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Cost-Effectiveness of Distributed Generation Technologies For energy applications, the learning curve is typically depicted by plotting the cost of the technology against the cumulative capacity of the technology sold over the same time period. Figure A-1 shows a learning curve for the cost of PV modules between 1976 and 1992. Figure A-1: Learning Curve for PV Modules, 1976-1992 Source: Experience Curves for Energy Technology Policy, International Energy Agency, 2000 All things being equal, the cost per watt produced of a PV module in 1992 dollars decreased with the increase in cumulative capacity sold (logarithmic scale). The trend line that connects the data is known as the ―learning curve‖ or ―experience curve‖. The curve can be defined by the following mathematical expression: is a constant equal to the price at one unit of cumulative production. The variable represents the cumulative capacity sold in year t, and the exponent E is the experience parameter, which represents the ―learning rate‖ of the market. The learning rate is most commonly presented as a ―Progress Ratio‖ (PR) defined as follows: Itron, Inc. Appendix A-2 DG TechnologiesPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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