Benefit-Cost Analysis of DERs - An Overview of the New National Standard Practice Manual

August 27, 2020

The National Standard Practice Manual (NSPM) for Distributed Energy Resources (DERs) provides a comprehensive framework and supporting concepts and guidance for sound, consistent, and balanced benefit-cost analysis (BCA) of DERs, including energy efficiency. The manual is intended for use by jurisdictions to help inform which resources to acquire to meet the jurisdiction’s specific policy goals and objectives. DERs covered in the manual include energy efficiency, demand response, distributed generation, distributed storage, electric vehicles, and increased electrification of buildings (e.g., heating and cooling systems). The manual provides guidance for conducting BCAs of single and multiple DER types and includes use case examples that illustrate BCA for various DER combinations and applications.  The NSPM for DERs expands upon and incorporates content from the 2017 National Standard Practice Manual for Assessing Cost-Effectiveness of Energy Efficiency Resources. 

The NSPM for DERs (and accompanying materials) can be downloaded here.

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