Project Cost Benefit Worksheet by keralaguest


									                                             Renewable Energy Fund Round 3
                                              Project Cost/Benefit Worksheet

1. Renewable Energy Source

Annual                Tidal energy is totally predictable decades into the future. When we size our
average               turbines for highly energetic sites like the ones under consideration in Angoon,
resource              they will produce to full capacity much of the day every day of the year.
availability.         Accounting for slack tide periods and maintenance down time, we project a
                      60% capacity utilization--- that is to say on an annual basis the plant will
                      produce 60% of its nameplate capacity.

2. Existing Energy Generation and Usage

a) Basic configuration
      i. Number of generators/boilers/other             3
      ii. Rated capacity of generators/boilers/other    475kW, 565kW, 565kW
     iii. Generator/boilers/other type                  CAT model 3456 year 2007; CAT 3508 yr 1998;
                                                        CAT 3508 yr 1989.
     iv. Age of generators/boilers/other                Rebuilt- 10 yr. Life expectancy
      v. Efficiency of generators/boilers/other         14.25 kWh/gallon diesel

b) Annual O&M cost
      i. Annual O&M cost for labor            Approximately $95,000
      ii. Annual O&M cost for non-labor       Approximately $1,085,066

c) Annual electricity production and fuel usage
      i. Electricity [kWh]     1,889,757
      ii. Fuel usage
                Diesel [gal]   143,108 gal
     iii. Peak Load            400kW
     iv. Average Load          250kW
      v. Minimum Load          200kW
     vi. Efficiency            14.25kWh/gallon diesel
     vii. Future trends        Based upon historical trends we can expect a minimum of 300% up to a
                               maximum of 1000% increase in the cost of diesel over the course of the 30
                               year life of the plant.

3. Proposed System Design Capacity and Fuel Usage
a)    Proposed renewable capacity                 375kW modular system that may be up-rated in 125kW
     (Wind, Hydro, Biomass, other)                increments as demand requires.
     [kWh or MMBtu/hr]

b) Proposed Annual electricity or heat production (fill in as applicable)
      i. Electricity [kWh]                        1,944,000 kWh

RFA AEA10-015 Application Cost Worksheet                Page 1                                     10-7-09
                                           Renewable Energy Fund Round 3
                                            Project Cost/Benefit Worksheet

c) Proposed Annual fuel Usage (fill in as applicable)
     i. Propane [gal or MMBtu]                 None
     ii. Coal [tons or MMBtu]                  None
    iii. Wood [cords, green tons, dry tons]    None
     iv. Other                                 None

4. Project Cost

a) Total capital cost of new system            $6,000,000.00
b) Development cost                            $2,000,000
c) Annual O&M cost of new system               $55,000.00
d) Annual fuel cost                            $0

5. Project Benefits

a) Amount of fuel displaced for
     i. Electricity          107331 gallons of diesel saved; 75% diesel offset

b) Price of displaced fuel                    The average price per month for fuel in year 2008 was
                                              $3.59. Over the 30 year life of the plant diesel could
                                              climb as high as $20-25 per gallon. Present cost of fuel
                                              cannot be assumed to maintain for life of the plant.
                                              Past trends and world energy market supply/demand
                                              factors indicate continued increases in price.
c) Other economic benefits                    Carbon offsets and renewable energy credits as they
                                              become traded and priced on the world market.
d) Amount of Alaska public benefits           If the unrealistic assumption that diesel will never
                                              increase in price is used, annual fuel cost savings will
                                              be $385,313 @ $3.59 gallon; With diesel at $20.00 per
                                              gallon: $2,146,590.00 per year in fuel savings would

6. Power Purchase/Sales Price

a) Price for power purchase/sale              This has not been determined but a range of $0.15-
                                              $0.30 is realistic as fuel is currently $0.26 and O&M

7. Project Analysis

a) Basic Economic Analysis
    Project benefit/cost ratio     $385,313/$6,000,000 = .064 or 6.4% (assuming the project is grant
                                   funded, has no cost of capital and fuel costs never increase over the
                                   30 year life of the plant).

RFA AEA10-015 Application Cost Worksheet              Page 2                                       10-7-09
                                           Renewable Energy Fund Round 3
                                            Project Cost/Benefit Worksheet
                                  At $10.00 per gallon the cost/benefit ratio becomes 17.9%
                                  At $20.00 per gallon the cost/benefit ratio becomes 35.7%
    Payback                       15.5 years; Bearing in mind that this is a demonstration project. Future
                                  tidal power plants will benefit form series production and design, and
                                  can be expected to have far lower capital costs and therefore more
                                  favorable cost/benefit ratios.

RFA AEA10-015 Application Cost Worksheet             Page 3                                       10-7-09

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