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Cost-Effectiveness of Distributed Generation Technologies a larger sized turbine leads the system to be less cost-effective from the participant’s point of view than the natural gas system. Figure 5-22 shows the effect of changing the incentive level on the MIRR for gas turbines nominally sized at 3,500 kW fueled by on-site biogas in PG&E’s service territory under the Base Scenario. In general, gas turbines in this size range and powered by on-site biogas pass the PCT by a wide margin. In this particular instance, even without an incentive, the technology shows an MIRR of 14.8%. Consequently, a small increase in incentive of only $0.18/Watt is needed to move the MIRR level to 15%. Figure 5-22: PCT Results for Gas Turbines 2 to 5 MW, On-site Biogas (PG&E) Gas turbines fueled by on-site biogas are more cost-effective from the participant’s point of view than those fueled by natural gas or directed biogas due to the high fueling cost Itron, Inc. 5-45 Results and ObservationsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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