The Potential Market for Photovoltaics and Other Distributed Resources in Rural Electric Cooperatives
In the United States, rural electric cooperatives have an aging distribution system (1 million miles of distribution wires were originally installed over 40 years ago) and a load density that is about one-tenth of the load density at other utilities. The result is that there may soon be a large mark...
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| Veröffentlicht in: | The Energy journal (Cambridge, Mass.) Mass.), 2000-01, Vol.21 (3), p.113-127 |
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| creator | Hoff, Thomas E. Cheney, Matthew |
| description | In the United States, rural electric cooperatives have an aging distribution system (1 million miles of distribution wires were originally installed over 40 years ago) and a load density that is about one-tenth of the load density at other utilities. The result is that there may soon be a large market opportunity for photovoltaics (PV) and other distributed resources. This paper calculates the cost of replacing portions of the distribution system as it wears out with hybrid-PV systems, compares it to the cost of replacing the system with equivalent distribution system equipment, and selects the alternative with the lowest cost. Results suggest that there is a potential market of 500 MW to 950 MW of PV at a price of $3,000/kW (a 50 percent reduction over PV prices in 2000) and a corresponding fossil-based generation market size of 280 MW to 555 MW at a price of $1,000/kW. The hybrid-PV systems could replace 7 percent to 16 percent of the miles of distribution system and could save co-ops $1.0 billion to $2.5 billion (present value). |
| doi_str_mv | 10.5547/ISSN0195-6574-EJ-Vol21-No3-5 |
| format | Article |
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The result is that there may soon be a large market opportunity for photovoltaics (PV) and other distributed resources. This paper calculates the cost of replacing portions of the distribution system as it wears out with hybrid-PV systems, compares it to the cost of replacing the system with equivalent distribution system equipment, and selects the alternative with the lowest cost. Results suggest that there is a potential market of 500 MW to 950 MW of PV at a price of $3,000/kW (a 50 percent reduction over PV prices in 2000) and a corresponding fossil-based generation market size of 280 MW to 555 MW at a price of $1,000/kW. 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The result is that there may soon be a large market opportunity for photovoltaics (PV) and other distributed resources. This paper calculates the cost of replacing portions of the distribution system as it wears out with hybrid-PV systems, compares it to the cost of replacing the system with equivalent distribution system equipment, and selects the alternative with the lowest cost. Results suggest that there is a potential market of 500 MW to 950 MW of PV at a price of $3,000/kW (a 50 percent reduction over PV prices in 2000) and a corresponding fossil-based generation market size of 280 MW to 555 MW at a price of $1,000/kW. The hybrid-PV systems could replace 7 percent to 16 percent of the miles of distribution system and could save co-ops $1.0 billion to $2.5 billion (present value).</abstract><cop>Los Angeles, CA</cop><pub>Energy Economics Education Foundation, Inc</pub><doi>10.5547/ISSN0195-6574-EJ-Vol21-No3-5</doi><tpages>15</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0195-6574 |
| ispartof | The Energy journal (Cambridge, Mass.), 2000-01, Vol.21 (3), p.113-127 |
| issn | 0195-6574 1944-9089 |
| language | eng |
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| source | RePEc; Business Source Complete; Periodicals Index Online; SAGE Complete A-Z List; Jstor Complete Legacy |
| subjects | Administrative expenses Aging Applied sciences Capital costs Cogeneration Cooperatives Cost allocation Cost control Cost efficiency Cost recovery Customer services Discount rates Economic models Electric power distribution Electric utilities Electricity Energy Energy economics Exact sciences and technology Load Management Market potential Market prices Marketing Natural energy Optoelectronics industry Photoelectric cells Photovoltaic cells Photovoltaic conversion Photovoltaic power plants Rural electric cooperatives Solar batteries Solar cells Solar energy Studies |
| title | The Potential Market for Photovoltaics and Other Distributed Resources in Rural Electric Cooperatives |
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