Cost-Effectiveness of Distributed Generation Technologies

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Cost-Effectiveness of Distributed Generation Technologies ( cost-effectiveness-distributed-generation-technologies )

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Cost-Effectiveness of Distributed Generation Technologies Environmental Benefits (CO2, NOx, and Particulate Matter Emissions) DG systems can also provide environmental benefits by avoiding the need to generate electricity from central station power plants as well as avoiding natural gas combusted in boilers to provide thermal energy for on-site needs. The avoided environmental emissions associated with decreasing the use of electricity generated at central station plants and reducing natural gas consumption in the boiler are captured in the E3 avoided cost calculations. These benefits are applied to the TRC and the STRC. Table 3-5 lists the CO2 emissions valuation from the E3 avoided cost workbook. The base case scenario uses avoided cost values associated with the mid- carbon price forecast while the GHG scenario uses the high level carbon forecast. Table 3-5: E3 CO2 Emission Values 2010–2039 (Nominal $ Per Ton of CO2) Year 2010 Mid Value Case of CO2 Emissions High Value Case of CO2 Emissions Mid Value Case of CO2 Emissions High Value Case of CO2 Emissions Mid Value Case of CO2 Emissions High Value Case of CO2 Emissions 2011 $12.72 $13.98 $27.53 $29.47 2021 $39.84 $43.67 $59.25 $63.47 2031 $84.21 $85.89 $107.86 $110.02 2012 $15.37 $31.55 2022 $47.51 $67.70 2032 $87.61 $112.22 2013 $16.89 $33.78 2023 $51.62 $72.21 2033 $89.36 $114.46 2014 $19.87 $37.10 2024 $55.73 $76.73 2034 $91.15 $116.75 2015 $22.85 $40.42 2025 $60.13 $81.55 2035 $92.97 $119.09 2016 $26.05 $43.98 2026 $64.54 $86.39 2036 $94.83 $121.47 2017 $29.26 $47.54 2027 $69.25 $91.53 2037 $96.73 $123.90 2018 $32.70 $51.35 2028 $73.96 $96.70 2038 $98.66 $126.38 2019 $36.14 $55.17 2029 $79.00 $102.19 2039 $100.63 $128.90 Year 2020 Year 2030 Additional environmental benefits are provided by DG technologies using on-site biogas at sites that did not previously participate in methane capture. For host sites installing on-site biogas-fueled DG technologies simultaneously with the implementation of methane capture, substantial reductions in CO2 are realized.6 6 The model was set to evaluate ICE 500 kW and microturbines fueled with on-site biogas (OSBG) as sites that simultaneously implement methane capture. The other OSBG technologies are assumed to have previously captured their methane. The model can be adjusted to allow or disallow methane benefits for other OSBG technologies. Itron, Inc. 3-7 Critical Inputs and Assumptions

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