Can Standby Generator Installations at Wastewater Treatment Facilities Generate Revenue? - A Case Study

Maryland Department of Environment recommends all wastewater facilities to provide two independent power sources to the facilities in case of loss of power from one of the power sources. Wastewater utilities installing standby generators as an alternate power source have the choice to also generate revenue by implementing peak load demand shaving and participating in the capacity market. This paper presents a case study of application, regulatory and economic viability of generating savings and revenue by implementing air quality and interconnection requirements into the planned standby generators at the Washington Suburban Sanitary Commission’s Western Branch Wastewater Resource Recovery Facility. It includes (i) load demand analysis, (ii) generator sizing and engine type, (iii) opportunities for savings and earned revenue for operating standby generators, (iv) regulatory requirements, and (v) cost/benefit analysis. The cost/benefit analysis for implementing peak shaving and participation in the capacity market will be discussed in detail. Sensitivity analysis is presented to determine the impact of variations in key variables. The paper concludes that because of significantly increased capital and operational costs of implementation of air quality and interconnection requirements at the Western Branch Wastewater Resource Recovery Facility revenue generating options or non-emergency applications -are not always economically viable.