A Valuation Framework for Informing Grid Modernization Decisions: Summary
Across the electric power industry, a diverse stakeholder community applies a variety of methodologies to assess the value of courses of actions, ranging from investments in generation, transmission or distribution assets; to compensation mechanisms for distributed technologies; to a multitude of other policies related to projects in the electricity sector. The resulting value assessments often vary widely for the same or similar types of projects. As an example, two studies addressing the value of rooftop solar photovoltaic (PV) installations came to significantly different conclusions; the studies chose different valuation metrics and analysis methods. This example is not unusual: often valuation studies are not comparable or repeatable because of differences in assumptions with respect to economic and engineering inputs; time, geographic, and power system scales; the closed-source inner workings of modeling tools and analysis methodologies employed for the valuation; stakeholder-specific choices of the key metrics or grid attributes that are the focus of the valuation; and/or choices of which grid investment, design or operation alternatives to compare. Investment decisions and policy options are reviewed and interpreted by multiple stakeholders, who have different motivations, interests, and obligations.
- Research Organization:
- Oak Ridge National Laboratory (ORNL), Oak Ridge, TN (United States)
- Sponsoring Organization:
- USDOE
- DOE Contract Number:
- AC05-00OR22725
- OSTI ID:
- 1760154
- Report Number(s):
- ORNL/SPR-2019/1106
- Country of Publication:
- United States
- Language:
- English
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