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HomeMy WebLinkAboutCostworksheet3_10-7-09 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. The project plan is for approximately 23,000 tons per year of tree chips from about 400 acres of land. The resource is expected to be much larger than the demand. 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 Six diesel generators, plus three boilers for heating the existing utilidor and buildings ii. Rated capacity of generators/boilers/other The existing City owned electric generators are rated for a total of about 4 MW, and generally operate at about 1 MW load. Only one boiler is operated at a time. iii. Generator/boilers/other type Both the generators and boilers are operated on diesel fuel. iv. Age of generators/boilers/other The generators range from 3 to 13 years old. The boilers are approximately 30 years old. v. Efficiency of generators/boilers/other The boilers are estimated at approximately 80% efficient b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $580,628.00 ii. Annual O&M cost for non-labor $200,000 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] 7,008,000 kWh per year ii. Fuel usage Diesel [gal] 700,000 for the electrical generators Other iii. Peak Load 1 MW iv. Average Load 0.8 MW v. Minimum Load 0.5 MW vi. Efficiency 65% estimated overall annually vii. Future trends Gradually decreasing if the school doesn’t expand and no interties are built 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 d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 300,000 ii. Electricity [kWh] negligible iii. Propane [gal or MMBtu] none iv. Coal [tons or MMBtu] none v. Wood [cords, green tons, dry tons] none vi. Other none 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] 1000 kWh electic capacity plus 5.125 MMBtu/hour average for heat b) Proposed Annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 7,008,000 kWH/year ii. Heat [MMBtu] 30,000 MMBtu/year 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] 17,000 to 23,000 tons per year iv. Other 46000 gallons of diesel per year for harvesting and processing chips 4. Project Cost a) Total capital cost of new system $8,644,056 b) Development cost $2,543,682 direct cost for first year operation (development) c) Annual O&M cost of new system $2,543,682 including depreciation d) Annual fuel cost $780,628 (annual cost of wood chip harvest) 5. Project Benefits a) Amount of fuel displaced for i. Electricity 700,000 gallons annually ii. Heat 300,000 gallons annually iii. Transportation 0 b) Price of displaced fuel $3 per gallon over 30 years c) Other economic benefits Approximately 62 new local jobs, roughly $6.2 million per year. This includes 12 direct employment and 50 new jobs at the boarding school. Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet RFA AEA10-015 Application Cost Worksheet Page 3 10-7-09 d) Amount of Alaska public benefits $9.2million per year 6. Power Purchase/Sales Price a) Price for power purchase/sale $0.20 to $0.30 per kWH 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 3.31 Payback 10.5 years (9.5% direct return on investment)