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DG Marketplace Applications - Electric Utilities
DG Market Growth
Utility customers are increasingly adopting onsite or distributed generation
(DG) to save money on electric bills. One DG system provider guarantees
electric bill savings of 10-15 percent in a turnkey operation where the utility
customer does nothing but save on electric bills. Recent technology improvements,
regulatory changes and more favorable government policies insure an increasing
DG market, even for utilities who have experienced limited DG activity in
the past.
Unplanned Customer DG Poses Revenue and System Operation Threats
While DG-related electric bill savings please customers, they pose serious
lost revenue and system operation problems for utilities. DG-related revenue losses disproportionately
impact profits for investor-owned utilities and create serious revenue shortfalls
for public, municipal and cooperative utilities.
Proactive Strategies Increase Revenue and Improve System
Efficiency
Proactive electric-supplier DG strategies, however, take advantage of
the growing DG market to actually improve revenue and profit prospects, to integrate DG
systems in utility DSM and demand response programs and to incorporate the benefits of DG in the
system planning process. Critical
issues in developing a DG strategy include identifying and assessing customers
and customer segments who are likely to be targeted by DG suppliers, determining
cost-effective options for retention of these customers, evaluating
utility-supplied DG services and considering the interplay of energy services,
demand response and DG and other factors.
DG Marketplace Products Support Utility Strategy Development
Identifying these issues, evaluating and prioritizing utility options are
critical activities in developing an effective DG strategy which can actually
increase revenues in spite of increased DG market activity.
DG Marketplace Studies and Analyses Provide Unique Quantitative Insights
General market trends do not provide the kind of actionable intelligence required to
develop utility DG, CHP and micro-CHP strategies for individual utilities. However, detailed, specific, quantitative analysis results
provided by DG Marketplace
for individual electric utility service areas provide a reliable basis for transforming DG threats into profitable business
strategies.
All DG Marketplace products reflect the application of the one-million-plus MAISY Utility Customer and Hourly Loads
Databases applied to study DG, CHP and micro-CHP within individual utility service areas.
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