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Cost-Effectiveness of Distributed Generation Technologies available to environmentally clean fuel systems and are based on the quantity of electricity produced, not the quantity of GHG reduction. Under this system, wind energy receives the same REC for a kWh of energy as microturbines fueled by on-site biogas and methane capture. The microturbine, however, has a much more substantial contribution to reducing GHG than the wind turbine. The levelized value of the REC for the microturbine fueled by on-site biogas within the PCT is slightly over $22,000. The relatively small value of the emissions reduction within the PCT significantly contributes to the measure’s low PCT of 0.82. If the valuation of emissions reduction in the PCT were similar to the valuation of emission reductions in the STRC, microturbines would have a PCT approaching 1.10 without any additional incentives. For microturbines fueled by on-site biogas to be a viable alternative to the participant will require either significant incentives or a modification in the valuation of GHG savings under the REC.19 19 The IC engine 500 kW is also modeled as a system associated with the initiation of methane capture. A higher valuation of the greenhouse gas reduction associated with this system in the PCT (going to the participant) would lead to a substantially higher PCT. A higher PCT should be associated with a higher likelihood of system implementation. Itron, Inc. 5-64 Results and ObservationsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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