Economic Feasibility Study of Colorado Anaerobic Digester Projects ...

15 minutes each month for maintenance purposes. Frequently the unexpected
maintenance problems occur during peak energy demand times.
Anecdotal experience presented by the technology providers is that Colorado, as an
industry, is slow to provide supply/demand initiatives compared to other western
states such as Oklahoma, Texas, and California. In contrast to Colorado utility
company practices, which strictly inform producers of their rates, California PG&E
enables operators to shift to different utility rate structures. Such “open door
policies” foster a more favorable environment to generate energy onsite.
Demand-side utility policies that GEO could facilitate that may improve producer
cost savings (and effectively lower energy demand charges) include:
• Higher demand thresholds (or tiered demand thresholds).
• Utility plans that specifically accommodate planned periods of AD shut down,
even during peak energy times.
• More flexible or customized service plans to accommodate facilities that
generate alternative energy. Several formats may be developed and may
include options such as tiered demand thresholds, tiered pricing, and offpeak
pricing.
• Consistent agreement and cooperation between utility providers and
producers about net metering practices.
• Improved implementation of net metering practices.
C. Under-developed infrastructure and policies for supplying farm-based energy to the
grid: Lack of infrastructure (such as gas supply pipelines), limited opportunities for
net metering, and current utility practices do not foster the supply of energy to the
utility companies. As summarized by one technology provider, “The energy industry
in Colorado is simply not economically attractive compared to the energy industry in
other states, both for electricity and supplying off-farm biogas.”
Developing a favorable purchase agreement between alternative energy producers
and utility companies has reportedly been difficult in the past in Colorado for both
electricity and biogas. Furthermore, while states such as California are mandated to
purchase renewable energy, there have only been voluntary alternative energy
purchase agreements in Colorado.
Economic Feasibility Study of Colorado Anaerobic Digester Projects
Prepared by Dr. Catherine Keske, Colorado State University
August 2009
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