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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SGIPce User Guide 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 PA cost tests. Rates The rates box in Figure 3-2 represent 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 distributed generation 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 distributed generation measure. The structure of the rates workbooks is similar in nature to the avoided cost workbooks in that the electric workbooks are defined for 8,760 hours over the entire possible lifetime of the technologies, in this case 2007 to 2040. The technology production curve is supplied to the workbook and a stream of annual values is provided to the calculation engine. For the rates, however, there is a secondary set of worksheets that define the rates. These worksheets are used to calculate the vast number of values needed for the yearly calculation based on production. The structure of these workbooks will be discussed later. It should be noted that due to the tremendous number of calculations the link between the secondary worksheets and the main worksheet for the non-residential rate was broken to help minimize the calculation time during the batch runs. A separate workbook with all calculations has been maintained in the event that changes are needed or new rates are desired for future runs. Both the gas avoided cost workbook and the nonresidential gas rates workbook are defined at the monthly level. The quantity of natural gas required to fuel the DG technology and the natural gas savings from heat capture are supplied to the workbook in monthly values. The rates workbook multiplies the gas needed and the gas saved by the appropriate rates and then provides the calculation engine with the value of the net increase in gas consumption. The residential workbook contains both gas and electric rates in one workbook. The workbook contains two worksheets that aggregate the data needed by the system and uses the other supplementary worksheet to calculate the appropriate rates given the utility and rate defined by the user for the technology. For the residential rate it was possible to preserve the calculations without degrading the speed of the system. Itron, Inc. 3-6 Overview of SGIPce

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