1.

Abstract

iii

2.

Acknowledgements

iv

3.

Executive Summary

v

4.

The Framework

vii

5.

Table of Contents

x

6.

Introduction

1

6.1

Defining the systems

2

6.2

Technologies

2

6.3

Value Chain Analysis

4

7.

A Framework for TVP

7

8.

Risk Management

9

8.1

Hedge against fuel-price volatility

9

8.2

Hedge against grid outages

11

8.3

Get ahead in the futures markets

13

8.4

Prepare for regulatory change

15

8.5

Reduce insurance premiums

17

8.6

Reduce future risks of climate change

19

9.

Benefits of Emissions Reductions

21

9.1

Generate emissions reduction credits / offsets

22

9.2

Reduce fees for emissions

27

9.3

Avoid remediation costs

29

10.

Policy Incentives

31

10.1

Production tax credit

32

10.2

Accelerated depreciation

33

10.3

Preferential loan treatment

33

10.4

Renewable Portfolio Standard

34

10.5

System benefit funds (or public benefit fund)

37

10.6

Rebates

37

10.7

Feed-in tariffs

38

10.8

Net metering

39

10.9

Property tax break

39

10.10

Sales-tax exemption

40

10.11

Qualification for local research and development incentives

40

10.12

Other financial incentives

43

11.

Reduced Resource Use

43

11.1

Reduce water use and consumption

43

11.2

Reduce energy use

45

11.3

Lower production costs

47

12.

Corporate Social Responsibility

51

12.1

Improve stakeholder relations

52

12.2

Satisfy SRI portfolio criteria

55

13.

Societal Economic Benefits

59

13.1

Rural Revitalization

59

13.2

Jobs

60

13.3

Economic development

61

13.4

Economic development

62

13.5

Avoided environmental costs of fuel extraction/transportation

62

13.6

Avoided costs of transmission and distribution infrastructure expansion

63

14.

The Value Chain:  A Summary

65

15.

Next Steps

68