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Renewable Energy Fund Round 3
Project Cost/Benefit Worksheet
RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09
1. Renewable Energy Source
Annual
average
resource
availability.
Tidal energy is totally predictable decades into the future. When we size our
turbines for highly energetic sites like the ones under consideration in Angoon,
they will produce to full capacity much of the day every day of the year.
Accounting for slack tide periods and maintenance down time, we project a
60% capacity utilization--- that is to say on an annual basis the plant will
produce 60% of its nameplate capacity.
2. Existing Energy Generation and Usage
a) Basic configuration
i. Number of generators/boilers/other 3
ii. Rated capacity of generators/boilers/other 475kW, 565kW, 565kW
iii. Generator/boilers/other type CAT model 3456 year 2007; CAT 3508 yr 1998;
CAT 3508 yr 1989.
iv. Age of generators/boilers/other Rebuilt- 10 yr. Life expectancy
v. Efficiency of generators/boilers/other 14.25 kWh/gallon diesel
b) Annual O&M cost
i. Annual O&M cost for labor Approximately $95,000
ii. Annual O&M cost for non-labor Approximately $1,085,066
c) Annual electricity production and fuel usage
i. Electricity [kWh] 1,889,757
ii. Fuel usage
Diesel [gal] 143,108 gal
Other
iii. Peak Load 400kW
iv. Average Load 250kW
v. Minimum Load 200kW
vi. Efficiency 14.25kWh/gallon diesel
vii. Future trends Based upon historical trends we can expect a minimum of 300% up to a
maximum of 1000% increase in the cost of diesel over the course of the 30
year life of the plant.
3. Proposed System Design Capacity and Fuel Usage
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kWh or MMBtu/hr]
375kW modular system that may be up-rated in 125kW
increments as demand requires.
b) Proposed Annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 1,944,000 kWh
Renewable Energy Fund Round 3
Project Cost/Benefit Worksheet
RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09
c) Proposed Annual fuel Usage (fill in as applicable)
i. Propane [gal or MMBtu] None
ii. Coal [tons or MMBtu] None
iii. Wood [cords, green tons, dry tons] None
iv. Other None
4. Project Cost
a) Total capital cost of new system $6,000,000.00
b) Development cost $2,000,000
c) Annual O&M cost of new system $55,000.00
d) Annual fuel cost $0
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 107331 gallons of diesel saved; 75% diesel offset
b) Price of displaced fuel The average price per month for fuel in year 2008 was
$3.59. Over the 30 year life of the plant diesel could
climb as high as $20-25 per gallon. Present cost of fuel
cannot be assumed to maintain for life of the plant.
Past trends and world energy market supply/demand
factors indicate continued increases in price.
c) Other economic benefits Carbon offsets and renewable energy credits as they
become traded and priced on the world market.
d) Amount of Alaska public benefits If the unrealistic assumption that diesel will never
increase in price is used, annual fuel cost savings will
be $385,313 @ $3.59 gallon; With diesel at $20.00 per
gallon: $2,146,590.00 per year in fuel savings would
result.
6. Power Purchase/Sales Price
a) Price for power purchase/sale This has not been determined but a range of $0.15-
$0.30 is realistic as fuel is currently $0.26 and O&M
$0.132.
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio $385,313/$6,000,000 = .064 or 6.4% (assuming the project is grant
funded, has no cost of capital and fuel costs never increase over the
30 year life of the plant).
Renewable Energy Fund Round 3
Project Cost/Benefit Worksheet
RFA AEA10-015 Application Cost Worksheet Page 3 10-7-09
At $10.00 per gallon the cost/benefit ratio becomes 17.9%
At $20.00 per gallon the cost/benefit ratio becomes 35.7%
Payback 15.5 years; Bearing in mind that this is a demonstration project. Future
tidal power plants will benefit form series production and design, and
can be expected to have far lower capital costs and therefore more
favorable cost/benefit ratios.