A brand new mannequin for calculating the worth of distributed vitality sources (DERs) may result in large adjustments within the largest U.S. state’s vitality market.
This spring the California Public Utilities Fee (CPUC) authorised adjustments (PDF) to its Averted Price Calculator. The ACC creates hourly values representing “marginal prices a utility would keep away from in any given hour if a distributed vitality useful resource prevented the availability of vitality throughout that hour” — a key measurement of the worth of DERs to the state’s electrical energy grid, calculated over a 30-year time horizon for every utility and local weather zone within the state.
These values apply to each DERs that present vitality, akin to photo voltaic panels or batteries, and people who scale back or shift vitality demand, as with vitality effectivity investments, demand response or time-shifting and grid-flexible masses. And the “prices” being displaced by new DERs embody not solely vitality and grid capability but in addition greenhouse gasoline emissions and grid investments.
The ACC was first created to information how the CPUC and utilities measured the impression of vitality effectivity applications. However with the proliferation of behind-the-meter vitality sources, “there are some attention-grabbing prospects for utilizing it to worth different forms of sources,” stated Tom Seaside, principal advisor at Crossborder Vitality who labored with the Photo voltaic Vitality Industries Affiliation (SEIA) on the most recent adjustments to the ACC.