Best Practices in Energy Efficiency Program Screening - Synapse ...

estimate of the cost to achieve these sustainability targets. 34 (Synapse 2011, p.4-40).
We refer to these costs as the high GHG compliance costs.
Total Avoided Costs
Combining the different avoided costs discussed above demonstrates the total effect
that efficiency programs can have in terms of reducing electricity costs. Figure A.7
accumulates the 20 year levelized costs for each avoided cost, with the right-most bar
providing the total impact of avoided costs.
The High GHG compliance cost is indicated with dashed lines because these costs
would only be considered environmental compliance costs in those states that have
GHG requirements comparable to a sustainability target of reducing CO2 emissions to 80
percent below 1990 levels by 2050. In other states these high GHG compliance costs
would be considered environmental externalities, and thus would only be relevant for the
Societal Cost test.
Figure A.7. Example of Avoided Costs, Broken Out by Component ($/MWh)
34 Massachusetts is one example of a state that has adopted such targets.
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