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Cost-Effectiveness of Distributed Generation Technologies

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Cost-Effectiveness of Distributed Generation Technologies ( cost-effectiveness-distributed-generation-technologies )

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Cost-Effectiveness of Distributed Generation Technologies Based on the estimated capital and O&M costs, levelized costs were developed that could be compared to estimates developed by other sources. Table A-4 lists the levelized capital and O&M costs used in the cost-effectiveness model. Table A-4: Estimated Levelized Biogas Costs Technology LEVELIZED CAPITAL COST /kW LEVELIZED O&M Complete Mix Plug Flow Covered Lagoon Average System /kWh Gas Turbine 1MW $ 3,698.22 $ 4,984.01 $ 2,054.58 $ 3,578.94 $ 0.04027 Gas Turbine 3.5MW $ 2,043.79 $ 2,813.62 $ 983.74 $ 1,947.05 $ 0.02797 Fuel Cell 1.2 MW $ 2,557.41 $ 3,395.71 $ 1,527.97 $ 2,493.70 $ 0.02437 Micro Turbine 200 kW $ 6,496.58 $ 8,415.57 $ 4,750.60 $ 6,554.25 $ 0.06617 ICE 500 kW $ 3,853.44 $ 5,078.38 $ 2,516.40 $ 3,816.07 $ 0.03819 ICE 1.5 MW $ 2,636.84 $ 3,570.88 $ 1,428.57 $ 2,545.43 $ 0.02963 A.1.4 Conclusions California has a dairy animal population of 1.4 million animals, representing the largest dairy population of any state in the country.8 These animals generate over 30 million tons of manure annually, which could be used as a renewable energy resource if found to be environmentally acceptable and cost-effective. Farms of at least 500 cows account for over 88% of California dairy operations and farms having 1,000 to 5,000 cows are the most common.9 Our cost analysis shows that microturbines and IC engines smaller than 1.5 MW in capacity represent the most likely scale of DG system based on the number of animals commonly found on dairy farms, and the associated cost of anaerobic digester systems. Based on current regulations and requirements, digester costs were applied only to dairy or food processing applications that were not otherwise required to install systems to capture and flare biogas. Within the SGIPce model, this equated to dairy digester capital costs being applied to on-site biogas applications of 500 kW in capacity or smaller. 8 9 U.S. EPA, Region 9, Animal Waste web site; http://www.epa.gov/region9/animalwaste/california.html Economic Research Service, USDA, ―Profits, Costs, and the Changing Structure of Dairy Farming,‖ ERR47, http://www.ers.usda.gov/publications/err47/err47b.pdf Itron, Inc. Appendix A-12 DG Technologies

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