Measuring OE Benefits - More Information
The DOE 2006 GPRA assessment of benefits underwent an external peer review (PDF 344 KB). Peer reviewer comments (PDF 743 KB) on the OE assessment included the following comments:
- NEMS is not the best model to use to assess OE benefits
- More work is needed to define the electric reliability and infrastructure security metrics
- There is a need for OE to develop new benefits assessment methods, that ultimately can be integrated with NEMS, and that do a better job of estimating the full set of potential OE benefits.
As a result of the Peer Reviewer's comments, OE is developing and testing an alternate approach (PDF 312 KB) for estimating benefits. The new approach will complement the benefit estimation techniques applied by the other DOE energy offices. This approach involves four primary areas of analysis:
- Business case analysis
- Market penetration analysis
- Analysis of technology commercialization pathways
- Analysis of the specific impact of OE activities
Business case analysis. This aspect of the analysis involves developing a business case for specific OE technologies and/or technological areas (e.g. high temperature superconducting cables, solid state switches, phasor measurement devices, energy storage systems, or the integration of renewable and distributed energy resources). It would involve estimating value from the impact of the technology on the electric system from the utility, customer, and societal perspectives.
Market penetration analysis. This component involves extrapolating the results of the business case to apply to the national level as a whole. It would involve market segmentation, market adoption rates, and the particular investment decision-making criteria and strategies of those who would purchase the technology.
Analysis of technology commercialization pathways. This component involves examining OE research and development plans and strategies, including the technology performance targets and the mechanisms for addressing technical, market, and regulatory hurdles, and the timing involved in improving the adoption of new technologies or business practices.
Analysis of the specific impact of OE activities. This component involves applying OE's commercialization plans to determine how they might accelerate or enhance the adoption of new technology and business practices. The result would provide the incremental impact of OE funding on national benefits.
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