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Cost-Effectiveness of Distributed Generation Technologies Table 3-1: Benefits for the Cost-Effectiveness Tests Benefit PCT TRC STRC PA Avoided line losses Combined heat and power (CHP) plant-specific benefits CHP gas and electric bill savings Environmental benefits (CO2, NOx, and particulate matter emissions) Market transformation effects Net energy metering bill credits Reduced electricity bills Standby charge exemption Tax credits/depreciation Utility interconnection not charged to DG customer NA Included Included NA Included Not Included Included Included Included Not included in SGIPce model Included Included Included Avoided purchase of energy commodity and resource adequacy costs NA Included Included Included Avoided transmission and distribution (T&D) costs (T&D investment deferrals) NA Included Included Included Included Included NA NA NA NA Included* Included Included Included Included NA NA NA NA NA NA NA NA NA NA Included Included NA NA NA NA Rebates/Incentives Included and can be run with and w/out rebates NA NA NA Reliability benefits (both system and customer ancillary services/VAR support) Not included in SGIPce model Included Included Included * Environmental benefits are included in both the TRC and the STRC in California DSM cost-effectiveness evaluations. Avoided Line Losses, Purchase of Energy Commodity, and T&D Costs DG systems generate electricity that can be used in lieu of power supplied from the grid. Consequently, these benefits are associated with electricity purchases avoided from central station power plants and instead supplied from DG systems. Benefits from avoided line losses are due to DG systems reducing the need for transmission of electricity from central station power plants and the commensurate line losses associated with electricity transmission. These benefits are included as part of the E3 avoided cost model and are utility- and TOU period- specific. Itron, Inc. 3-2 Critical Inputs and AssumptionsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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