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237 records · Page 14

The Value of Distributed Wind: A Valuation Framework

While there has been an increase in distributed energy resource (DER) adoption, particularly for solar photovoltaic (PV) DERs, distributed wind deployment is still relatively low. However, distributed wind has significant growth potential for behind-the-meter applications and can provide improved resource diversity and resilience in high-DER grid systems. In order to make optimized decisions about distributed wind deployment, it is important to identify and characterize the value streams of distributed wind in a way that will help policy makers, microgrid developers, utilities, project developers, and others understand the potential value of distributed wind. In our paper, we develop a framework to provide a consistent and comprehensive approach to finding the net benefits of distributed wind to various stakeholders in different scenarios. We do this by considering the main use cases for distributed wind, and then developing a framework which is flexible for these various use cases and the relevant stakeholders while maintaining the same overall structure for analysis. Ongoing work includes applying this framework to valuing two distributed wind power systems, one in a remote village in Alaska and one in a front-of-the-meter deployment in Iowa. Our analysis aims to understand the full value that distributed wind is providing in these systems, including the resilience benefits it is contributing. As a better understanding of distributed wind valuation is gained, it will be easier for stakeholders to make informed decisions in order to have resilient renewable energy systems.

17 WIND ENERGY↗

Valuation of Distributed Wind in an Isolated System

Remote communities are increasingly adopting renewable energy, such as wind, as they transition away from diesel energy generation. It is important to understand the benefits and costs of wind energy to isolated systems so that decision-makers can optimize their choices in these communities. There are few examples of valuation of wind energy as a distributed resource and numerous differences in valuation approaches, especially in the inclusion of environmental and economic impacts. We apply a distributed wind valuation framework to calculate the benefits and costs of wind in St. Mary’s, Alaska, to the local electric cooperative and to society, finding that the project does not have a favorable benefit-to-cost ratio unless societal benefits are included, in which case the benefit-to-cost ratio is nearly double. Government funding is important to reducing the initial capital expenditures of this wind project and will likely be the case for projects with similar characteristics. Additional fuel savings benefits are potentially possible for this project through technological additions such as energy storage and advanced controls.

17 WIND ENERGY↗

Case Study: Resilience Benefits of Distributed Wind Against Fuel and Weather Hazards in Alaska

In this case study of St. Mary’s Village, Alaska, we present a resilience evaluation exercise. A resilience framework is employed to identify system characteristics, relevant metrics, and resilience hazards and to assess the performance against the hazards with and without a distributed wind system installed. The results show the resilience benefits provided by the distributed wind installation against fuel shortage hazards and cold weather hazards. The resilience benefits can be assigned monetary values, which will be highly dependent on actual circumstances of the hazard, but provide insight into value streams of distributed wind that are not usually considered. For example, the single 900 kW turbine was found to prevent an average of 14,643 kWh of load from being dropped during a two-day diesel fuel shortage event, which saved the community $447,592 from the prevented outages. This case study serves as an example for novel power system resilience analysis and builds understanding of resilience hazards that are common across many power systems.

Culler, Megan J.↗