Distributed Solar Photovoltaic Cost-Benefit Framework Study: Considerations and Resources for Oklahoma

Holm, Alison; Cook, Jeffrey; Aznar, Alexandra; Coughlin, J.; Mow, Benjamin

doi:10.2172/1561512

Cited by 2 publications

(8 citation statements)

References 2 publications

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“…In fact, in the formal studies that have been completed since 2012 in the United States, very few considered the exact same set of value elements. In addition to exploring different sets of values, the methodologies of VOS studies are also strongly influenced by both the availability of data as well as the institutional capacity of the stakeholders conducting the analysis (Holm et al 2019). 9 Well-staffed researchers with access to granular data and comprehensive power system models will be better suited to conduct more complex VOS analyses with more value elements considered.…”

Section: Market Price Suppression Benefitmentioning

confidence: 99%

“…Common compensation mechanisms such as net energy metering, net billing, and buy-all, sell-all schemes have played a critical role in enabling the growth of RTS worldwide (Denholm et al 2014;Steward and Doris 2014). 3 These policies have employed relatively simple methods to determine compensation levels for electricity exported to the distribution network by RTS systems, typically derived from existing values such as the average power purchase cost or retail tariff (Holm et al 2019). Such approaches to RTS compensation have had the benefit of being both easily calculable by program administrators and readily understandable by customers and developers.…”

Section: Introductionmentioning

confidence: 99%

“…The dramatic growth of DG in power systems around the world and the broader evolution of the distributed energy sector has led to concerns, however, that existing compensation mechanisms may no longer sufficiently capture the net value (costs and benefits) of DG (Holm et al 2019). Increasing sensitivity to cost-shifting between adopting and nonadopting customers has also spurred calls to review compensation mechanisms (Barbose 2017;Holm et al 2019). 4 Likewise, many stakeholders believe current compensation mechanisms are not sophisticated or cost-reflective enough of the actual value of exports to the grid to align the behavior of DG with the needs of the power system.…”

Section: Introductionmentioning

confidence: 99%

“…The two states were selected to represent two different power system contexts for the deployment of RTS (see Section 1.1 for more details on the power systems of Gujarat and Jharkhand). While the VOS framework presented in this report can be applied in many contexts and jurisdictions, the methods used and the end results can vary widely depending on local power system contexts, decision maker priorities, the timeframe of the analysis, the complexity of analysis methods used, and the granularity of available data (Holm et al 2019). This report was prepared under the U.S. Agency for International Development (USAID)-National Renewable Energy Laboratory (NREL) Partnership, and in collaboration with the USAID Partnership to Advance Clean Energy Deployment 2.0.…”

Section: Introductionmentioning

confidence: 99%

“…For more information on how VOS frameworks have been employed in the United States, see Sections 4, 5, and 6 ofHolm et al (2019).Table 2ofHolm et al (2019) in particular highlights the values that have been explored in select jurisdictions for VOS analyses. The accompanying presentation in Cory (2019) provides a similar overview of values considered in VOS analyses.…”

mentioning

confidence: 99%

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Quantifying Rooftop Solar Benefits: A State-Level Value of Solar Analysis for India

Bowen

Gokhale-Welch

Cory

et al. 2021

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Driven by India's ambitious rooftop solar (RTS) goals, individual states have designed solar policies and compensation mechanisms to help achieve specific targets established for each state. As costs decline and these systems are more widely adopted, policymakers, regulators, and other stakeholders may want to better understand the net costs and benefits of RTS to adopting and nonadopting customers, the grid, distribution companies (DISCOMs), and other power system stakeholders. Indian utilities generally perceive RTS systems as impacting their revenues, as consumers begin meeting on-site load with RTS generation. This is particularly pronounced for customers such as commercial and industrial entities, on whom DISCOMs rely to pay higher rates to help subsidize consumption from lower-income and smaller residential customers. RTS is more attractive for these larger customers as their tariffs are higher and they have more access to capital and financing than smaller customers. As of June 2020, approximately 73% of RTS installed capacity was deployed by commercial and industrial customers (Bridge to India 2020). These higher rates of RTS adoption among larger customer classes could exacerbate existing financial issues for DISCOMs and make cost recovery more difficult (Josey et al. 2018; Zinaman et al. 2020). These financial concerns can be addressed in part through changes to how RTS is compensated and to underlying retail tariffs for RTS customers. The Central Electricity Regulatory Commission and the Forum of Regulators recently updated the model regulations for RTS systems by allowing net billing and gross-metering at a rate defined by the state regulators. Likewise, some states (e.g., Gujarat and Maharashtra) have transitioned from net energy metering to net billing while other states have made efforts to do so (e.g., Karnataka). Finally, some states have suggested limits to RTS systems eligible for certain compensation mechanisms (e.g., Gujarat) and additional charges for interconnecting RTS systems (e.g., Maharashtra) (Zinaman et al. 2020). Analyses that quantify the costs and benefits associated with RTS adoption and operation can inform decision makers in the development and evaluation of RTS policies. One such analysis is a value of solar (VOS) study, which quantifies select costs and benefits surrounding RTS based on electricity system and other local data. These studies have been used in some jurisdictions to provide a data-driven evidence base to inform more cost-reflective RTS compensation or, alternatively, stay the course and largely maintain existing policies. These studies can also inform discussions around the unique contributions RTS provides to the power system relative to equivalent utility-scale generation, and how these contributions vary throughout the year or across a region. Such comparisons can be important when developing policies and planning for the optimal mix of generation in power system looking forward. Additionally, studies that offer more granular resolution (e.g., at the substate ...

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Section: Market Price Suppression Benefitmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%