Lawrence Berkeley National Laboratory

This paper reports the findings of a preliminary assessment of the cost effectiveness of distributed energy resources at Naval Base Ventura County (NBVC) Building 1512. This study was conducted in response to the base's request fordesign assistance to the Federal Energy Management Program. Given the current tariff structure there are two main decisions facing NBVC: whether to install distributed energy resources (DER), or whether to continue the direct access energy supply contract. At the current effective rate, given assumptions about the performance and structure of building energy loads and available generating technology characteristics, the results of this study indicate that if the building installed a 600 kW DER system with absorption cooling and heat capabilities chosen by cost minimization, the energy cost savings would be about 14 percent, or $55,000 per year. However, under current conditions, this study also suggests that significant savings could be obtained if Building 1512 changed from the direct access contract to a SCE TOU-8 (Southern California Edison time of use tariff number 8) rate without installing a DER system. At current SCE TOU-8 tariffs, the potential savings from installation of a DER system would be about 4 percent, or $15,000 per year.