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Cost-Effectiveness of Distributed Generation Technologies 5.1.5 Internal Combustion Engines Under the Base Scenario, the 500 kW and the 1,500 kW IC engine are cost-effective for the STRC for all three fuels evaluated in the cost effectiveness model. The STRC results for IC engines are presented in Table 5-6 and Figure 5-10. The results show that the system and O&M cost is higher for on-site biogas technologies than for natural gas or directed biogas systems. The higher cost is associated with the development of a biogas system that may not have existed previously (e.g., dairy) and for the maintenance of such systems. The lower avoided cost benefits of the on-site biogas system are associated with the degraded electrical production of these systems due to the derating assumption that we adopted for systems using on-site biogas. This treatment is consistent with the findings from the SGIP. The federal tax benefits of the different systems and fueling choices are highly dependent on the system, operating, and fueling costs. The system, operating, and fueling costs are generally costs that contribute to a lower tax liability or a higher tax refund for the corporation or business. The directed biogas system has a higher tax benefit due to the higher fueling costs of this system configuration. The on-site biogas system has the lowest tax benefit due to the zero fueling costs associated with the on-site biogas configuration. Itron, Inc. 5-20 Results and ObservationsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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