This research investigates a method of choosing economically optimal DER, expanding on prior studies at the Berkeley Lab using the DER design optimization program, the Distributed Energy Resources Customer Adoption Model (DER-CAM). DER-CAM finds the optimal combination of installed equipment from available DER technologies, given prevailing utility tariffs, site electrical and thermal loads, and a menu of available equipment. It provides a global optimization, albeit idealized, that shows how the site energy load scan be served at minimum cost by selection and operation of on-site generation, heat recovery, and cooling. Five prototype Japanese commercial buildings are examined and DER-CAM applied to select thee conomically optimal DER system for each. The five building types are office, hospital, hotel, retail, and sports facility. Based on the optimization results, energy and emission reductions are evaluated. Furthermore, a Japan-U.S. comparison study of policy, technology, and utility tariffs relevant to DER installation is presented. Significant decreases in fuel consumption, carbon emissions, and energy costs were seen in the DER-CAM results. Savings were most noticeable in the sports facility, followed by the hospital, hotel, and office building.

This research demonstrates economically optimal distributed energy resource (DER) system choice using the DER choice and operations optimization program, the Distributed Energy Resources Customer Adoption Model (DER-CAM). DER-CAM finds the optimal combination of installed equipment given prevailing utility tariffs and fuel prices, site electrical and thermal loads (including absorption cooling), and a menu of available equipment. It provides a global optimization, albeit idealized, that shows how site useful energy loads can be served at minimum cost. Five prototype Japanese commercial buildings are examined and DER-CAM is applied to select the economically optimal DER system for each. Based on the optimization results, energy and emission reductions are evaluated. Significant decreases in fuel consumption, carbon emissions, and energy costs were seen in the DER-CAM results. Savings were most noticeable in the prototype sports facility, followed by the hospital, hotel, and office building. Results show that DER with combined heat and power equipment is a promising efficiency and carbon mitigation strategy, but that precise system design is necessary. Furthermore, a Japan-U.S. comparison study of policy, technology, and utility tariffs relevant to DER installation is presented.

Rapidly growing electricity demand brings into question the ability of traditional grids to expand correspondingly while providing reliable service. An alternative path is the wider application of distributed energy resource (DER) that apply combined heat and power (CHP). It can potentially shave peak loads and satiate its growing thirst for electricity demand, improve overall energy efficiency, and lower carbon and other pollutant emissions. This research investigates a method of choosing economically optimal DER, expanding on prior studies at the Berkeley Lab using the DER design optimization program, the Distributed Energy Resources Customer Adoption Model (DER-CAM). DER-CAM finds the optimal combination of installed equipment from available DER technologies, given prevailing utility tariffs, site electrical and thermal loads, and a menu of available equipment. It provides a global optimization, albeit idealized, that shows how the site energy loads can be served at minimum cost by selection and operation of on-site generation, heat recovery, and cooling. Utility electricity and gas tariffs are key factors determining the economic benefit of a CHP installation, however often be neglected. This paper describes preliminary analysis on CHP investment climate in the U.S. and Japan. DER technologies, energy prices, and incentive measures has been investigated.