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HomeMy WebLinkAboutCostWorksheet_CI_ver1 0 (3)Application Cost Worksheet Please note that some fields might not be applicable for all technologies or all project phases. 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. 17.1MW average extractable power(at 15% of total resource from 2006 EPRI study) at Cairn Point location alone, entire developable project potential will be estimated in feasibility study, but estimated to be 100MW or more 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 Railbelt 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 3. Proposed System Design a) Installed capacity 1MW b) Annual renewable electricity generation i. Diesel [gal or MMBtu] ii. Electricity [kWh] 2.628 GWh iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 4. Project Cost a) Total capital cost of new system $2,838,563 b) Development cost $5,019,614 c) Annual O&M cost of new system $78,840 (Estimated from ORPC analysis at $0.03/kWh produced) d) Annual fuel cost $0 5. Project Benefits a) Amount of fuel displaced for i. Electricity 2628 MWH ii. Heat iii. Transportation b) Price of displaced fuel $ 283,824 annually (at projected avoided cost for Chugach Electric in 2011 of $0.108) c) Other economic benefits $26,280 1% Federal Production Tax Credit d) Amount of Alaska public benefits $2,788,774 (includes contracts to Alaskan businesses, and direct employment of Alaskans by ORPC-Alaska LLC. 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 Benefit/Cost Ratio = 1.26 The Total Benefit included the Alaskan public Benefit amount from 5d.above ($2,788774) as well as the labor portion of the O&M which will be contracted to Alaskan marine service companies comprising 80% of the O&M budget or $63,072 annually = $1,261,440 over 20 year life of the project, and the revenue of the project which was calculated as the annual revenue from power sales at avoided cost ($283,824) plus the Production Tax Credit ($26,280) minus the parts and supplies portion of annual O&M ($15768). This came to $294,336 annually or $5,886,720 over the 20 year life of the project. Benefit = $2,788,774+$1,261,440+$5,886,720 = $9,936,934 Benefit/Cost Ratio = $9,936934/$7,858,177 Payback Payback = 14.1 years The payback period was calculated by taking the total project cost($7,858,177), reduced by the public benefits to Alaska from 5d. above ($2,788,774) Project Cost = $5,069,403 This was divided by the annual revenue which was calculated as the revenue from power sales at projected avoided cost ($283,824) plus the Production Tax Credit ($26,280) plus the O&M contracts to Alaskan companies (80% of annual O&M = $63,072) minus the parts and supplies of the O&M budget (20% of O&M = $15,768) giving Annual Revenue = $357,408. Payback = $5,069,403/$357,408/yr. = 14.1 yrs 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 RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page PAGE \* MERGEFORMAT 1