Valuation-Based Framework for Considering Distributed Generation Photovoltaic Tariff Design: Preprint
While an export tariff is only one element of a larger regulatory framework for distributed generation, we choose to focus on tariff design because of the significant impact this program design component has on the various flows of value among power sector stakeholders. In that context, this paper is organized into a series of steps that can be taken during the design of a DGPV export tariff design. To that end this paper outlines a holistic, high-level approach to the complex undertaking of DGPV tariff design, the crux of which is an iterative cost-benefit analysis process. We propose a multi-step progression that aims to promote transparent, focused, and informed dialogue on CBA study methodologies and assumptions. When studies are completed, the long-run marginal avoided cost of the DGPV program should be compared against the costs imposed on utilities and non-participating customers, recognizing that these can be defined differently depending on program objectives. The results of this comparison can then be weighed against other program objectives to formulate tariff options. Potential changes to tariff structures can be iteratively fed back into established analytical tools to inform further discussions.
- Publication Date:
- OSTI Identifier:
- Report Number(s):
- DOE Contract Number:
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- Resource Relation:
- Conference: To be presented at India Smart Grid Week, 2-6 March 2015, Bangalore, India
- Research Org:
- National Renewable Energy Laboratory (NREL), Golden, CO.
- Sponsoring Org:
- USDOE Office of International Affairs
- Country of Publication:
- United States
- 14 SOLAR ENERGY; 24 POWER TRANSMISSION AND DISTRIBUTION; 29 ENERGY PLANNING, POLICY AND ECONOMY TARIFF DESIGN; RATEMAKING; DISTRIBUTED GENERATION; PHOTOVOLTAIC; SOLAR VALUATION; VALUE OF SOLAR; COST-BENEFIT ANALYSIS; Energy Analysis; Solar Energy - Photovoltaics
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