Distributed Renewable Energy Operating Impacts and Valuation Study

Section 6
savings for the High Penetration Case is lower than the Medium Penetration Case ($98.98/MWh
compared to $116.81/MWh for the nominal results).
The results also indicate that while there is a higher value associated with the Target scenario
compared to the High Penetration Case (due to the capacity reduction for the distribution
system), the increase on a unit basis is not significant (approximately 3 percent increase in value
on a unit basis). Additionally, the results indicate that the single-axis tracking sensitivity
provides marginally higher total solar value (for both dollars and energy) compared to the High
Penetration Case; however, the unit savings are marginally lower than those for the Target
scenario.
A build-up of the functional elements of the value from solar DE deployment developed in this
Study for 2025 are represented graphically in Figure 6-2.
Figure 6-2: Elements of APS’s Solar DE Savings in 2025
The build-up of value suggests that the relative magnitude of value varies tremendously, as
indicated by the range of values shown in Figure 6-2. These results suggest that the value from
the savings in fuel, purchased power and losses is the largest driver of value (ranging from about
90 percent of the total savings at the minimum and about 60 percent of the total savings at the
maximum). It should be noted that the build-up of solar value presented above is not confined to
any specific deployment, rather it represents the minimum and maximum values determined in
year 2025 for all deployment scenarios across the functional areas identified in the Study.
6-14 R. W. Beck, Inc. Arizona Public Service