The purpose and role of product standards in the commercialization of new energy technologies : a preliminary analysis

This paper discusses the role of product standards in a commercialization program. The usefulness of standards is explained as arising from the existence of transaction costs and other market failures in the operation of markets, and the effects of standards upon market operation are broadly discussed. The role of standards in a commercialization program is then explored and is seen as justified by the existence of market failures and the lack of suitable options other than standards available for remedying certain particulars of the situation. A description of the voluntary standards system follows to show how its use in a commercialization program may modify the governmental role

Comments on proposed rulemaking concerning electric rates for solar users

Energy Laboratory Utility Systems Program

Standards, warranties and commercialization of new energy technologies

Photovoltaics ProjectSeveral federal energy programs aim to "commercialize" new energy tech- nologies, i.e., to bring them from research to the market. Product standards and warranties are sometimes a part of these programs. Yet the benefits which the standards and warranties are to achieve are rarely articulated, and how these benefits will be achieved is often even less clear. This article takes the view that the substantive goals of standards and warranties can be articulated. It examines the functions of standards and warranties and the processes which produce them, and casts their effects in terms of impacts upon the new technology's demand, supply and industrial market structure. The relevance of these impacts upon commercialization programs is then discussed, covering the role of standards in the new in- dustry's development, the need for standards and warranties in demonstration projects and in the private financing of new energy systems, and mechanisms for development of standards and warranties. The need for basic research on standards and warranties is then addressed

Electric power transmission and distribution systems : costs and their allocation

National Science Foundation Grant no. SIA73-07871 A0

The economic impact of state ordered avoided cost rates for photovoltaic generated electricity

The Public Utility Regulatory Policies Act (PURPA) of 1978 requires that electric utilities purchase electricity generated by small power producers (QFs) such as photovoltaic systems at rates that will encourage the development of new energy technologies. The Federal Energy Regulatory Commission's regulations for PURPA require state regulatory authorities to ensure that utilities pay their full "avoided costs" to the QFs for the energy and capacity provided.This paper examines the various methods the states have devised to implement the federal policy, particularly the methods chosen for setting buy-back rates. The rates ordered by the states were based on the widely accepted method for determining avoided costs, and the states have approached the problem in a number of ways. The paper tries to compare several states' actions with rates estimated using utility expansion and rate-setting models and determines the impact on the potential break-even capital costs of a photovoltaic system using models which calculate photovoltaic worth.This paper concludes that PURPA has increased the potential for the development of photovoltaics somewhat by guaranteeing the purchase of PY-generated electricity at a minimum price. Much of the benefit comes from guaranteeing utility purchase of photovoltaic power rather than from higher buy-back rates paid by the utility. However, there is little agreement among the states as to the "correct" method for setting avoided-cost buy-back rates. The models and techniques used in this analysis and developed at the M.I.T. Energy Laboratory offer a possible solution for estimating buy-back rates