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METHANE RECOVERY FROM ANIMAL MANURES: THE CURRENT OPPORTUNITIES CASEBOOK The DR benefit that may accrue to an electric utility is site specific. Criteria useful to help define candidate substations or feeders that may benefit from DR technology address issues associated with load growth and the need for capital expenditures greater than $200,000 within a 3-5 year period. Rarely is any credit provided for the DR benefits of farm-based AD systems usually sited at the “end of the dirt road.” The power conditioning benefits, as well as the possibility of allowing electric utilities to defer upgrading rural T&D systems, can make a significant, yet hard to quantify, impact. However, examples estimated in the DR literature range from $100/kW/year 16 to as high as $800/kW/year when the value of generation capacity, energy production, deferred T&D construction, transformer loss reduction, and line loss reduction are fully counted. In the era of deregulation, an electric utility could use AD technologies as an innovative business opportunity. These could include helping clients (in and out of its service territory) develop projects. These clients frequently require technical and financial services that a utility could readily provide either directly or through a contracting relationship. These types of services are also billable and provide revenue-generating opportunities. For example, a major electric utility recently teamed with another corporation to provide energy conversion systems that use a proprietary AD process for manufacturing biogas and other coproducts. This team now provides full scope engineer-procure-construct projects, as well as O&M training and management programs for energy conversion facilities. It can provide all planning, engineering, design, materials and equipment procurement, site preparation, construction, construction management and coordination, equipment installation, and startup and testing necessary to deliver a fully operational energy conversion facility. Primary components may include simple cycle or combined cycle gas turbine equipment to generate electricity and process steam, or a gas-fired boiler configuration, where there is a large process steam demand. The team also provides all planning, engineering, design, materials and equipment procurement, site preparation, construction, construction management and coordination, equipment installation, and startup and testing necessary to deliver a fully operational transmission line and connecting switchyard to the local power grid. Another service could be in the area of providing contracts that provide equipment maintenance and service needs to customers who do not have the time, desire, or ability to conduct routine or emergency services on their equipment. One last service area, financing in the form of leases and rents for key equipment such as generators, engines, and gas handling equipment, does have some potential. 3.5 Climate Challenge The Climate Challenge program is a joint initiative of the DOE and the electric utility industry to reduce greenhouse gas emissions. The program was established as part of the U.S. response to the 1992 Rio Treaty for the international stabilization of greenhouse gases. One of the reasons for joining Climate Challenge is that effective voluntary efforts today may negate the need for mandatory legislation or regulations tomorrow, so the program is often presented as 16 Whittier, J.; Haase, S.; Badger, P. (1997). “Distributed Generation from Biomass Resources: Emerging Potential for Utilities.” Proceedings of Bioenergy ’96; September 15-20, 1996; Nashville, Tennessee. Muscle Shoals, AL: Southeastern Regional Biomass Energy Program; pp. 598-604. 3-20PDF Image | Methane Recovery from Animal Manures The Current Opportunities Casebook
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