A Model for Estimating Revenue from Avoided Demand Charges for Agricultural Operations Utilizing Anaerobic Digesters

Sean Hurley

No 237368, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association

Abstract: This paper investigates how to estimate revenue from avoided demand charges that are part of a net-metering time-of-use contract that is seen in California. Utilizing fifteen minute kW data regarding supply and demand of electricity for a digester operator, simulation modeling was used to investigate electricity bills, specifically demand charges. Findings show that demand charges are an important component for a digester operator to be mindful of when selecting the individual’s initial engine configuration and maintenance scheduling.

Keywords: Agribusiness; Farm Management; Livestock Production/Industries; Production Economics (search for similar items in EconPapers)
Pages: 25
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:237368

DOI: 10.22004/ag.econ.237368

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