HomeMy WebLinkAbout081007 Delta Wind AEA Oct 08 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 Junction, 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.
Renewable Energy Fund
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 40 to 50 MW or more, depending on the ability to sell
power to utilities on the railbelt grid.
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu]
ii. Electricity [kWh] 105 million kWh for 40 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 $93 million
b) Development cost $3.0 million
c) Annual O&M cost of new system About one cent per kW hour produced and sold (plus
the cost of project financing).
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,
7.167 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 22 cents per kWh.
c) Other economic benefits Reduced air pollution in Fairbanks/North Pole areas.
d) Amount of Alaska public benefits If we save GVEA and consumers just one cent per
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RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 3
kWh over the price of generating electricity using liquid
hydrocarbons: 40 MW Wind Farm X 30 percent
Capacity Factor X 8,760 hours per year = about 105
million kW hours per year or more than $1 million
per year in savings, or more than $20 million over
20 years.
Our power will physically be used in Delta Junction,
displacing power largely imported from GVEA’s North
Pole generation plant. If GVEA line losses from North
Pole to Delta are 3%, then our 105 million kW hours
per year saves consumers: 105 million kWh X $0.12/
kWh (average cost) X 0.03 (3% loss) = $378,000 per
year in savings, or $7.56 million over 20 years.
This gives a total savings of more than $27.6 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 Avian Study will allow the project to proceed to the next
step in the Final Design / Permitting phase that will likely require
several more studies, e.g., geotechnical, transmission, road
ROW, … Together these studies will allow us to complete the
final design and move the project to a final decision by the
stakeholders to approve construction.
Payback Projected project commissioning is fall 2010, provided permitting
can be completed in a timely manner.