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HomeMy WebLinkAboutREFG Round III 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 The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 25 MW – Resource Confirmation In-Progress Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other 38 Diesel Engines and Generators ii. Rated capacity of generators/boilers/other 20 MW iii. Generator/boilers/other type Diesel Generation iv. Age of generators/boilers/other Brand New to 34-Year Old White Superior Engines v. Efficiency of generators/boilers/other 14.2 kWh / Gallon Diesel b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $1.1 Million ii. Annual O&M cost for non-labor $1 Million 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 [kW h] 45 Million kWh from 17 MW Capacity ii. Fuel usage Diesel [gal] 3.5 Million Gallons Diesel Other Negligible iii. Peak Load 18 MW (region) iv. Average Load 10 MW (region) v. Minimum Load 8 MW (region) vi. Efficiency 14.2 kWh / Gallon Diesel (region) vii. Future trends  Oil prices and supply remain unpredictable  Regional high fossil fuel energy and transportation costs in the region  Increased growth of regional interconnection networks enhancing renewable energy development  Increased economy of scale and lower costs with interconnection infrastructure  Decreasing reliance on inefficient stand-alone generation, distribution and tank farm facilities  Increased natural resource development in Southwest Alaska 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 and the Arctic and increased demand for clean energy  Cost increases associated with air quality permitting and compliance  Decreased environmental liability with installed baseload renewable energy systems  “New Energy” economy, job creation and retention  Sustained public funding of renewable energy projects as the nation addresses climate change, energy security and the economy  Hydrogen production through electrolysis with lower cost energy  Hydrogen transportation demonstration projects d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 1.9 Million Gallons Diesel ii. Electricity [kWh] Negligible and Unaffordable iii. Propane [gal or MMBtu] Negligible iv. Coal [tons or MMBtu] Negligible but with growth potential v. Wood [cords, green tons, dry tons] Negligible 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] 25 MW → 50 MW geothermal energy generation capacity and growth with increased demand b) Proposed Annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 25 MW – 50 MW ii. Heat [MMBtu] 12 MWe available after NEA demand is met with initial 25 MW electric and heat generation facility c) Proposed Annual fuel Usage (fill in as applicable) i. Propane [gal or MMBtu] No diesel fuel consumption for electric generation during the project’s life – 30 years ii. Coal [tons or MMBtu] iii. Wood [cords, green tons, dry tons] iv. Other 4. Project Cost a) Total capital cost of new system $120 Million (electric and heat generation facility, district heating system and 157 miles of interconnection infrastructure) b) Development cost $35 million (resource development and EGS) c) Annual O&M cost of new system $2.1 million (same as for diesel system) d) Annual fuel cost No generation fuel costs over the life of the project Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet RFA AEA10-015 Application Cost Worksheet Page 3 10-7-09 5. Project Benefits a) Amount of fuel displaced for i. Electricity 3.5 Million Gallons Diesel ii. Heat 1.9 Million Gallons Diesel iii. Transportation Unknown potential with hydrogen production for maximum annual resource utilization and efficiency b) Price of displaced fuel $4.00/gallon x 5 million gallons = $20,000,000 annual energy savings c) Other economic benefits  Lowering End User Costs for Home Heating Energy  Stable, Firm, Renewable, Secure and Cost Effective  Increased Capacity - Decreased Environmental Liability  Decreased Environmental Liability Costs  Meets Energy Needs for Natural Resource Development  Economic Growth and Diversity  Increased Employment and Rural Sustainability  Higher Capacity Factor than Solar, Wind or Hydro  Nearly Zero Emissions and No Negative Health Impact d) Amount of Alaska public benefits  Controlled Cost of Power  Insulation from Volatile World Energy Market  Increased Security and Decreased Dependency  Substantial Cost Control and PCE Payment Reductions  Reversed Negative Perception about Rural Sustainability  Promotion of Natural Resource Value-Added Industries  Cost Effective Icing Infrastructure Operations  Increase Value of Seafood to Processors/Fleet  Increased Tax Revenue at State and Local Levels  Increased Land Sales/Real Property Tax Revenue  Renewable Energy Produced Hydrogen 6. Power Purchase/Sales Price Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet RFA AEA10-015 Application Cost Worksheet Page 4 10-7-09 a) Price for power purchase/sale All wholesale power sales are based on the cost of power plus the cost of interconnection infrastructure O&M 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback 4 Years