Clean Energy Project Analysis Software

Combined Heat & Power Project Model

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CDM / JI Project Analysis
Version 3.5

Partners

Minister of Natural Resources Canada 1997-2005.

NRCan/CETC - Varennes

RETScreen Energy Model - Combined cooling, heating & power project

See Online Manual
Settings
Language - Langue
Currency

Online manual - English

English - Anglais
$

Metric units
Imperial units

Microturbine for Utilities

Minnesota, USA
Combined cooling, heating & power

Project name
Project location
Proposed project

Higher heating value (HHV)

Lower heating value (LHV)

Complete Load & Network sheet

Proposed case system characteristics

Power
Base load power system
Type
Operating strategy
Capacity
Electricity delivered to load
Electricity exported to grid
Peak load power system
Type
Suggested capacity
Capacity
Electricity delivered to load
Back-up power system (optional)
Type
Capacity
Heating
Base load heating system
Type
Capacity
Heating delivered
Intermediate load heating system
Type
Peak load heating system
Type
Fuel type
Fuel rate
Suggested capacity
Capacity
Heating delivered
Manufacturer
Model
Seasonal efficiency
Back-up heating system (optional)
Type
Capacity
Cooling
Base load cooling system
Type
Fuel source
Capacity
Cooling delivered
Back-up cooling system (optional)
Type
Capacity

System design graph

Unit

Estimate

kW
MWh
MWh

Gas turbine
Power load following
30
196
0

kW
kW
MWh

Grid electricity
652
652
1,652

Base

Peak

120%
4.6%
10.6%

100%
80%
60%
40%

100.0%
89.4%

20%
0%
Load
(kW)

kW

Demand
(MWh)

Base
kW
MWh

Gas turbine
165.7
770

Peak

140%
30.4%
69.9%

120%
100%

Not required

$/GJ
kW
kW
MWh

Boiler
Natural gas - GJ
5.000
545.8
545.8
332

65%

kW
MWh

Desiccant
Heating system
233.0
353

80%
60%
40%
100.0%
30.1%
See PDB
1 unit(s)

20%
0%
Load
(kW)

Demand
(MWh)

Base

113.7%
100.0%

150%
100%
50%
0%
Load
(kW)

Demand
(MWh)

Capacity
(kW)

Energy
delivered
(MWh)

Fuel type

Fuel
consumption unit

Natural gas
Electricity

GJ
MWh

6,258
1,652
Total

30
652
682

196
1,652
1,847

Heating
Base load
Peak load

Recovered heat
Natural gas

GJ

1,841
Total

166
546
712

770
332
1,103

Cooling
Base load

Heating system
Total

233
233

353
353

Proposed case system summary

Power
Base load
Peak load

Fuel
consumption

Clean Energy
production credit?

Complete Cost Analysis sheet

19/12/2005; CHP16-B.xls

RETScreen Load & Network Design - Combined cooling, heating & power project
Heating project
Site conditions
Nearest location for weather data
Heating design temperature
Annual heating degree-days below 18C
Domestic hot water heating base demand
Equivalent degree-days for DHW heating
Equivalent full load hours

Unit
Notes/Range
See Weather Database
-40 to 15 C
Complete Monthly inputs
0% to 25%
0 to 10 C-d/d

Monthly inputs
Month
January
February
March
April

C-d
<18C
896
718
574
299

F-d
<65F
1,613
1,292
1,032
539

Single building - space heating

Base case heating system

Heated floor area for building
Fuel type
Seasonal efficiency
Heating load calculation
Heating load for building
Total heating demand
Total peak heating load
Fuel consumption - annual
Fuel rate
Fuel cost
Proposed case energy efficiency measures
End-use energy efficiency measures
Net peak heating load
Net heating demand

Estimate
Minneapolis/St.paul
-23.0
4,221
10%
1.3
2,156

C
C-d
%
C-d/d
h

m
%

5,000
Natural gas - GJ
65%

W/m
MWh
kW
GJ
$/GJ

75.0
809
375.0
4,478
5.000
$

%
kW
MWh

22,390
0%
375.0
809

19/12/2005; CHP16-B.xls

Month
May
June
July
August

C-d
<18C
91
0
0
0

F-d
<65F
165
0
0
0

Month
September
October
November
December

C-d
<18C
65
266
518
794

F-d
<65F
117
479
932
1,430

See Weather Database

RETScreen Load & Network Design - Combined cooling, heating & power project
Cooling project

