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Simple Cost-Benefit Analyses of Biogas Use and Tariff Options for an Existing Anaerobic Digester System on a New York State Dairy Farm

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Abstract

New York State (NYS) enacted the Climate Leadership and Community Protection Act (CLCPA) in 2019 that established a renewable energy program under public service law and listed renewable energy systems. This listing resulted in modification of the Value Stack tariff components that are applicable to anaerobic digester gas (ADG)-to-electricity systems, specifically eliminating the Environmental (E) Value component. A set of simple cost-benefit analyses of an existing dairy farm manure ADG-to-electricity system under the historical net energy metering (NEM) tariff, the Value Stack tariff, the Value Stack tariff with the NYS E Value included, and the Value Stack tariff with a calculated E value reflecting total GHG emission reduction revealed that the latter two hypothetical cases produce an annual net income to the farm of $100,000 and $330,000, respectively, while the available NYS tariff options produce none. While the 2,000-cow dairy generates up to 77 percent more electricity than it uses and supplies it to the utility grid, it can only offset its own utility electricity costs with the revenue possible under available NYS tariffs.

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This document was prepared by the Cornell PRO-DAIRY Dairy Environmental Systems Program (aka the Contractor) in the course of performing work contracted for and sponsored by the New York State Energy Research and Development Authority (hereafter “NYSERDA”). The opinions expressed in this report do not necessarily reflect those of NYSERDA or the State of New York, and reference to any specific product, service, process, or method does not constitute an implied or expressed recommendation or endorsement of it. Further, NYSERDA, the State of New York, and the Contractor make no warranties or representations, expressed or implied, as to the fitness for particular purpose or merchantability of any product, apparatus, or service, or the usefulness, completeness, or accuracy of any processes, methods, or other information contained, described, disclosed, or referred to in this report. NYSERDA, the State of New York, and the Contractor make no representation that the use of any product, apparatus, process, method, or other information will not infringe privately owned rights and will assume no liability for any loss, injury, or damage resulting from, or occurring in connection with, the use of information contained, described, disclosed, or referred to in this report.

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2020-07

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Dairy Environmental Systems Program

Keywords

biogas; anaerobic; digester; tarriff; electricity; value stack; net metering

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case study

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