Cost-Justifying Distributed Generation for Campus Reliability

This paper presents a cost analysis method for deciding whether to invest in distributed generation (DG) systems to power critical facilities during outages. Using two campus case studies, the authors show how DG can reduce peak power charges and provide emergency backup. By analyzing savings from peak load reduction and considering capital costs, the study offers a financial framework for DG investment decisions. The findings highlight that accurate peak usage predictions are essential for making DG systems economically viable. In some cases, even limited operating hours can still yield acceptable payback periods.