HomeMy WebLinkAbout091110 AWP Delta Gas State RE Fund Cost-Benefit Worksheet
Renewable Energy Fund Round 3
Project Cost/Benefit Worksheet
RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09
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 – Delta Wind Project – Natural Gas Assessment
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. Natural Gas to stabilize Delta Wind Project output
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
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor
ii. Annual O&M cost for non-labor
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]
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
1 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.
Renewable Energy Fund Round 3
Project Cost/Benefit Worksheet
RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09
. 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)
[kWh or MMBtu/hr]
50 MW Wind Power Generation (30% Capacity Factor)
25 MW Natural Gas Generation (70% to supplement wind)
b) Proposed Annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 131 million kWh Wind generation at 30% CF, 153 million
kWh gas generation at 70% capacity
ii. Heat [MMBtu]
c) Proposed Annual fuel Usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons]
iv. Other Wind – none, plus nat gas as needed for 25 MW at 70%
4. Project Cost
a) Total capital cost of new system $135 million for wind generation, about $30 million for gas
generation
b) Development cost About $4.5 million
c) Annual O&M cost of new system About 1 cent per kWh for wind generation
d) Annual fuel cost To be negotiated in electricity sales agreement.
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity: annual 9.5 million gallons per year from wind, 11.1 million gallons from natural gas
ii. Heat
iii. Transportation
b) Price of displaced fuel Variable: depends on oil prices at North Pole refinery.
c) Other economic benefits Potential Carbon Credit sales of $39 million (20 years)
d) Amount of Alaska public benefits $56 million over 20 years if 1 cent per kWh is saved.
6. Power Purchase/Sales Price
a) Price for power purchase/sale To be negotiated with customers.
7. Project Analysis
a) Basic Economic Analysis (assume 97% project loan, initial $4.5 million grant monies.
Project benefit/cost ratio $95 million /20 yrs = $4.75 million/yr ratio is 4.75/4.5 = 1.06
Payback Less than one year, given above assumptions.