Unit

Site conditions
Nearest location for weather data
Cooling design temperature
Annual cooling degree-days above 10C
Non-weather dependant cooling
Equivalent full load hours

C
C-d
%
h

Notes/Range
See Weather Database
10 to 47 C
Complete Monthly inputs
5% to 30%

Monthly inputs
Month
January
February
March
April

C-d
>10C
0
0
0
0

F-d
>50F
0
0
0
0

Single building - space cooling

Base case cooling system

Cooled floor area for building
Fuel type
Seasonal efficiency
Cooling load calculation
Cooling load for building
Total cooling demand
Total peak cooling load
Fuel consumption - annual
Fuel rate
Fuel cost
Proposed case energy efficiency measures
End-use energy efficiency measures
Net peak cooling load
Net cooling demand

Estimate
Minneapolis/St.paul
31.0
1,405
0%
1,722

m
%

5,000
Electricity
300%

W/m
MWh
kW
MWh
$/kWh

41.0
353
205.0
118
0.110
$

%
kW
MWh

12,944
0%
205.0
353

19/12/2005; CHP16-B.xls

Month
May
June
July
August

C-d
>10C
157
311
409
352

F-d
>50F
282
560
737
634

Month
September
October
November
December

C-d
>10C
175
0
0
0

F-d
>50F
315
0
0
0

See Weather Database

RETScreen Load & Network Design - Combined cooling, heating & power project
Unit

Power project
Base case power system
Grid type

Central-grid

Base case load characteristics

Proposed case load characteristics

Month
Ja January
Fe February
Ma March
Ap April
Ma May
Ju June
Ju July
Au August
Se September
Oc October
No November
De December

Power
gross average load
kW
22
22
22
500
500
500
500
500
22
22
22
22

Power
net average
load
kW
22
22
22
500
484
466
457
463
3
22
22
22

Cooling
% time
process
operating
0%
0%
0%
50%
90%
100%
100%
100%
70%
30%
0%
0%

Cooling
average load
kW
0
0
0
0
49
101
129
111
57
0
0
0

Heating
% time
process
operating
0%
0%
40%
100%
100%
100%
100%
100%
100%
100%
100%
30%

Heating
average load
kW
249
192
121
68
29
6
7
7
21
58
112
187

48.0%
740

672
672

Return
100%

205

Return
100%

375

System peak electricity load over max monthly average

Peak load - annual
Electricity demand
Electricity rate - base case
Total electricity cost

MWh
$/kWh
$

2,022
0.110
222,412 $

Month
January
February
March
April
May
June
July
August
September
October
November
December

Cooling
system
load
kW
0
0
0
0
49
101
129
111
57
0
0
0

Heating
net average
load
kW
249
192
121
68
29
6
7
7
21
58
112
187

Heat
for
cooling
kW
0
0
0
0
41
84
107
92
48
0
0
0

Heating
system
load
kW
249
192
121
68
70
90
114
99
69
58
112
187

652
652

0
0

652
652

205

375

171

546

1,904
0.110
209,469
Proposed case system load characteristics graph
600

500

400

Power
Heating
Cooling

400

Power
Heating
Cooling

300

kW

kW

Power
system
load
kW
21
21
21
485
469
452
443
449
3
21
21
21

Peak load - annual

500

500

200

300

200

100

Proposed case energy efficiency measures

End-use energy efficiency measures
Net peak electricity load
Net electricity demand

Power
for
cooling
kW
0
0
0
0
0
0
0
0
0
0
0
0

Base case system load characteristics graph

600

0
Jan

Power
net average
load
kW
21
21
21
485
469
452
443
449
3
21
21
21

100

Feb

Mar

%
kW
MWh

Apr

May

Jun

Jul

Aug

Sep

3%
652
1,847

Oct

Nov

0
Jan

Dec

Proposed case load and demand

System peak load
System energy demand

Feb

Mar

Apr

kW
MWh

May

Power
652
1,847

Jun

Jul

Aug

Sep

Oct

Nov

Heating
545.8
1,103

Complete Equipment Selection sheet

Complete Equipment Selection sheet

19/12/2005; CHP16-B.xls

Dec

Cooling
205.0
353

RETScreen Equipment Selection - Combined cooling, heating & power project

Show alternative units

Proposed case cooling system

Base load cooling system
Type
Fuel source
Capacity
Seasonal efficiency
Manufacturer
Model
Cooling delivered
Peak load cooling system
Type
Proposed case power system
System selection
Base load power system
Type
Availability
Fuel selection method
Fuel type
Fuel rate
Gas turbine
Power capacity
Minimum capacity
Electricity delivered to load
Electricity exported to grid
Manufacturer
Model
Heat rate
Heat recovery efficiency
Fuel required
Heating capacity
Operating strategy - base load power system
Fuel rate - base case heating system
Electricity rate - base case
Fuel rate - proposed case power system
Electricity export rate
Electricity rate - proposed case

