Picking an Appropriate Analysis Method

DPV analysis is a powerful tool for identifying and quantifying DPV impacts and informing DPV policies and programs.

A DPV analysis must always ask a highly specific question from a particular stakeholder perspective or set of perspectives. That question is influenced by the intended use of the analysis, the underlying assumptions being made, the stakeholder perspective from which the question is being asked, and the specific DPV system (or set thereof) being analyzed.

A seemingly simple, broad question such as, “what is the value of DPV generation?” for analytical purposes is actually a highly specific question involving:

  • the size, location and type of technology of a DPV system,
  • the tariff class and consumption patterns of that DPV customer,
  • the metering, billing, and compensation scheme for the DPV system,
  • various important characteristics of the local power system,
  • a specific stakeholder perspective from which to examine this question of value (e.g., from a utility system perspective), along with
  • a host of other input assumptions

These distinctions are hugely important. Each type of analysis will require input assumptions and data, specific tools and models to perform the analysis, and each analysis will produce specific outputs based on the analytical methods being employed for the specific period being considered. 

Picking an appropriate analysis method depends on four primary factors:

  1. DPV Customer Formulation
  2. Intended Application of Analysis
  3. Time-related Considerations
  4. Analysis Stakeholder Perspectives
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