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The Value of Distributed Energy Resources (DER) to the Grid: Introductionto the concepts of Marginal Capital Cost and Locational Marginal Value

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Title:The Value of Distributed Energy Resources (DER) to the Grid: Introductionto the concepts of Marginal Capital Cost and Locational Marginal Value
Authors:Tabors, Richard
Masiello, Ralph
Caramanis, Michael C.
Andrianesis, Panagiotis
Keywords:Integrating Distributed or Renewable Resources
Electric Energy Systems
Distributed Energy Resources
Distributed Locational Marginal Pricing
Locational Net Benefit
show 2 moreMarginal Cost of Capacity
Non-wires Alternative
show less
Date Issued:08 Jan 2019
Abstract:Distributed Energy Resources (DERs) are argued to be a significant benefit to the electric utility grid. While DERs generate significant benefits to their owners and as well as society, the compensation and operating structure of the distribution system of most utilities is such that DERs result in minimal benefits to the distribution system. As we show, the benefits correctly attributed to the distribution company (the wires company) are a function of what service (real, reactive power) the DER is able to provide, when and where, and at what level of certainty the DER is able to provide the service. We introduce the concepts of Marginal Cost of Capacity (MCC) and Locational Marginal Value (LMV) in the calculation of the value of DERs to the distribution system.
Pages/Duration:8 pages
URI:http://hdl.handle.net/10125/59782
ISBN:978-0-9981331-2-6
DOI:10.24251/HICSS.2019.419
Rights:Attribution-NonCommercial-NoDerivatives 4.0 International
https://creativecommons.org/licenses/by-nc-nd/4.0/
Appears in Collections: Integrating Distributed or Renewable Resources


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