Avoided costs associated with cogeneration: a case study of Con Ed

Publisher Website
Google Scholar
Abstract
The potential impact of cogeneration in office and apartment buildings in New York City on the Consolidated Edison Company (Con Ed) has been investigated using a method of utility cost and fuel use analysis developed at Brookhaven National Laboratory. This method computes a utility's long run marginal costs and long run marginal fuel consumption associated with load modifications due to the introduction of on-site energy producing technologies. The principal findings of this study show that Con Ed's long run average cost is more likely to go down than up due to cogeneration in office and apartment building; the utility's avoided costs (i.e., its long run marginal savings) associated with the gross power output of the cogeneration systems are 10.5 cents/KWh for the office building and 6.4 cents/KWh for the apartment buildings; the utility's marginal savings include a component for avoided capacity costs; and there are net savings in the use of oil due to cogeneration (assuming the building used oil for its boilers before it switched and diesel fuel in its cogenerators afterwards).

This publication has 0 references indexed in Scilit: