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Home My WebLink AboutAttach_B_Costbenefitworksheet  Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet   RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09 Cook Inlet TidGen™ Project    AEA10‐015 REF Round III  Attachment B: Project Cost / Benefit Worksheet  ATTACHMENT B  Project Cost / Benefit Worksheet    Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet   RFA AEA10-015 Application Cost Worksheet Page 2 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 The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 95% Availability Factor and 35% Capacity Factor based on flood and ebb of tidal resource 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 3 10-7-09 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) [kWh or MMBtu/hr] 1 MW (expanding beyond the TidGenTM Project scope to 5 MW by 2013 and 100 MW by 2018) b) Proposed Annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 2,912,700 (at 1 MW stage) ii. Heat [MMBtu] 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 4. Project Cost a) Total capital cost of new system $4,139,640 (For the 5 MW project to be completed by 2013, this value is $16,139,640, which includes the $4,139,640 spent on the 1 MW TidGenTM Project) b) Development cost $2,361,426 (For the 5 MW project to be completed by 2013, this value is $4,209,537, which includes the $2,361,426 spent on the 1 MW TidGenTM Project.) c) Annual O&M cost of new system $62,095 (Estimated to be 1.5% of Capital Costs as suggested by the AEA in its comments on ORPC’s 2008 Renewable Energy Fund Round II Application ) d) Annual fuel cost $0 5. Project Benefits a) Amount of fuel displaced for i. Electricity 9,538 Mcf Natural Gas per Year for the 1 MW Project ii. Heat iii. Transportation b) Price of displaced fuel $72,009 in 2011 (at $7.55/Mcf according to Chugach Electric Inc’s 2011 Avoided Cost of Natural Gas. This value grows to $9.51/Mcf by 2018) c) Other economic benefits $32,040 in 2011 at 1.1 cents/KWh Production Tax Credit d) Amount of Alaska public benefits $9,967,476 (includes, (1) 20 year NPV at 3% real of fuel costs avoided, $2,542,879 and carbon offset payments avoided at $10 per ton, $83,013; (2) 5 permanent jobs created for 20 years at $55,000 each, $5,500,000; (3) multiplier effect of new jobs on local economy at 10% of jobs created, $550,000; (4) 20 year NPV at 3% of portion of O&M (95%) spent in Alaska, $877,620 (annual O&M is calculated at 1.5% of Capital Costs); and (5) ancillary investments such as grid upgrades, port upgrades, etc, at 10% of capital cost, $413,964.) (This value is $30,817,561 for a 5MW project to be   Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet   RFA AEA10-015 Application Cost Worksheet Page 4 10-7-09 installed in 2013.) 6. Power Purchase/Sales Price a) Price for power purchase/sale $0.108/kWh (avoided cost Chugach Electric 2011) 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 1.53 (See Section 5.0 for detailed analysis) Payback 10.25 years (See Section 5.0 for calculation of payback period as the capacity of the Cook Inlet Tidal Energy Project increases to 100MW by 2018). Once the generating capacity of the site increases to 100 MW, payback period for the $263 million accrued project costs is 3.25 years.