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Cost-Effectiveness of Distributed Generation Technologies rebate.8 The statewide STRC results provide an illustration of cost-effectiveness and how cost- effectiveness changes over time, while the breakdown of the cost-effectiveness test into the individual components provides information on the size of cost and benefit components and their influence on the measure’s cost-effectiveness.9 Under the Base Scenario, which assumes that the capacity factor is approximately 80% for all natural gas-fueled technologies, all DG technologies fueled by natural gas pass a minimum benefit-to-cost ratio test of 0.8 for both 2010 and 2016.10 The results illustrated in Figure 5-4 show that the STRC test values for most natural gas-fueled technologies do not vary significantly between 2010 and 2016. Fuel cells, both electric only and CHP fuel cells, are the only natural gas-fueled technology that shows a visible increase in the STRC between 2010 and 2016. The increase in the STRC for fuel cells is due to the more rapid fall in the cost of fuel cell technology relative to the other technologies. Fuel cells are a relatively new or emerging technology when compared to turbines or internal combustion (IC) engines, which are mature technologies. Newer technologies are forecast to have a lower progress ratio or a larger fall in their costs over time than mature technologies (see the discussion on learning curves in Section 3). 8 results is intended to illustrate the cost and benefit breakdown for all utilities analyzed in this evaluation. The STRC results for PG&E are very similar to the results for SDG&E and SCE. The presentation of these 9 10 The inputs for the STRC for any given technology encompass over 20 years of data. These data include the future value of the cost of the technology, the future value of avoided electric and gas costs and benefits, the future value of avoided green house gas emissions and future programs costs. Given the uncertainty in these future estimates, and the desire to implement a program that helps with the program goals of market transformation, considering measures with STRCs between 0.8 and 1.0 may be consistent with the program objectives. The emissions benefit associated with not using electricity produced from a central power station are included in the avoided cost benefits. The emissions costs associated with fueling DG technologies with natural gas are explicitly listed as a cost in Figure 5-5 and Table 5-3. Itron, Inc. 5-8 Results and ObservationsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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