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Driver/Benefit Energy Cost Savings Summary Examples Federal, State, Local, and Utility Incentives38 A number of the facilities interviewed received financial incentives that helped pay for the cost of installing CHP, with some describing the incentives as a key component to project viability. Incentive examples include government grants or payments for the “green” attributes of power generated at WWTFs using biogas, and utility programs targeted at expanding clean energy or energy efficiency. In addition, some facilities can sell excess power to the grid through power purchase agreements, which has enhanced CHP project economics at those sites. • The 1.8 MW reciprocating engine CHP system at the Des Moines Metro Wastewater Reclamation Facility has reduced the electrical bill by $500,000/year since 2002. • Fairfield Water Pollution Control Authority cited availability of public funding as a key Table 18: Interview Results – Drivers and Benefits Each WWTF interviewed utilizes their biogas in a CHP system to displace electricity and/or fuel for digester heat loads that they would otherwise have to purchase, leading to significant energy cost savings for the facility. Some facilities said they use the savings generated from CHP to invest in other infrastructure upgrades needed at the facility, and some of the facilities mentioned that the use of CHP makes them more conscious of the energy they use, resulting in additional projects that improve energy efficiency and reduce costs. Several facilities also noted the desire to hedge against possible energy price increases as a driver for CHP . • The 120 kW microturbine CHP system at Albert Lea Wastewater Treatment Plant generates approximately $100,000 in annual energy savings. Approximately 70 percent of the savings derives from reduced electricity and fuel purchases and 30 percent from reduced maintenance costs. The facility noted that CHP made the facility more conscious of its energy use, leading to a number of other energyefficiency improvements, which resulted in further cost savings. • The 1.7 MW reciprocating engine CHP system at the Columbia Boulevard Wastewater Treatment Plant operates at an overall efficiency of 82 percent and generates approximately $700,000 in annual energy savings. The system offsets approximately 40 percent of the facility’s electric power demand. • The 900 kW reciprocating engine CHP system at Theresa Street Wastewater Treatment Facility generates $50,000 to $100,000 in annual energy savings out of an operational budget of $4.5 million. • The 3.075 MW reciprocating engine CHP system at the Rock River Water Reclamation Plant saves the facility approximately 50 percent on its energy bill, an annual savings of approximately $250,000. • The business case for CHP clearly drove CHP installation for the Santa Maria Wastewater Treatment Plant. Prior to installing its 300 kW reciprocating engine CHP system, the facility was paying 13 to 15 cents per kWh, but with CHP, the facility is now only paying the equivalent of 8 cents per kWh.37 driver for installing their 200 kW fuel cell CHP system. Their system is fueled with natural gas; the site previously had biogasfueled microturbines but had challenges with gas treatment. The facility received $880,000 in funding from the Connecticut Clean Energy Fund, approximately twothirds of the total $1.2 million CHP system cost. • For the Town of Lewiston Water Pollution Control Center, state and utility funding provided 100 percent of the $300,000 project cost of the 60 kW microturbine CHP system. • Allentown Wastewater Treatment Plant developed its 360 kW microturbine CHP system under a Master Energy Savings agreement with its local utility. Under the arrangement, installation of the system was funded through a 10year lease/purchase agreement, and an O&M agreement with the utility provides for fixed O&M costs (with an escalator) through 2014. In exchange, the facility receives guaranteed energy savings achieved 37 The costs of purchasing backup power when the CHP system is down have made the total costs about the same as prior to CHP, but this has been attributed to the contract with the third party not covering expected hours of operation or backup charges. 38 National and state level incentives applicable to CHP and biogas can be found in the CHPP Funding Database (http://www.epa.gov/chp/funding/funding.html) and the Database of State Incentives for Renewable Energy (DSIRE) (http://www.dsireusa.org/). 31PDF Image | Combined Heat and Power at Wastewater Treatment Facilities
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