Rezachek & Associates'
Energy & Environmental Resources

Avoided Cost Determination/Externalities

Avoided Capacity Benefits

Advancing Cogeneration in the Indian Sugar Industry In developing the power purchase tariff for the states of Tamil Nadu and Maharashtra, the report presents two components of the value of independently produced power to the utility, the avoided energy costs and the avoided capacity costs. Avoided generation capacity cost estimates for the Tamil Nadu Electricity Board (TNEB) were based upon a coal plant proxy. In the case of the Maharashtra State Electricity Board (MSEB) avoided generation capacity costs are based upon the costs of gas turbine peaking units. For estimating avoided energy costs during peak hours, a weighted combination of gas turbines and the least-efficient coal plant was used. During off-peak hours, avoided energy costs were determined using the more efficient coal plants.

Measuring Wind Plant Capacity Value Electric utility planners and wind energy researchers pose a common question: What is the capacity value of a wind plant? Tentative answers, which can be phrased in a variety of ways, are based on widely varying definitions and methods of calculation. This article summarizes and evaluates some common methods of evaluating capacity credit.

Photovoltaics Can Add Capacity To The Utility Grid Photovoltaics (PV) can contribute to or receive credit for a utility's capacity. But how is this possible for a power source that is not dispatchable? The key is that many applications that require energy and drive a utility's load are synchronous with the intensity of the solar resource. Therefore, we want to determine the locations where PV can provide power when it is needed. For these areas, we can consider PV as more than an energy source—it also contributes to a utility's capacity.