Distributed photovoltaic demand-side generation: An economic evaluation for electric utilities
- CANMET, Varennes, Quebec (Canada). Energy Diversification Research Lab.
- Univ. of Massachusetts, Lowell, MA (United States). Dept. of Chemical and Nuclear Engineering
From an electric utility`s viewpoint, distributed photovoltaic demand-side generation (PV-DSG) systems can be evaluated in a similar manner to other demand-side management (DSM) technologies. This study evaluates the economic benefits of PV-DSG systems, using hourly utility cost and performance data, as a function of the utility`s load duration curve (LDC). The analysis focuses on one utility, New England Electric System (NEES). Actual utility hourly system load data for 1991 and corresponding PV output data from a 2.2 kW (DC) grid-connected residential PV system, installed as part of the NEES Gardner project, are used for this study. At NEES`s weighted average cost of capital of 8.78% the energy and capacity benefit values calculated equate to an allowable installed PV system cost of $2.41/watt. A social discount rate of 3% allows for an even higher installed cost-per-watt figure of $4.72. The higher the allowable installed cost, the easier it will be for the PV industry to enter the utility market. These results are represented graphically as a target to emphasize the importance of the utility target market to the PV industry.
- OSTI ID:
- 208185
- Report Number(s):
- CONF-941203--; ISBN 0-7803-1459-X
- Country of Publication:
- United States
- Language:
- English
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