Variations in area- and time-specific marginal capacity costs of electricity distribution

Abstract

Marginal costs of electricity vary by time and location. Past researchers attributed these variations to factors related to electricity generation and transmission. Those authors, however, did not fully analyze the large variations in marginal distribution capacity costs (MDCC) by area and time. Thus, the objectives of this paper are: (1) to propose a method to estimate MDCC; (2) to demonstrate the significant intra-and inter-utility variations in MDCC; and (3) to discuss the usefulness of these cost estimations in integrated resource planning. Acknowledgment and disclaimer -This paper is partially funded by EPRI. The views expressed in the paper are entirely ours and do not reflect the position of EPRI. All errors are ours.

Assessing the strategic benefits of distributed generation ownership for DNOs

“…The benefit can be significant with a US study [20] suggesting marginal capacity benefits of up to US$1,795/kW which is broadly similar to the AUS$1,500/kW reported for parts of Sydney, Australia…”

Evaluating the Impact of Network Investment Deferral on Distributed Generation Expansion

“…One particular area of note is the potential benefit of DG in deferring network reinforcement to ensure load is met. The benefit can be significant with a U.S. study [20] suggesting marginal capacity benefits of up to US$1795/kW that is broadly similar to the AUS$1500/kW reported for parts of Sydney, Australia [21].…”

Locational Marginal Value of Distributed Energy Resources as Non-Wires Alternatives

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