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Cost-Effectiveness of Distributed Generation Technologies 5.1.3 Directed Biogas Fuel Results Figure 5-6 shows the statewide STRC results for DG technologies fueled by directed biogas in 2010 and 2016 without incentives. Figure 5-7 and Table 5-4 present the cost and benefit breakout for the STRC test for the Base Scenario in PG&E’s territory. Not surprisingly, the results for directed biogas are similar to those seen for natural gas.12 However, technologies fueled by directed biogas have slightly higher STRC values than technologies fueled by natural gas. This is due to the higher federal tax benefits associated with using the more expensive per therm directed biogas. The higher tax benefits are a result of the higher directed biogas fueling costs, which lead to higher business costs and a higher federal tax benefit. Figure 5-6: Statewide Societal TRC Results by Directed Biogas Fuel (2010 and 2016), No Incentives 160% 140% 120% 100% 80% 60% 40% 20% Societal TRC Test Results: Direct Bio-Gas Statewide · Inland · Commercial No Rebate 2010 2016 100% 80% 0% FC1200kWe FC1200kW GTg2to5MW GTle2MW ICE1500kW ICE500kW MT200kW 12 Note that the STRC test does not explicitly incorporate the higher fueling costs of using directed biogas as a fuel since fueling costs and avoided cost benefits are valued at the gas and electric avoided costs not the fuel prices for the STRC test. The higher fueling costs of the directed biogas technologies are incorporated into the federal tax benefits within the STRC test. The actual fueling costs are used to calculate the tax benefits for the STRC test because these are the costs the corporation would use to calculate its taxes. The higher fueling costs directly impact the participant test. Itron, Inc. 5-13 Results and Observations Societal TRC B/C RatioPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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