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Cost-Effectiveness of Distributed Generation Technologies Technologies fueled by on-site biogas have higher system and O&M costs than technologies fueled by natural gas or directed biogas. The higher costs are associated with the installation of a biogas digester system (for example at dairies that would disposed of waste in some other manner) and for the maintenance of such systems.13 The electricity production from an on-site biogas system is also derated relative to a system fueled by natural gas or directed biogas. The useful energy content in on-site biogas is lower compared to natural gas or directed biogas.14 For those devices using on-site biogas, we could either increase the amount of gas for a given size device output or decrease the device output for a fixed amount of gas. We chose the latter approach and derated the electricity production. The derated electricity production leads to a lower avoided cost benefit for on-site biogas technologies relative to natural gas and directed biogas fueled systems. The on-site biogas technologies evaluated in this model are evaluated under two different emissions assumptions. The smaller technologies, microturbines, and IC engines (500 kW) are modeled as dairies that were not previously capturing methane. The remaining technologies are modeled as waste water treatment plants, landfill operations, or other businesses that were required to capture their methane prior to the installation of the DG technology. When the smaller technologies are fueled by on-site biogas the cost effectiveness model adds the value of the captured emission to the benefits column. In Table 5-5 the levelized emissions benefit associated with methane capture for microturbines is $107,717 while the levelized emissions benefit for IC engines is $287,830. In Figure 5-9 the emissions benefits and costs are reflected by the blue-colored portion of the bar. The emission benefits significantly impact the cost- effectiveness of the smaller systems. 13 California environmental regulations do not require small on-site biogas applications such as dairies or food processing facilities to install biogas digesters in order to control methane emissions. Consequently, for these applications, the capital cost of a digester system was considered to be part of the measure cost. 14 In general, biogas has an energy content of approximately 500 Btu per cubic foot or nearly half that of natural or directed biogas. Itron, Inc. 5-19 Results and ObservationsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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