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Cost–Benefit Analysis of Distributed Energy Systems Considering the Monetization of Indirect Benefits

Yutong Zhao, Shuang Zeng, Yifeng Ding, Lin Ma, Wang Zhao, Anqi Liang, Hongbo Ren

2024Sustainability16 citationsDOIOpen Access PDF

Abstract

Driven by market value, a co-benefits assessment framework to encompass various benefits arising from distributed energy systems is developed. Using a monetization approach, a quantitative analysis model is established to evaluate both direct and indirect benefits. According to the simulation results of typical distributed energy systems, the distributed photovoltaic (PV) system demonstrates superior economic performance compared with the gas-fired distributed energy system, highlighting its potential for widespread commercialization. Moreover, the inclusion of indirect benefits significantly enhances the economic viability of the distributed energy system. While the PV system exhibits a more favorable promotional impact, it also renders the gas-fired distributed energy system commercially feasible.

Topics & Concepts

MonetizationDistributed generationEnvironmental economicsEnergy systemPhotovoltaic systemCost–benefit analysisCommercializationEnergy (signal processing)Computer scienceBusinessRisk analysis (engineering)Renewable energyEngineeringEconomicsElectrical engineeringStatisticsBiologyMacroeconomicsEcologyMathematicsMarketingEnergy Efficiency and ManagementGreen IT and SustainabilityEnvironmental Impact and Sustainability