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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)