Communicating the value of dispatchability for non-utility generation projects

Electric utilities seeking to purchase power from nonutility generators (NUGs) need to provide information to NUG developers on the value to the utility power system of various attributes, in order that the developers can design projects that maximize net benefits. Dispatchability is one key attribute. This paper outlines three previous approaches to communicating to developers the value of dispatchability, and describes a fourth approach. The fourth approach presents a table of numbers representing the value of dispatchability as a function of the energy bid price and escalation rate. It has the advantage of simplicity from the perspective of the developer, while still providing a meaningful signal to the developer