Renewable Energy Technology Assessments - Kauai Island Utility ...

More documents

Recommendations

Info

Kaua’i Island Utility Cooperative Renewable Energy Technology Assessments 5.0 Project Characterizations 7.4 Incentives / Barriers 8. Next Steps 5.2 General Assumptions The following general assumptions were made in carrying out the project assessments. Financing assumptions are specified in the next section, and additional assumptions are documented in the respective technology sections. • KIUC’s will develop, own and operate all projects. Black & Veatch has also included economic analysis of private ownership to model the impacts of various financial incentives. • Land purchase cost is $100,000 per acre. • Insurance cost is 0.1 percent of the direct capital cost per year. • Wind, landfill gas, and hydro projects have minimal permanent O&M staff (one person or less per project). Significant maintenance and repair work will be on a contract basis. • Annual average fully burdened labor cost for plant O&M staff is $90,000 per year. • There is sufficient available transmission capacity for projects. Other than transmission tie lines and project substations, no other T&D upgrade costs are included. • Net power output estimates are for normal top load, adjusted for typical losses and degradation (that is, not “new and clean”). Transmission line losses are not included in the power output estimates. • All cost estimates are in 2005 dollars and assume overnight construction. • Levelized cost comparisons are done in 2009, the assumed on-line date of all projects. • Hawaii general excise tax (4 percent) is included in cost estimates. • Capital cost estimates are based on Black & Veatch experience with other projects, vendor quotes for major equipment items, and review of reference literature. • Shipping is included in capital cost estimates. • Construction labor rates and productivity have been adjusted for Hawaii conditions. • Indirect project capital costs generally include (i) 10 percent for KIUC project management and administration and (ii) a project specific allowance for 21 March 2005 5-3 Black & Veatch
Kaua’i Island Utility Cooperative Renewable Energy Technology Assessments 5.0 Project Characterizations project development and start-up expenses (feasibility studies, permitting, legal, engineering, construction management, spare parts, training, etc.). 5.3 Economic Modeling Approach Based on the characteristics developed for each project, Black & Veatch calculated a levelized busbar generation cost ($/MWh). The levelized busbar cost is a method for comparison of the life-cycle costs of generating power from various projects on an equal economic basis. This cost considers the project performance, capital cost, fixed and variable operating costs, and fuel costs (if applicable). The levelized busbar cost can vary considerably based upon the financing and economic assumptions for a particular project. To capture the range of possible development scenarios for KIUC, the levelized cost of developing projects with KIUC financing and developer financing were considered. Under developer financing the power would be sold to KIUC under a power purchase agreement (PPA). Therefore, the levelized busbar cost represents the cost of a levelized price PPA. Developer financing offers the advantage of eligibility for tax-based federal renewable energy incentives, while KIUC funded projects offer the advantage of lower financing costs. 5.3.1 Economic Assumptions The economic assumptions for the KIUC and developer financing scenarios are provided in Table 5-1 and Table 5-2, respectively. The assumptions are project specific and vary due to differing project life estimates. These assumptions supercede those in Table 2-1, which were used for the general technology screening. Table 5-1. KIUC Financing Assumptions Hydro Wind LFG Biomass MSW Debt to Equity Ratio 100 : 0 100 : 0 100 : 0 100 : 0 100 : 0 Cost of Debt, % 5.00% 5.00% 5.00% 5.00% 5.00% Discount Rate, % 5.00% 5.00% 5.00% 5.00% 5.00% Project Life, years 50 25 15 25 25 Debt Term, years 25 25 15 25 25 Fixed O&M Escalation, % 3.0% 3.0% 3.0% 3.0% 3.0% Variable O&M Escalation, % 3.0% 3.0% 3.0% 3.0% 3.0% Fuel Cost Escalation, % 3.0% 3.0% 3.0% 3.0% 3.0% Levelized Fixed Charge Rate, % 5.12% 7.10% 9.63% 7.10% 7.10% Capacity Credit 0% 0% 100% 100% 100% 21 March 2005 5-4 Black & Veatch
Page 1 and 2:
11401 Lamar Black & Veatch Corporat
Page 3 and 4:
Page 3 Kaua’i Island Utility Coop
Page 5 and 6:
Principal Investigators: Ryan Pletk
Page 7 and 8:
Kaua’i Island Utility Cooperative
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114: Kaua’i Island Utility Cooperative
Page 163: Kaua’i Island Utility Cooperative
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
Page 257 and 258:
Page 259 and 260:
Page 261 and 262:
Page 263 and 264:
Page 265 and 266:
Page 267 and 268:
Page 269 and 270:
Page 271 and 272:
Page 273 and 274:
Page 275 and 276:
Page 277 and 278:
Page 279 and 280:
Page 281 and 282:
Page 283 and 284:
Page 285 and 286:
Page 287 and 288:
Page 289 and 290:
Page 291 and 292:
Page 293 and 294:
Page 295 and 296:
Page 297 and 298:
show all

Renewable Energy Technology Assessments - Kauai Island Utility ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?