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The Economics and Feasibility of Electricity Generation using Manure Digesters on Small and Mid-size Dairy Farms

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The Economics and Feasibility of Electricity Generation using Manure Digesters on Small and Mid-size Dairy Farms ( the-economics-and-feasibility-electricity-generation-using-m )

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Digester Electricity Requirements. As pointed out earlier, a digester requires about a third of the electrical energy it is capable of generating. The bulk of this energy is used to maintain the temperature of the manure in the digester. This is why the amount is independent of the amount of electricity actually produced. Even though I have allowed, in all the above arguments, for a farm to choose not to fully utilize all their EPP, the electric requirement for a digester depends essentially upon the amount of manure digested, not the amount of electricity generated. Further, given the range of non-electric benefits from digestion, I assume that a farm will choose to digest all of its manure, regardless of the amount of electricity it chooses to generate. The adequacy of this assumption is impossible to test without information on the value of all the other outputs. However, even though the electric requirement to heat the digester will be a constant with respect to capacity utilization for a farm of given size, it will vary with season. This suggests that we should consider whether these electric requirements are likely to lead to binding capacity constraints. I argue that they should not. We also need to consider at what price to value this heat requirement. If ps≥pb, the farm will always sell as much electricity to the grid as possible, and satisfy all its electricity requirements by purchase (Proposition 1). It follows that the electricity to run their digesters will not even make use of their own capacity, leave alone exhaust it. Also, as the electricity to heat the digester is purchased, its cost is evaluated at pb. If ps

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The Economics and Feasibility of Electricity Generation using Manure Digesters on Small and Mid-size Dairy Farms

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