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Cost-Effectiveness of Distributed Generation Technologies participant’s viewpoint without an incentive that exceeds the system costs. The fueling cost for directed biogas is too expensive for the small system size. Systems fueled by on-site biogas are cost-effective under the PCT with a significant rebate. Systems fueled with on-site biogas, however, are cost-effective from society’s point of view due to the high GHG benefit associated with the methane capture (STRC = 1.24). 5.2.5 IC Engine Results IC Engines at 500 kW Nominal Capacity Figure 5-29 shows the PCT and MIRR results for IC engines at a nominal 500 kW capacity fueled by natural gas. As shown, the IC engine with this capacity and fuel combination passes the PCT significantly and is cost-effective from the participant point of view. The PCT ratio was 1.18 in 2010 without incentives and had a corresponding MIRR of 14.5%. An incentive of $0.31/Watt is needed to reach an MIRR of 15%. The relatively low cost of IC engine systems and the low fueling cost of natural cost contribute to the cost-effectiveness of these systems. Figure 5-29: PCT Results for IC Engines at 500 kW, Natural Gas (PG&E) Itron, Inc. 5-52 Results and ObservationsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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