Wind Energy Project Analysis

							RETScreen® Introduction
Overview of RETScreen Version 4

     Energy efficiency (EE) models for residential, commercial & institutional buildings,
      & for industrial facilities & processes

     Climate database expanded to 4,700 ground-stations & NASA Satellite
      Dataset Integrated within the software to cover populated areas across the
      entire surface of planet

     Renewable energy, cogeneration & EE models integrated into one software file
      & emerging technologies, such as wave & ocean current power added

     Project database providing users instant access to key data and information
      for hundreds of case studies & project templates

     RETScreen file format ( *.ret) - a dramatically smaller file size (<25 KB instead
      of 10 MB) that is easily shared over the Internet & which allows the user to create
      custom databases for RETScreen

     Software & databases translated into 35 languages that cover 2/3 of the world’s
      population, and available at the click of the mouse
Project Analysis

   Energy resource at project site   (Solar Air Heating Example)
    (e.g. solar radiation)
   Equipment performance
    (e.g. solar absorptivity)
   Initial project costs
    (e.g. solar collectors)
   “Base case” credits
    (e.g. conventional cladding)
   Annual & periodic costs
                                                        Photo: NRCan
    (e.g. vandalism)
Financial Analysis

   Base case system energy cost
    (e.g. retail price of heating oil)
   Financing
    (e.g. debt ratio & length, interest rate)
   Taxes on equipment & income (or savings)
   Environmental characteristics of energy displaced
    (e.g. oil, natural gas, grid electricity)
   Environmental credits and/or subsidies
    (e.g. GHG credits, deployment incentives)
   Decision-maker’s definition of cost-effective
    (e.g. payback period, ROI, NPV, energy production costs)
Financing Options

    Natural gas 1,000,000 m3/yr @ $0.40/m3
    25% energy reduction
    Capital cost $300,000
    2% inflation, 20 year project life
                                                                                    Energy          Savings
                                         Short term    Long term                  Performance       account,
                                          70% debt      70% debt      Leasing       Contract*        bonds,
                             Cash       10% for 5 yrs 6% for 15 yrs 12% for 5 yrs 8% for 7 yrs       stocks
    Equity                 $300,000        $90,000       $90,000         $0            $0           $300,000
    Pre-tax IRR - equity    35.90%        61.20%         91.80%
    Pre-tax IRR - assets    35.90%        24.10%         29.10%         19.80%        12.40%        3% - 15%
    Simple payback             3             3              3            3             4.5
    Equity payback            2.9           1.9            1.1        Immediate     Immediate
    Cumulative dividend                                                                               $27,000 to
    3 yrs                  $312,200       $146,000      $247,300        $62,500        $52,900         $135,000
    Cumulative dividend                                                                              $180,000 to
    20 yrs                 $2,478,000    $2,201,000    $2,154,000     $2,062,000      $1,873,000       $900,000
                                                    * + 20% cost for verification + 30% cost for risk management
Project Example: Wind

     Basic information:
       2,000 kW wind turbine
       Cost @ $2,000/kW
       Capacity factor @ 23%


     Scenario 1:
       Electricity rate @ $0.11/kWh


     Scenario 2:
       ecoEnergy incentive @ $0.01/kWh
       or $15/tonne GHG emissions trade
                                           Photo credit: Toronto Hydro/WindShare
Software
 Demo