HomeMy WebLinkAbout081110 AWP AEA Delta Wind Cost Worksheet ver 2 Renewable Energy Fund
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 1
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 – Delta Wind Project, Delta River Region, Alaska
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. Class 6 to 7 wind resource available (best in
wintertime when electrical demand is highest).
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
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]
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.
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RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 2
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 50 MW
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu]
ii. Electricity [kWh] 131 million kWh for 50 MW of nameplate capacity.
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 $132.3 million
b) Development cost $3.6 million
c) Annual O&M cost of new system Direct O&M cost is two cents per kW hour produced
and sold.
d) Annual fuel cost Zero, nada, zip.
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity At published efficiencies for GVEA’s North Pole turbine,
9.5 million gallons annually (GVEA‘s 2007Annual Report)
ii. Heat
iii. Transportation
b) Price of displaced fuel Liquid hydrocarbons – Price varies, but in 2008 the
price was approximately 25 cents per kWh. At an
average price of $3.50, this would be approximately
$33.25 million in fuel expenditure displacement.
c) Other economic benefits 1. Reduced air pollution in Fairbanks/North Pole areas
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RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 3
resulting in reduced health care costs.
2. Some of the money that used to flow out of
Fairbanks (and Alaska) to buy oil from non-Alaskan
companies will now stay in the local area and
strengthen our economy.
d) Amount of Alaska public benefits If we save GVEA and consumers just one cent per
kWh over the price of generating electricity using liquid
hydrocarbons: 40 MW Wind Farm X 30 percent
Capacity Factor X 8,000 hours per year = about 100
million kW hours per year or $1.3 million per year in
savings, or $26.28 million over 20 years.
If GVEA line losses from North Pole to Delta are 3%,
then our 131 million kW hours per year saves
consumers: 131 million kWh X $0.12/ kWh (average
cost) X 0.03 (3% loss) = $360,000 per year in
savings, or $9.46 million over 20 years.
This gives a total savings of $35.74 million over a 20
year wind farm lifespan.
6. Power Purchase/Sales Price
a) Price for power purchase/sale Close to GVEA’s actual avoided cost.
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio This grant will allow the project to proceed from the Final Design
/ Permitting phase through to construction of required
infrastructure for building the Delta Wind Project.
Payback Projected project commissioning is fall 2010.