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Cost-Effectiveness of Distributed Generation Technologies and regional level,22 then summed over regions and hours to create annual values for the technology in question: R 8760 AvoidedElectricCostsit =r∑=1h∑=1∆kWhirhAvCostirht where ∆kWhirh is the hourly electricity output of technology i in region r, and AvCostirht is the avoided electric cost per kWh in hour h in year t in region r for technology i. This specification required hourly energy impacts by technology and region to be applied to the relevant hourly profile of avoided generation costs. The hourly impacts were derived from metered hourly generation load profiles developed by Itron using existing SGIP sites. The hourly avoided cost rates include avoided costs of generation (AvGCosthrt), avoided cost of transmission and distribution (AvTDCosthrt), an environmental adder that varies across technology (EnvAddihrt), and a reliability adder (ReAddhrt). Avoided generation costs take into account line losses on displaced purchases. Waste heat benefits are applicable for CHP applications and are computed as the present value of annual values: T WasteHeatBenefitsit WasteHeatBenefitsi =t∑=1 (1+d)t The annual values of waste heat benefits are given by: 12 where DisThermsimis the gas consumption displaced by technology i in month m and AvGasCostmtis the avoided cost of gas in month m and year t. Commercial and government customers are modeled as non-core gas customers; the utility is not the provider of gas to these customers. Commercial and government customers are assumed to purchase their gas on the wholesale market. For these customers the gas avoided cost savings are zero. Residential DG technologies were not modeled as CHP technologies. 22 The regional level was defined as coastal and inland for each utility. The E3 avoided costs were aggregated into inland and coastal values using the past SGIP installed generation as weights. WasteHeatBenefitsit =∑DisThermsimAvGasCostmt m=1 Itron, Inc. 3-31 Critical Inputs and AssumptionsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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