An Analytic Framework for Evaluating the Value of Distributed Energy Resources09/15/2020
Authors: Ralph Masiello
Multiple state initiatives exist for establishing non wires alternatives (NWA) and valuations of distributed
energy resources (DER), most notably the California Locational Net Benefits Analysis (LNBA) and the NY
Renewed Energy Vision (REV). This paper reports on work that establishes a theoretical and computational framework for identifying a precise value to the grid in terms of avoided cost, down to each distribution service transformer, if desired.
It identifies the marginal value of a kW or a kVar of distributed resources and deals with avoided cost not
only for delivery capacity, but also for voltage control, reliability and renewables integration.