Proposed case system load characteristics graph

kW

kW
%

MWh

Desiccant
Heating system
233.0
120%
Broad
BS20
353

600
500
400

113.7%

See product database

300
200
100

1 unit(s)

100.0%

Jan Feb Mar

Apr May Jun

Power

Not required

Jul

Aug Sep Oct Nov Dec

Heating

Cooling

Base load system

Gas turbine
8,300

$/GJ

Single fuel
Natural gas - GJ
5.000

kW
%
MWh
MWh

kJ/kWh
%
GJ/h
kW

30
0%
196
0
Capstone
C30
32,000
70%
1.0
165.7

$/MWh
$/MWh
$/MWh
$/MWh
$/MWh

27.69
110.00
18.00
112.00
112.00

Operating strategy
Full power capacity output
Power load following
Heating load following

Electricity delivered
to load
MWh
196
196
139

Select operating strategy

Power load following

95.0%

94.7%

Complete Tools sheet

4.6%

See product database

10.6%

1 unit(s)

30.4%

Electricity
exported to grid
MWh
53
0
24

Remaining
electricity
required
MWh
1,652
1,652
1,708

Return to Energy Model sheet

19/12/2005; CHP16-B.xls

Heat
recovered
MWh
904
770
904

Remaining
heat
required
MWh
198
332
198

Power
system fuel
MWh
2,213
1,738
1,456

Operating
profit (loss)
$
9,400
8,250
13,490

Efficiency
%
52.1%
55.6%
73.4%

RETScreen Cost Analysis - Combined cooling, heating & power project

Settings - Microturbine for Utilities - Minnesota, USA
Second currency

Pre-feasibility analysis

Cost reference

Feasibility analysis

Second currency

Unit

Initial costs (credits)

Feasibility study

Cost reference

Quantity

None

Unit cost

Canada - 2005

Amount

Relative costs

Sub-total:

$
$

0.0%

Sub-total:

$
$

0.0%

Sub-total:

$
$

0.0%

$
$
$
$
$
$
$
$
$

45,000
45,000

Quantity range

Unit cost range

Development

Engineering

Power system
Base load - Gas turbine
Peak load - Grid electricity
Road construction
Transmission line
Substation
Energy efficiency measures

kW
kW

30
652

$
$

1,500
-

project
project

Sub-total:
Heating system
Base load - Gas turbine
Peak load - Boiler
Energy efficiency measures

100.0%

kW
kW
project

165.7
545.8

$
$

$
$
$
$
$
$

kW
project

233.0

$
$
$
$
$

0.0%

$
$
$
$
$

45,000

0.0%
100.0%

Sub-total:
Cooling system
Base load - Desiccant
Energy efficiency measures

See manual

Sub-total:

See manual

0.0%
See manual

Balance of system & miscellaneous

Contingencies
Interest during construction

%
0.00%

0 month(s)

$
$

45,000
45,000

Sub-total:
Total initial costs
Annual costs (credits)
O&M
Parts & labour
O&M
Contingencies

Unit
project
cost
%

Quantity

196
0.0%

Unit cost

$
$

10
1,956

Sub-total:
Fuel
Natural gas
Electricity

GJ
MWh

8,099
1,652

$
$

5.000
112.000

Sub-total:
Total annual costs
Periodic costs (credits)

End of project life

Unit

Year

Amount

5% - 40%
3% - 15%

Relative costs

$
$
$
$

1,956
1,956

0.9%

$
$
$
$

40,495
184,975
225,471
227,426

99.1%
100.0%

$
$
$
$

Amount
-

Unit cost

19/12/2005; CHP16-B.xls

Quantity range

Unit cost range

10% - 20%

Interval range

Unit cost range

Go to GHG Analysis sheet

RETScreen Greenhouse Gas (GHG) Emission Reduction Analysis - Combined cooling, heating & power project
Settings - Microturbine for Utilities - Minnesota, USA
GHG Analysis
Potential CDM project

