avoided cost, definition of

Avoided Cost

The cost a utility would incur to generate the next increment of electric capacity using its own resources; many landfill gas projects' buy back rates are based on avoided costs.

News & Blog articles where 'avoided cost' used:
  • Rate Crimes: Impeding the Solar Tipping Point
    The following guest essay was written by Paul Symanski. Paul is an electrical engineer with expertise in solar energy, and shares his views on why solar power often faces unnecessary headwinds.
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