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Cost-Effectiveness of Distributed Generation Technologies

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Cost-Effectiveness of Distributed Generation Technologies ( cost-effectiveness-distributed-generation-technologies )

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3 SGIP_GasAvoidedCostModule. Cost-Effectiveness of Distributed Generation Technologies that were developed for the SGIP.3 To calculate the model inputs for the avoided cost benefits, the production curve for the current technology is supplied to the workbook and the production curve and the yearly 8760 avoided cost values are multiplied, leading to the calculation of a stream of annual values that are then supplied to the calculation engine. For the gas avoided costs, the data are similar in nature to the electric avoided costs with the following differences:  The gas avoided costs differ by sector and are aggregated to a monthly level.  The gas avoided costs are developed by sector because the GHG emissions differ by the underlying technology (boiler vs. furnace).  The gas avoided costs are not provided at the 8760 level because gas consumption and heat usage is only monitored monthly; therefore the avoided costs are supplied at that level.  The gas avoided costs span the same period as the electric avoided costs.  Two production curves are supplied to the workbook: therms required to fuel the CHP DG technology and therms saved from capturing the heat from the CHP DG technology. As expected, two streams of values are calculated from these production curves and supplied back to the calculation engine, one for each production curve. A set of gas avoided costs were also developed using only the transmission and distribution components of the benefits. These values are needed for non-core customers when calculating the Program Administrator Cost Tests. Rates The Rates box in Figure 4-1 represents a number of workbooks designed to supply utility rate information to the system. Rates are defined for the residential and non-residential sectors. Due to the complex nature of rates, the non-residential rates are defined in separate workbooks for each utility and rate defined. For the residential sector it was possible to combine all rate definitions into one workbook. There is also a third workbook that defines the gas rates for the non-residential sector. The non-residential gas rates workbook provides rates from non-core gas customers with a reduced transmission and distribution fee for CHP gas required to run the DG measures. This workbook also provides the rate information, with the standard transmission and distribution fee, for the valuation of the natural gas saved from capturing the heat generated by the CHP DG measure. The exact E3 avoided cost workbooks were labeled SGIP_2009ElecAvoidedCostModule_5-4-2010 and Itron, Inc. 4-8 SGIPce Approach and Methodology

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