Avoided Cost and E3 Calculator Workshops. Energy and Environmental Economics, Inc. October 4, 2005. Total Electric Avoided Costs. Shape is Based on PG&E’s San Jose Planning Division. Refinements in Avoided Cost. Background Overview of Title 24 DR Progress Focus on demand response measures
Energy and Environmental Economics, Inc.
October 4, 2005
Shape is Based on PG&E’s San Jose Planning Division
Method and results in this slide are preliminary.
DkW of Equivalent Capacity
in Each Hour
Additional DkW of Equivalent Capacity
Achieved During Stage 3
Note these shapes are from 2004 IEPR.
Scaled to All-in Combined Cycle CostForecast Market Price - 2008
$85/kW-year (levelized nominal) approx. the same value.
Result is approximately $20/kW-yr
High number of operating hours
Similar analyses for other cases / utilities show approximately 700-900 hours operation
Few hours results in a larger residual capacity valueCalculation of Residual Capacity Value
Control Area Load
Residual Capacity – 100 Hours
Residual Capacity – 250 Hours