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Distributed Generation Cost Analysis

Evaluating cost of distributed power generation, alternative energy and renewable energy sources.

Distributed Generation Cost Analysis

Lower costs, customer demand, environmental benefits and regulations are driving utilities and their customers to add distributed generation and renewable energy sources to systems. Our innovative, analytics-based method determines load shapes for distributed generation customers and joins a powerful set of tools used to assess the impacts of distributed generation on utility systems. Black & Veatch’s analytics tool evaluates the costs utilities face to accommodate distributed power generation -- solar PV, microgrids and combined heat & power (CHP) -- for the purpose of setting rates. Using our cost tool, utilities can determine interval-based load curves for rate setting to distributed generation customers and can avoid the need for expensive load research studies.

A market leader in the analysis and design of distributed generation systems, Black & Veatch can work with clients to accurately evaluate the utility ratemaking impacts of adding distributed power generation to the grid. By gathering information from various sources, the tool also can inform design standards for electric distribution systems that have a significant amount of distribution generation installed and improve a system’s ability to manage the unique aspects distributed generation presents.  

The tool comes amid rising regulatory moves in states such as New York and California that will encourage increased deployment of distributed generation to reduce emissions and provide customers new options for renewable energy sources. It provides an accurate and efficient way to evaluate the fundamental cost impacts that should be considered when setting rates for customers that own distributed generation. The analytics may be readily prepared for submission to regulators involved in rate proceedings and can also assist utilities and regulators in evaluating how distribution system design standards could evolve to address the impacts that distributed generation resources may place on utility systems.

The tool will be used extensively to provide utility regulators, market participants and other interested parties with the empirical data to objectively and thoroughly evaluate and consider the operational and pricing impacts of distributed generation on electric utility systems.

Features and Benefits of our Distributed Generation Load Shape Profile Model

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Distributed Generation Rate Design - Regulatory Qualifications

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Distributed Generation Drives Change in Electric Industry

Distributed energy resources continue to drive change within the electric industry as both energy consumers and electric service providers are diversifying how electricity is generated and delivered. Spawned by the public embrace of clean energy, falling prices and regulatory subsidies, there is increased deployment of solar PV, battery energy storage and microgrids.

This movement is requiring utilities to transform traditional centralized networks into flexible, distributed and integrated power networks that are starting to evolve from demonstration mode to more solid, longer-term investments that play an important part in how they develop a new utility business model.

As many of these efforts move forward, organizations are working through complexities to achieve the best economics for distributed energy and microgrid customers while at the same time seeking to maximize benefit from the existing grid investments.

According to the 2017 Strategic Directions: Electric Industry Report, solar PV, wind turbine generation and combined cycle gas-fired generation were listed as the top forms of generation to be added by electric providers.

Which of the following types of incremental electrical generation, greater than 50 MW, will you likely add to your system within the next five years?

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