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Title: The Distributed Wind Cost Taxonomy

Abstract

To date, there has been no standard method or tool to analyze the installed and operational costs for distributed wind turbine systems. This report describes the development of a classification system, or taxonomy, for distributed wind turbine project costs. The taxonomy establishes a framework to help collect, sort, and compare distributed wind cost data that mirrors how the industry categorizes information. The taxonomy organizes costs so they can be aggregated from installers, developers, vendors, and other sources without losing cost details. Developing a peer-reviewed taxonomy is valuable to industry stakeholders because a common understanding the details of distributed wind turbine costs and balance of station costs is a first step to identifying potential high-value cost reduction opportunities. Addressing cost reduction potential can help increase distributed wind's competitiveness and propel the U.S. distributed wind industry forward. The taxonomy can also be used to perform cost comparisons between technologies and track trends for distributed wind industry costs in the future. As an initial application and piloting of the taxonomy, preliminary cost data were collected for projects of different sizes and from different regions across the contiguous United States. Following the methods described in this report, these data are placed into the establishedmore » cost categories.« less

Authors:
;  [1];  [1];  [1];  [1]
  1. National Renewable Energy Lab. (NREL), Golden, CO (United States)
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE), Wind and Water Technologies Office (EE-4W)
OSTI Identifier:
1349551
Report Number(s):
NREL/TP-5000-67992
DOE Contract Number:
AC36-08GO28308
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
17 WIND ENERGY; distributed wind; distributed wind taxonomy; installed system costs; operational costs; distributed wind system costs

Citation Formats

Forsyth, Trudy, Jimenez, Tony, Preus, Robert, Tegan, Suzanne, and Baring-Gould, Ian. The Distributed Wind Cost Taxonomy. United States: N. p., 2017. Web. doi:10.2172/1349551.
Forsyth, Trudy, Jimenez, Tony, Preus, Robert, Tegan, Suzanne, & Baring-Gould, Ian. The Distributed Wind Cost Taxonomy. United States. doi:10.2172/1349551.
Forsyth, Trudy, Jimenez, Tony, Preus, Robert, Tegan, Suzanne, and Baring-Gould, Ian. Tue . "The Distributed Wind Cost Taxonomy". United States. doi:10.2172/1349551. https://www.osti.gov/servlets/purl/1349551.
@article{osti_1349551,
title = {The Distributed Wind Cost Taxonomy},
author = {Forsyth, Trudy and Jimenez, Tony and Preus, Robert and Tegan, Suzanne and Baring-Gould, Ian},
abstractNote = {To date, there has been no standard method or tool to analyze the installed and operational costs for distributed wind turbine systems. This report describes the development of a classification system, or taxonomy, for distributed wind turbine project costs. The taxonomy establishes a framework to help collect, sort, and compare distributed wind cost data that mirrors how the industry categorizes information. The taxonomy organizes costs so they can be aggregated from installers, developers, vendors, and other sources without losing cost details. Developing a peer-reviewed taxonomy is valuable to industry stakeholders because a common understanding the details of distributed wind turbine costs and balance of station costs is a first step to identifying potential high-value cost reduction opportunities. Addressing cost reduction potential can help increase distributed wind's competitiveness and propel the U.S. distributed wind industry forward. The taxonomy can also be used to perform cost comparisons between technologies and track trends for distributed wind industry costs in the future. As an initial application and piloting of the taxonomy, preliminary cost data were collected for projects of different sizes and from different regions across the contiguous United States. Following the methods described in this report, these data are placed into the established cost categories.},
doi = {10.2172/1349551},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Tue Mar 28 00:00:00 EDT 2017},
month = {Tue Mar 28 00:00:00 EDT 2017}
}

Technical Report:

