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HomeMy WebLinkAbout03 Attachment B AEA Cost Benefit Worksheet  Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet ATTACHMENT B  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 The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Local resources: 1. Fairbanks Pellet Plant (under construction) Annual output is estimated at 25,000 tons 2. Dry Creek Pellet Plant (Dot Lake) Annual output is presently 700-800 tons Estimated annual use for this project is 132.09 tons. 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 Two ii. Rated capacity of generators/boilers/other 1.87 million BTUs per hour iii. Generator/boilers/other type Hot water boilers iv. Age of generators/boilers/other Four years v. Efficiency of generators/boilers/other 80% b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $1000 per year (sunken cost) ii. Annual O&M cost for non-labor $500 per year 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] 18,000 ii. Electricity [kWh] 6,000 kWh iii. Propane [gal or MMBtu]                                                              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 ATTACHMENT B  RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09 iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] 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) [kWh or MMBtu/hr] 1.33 million BTU per hour, continuous duty, wood pellet- fired boiler b) Proposed Annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 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] 132.09 Tons wood pellets @ 9% moisture, wet basis iv. Other   4. Project Cost a) Total capital cost of new system $ 648,284 b) Development cost $ 59,688 c) Annual O&M cost of new system $ 500 (labor is sunken cost) d) Annual fuel cost $ 36,985   5. Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat 16,200 gallons iii. Transportation b) Price of displaced fuel $3.07/gallon (2009 price; down from $4.50/gallon in 2008) c) Other economic benefits d) Amount of Alaska public benefits $1.70 million in savings over 30 years based on a conservative 5% annual fuel oil price escalation, using the 2009 rate of $3.07/ gallon. Savings increase to $2.91 million over 30 years based on the 2008 rate of $4.50/gallon. See attached cost analysis spreadsheets, which compare savings at the widely varying 2008 and 2009 fuel prices. This analysis shows the sensitivity of cost savings based on fluctuating fuel prices.     Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet ATTACHMENT B  RFA AEA10-015 Application Cost Worksheet Page 3 10-7-09 6. Power Purchase/Sales Price a) Price for power purchase/sale   7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Assuming 5% fuel inflation: 0.13 in 5 yrs; 0.46 in 12 yrs; 1.10 in 20 yrs, using 2009 fuel price of $3.07/gallon, or Assuming 5% fuel inflation: 0.29 in 5 yrs; 0.90 in 12 yrs; 2.01 in 20 yrs, using 2008 fuel price of $4.50/gallon. Payback Simple payback = $648,284 / $14,983 annual savings = 43 years. Note that this calculation assumes fuel at the 2009 rate of $3.07 per gallon, and does not allow for inflation. Simple payback = $648,284 / $33,176 annual savings = 19.5 years. Note that this calculation assumes fuel at the 2008 rate of $4.50 per gallon, and does not allow for inflation.