Avoided Cost Comparison Levelized Cost of Energy ($/MWh)

Avoided Cost Comparison Levelized Cost of Energy ($/MWh) Avoided Cost Comparison Levelized Cost of Energy ($/MWh)

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figure 9: economics of dg comPared To aVoided cosTs WiTh $30/Ton co 2 cosT Biogas Fuel Cell Electric Only Fuel Cell Electric Only Fuel Cell CHP Fuel Cell CHP Biomass Solar PV Roof

CHAPTER 3 security-relAted beneFits oF dPs The economic analysis in chapter 2 assessed the costs and benefits of DPS relative to centralized generation using a standard costcomparison model based on quantifiable inputs. This chapter attempts to assess one of the nonquantified aspect of DPS: its value to energy security. For the purposes of this paper, energy security is divided into two categories: • The security of the civilian grid with respect to intentional or unintentional disruption; and • The provision of energy to the U.S. military, both at domestic facilities and in front-line deployments. 3.1 Energy Security and the Civilian Grid Security and reliability of supply The U.S. economy is increasingly dependent on reliable electricity. The rapid computerization of many industry sectors such as health care, banking and commerce has resulted in an enormous increase in the need for reliable power. Between 2006 and 2011, the power consumption of all 63 “ENERGY STAR Data Center Energy Efficiency Initiatives.” (http://www.energystar.gov/index.cfm?c=prod_development.server_efficiency). 64 “Keeping the Lights On in a New World,” Electricity Advisory Committee Report to U.S. Department of Energy, January 2009. (http://energy. gov/sites/prod/files/oeprod/DocumentsandMedia/adequacy_report_01-09-09.pdf). 65 Adapted from: “Electrical Reliability,” Powervar: Solutions for Power Quality. (http://www.powervar.com/electrical-reliability.cfm). aSSESSIng THE ROlE OF dISTRIBuTEd POwER SySTEmS In THE u.S. POwER SECTOR 27 computer servers is estimated to increase from 61 billion kWh to 100 billion kWh. 63 Such an increase has added to the pressures on already stressed transmission infrastructure. 64 Electricity delivery is reliable only when supply perfectly matches demand. A perfectly reliable system would therefore be operating 8760 hours a year, 24 hours a day, 365 days a year. Power-system reliability is measured in levels of “9”s. Table 3 illustrates the length of outages associated with different levels of reliability. 65 Table 3: grid reliabiliTy and ouTage duraTion Reliability Outage Duration 99 percent 876 hours 99.9 percent 87.66 hours 99.99 percent 8.766 hours 99.999 percent 5.25 minutes 99.9999 percent 30 seconds 99.99999 percent 3 seconds According to the Galvin Electricity Initiative, the U.S. power sector is designed to run at a reliability of

figure 9: economics <strong>of</strong> dg comPared To aVoided cosTs WiTh $30/Ton co 2 cosT<br />

Biogas Fuel Cell Electric Only<br />

Fuel Cell Electric Only<br />

Fuel Cell CHP<br />

Fuel Cell CHP Biomass<br />

Solar PV Ro<strong>of</strong>

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