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Cost of Renewable Energy Spreadsheet Tool (CREST) for Anaerobic Digestion. Michael Mendelsohn Patrick Serfass Anthony Callendrello Jason Gifford March 13 th 2013. Promoting the Use of Biogas O 167 Members from the U.S., Germany, Italy, Canada and the UK - PowerPoint PPT Presentation
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NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.
Cost of Renewable Energy Spreadsheet Tool (CREST) for Anaerobic Digestion
Michael MendelsohnPatrick SerfassAnthony CallendrelloJason Gifford
March 13th 2013
www.americanbiogascouncil.org
Promoting the Anaerobic Digestion and Biogas Industries
www.americanbiogascouncil.org
Promoting the Use of Biogas
O 167 Members from the U.S., Germany, Italy, Canada and the UK
O All Industry Sectors Represented
Key Industry Goals:
O Promote biogas markets, technologies and infrastructure
O Achieve policy parity
O Promote as a best practice for environmental stewardship and greenhouse gas reduction
www.americanbiogascouncil.org
Promoting the Anaerobic Digestion and Biogas Industries
Changing the Biogas Industry through:o Legislative and Regulatory Affairs:
o Federal: Biogas Tax Credit; Clean Energy Standard; NAT GAS Act; Farm Bill
o Introduction of Biogas Investment Tax Credit(Rep. Kind and Rep Lewis)
o States: California, Massachusetts, Wisconsin, more
o Sharing Expertise:
o 4 Specialized Working Groups
o Marketing and Education:
o Briefings, presentations, and webinars for customers, policy makers, and the general public
o Member Exposure
o Speaking opportunities in ABC workshops, webinars
o Large Industry Network – 6,000+ member company contacts
o Entire supply chain of production, processing and use
Join Today!
Contact Josh Lieberman at [email protected] or 202-640-6595 x 322
www.americanbiogascouncil.org
Promoting the Anaerobic Digestion and Biogas Industries
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Some of our members:
Dedicated to maximizing the production and use of biogas from organic waste
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www.americanbiogascouncil.org
Promoting the Anaerobic Digestion and Biogas Industries
5americanbiogascouncil.org
Use of CREST Model in State ProgramsNREL Webinar
Tony Callendrello, NEO Energy LLC
www.americanbiogascouncil.org
Promoting the Anaerobic Digestion and Biogas Industries
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Large Potential for Development of AD Projects
12,000+ US sites available for development Farms: 8,241 (only counting dairy and swine) —1700 MW Wastewater Treatment Plants (WWTPs): 3,899—750 MW
2,000+ WWTPs > 1 MGD don’t have a digester 378 WWTPs producing, but not using biogas
Landfills: 540 Commercial/institutional/industrial sites: Likely thousands
Germany has developed over 7,500 AD projects Average annual growth since 2001 of ~20%
www.americanbiogascouncil.org
Promoting the Anaerobic Digestion and Biogas Industries
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Where Companies are Developing Biogas-Electricity Projects Total Projects: 324* Total Power Capacity: 649 MW* Total Industry Investment: $3.5 billion Average: $5.74 million/MW Average: $12.6 million/project
*As reported by individual companies to the American Biogas Council, Fall 2011
Number of Companies Developing Projects
www.americanbiogascouncil.org
Promoting the Anaerobic Digestion and Biogas Industries
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Energy rate that ensures financial feasibility Feed-in-tariff, avoided cost (e.g. Vermont, Hawaii) Ceiling price (e.g. Rhode Island)
AD applications and revenue streams complicate modeling There are a variety of AD applications
Agricultural (manure, energy crops) Source separated organics (food processors, supermarkets) Waste water treatment plants (sludge or co-digestion)
Other potential revenue streams Tipping fees Digestate
CREST model has the flexibility to model these parameters CREST model is a useful tool for setting rates (Rhode Island) Other states can look to the CREST model for setting AD rates
Key to Deployment of AD
www.americanbiogascouncil.org
Promoting the Anaerobic Digestion and Biogas Industries
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Thank You!
Anthony M. Callendrello, COONEO Energy LLC1New Hampshire Avenue, Suite 207Portsmouth, NH 03801direct: 603.766.8748cell: [email protected]: www.neoenergyusa.com
Copyright © Sustainable Energy Advantage, LLC.
Cost of Renewable Energy Spreadsheet Tool
(CREST)
An Introduction & Primer
Jason GiffordSustainable Energy Advantage, LLC
March 12, 2013
Copyright © Sustainable Energy Advantage, LLC. Confidential. Subject to Terms of Subscription Agreement.
Renewable Energy Cost Modeling
Project Objectives:• Create a toolkit for cost-based rate-setting in the US
– Report, Models, User Manual
• CREST models:– A cost-of-energy analysis tool intended to assist policy makers
considering cost-based renewable energy incentive policy. – Models: Solar, Wind, Geothermal, Anaerobic Digestion
• CREST models (and Report and User Manuals) are publicly available at:
http://financere.nrel.gov/finance/content/crest-model
or Google “CREST model”.
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Copyright © Sustainable Energy Advantage, LLC. Confidential. Subject to Terms of Subscription Agreement.
Project Team
• National Renewable Energy Laboratory (NREL)– Exeter Associates, Inc.
• Sustainable Energy Advantage (SEA)• Meister Consultants Group (MCG)
• CREST peer review network included several PUCs:– Colorado– Hawaii– Michigan– Washington
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Copyright © Sustainable Energy Advantage, LLC. Confidential. Subject to Terms of Subscription Agreement.
Inputs• Size & Performance
• Capital Costs
• O&M Costs
• Financing
• Ownership/Tax
• Supplemental Revenue Streams
• Incentives
• Reserves
• Depreciation
Constraints• Debt Service
Coverage Ratios– Minimum
– Average
Features• Level of Cost Detail
• Public/Private Ownership
• Tax benefit carry-forward
• Incentives13
Outputs• Cost of Energy
• Levelized Cost of Energy
CREST ModelKey Assumptions: Cost-based, Fixed Payment, Long-Term
Balancing Priorities: Ease of Use vs. Advanced FunctionalityAutomation vs. “No Macros”
Copyright © Sustainable Energy Advantage, LLC. Confidential. Subject to Terms of Subscription Agreement.
Using CREST: Why and How?Well-Defined Objectives are Important
1. What are you trying to accomplish? (Policy maker perspective)a. Least-cost?
b. Rapid deployment?
2. Cost-based analysis: identify all-in LCOEa. “Gap”/“Premium” analyses can be done as a derivative
3. Identify a range of outcomesa. Uncertainty of inputs
b. Variety of project configurations
c. “Prototype” or “Representative” project
4. Supplement other analyses, data and stakeholder feedback in rate-setting proceedings.
5. Inputs can be consensus-driven, based on historic data, or estimated based on experience.
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Copyright © Sustainable Energy Advantage, LLC. Confidential. Subject to Terms of Subscription Agreement.
Model introduction & walk-through…
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Copyright © Sustainable Energy Advantage, LLC. Confidential. Subject to Terms of Subscription Agreement.
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Sustainable Energy Advantage, LLC
Office:10 Speen Street, 3rd Floor
Framingham, MA 01701
(508) 665-5850
www.seadvantage.com
Contact: Jason Gifford
tel. 802-846-7627 [email protected]
Thank You!
The CREST AD model is available at:https://financere.nrel.gov/finance/content/crest-cost-energy-
models
The slides and recording for this webinar will be available on:
http://financere.nrel.gov
