Local CLEAN Program Guide “Evaluating Avoided Costs” Module
This module provides approaches for assessing the avoided costs of CLEAN energy and will help local utilities design cost-effective CLEAN Programs.
The Clean Coalition just released a new module of its Local CLEAN Program Guide, a comprehensive how-to guide for communities and utilities across the nation to evaluate, design, and enact Clean Local Energy Accessible Now (CLEAN) Programs based on global best practices for increasing the amount of cost-effective renewables and allowing a community to benefit from the associated economic benefits.
The Evaluating Avoided Costs module provides approaches for assessing the avoided costs of CLEAN energy and will help local utilities design cost-effective CLEAN Programs that take advantage of the avoided costs and the superior value of CLEAN local energy. The avoided cost evaluation is an important consideration when designing a CLEAN Program because it shows that the “sticker price” expressed by power purchase agreements does not include the many hidden costs that the utility pays for avoided generation or the “external” costs of energy generation that have a substantial impact on the community, but incur no cost to the utility.