DG-PFF: Parity and Fragility Framework

The Problem DG-PFF Solves

Most techno-economic assessments treat parity as a smooth cost-screening exercise under average operating conditions.

In subsidy-dependent energy systems, viability is governed by policy discontinuities (credit tiers, eligibility cliffs, compliance windows) and operational constraints (utilization, procurement structure, emissions thresholds).

Small deviations in utilization or compliance status can trigger large, discontinuous changes in project economics.

As a result, many projects that appear parity-positive on paper collapse under realistic operating conditions.

Parity without fragility screening is not decision-grade.

DG-PFF establishes the minimum standard required for parity claims to be used in capital allocation, project approval, and strategic planning.

What DG-PFF Requires

• Operational realism: Screening must reflect constrained or representative operation, not annual averages alone.
• Explicit treatment of policy discontinuities: Credit tiers, eligibility cliffs, and compliance windows must be modeled as discontinuous regimes, not smoothed sensitivities.
• Utilization fragility identification: Threshold conditions must be identified where small changes in utilization trigger large jumps in levelized cost or loss of eligibility.
• Separation of feasibility and bankability: Geometric viability regions must be distinguished from market-weighted bankable regions.
• Decision-context clarity: Screening must be framed for concrete decisions: go/no-go, redesign, defer, or risk-mitigation.

DG-PFF raises the bar from analytical plausibility to decision accountability.

What This Framework Is and Is Not

DG-PFF is:

• A decision-screening framework for capital allocation in subsidy-dependent energy systems.
• Applicable to hydrogen, SAF, CCS, e-fuels, and policy-coupled energy markets.
• A complement to dispatch-resolved and system-optimization models.

DG-PFF is not:

• A replacement for grid optimization or detailed system planning.
• A guarantee of financial performance.
• A substitute for project-specific due diligence or regulatory compliance review.

DG-PFF defines the minimum analytical standard for parity claims to be used in investment and strategy decisions.

Application Domain

DG-PFF has been applied to parity screening of clean hydrogen systems under U.S. 45V compliance constraints, demonstrating that bankable viability regions contract sharply under realistic utilization and policy-eligibility conditions. The framework generalizes to any subsidy-dependent energy system where tiered incentives and operational constraints govern economic outcomes.

Why Organizations Adopt DG-PFF

Organizations adopt DG-PFF to:

• Eliminate false positives in early-stage project screening
• Identify fragility drivers before capital is committed
• Enable defensible go/no-go decisions under policy risk
• Establish governance standards for subsidy-dependent investments
• Reduce late-stage redesigns, write-downs, and stranded-asset exposure

DG-PFF is designed for decision governance, not analytical comfort.

How to Reference This Framework (Citation Block)

Operational Standard Access

DG-PFF is publicly defined to establish a transparent decision-grade screening standard.

For access to the operational standard (DG-PFF v1.0), compliance criteria, and reporting protocols, email jamie@insightquantix.com.

If a client reaches out, follow-up links and next-step materials will be shared directly by email.