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Cost-Effectiveness of Distributed Generation Technologies 5.3 Comparing Societal Total Resource Cost and Participant Cost Test Results Table 5-11 lists the STRC results for the commercial sector in 2016 and the PCT results for 2010 without incentives. Presenting the two different cost-effectiveness measurements side-by-side helps to clarify and compare which technologies are good for society and which technologies may need additional incentives to make them more attractive to participants. The results presented in Table 5-11 represent the cost-effectiveness of technologies in the commercial sector. The STRC results for 2016 are presented because SGIP is designed as a program incorporating market transformation and is currently planned to continue through 2016. The market transformation goals imply that the program may be willing to incent measures that are not cost-effective in 2010 if this support can help the measure become more cost-effective by 2016. The PCT results for 2010 are presented because SGIP needs to provide potential participants with the needed incentives to encourage technology adoption in the current and future periods. The results presented in Table 5-11 show that all of the analyzed DG technologies other than storage are cost-effective or nearly cost-effective under the STRC when using the statewide electric sales weighted results. The STRC for storage is 0.59 and 0.66 for 25 kW and 1,000 kW systems, respectively. Small gas turbines (1,000 kW) are the only other technology with a STRC less than 1.0. The STRC for small gas turbines is 0.88-0.96, within a likely uncertainty range for the STRC given the 20-year forecast of avoided cost benefits needed to calculate the STRC. Systems with the highest STRC include wind (1,000 kW) with a STRC of 1.72, microturbines fueled by on-site biogas at 1.52, IC engines (500 kW) fueled by on-site biogas at 2.39, IC engines (1,500 kW) fueled by on-site biogas at 1.72, and ORC with a STRC of 1.73. All of these systems share one commonality: the technologies are either fueled by on-site biogas or a non- cost fuel such as wind or process heat. All of the highest STRC systems have no fueling cost. The lack of a fueling cost also contributes to a higher-than average-PCT value for these systems. Wind has a PCT of 1.58, ORCs have a PCT of 1.19, IC engines (1,500 kW) have a PCT of 1.79, and IC engines sized to 500 kW have a PCT of 1.05. Only microturbines fueled by on-site biogas are not cost-effective to the participant (PCT = 0.82). The relationship between the STRC and the PCT for microturbines deserves additional attention. The STRC for microturbines of 1.52 indicates that the societal benefits are 1.5 times as large as the societal costs. A large benefit in the STRC calculation is the monetized value of methane capture. Microturbines using on-site biogas were modeled as DG measures installed at sites that were previously venting methane. The installation of the technology leads to methane capture and a significant reduction in GHG emissions. The reduction in emissions attributed to methane capture by microturbines fueled by on-site biogas has a levelized value in STRC of slightly over $100,000. The reduction in GHG emissions within the PCT is valued using RECs. RECs are Itron, Inc. 5-63 Results and ObservationsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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