DSM Pocket Guidebook Volume 5: Renewable and Related ... - NREL

eneWJbles can be combined with advanced storage options. In other
cases, depending on resource availability and the utility load profile,
some renewable resources may have their time of peak output coincident
with the lime of the utility peak demand. Other renewables such
as biomass, geothermal, and hydropower, under some circumstances,
are ful dispalchable. With good planning, utilities can maximize the
benefits of inlermillenl renewable resources without storage.
The cost of energy for new generating facilities depends on the type
and purpose of the faciiHy. Cost of generation for base load, intermediate,
and peaking facilities is shown in Figure R-1. Today, the cost of
hydropower is cost effective. Figure R-2 illustrates cos! !rends for four
renewable technologies: solar thermal, biomass, wind, and PV. In
particular niche markets, they are cos! effective today on a levehzed
life-cycle cost basis. Projections indicate that on a levelized cost basis,
many more renewable options will be cost effective for peaking,
intermediate, and some base load power generation by the year 2000.
When anaing the system costs of renewables, planners are exploring
valid approaches to the difficult task of incorporating the most significant
element in utiiHy planning-risk. Since the 1970s, fuel cost
variability, environmental policy shifts, regulatory condemnation of
ful functioning plants, and siting difficulties appear to provide some
strategic advantage lo the increasing use of renewables because they ·
are general immune to these influences. Intuitive, if is dear that a
technology that does no! require a fuel, such as solar or wind, has a
value because of its immunHy from unforeseen fuel price increases.
The difficult task is incorporating such facls in thoughtful ulihty planning.
AI a minimum, we can say that every utility should begin now to
enhance its familiarity and "hands-an" exposure with at leas! some of
these technologies.
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