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Cost-Effectiveness of Distributed Generation Technologies Figure A-35: Cost to Generate Power as a Function of Capital Cost in $/kW Figure A-36: Cost to Generate Power as a Function of Compressor Operating Hours The two graphs show that the costs associated with generating power from heat recovery systems are affected by the load factor and capital costs. Figure A-35 shows that that when using the February 2008 power price range, systems with a capital cost greater than $3,500/kW are not economically viable, as the cost to generate power is greater than the cost to purchase power. The same can be said for systems whose annual operating hours are below 6,000, or a load factor of less than 68%, as the cost to generate power is not low enough to match the cost of purchasing power. For the purposes of this study, ORC system costs were assumed to be $2,650/kW. Itron, Inc. Appendix A-68 DG TechnologiesPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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