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HomeMy WebLinkAboutRound_IV_Costworksheet Renewable Energy Fund Round 4 Project Cost/Benefit Worksheet RFA AEA11-005 Application Cost Worksheet Page 1 7-21-10 Please note that some fields might not be applicable for all technologies or all project phases. The level of information detail varies according to phase requirements. 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 25 MW Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other 38 Stand-Alone Diesel Engines and Generators ii. Rated capacity of generators/boilers/other 20 MW iii. Generator/boilers/other type Diesel iv. Age of generators/boilers/other Brand New to 30+ Year Old Diesel Engines (ie. NEA’s 34-Year Old White Superior Engines) v. Efficiency of generators/boilers/other 14.2 kWh / Gallon Diesel b) Annual O&M cost (if system is part of the Railbelt grid, leave this sec tion blank) i. Annual O&M cost for labor $1.1 Million ii. Annual O&M cost for non-labor $1 Million c ) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] 45 Million kWh from 17 MW Capacity ii. Fuel usage Diesel [gal] 3,109,401 Gallons Diesel Other Negligible iii. Peak Load 18 MW Regionally iv. Average Load 10 MW Regionally v. Minimum Load 8 MW Regionally vi. Efficiency 10.65 – 14.58 kWh / Gallon Diesel in NEA’s 10 target communities vii. Future trends  Oil prices and supply remain high cost and unpredictable  Extremely high cost fossil fuel and transportation costs in the region  Rising costs of air quality compliance costs , and carbon legislation  Mandate and public funding for renewable energy development  Increased growth of regional interconnection networks  Increased economy of scale and lower costs wit h interconnection  Decreasing reliance on inefficient stand-alone generation facilities  Increased natural resource development SW Alaska and the Arctic  Decreased environmental liability with geothermal energy 1 The Railbelt grid con nects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Round 4 Project Cost/Benefit Worksheet RFA AEA11-005 Application Cost Worksheet Page 2 7-21-10  “New Energy” economy, workforce development and jobs  Sustained “New Energy” investment offsetting high front end cos ts  Hydrogen production through electrolysis with lower cost energy  Hydrogen transportation demonstration projects d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 2,390,584 Gallons Diesel ii. Electricity [kWh] Negligible iii. Propane [gal or MMBtu] Negligible iv. Coal [tons or MMBtu] Negligible v. Wood [cords, green tons, dry tons] Negligible vi. Other 3. Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels ) a) Proposed renewable capacity (Wind, Hydro, Biomass , other) [kW or MMBtu/hr] 25 MW → 50 MW geothermal energy generation capacity and growth with increased demand b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 25 MW → 50 MW ii. Heat [MMBtu] 12 MWe available after electric demand is met c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] NA ii. Coal [tons or MMBtu] NA iii. Wood [cords, green tons, dry tons] NA iv. Other No diesel fuel consumption for electric generation during the life of the project = 30 Years 4. Project Cost a) Total capital cost of new system $160,830,500 b) Development cost $40,831,068 c ) Annual O&M cost of new system $2.1 Million (same as for diesel system) d) Annual fuel cost No generation fuel costs for the life of t he project 5. Project Benefits a) Amount of fuel displaced for i. Electricity 3,109,401 Gallons Diesel Annually ii. Heat 2,390,584 Gallons Diesel Annually iii. Transportation Unknown potential with hydrogen production for maximum annual resour ce utilization and efficiency b) Current price of displaced fuel $23,234,046 Annually in NEA’s 10 target communities Renewable Energy Fund Round 4 Project Cost/Benefit Worksheet RFA AEA11-005 Application Cost Worksheet Page 3 7-21-10 c) Other economic benefits  Lower end user costs for home heating  Stable, firm, clean, renewable, secure, cost effective  Increase capaci ty and economy of scale  Decreased environmental liability with z ero emissions and no negative health impacts  Economic growth and energy diversity  Workforce development and “New Energy” jobs  Higher capacity factor than other renewables d) Alaska public benefits  Controlled c ost of power  PCE payment reductions  Reverse negative perception of rural Alaska  Natural resource value-added industries  Increased state and local t ax revenue  Increased land sales / real property tax revenue  Renewable energy produced hydrogen demos 6. Power Purchase/Sales Price a) Price for power purchase/sale All wholesale power sales are cost based 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback (years) 7 Years