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Cost-Effectiveness of Distributed Generation Technologies It is clear that some emerging technologies like fuel cells have very aggressive learning curves. This rapid learning is assumed to occur because new technologies with low volume production can see ―faster‖ benefits from lessons associated with improvements in production. Conversely, well established technologies such as IC engines and gas turbines have rather flat or even ―negative‖ learning curves. The specific approach and assumptions used to collect cost, capacity, and performance data changes for each of the examined DG technologies are covered later in this appendix. A.1.2 Treatment of Biogas Collection and Processing Costs ―Biogas‖ refers to the methane-rich gas that is produced from the naturally-occurring anaerobic biological breakdown (or digestion) of organic materials such as manure or food processing wastes. Biogas is a mixture of methane, carbon dioxide, water and a variety of other trace compounds. Depending on the source of the biogas and its associated methane content, biogas represents a renewable fuel source with an energy content of approximately half that of natural gas.1 Biogas has been used as a fuel resource for hundreds of years but saw increased use for electricity generation purposes in the United States in the mid-1980s following passage of the Public Utility Regulatory Policies Act (PURPA) of 1978.2 Common sources of biogas include landfills, wastewater treatment facilities, food processing plants, and livestock operations (e.g., dairies, swine operations, etc.). Since the startup of the SGIP in 2001, over 50 SGIP projects have been installed that use biogas as a fuel source. Natural gas prices implicitly reflect costs associated with collecting natural gas from underground reservoirs and processing it to remove water and other contaminants. Similarly, biogas must be collected and processed before use in DG technologies. Unlike natural gas resources, it is necessary to also estimate the costs associated with the anaerobic processes that biologically convert the solid or liquid biomass resources to biogas. Biogas conversion costs are not considered as project capital costs for landfills and wastewater treatment facilities in this study. In the case of both landfills and wastewater treatment facilities, the biological conversion systems are already in place and do not represent costs that must be borne by the biogas-to- energy project.3 Conversely, biogas conversion systems (e.g., digesters) are not already in place at dairies or food processing facilities. Consequently, we incorporated the costs of biogas gas collection and conversion systems as part of the overall biogas to energy project costs for energy applications at livestock (dairies and swine operations) and food processing facilities. 1 Generation Conference, March 21, 2001 Simons, G. and Z. Zhang, ―Distributed Generation from Biogas in California,‖ Interconnecting Distributed 2 Renewable Energy Laboratory, NREL/SR-580-25145, September 1998 Lusk, P. ―Methane Recovery from Animal Manures: The Current Opportunities Casebook,‖ for the National 3 considered for both landfills and wastewater treatment facilities if the biogas is to be used as a fuel. While the biogas conversion systems are considered to be in place, biogas treatment costs must still be Itron, Inc. Appendix A-4 DG TechnologiesPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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