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  • The objective of this report is to benchmark costs for small wind projects installed in the United States using a distributed wind taxonomy. Consequently, this report is a starting point to help expand the U.S. distributed wind market by informing potential areas for small wind cost-reduction opportunities and providing a benchmark to track future small wind cost-reduction progress.
  • Power through Policy: 'Best Practices' for Cost-Effective Distributed Wind is a U.S. Department of Energy (DOE)-funded project to identify distributed wind technology policy best practices and to help policymakers, utilities, advocates, and consumers examine their effectiveness using a pro forma model. Incorporating a customized feed from the Database of State Incentives for Renewables and Efficiency (DSIRE), the Web-based Distributed Wind Policy Comparison Tool (Policy Tool) is designed to assist state, local, and utility officials in understanding the financial impacts of different policy options to help reduce the cost of distributed wind technologies. The project's final products include the Distributed Windmore » Policy Comparison Tool, found at www.windpolicytool.org, and its accompanying documentation: Distributed Wind Policy Comparison Tool Guidebook: User Instructions, Assumptions, and Case Studies. With only two initial user inputs required, the Policy Tool allows users to adjust and test a wide range of policy-related variables through a user-friendly dashboard interface with slider bars. The Policy Tool is populated with a variety of financial variables, including turbine costs, electricity rates, policies, and financial incentives; economic variables including discount and escalation rates; as well as technical variables that impact electricity production, such as turbine power curves and wind speed. The Policy Tool allows users to change many of the variables, including the policies, to gauge the expected impacts that various policy combinations could have on the cost of energy (COE), net present value (NPV), internal rate of return (IRR), and the simple payback of distributed wind projects ranging in size from 2.4 kilowatts (kW) to 100 kW. The project conducted case studies to demonstrate how the Policy Tool can provide insights into 'what if' scenarios and also allow the current status of incentives to be examined or defended when necessary. The ranking of distributed wind state policy and economic environments summarized in the attached report, based on the Policy Tool's default COE results, highlights favorable market opportunities for distributed wind growth as well as market conditions ripe for improvement. Best practices for distributed wind state policies are identified through an evaluation of their effect on improving the bottom line of project investments. The case studies and state rankings were based on incentives, power curves, and turbine pricing as of 2010, and may not match the current results from the Policy Tool. The Policy Tool can be used to evaluate the ways that a variety of federal and state policies and incentives impact the economics of distributed wind (and subsequently its expected market growth). It also allows policymakers to determine the impact of policy options, addressing market challenges identified in the U.S. DOE's '20% Wind Energy by 2030' report and helping to meet COE targets. In providing a simple and easy-to-use policy comparison tool that estimates financial performance, the Policy Tool and guidebook are expected to enhance market expansion by the small wind industry by increasing and refining the understanding of distributed wind costs, policy best practices, and key market opportunities in all 50 states. This comprehensive overview and customized software to quickly calculate and compare policy scenarios represent a fundamental step in allowing policymakers to see how their decisions impact the bottom line for distributed wind consumers, while estimating the relative advantages of different options available in their policy toolboxes. Interested stakeholders have suggested numerous ways to enhance and expand the initial effort to develop an even more user-friendly Policy Tool and guidebook, including the enhancement and expansion of the current tool, and conducting further analysis. The report and the project's Guidebook include further details on possible next steps. NREL Report No. BK-5500-53127; DOE/GO-102011-3453.« less
  • All the taxonomy databases constructed with the DNA databases of the international DNA data banks are powerful electronic dictionaries which aid in biological research by computer. The taxonomy databases are, however not consistently unified with a relational format. If we can achieve consistent unification of the taxonomy databases, it will be useful in comparing many research results, and investigating future research directions from existent research results. In particular, it will be useful in comparing relationships between phylogenetic trees inferred from molecular data and those constructed from morphological data. The goal of the present study is to unify the existent taxonomymore » databases and eliminate inconsistencies (errors) that are present in them. Inconsistencies occur particularly in the restructuring of the existent taxonomy databases, since classification rules for constructing the taxonomy have rapidly changed with biological advancements. A repair system is needed to remove inconsistencies in each data bank and mismatches among data banks. This paper describes a new methodology for removing both inconsistencies and mismatches from the databases on a distributed computer environment. The methodology is implemented in a relational database management system, SYBASE.« less
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  • Designing and implementing credit-based pilot programs for distributed resources distribution is a low-cost, low-risk opportunity to find out how these resources can help defer or avoid costly electric power system (utility grid) distribution upgrades. This report describes implementation options for deaveraged distribution credits and distributed resource development zones. Developing workable programs implementing these policies can dramatically increase the deployment of distributed resources in ways that benefit distributed resource vendors, users, and distribution utilities. This report is one in the State Electricity Regulatory Policy and Distributed Resources series developed under contract to NREL (see Annual Technical Status Report of the Regulatorymore » Assistance Project: September 2000-September 2001, NREL/SR-560-32733). Other titles in this series are: (1) Accommodating Distributed Resources in Wholesale Markets, NREL/SR-560-32497; (2) Distributed Resources and Electric System Re liability, NREL/SR-560-32498; (3) Distribution System Cost Methodologies for Distributed Generation, NREL/SR-560-32500; (4) Distribution System Cost Methodologies for Distributed Generation Appendices, NREL/SR-560-32501.« less