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7 8 http://docs.cpuc.ca.gov/word_pdf/FINAL_DECISION/105926.pdf page 44. An inflation level of 2% is used in the SGIPce model. This level is consistent with the E3 avoided cost inputs used in the evaluation. Cost-Effectiveness of Distributed Generation Technologies technology, maturity of the technology, interviews with manufacturers, and other published researched. As acknowledged in the CPUC cost-effectiveness decision, “...any market transformation analysis will involve scenario analysis and a host of assumptions. Among other things, these assumptions will likely include varying levels of future total installation costs for DG.”7 The SGIPce model allows the user to easily undertake multiple scenarios on the progress ratio for each technology to determine the impact of market transformation on the cost- effectiveness of the technology. For example, fuel cells have a lower progress ratio, leading to a larger decline in costs than more mature technologies such as gas turbines, micro turbines, and IC engines. The progress ratios, used in the base scenario act as a proxy for market transformation, and the related capital costs for the SGIP selected technology can be found in Table 3-7. The capital costs used in the model were derived from independent research. The costs were reported in 2009 dollars and were impacted both by the progress ratio and the impacts of estimated inflation.8 The results of the evaluation team’s research and full description of the technologies can be found in Appendix A. The cost section below provides a brief discussion of the capital costs. Itron, Inc. 3-10 Critical Inputs and AssumptionsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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