Biomass Feasibility Project Final Report - Xcel Energy

2001 legislation ordered Minnesota’s utilities to establish standards for the interconnection and
operation of distributed generation facilities under 10MW. While the utilities are not required to
offer standard contracts, the model contracts that each utility must propose is intended to
provide distributed generation facilities under 10 MW with sufficient information to plan for new
facilities.
Other Income
In addition to capacity payments independent power producers can potentially receive credit
for a utility’s avoided distribution costs, as well as renewable energy credits and emission credits.
According to PUC, 2005b, generators should receive no additional credits for diversity, line losses,
or reliability.
Some biomass facilities may derive income from waste heat or excess biogas to industrial or
commercial facilities. The waste products from biomass energy facilities may have some
commercial value as well. Anaerobic digester waste is often used as a high quality soil
amendment. Ash may be used as a soil amendment in some circumstances, or it may be used
as a component of cement.
Interest Rate
Enter the expected rate of interest that will be earned on the project’s debt reserve.
No estimates are provided for these potential sources of revenue; however the user may enter
estimates of their own.
Figure A-9: Power Plant Expenses Screen
Page A-12
Identifying Effective Biomass Strategies:
Quantifying Minnesota’s Resources and Evaluating Future Opportunities