HomeMy WebLinkAboutSection 3 -Dispatchable Hydro Energy®ALAS KA Renewable Energy Fund Round 3
ENERGYAUTHORITY Project Cost/Benefit I,p orksheel
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. 1,286,981 kWh' averaged from hydro project.
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 Railbelt2 grid, leave this section blank)
i. Number of generators/boilers/other 3 generators
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
200 kWh
Diesel
5 years
70%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $32,000 (source 2009 QB Expenses from Kim Clarkson)
ii. Annual O&M cost for non -labor $300,000 (from 2009 QB Expenses - Other, i.e., non -
personnel from Kim Clarkson). Note: this figure represents the
total non -labor operating expense. Of that amount $174,700
based on Polarconsuit Alaska, Inc. weighted average of
$4.3677 reduces the total non -labor operating expense to
$125,300.
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] 490,019 total annual community usage
ii. Fuel usage
Diesel [gal] 40,000 per year for community power generation only
Other
iii. Peak Load 79 kW averaged over past 12 month period
iv. Average Load 65 kW averaged over past 12 month period.
v. Minimum Load 50 kW averaged over past 12 month period.
vi. Efficiency 21 % existing diesel system (versus PCE goal of 12%)
vii. Future trends Despite normal maintenance unless changed, refurbished, or replaced, will
experience increasing inefficient higher fuel consumption caused by wear
and age of equipment.
1 City of Atka letter dated 10/31/01 to R&M Consultants based on 1,757,000 kWh - 490,019 kWh current usage =
1,286,981 kWh excess available.
2 The Railbelt grid connects 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.
RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09
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1om:.- Renewable Energy Fund Round 3
WE ALASKA
ENERGYAUTHORITY Project Cost/Benefit Worksheet
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] NIA
ii. Electricity [kWh] N/A
iii. Propane [gal or MMBtu] Not available - sold individually by Native Store
I [tons or MMBtu]
v. Wood [cords, green tons, dry tons] Natural resource not available on Atka
vi. Other
3. Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity Target programmable excess electric generation produced
(Wind, Hydro, Biomass, other) as by-product of hydro -electric system.
[kWh or MMBtu/hr]
b) Proposed Annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 1,286,9813
ii. Heat [MMBtu] Electric heat included with electricity usage
c) Proposed Annual fuel Usage (fill in as applicable)
i. Propane [gal or MMBtu] 0
ii. Coal [tons or MMBtu] 0
iii. Wood [cords, green tons, dry tons] 0
iv. Other 0
a) Total capital cost of new system $350,000
b) Development cost $0
c) Annual O&M cost of new system $43,663
d) Annual fuel cost 04
5. Project Benefits
a)
Amount of fuel displaced for
i. Electricity 1,286,981 kWh
ii. Heat included
iii. Transportation included
b) Price of displaced fuel
$4.63 per gallon (23,542 gal or $109,000)
3 City of Atka letter dated 10/31/01 to R&M Consultants based on 1,757,000 kWh - 490,019 kWh current usage =
1,286,981 kWh excess available.
4 This is a by-product "use it or lose it" proposition as the hydro -electric plant produces this excess as part of its
normal operation.
RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09
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A�—` ALASKA Renewable Energy Fund Round 3
- ENERGY AUTHORITY Project Cost/Benefit Worksheet
c) Other economic benefits Additional job creation, lowered cost of living,
increased population, higher standard of living, less
hardship of remote living
d) Amount of Alaska public benefits
a) Price for power purchase/sale $0.08/kWh dispatchable excess electricity estimated
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 2.16
Payback
5 $0.08/kWh x 1,286,981 kWh/yr = $102,958/yr
6 May 15, 2003 letter from Earle Ausman, Polarconsult Alaska, Inc. to Peter Crimp, Alaska Energy Authority, addressing B/C
Ratio, "The present worth of waste heat with a 3% discount rate is 570,000 dollars. This assumes no increase in the price of oil.
If oil prices were to increase by 2% per year, the present worth value would be 765,000 dollars. If either of these values were
added to the diesel plant cost less the 200,000 dollar cost of installing the waste heat recovery system, the present value of the
plant would be the sum 1,870,000 + (570,000 - 200,000) = 2,240,000 or 2,435,000 dollars respectively depending on the
assumption of no or 2% fuel cost increases. The economics were also altered as the early report assumed Atka would use
261,000 kWh per year. The 2001 PCE report states that Atka generated 314,375 kWh in FY2001.... Atka Pride says they need
125 kWh to run their plant at this time but may need 140 kWh in the future. These increase make the hydro plant more
valuable than shown in the 1996 report economics.... The addition of the freezer plant load results in an 88.2% increase in
power use. Assuming the same costs of generation, the present worth of the system with the freezer plant would be about 4.3
million dollars yielding a BC ratio of 2.1; based on a capital cost of 2 million dollars for the hydro plant. This value is without
adding in waste heat. If Atka uses 314,000 kWh per year, the BC ratio would be 2.23."
RFA AEA10-015 Application Cost Worksheet Page 3 10-7-09
Dispatched Hydro / Costworksheet3_10-7-09 filled out 20091029