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Cost-Effectiveness of Distributed Generation Technologies Benefits The STRC includes a variety of benefits characterized as avoided costs or avoided cost adders, including avoided generation costs, avoided transmission and distribution (T&D) costs, line loss reductions, a reliability adder, an environmental adder, waste heat utilization benefits, and tax credits and depreciation. For many of these benefits, this evaluation used benefit values derived from The Distributed Generation Avoided Cost workbook provided by E3 for the Commission. The environmental adder within the avoided cost study attributes a monetary value to the reduction in carbon, oxides of nitrogen (NOx), and particle matter smaller than 10 microns (PM10) that results from the reduction in electricity produced and purchased from conventional supply resources. For technologies fueled by on-site biogas at sites that previously did not participate in methane capture, the per unit monetary value of GHG derived from the avoided cost workbooks is applied to the reduced methane discharge. The DG STRC and TRC benefits and the sources for the value of these benefits are listed below: Avoided generation costs, as valued by the E3 electric forecast, Avoided transmission and distribution costs, as valued by the E3 electric forecast, Reliability net benefits, as valued by the E3 electric forecast, Reduced line losses associated directly with reductions in power purchases by DG participants as valued by the E3 electric forecast, Environmental benefits from reduced central plant electricity production, as valued by the E3 electric forecast, Environmental benefits from methane capture at small technology sites fueled by on-site biogas valued at the E3 forecast of GHG prices, 18 Federal tax credits, federal tax refunds, and depreciation benefits valued at technology- specific levels, and Waste heat benefits of CHP applications valued by the E3 gas forecast. 18 Microturbines 200 kW and internal combustion engines 500 kW fueled by on-site bio-gas are assumed to be installed at dairy sites. The installation of these measures at dairies leads to methane capture and substantial environmental benefits. Itron, Inc. 3-21 Critical Inputs and AssumptionsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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