The Interstate Renewable Energy Council, Inc. (IREC) has released a concept paper that considers states’ ability to expand options for distributed generation (DG) technologies. Due to the rapidly growing appetite for solar and other forms of renewable and alternative energy in the U.S., developers, utilities and policymakers are seeking new approaches that could appropriately value the locational benefits of DG. The 1978 federal Public Utilities Policy Regulatory Act (PURPA) may provide a solution that supports greater DG development close to load, where DG value is highest.
IREC’s paper, Unlocking DG Value: A PURPA-based approach to promoting DG growth, explores benefits that can be quantified and incorporated into the development of PURPA-based avoided cost rates. It also describes several recent Federal Energy Regulatory Commission decisions that have provided the needed justification to value the benefits of DG facilities and it discusses the advantages and disadvantages of such an approach.
Review the full concept paper on IREC’s website.