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.
Source: Terms of the Environment ...
avoided cost The savings associated with undertaking a given activity (such as demand management) instead of an alternative means of achieving the same results (such as adding supply); ...
 See also: Gas, Cost, Solution, Absorption, Nitrogen
  
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