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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Cost-Effectiveness of Distributed Generation Technologies component. For larger turbines a nacelle-mounted crane may be an option from the manufacturer, but this may not serve for all component replacements. Taller towers and larger diameter rotors require longer and stronger cranes, raising crane rental costs. Remote or inaccessible turbine sites also raise crane rental costs as some cranes may require multiple truckloads just to be delivered to the site. For the purposes of this study, O&M costs were assumed to be $0.0075/kWh. A.7.4 Estimating Future Capital Costs Lower unit capital costs ($ per kW of nameplate capacity) and O&M costs ($/kWh generated) for turbines have arisen from improvements in both components and installations. Some of these improvements are due primarily to economies of scale of larger turbines capacities. Among these improvements are:  taller towers resulting in increased hub height,  larger rotor blades capturing more swept area,  direct-drive (gearless) systems reducing material costs and weight,  better foundations and site preparation reducing installation costs,  better controls reducing stress on components to extend their lifetimes and increasing output under low-wind conditions,  increased mechanical efficiency of generators increasing electrical output, and  improved grid interconnections reducing associated equipment and installation costs. Improvements will continue as research progresses in such important areas as blade aerodynamics, operating controls, drive trains, and grid interconnections. Increased manufacturing volumes also can lower unit capital and O&M costs. This process often is explained as following a learning curve whereby costs fall at some percentage with each doubling of production volume. Impacts of Learning Curve on Capital Costs Learning curves, and their complementary progress ratios, for wind turbines and wind energy have been estimated with values from 0.17 to 0.09.46 Table A-44 lists a number of learning curve studies related to wind turbine, wind project, or wind energy costs. 46 María Isabel Blanco, ―The Economics of Wind Energy,‖ Renewable and Sustainable Energy Reviews 13 (2009), 1372–1382. Itron, Inc. Appendix A-83 DG Technologies

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