CERTS Customer Adoption Model

Abstract

No Abstract. First paragraph of introduction follows: In order to analyze the impact of small-scale electricity generating options on consumers, Berkeley Lab developed an economic model that indicates the optimal amount and type of small on-site generation technologies that customers will adopt given their electricity requirements. This analysis can be performed under various regulatory schemes and general economic conditions, and also produces an optimal operating schedule for the generators. Using a standard mathematical optimization package, a typical customer’s cost of meeting electricity requirements is minimized by selecting the amount of distributed generation technology to install and operate. The customer can also purchase electricity from external sources (such as the grid or competitive markets). We found that the installation of distributed generation technology results in significant savings over the scenario in which no installation occurs. These savings are significant across all customers and situations. Furthermore, customers acting together as a µGrid are able to realize greater savings due to their ability to take advantage of economies of scale. This is due to their ability to be more flexible than individual customers.