Gas Price Forecast and Uncertainty,” for the Joint IEPR and Electricity and Natural Gas Committee Workshop, June 16, 2009. http://www.energy.ca.gov/2009_energypolicy/documents/2009-06- 16_workshop/presentations/01_CEC_Tavares_Natural_Gas_Price_Foreast_and_Uncertainty.pdf Itron, Inc. 2-4 Introduction and BackgroundPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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