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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 5.1.7 Microturbines Under the Base Scenario the STRC value for microturbines exceeds 1.0 for all fuel choices (see Table 5-8 and Figure 5-12). The STRC is highest for microturbines fueled by on-site biogas. On-site biogas systems have a higher system and O&M cost but do not have a fueling cost. The avoided cost benefits for the on-site biogas system are lower than the natural gas or the directed biogas because the useful energy content in on-site biogas is lower compared to natural gas or directed biogas. Microturbines fueled by on-site biogas are modeled as being installed at sites that did not previously participate in methane capture. The installation of on-site biogas microturbines under this scenario leads to the capture of methane that did not occur previously and a substantial benefit to society. The emissions benefit of microturbines fueled with on-site biogas leads to a significant increase in their benefits, helping the system overcome higher costs and result in a higher STRC. Table 5-8: STRC Test Levelized Costs and Benefits for Microturbines, PG&E, Inland, No Rebate, 2010 Microturbine (200 kW) Natural Gas Microturbine (200 kW) Directed Biogas Microturbine (200 kW) On-site Biogas 2010 Benefit Cost Benefit Cost Benefit Cost System Cost $55,311 Federal Taxes $63,599 Avoided Cost $249,516 O&M Cost $36,817 Fueling Cost $168,346 Emissions $38,909 Total $313,115 $299,383 Net Benefit $13,732 Ratio 1.05 $87,522 $249,516 $337,038 $55,311 $36,817 $168,346 $38,909 $299,383 $37,656 1.13 $82,591 $174,661 $107,717 $364,970 $171,507 $121,213 $927 $293,646 $71,323 1.24 Itron, Inc. 5-26 Results and Observations

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