Simplified analysis

Global warming potential of GHG

21
tonnes CO2 = 1 tonne CH4
310
tonnes CO2 = 1 tonne N2O

Standard analysis

Simplified baseline methods possible

Custom analysis

(IPCC 1996)
(IPCC 1996)

Complete Financial Summary sheet

Base case electricity system (Baseline)

Country - region
United States of America (USA)

Fuel type
Coal

GHG emission
factor
(excl. T&D)
tCO2/MWh
0.941

T&D
losses
%
5.0%

Baseline changes during project life

GHG emission
factor
tCO2/MWh
0.991
Change in GHG emission factor

-10.0%

GHG emission
tCO2
223
2,003
2,225

Base case system GHG summary (Baseline)

Fuel type
Natural gas
Electricity
Total

Fuel mix
%
38.1%
61.9%
100.0%

CO2 emission
factor
kg/GJ

CH4 emission
factor
kg/GJ

N2O emission
factor
kg/GJ

Fuel
consumption
MWh
1,244
2,022
3,266

GHG emission
factor
tCO2/MWh
0.179
0.991
0.681

N2O emission
factor
kg/GJ

Fuel
consumption
MWh
2,250
1,652
3,901

GHG emission
factor
GHG emission
tCO2/MWh
tCO2
0.179
403
0.991
1,636
0.523
2,039
Total
2,039

Proposed case system GHG summary (Combined cooling, heating & power project)

Fuel type
Natural gas
Electricity
Total

Fuel mix
%
57.7%
42.3%
100.0%

CO2 emission
factor
kg/GJ

CH4 emission
factor
kg/GJ

T&D losses
GHG emission reduction summary

Combined cooling, heating

& power project

Years of
occurrence
yr
1 to 2

Net annual GHG emission reduction

Base case
GHG emission
tCO2
2,225

Proposed case
GHG emission
tCO2
2,039

187

tCO2

Gross annual
GHG emission
reduction
tCO2
187

is equivalent to

38.0

GHG credits
transaction fee
%
0%

Net annual
GHG emission
reduction
tCO2
187

Cars & light trucks not used

Complete Financial Summary sheet

19/12/2005; CHP16-B.xls

RETScreen Financial Summary - Combined cooling, heating & power project

Annual fuel cost summary - Microturbine for Utilities - Minnesota, USA
Energy
demand
Peak load
Base case system
kW
MWh
Power
740
1,904
Heating
375
809
Cooling
205
353
Fuel cost - base case

Proposed case system

Power
Heating
Cooling
Fuel cost - proposed case

Financial parameters
General
Fuel cost escalation rate
Inflation rate
Discount rate
Project life
Finance
Incentives and grants
Debt ratio
Debt
Equity
Debt interest rate
Debt term
Debt payments

Income tax analysis

Effective income tax rate
Loss carryforward?
Depreciation method
Depreciation tax basis
Depreciation rate
Depreciation period
Tax holiday available?
Tax holiday duration

Annual income
Customer premium income (rebate)
Electricity premium (rebate)
Electricity premium income (rebate)
Heating premium (rebate)
Heating premium income (rebate)
Cooling premium (rebate)
Cooling premium income (rebate)
Customer premium income (rebate)

Capacity
kW
682
712
233

Energy
delivered
MWh
1,847
1,103
353

%
%
%
yr

2.0%
2.0%
10.0%
25

$
%
$
$
%
yr
$/yr

0.0%
45,000
7.00%
10
-

%
%
yr
yes/no
yr

%
$
%
$
%
$
$

End-use
energy rate
$/MWh
110.00
27.69
36.67

30.0%
No
None
95.0%
30.0%
15
No
3

0.0%
0.0%
0.0%
-

Electricity export income

Electricity exported to grid
Electricity export rate
Electricity export income
Electricity export escalation rate

MWh
$/MWh
$
%

2.0%

Clean Energy (CE) production income

CE production
CE production credit rate
CE production income
CE production credit duration
CE production credit escalation rate

MWh
$/kWh
$
yr
%

0
0.020
10
2.0%

tCO2/yr
tCO2/yr
tCO2
$/tCO2
$
yr
tCO2
%

187
4,671
5.00
21
3,923
2.0%

Fuel cost
$
209,469
22,390
12,944
244,802

End-use
energy rate
$/MWh
117.08
8.35
0.00

Fuel cost
$
216,266
9,204
0
225,471

Project costs and savings/income summary

Initial costs
Feasibility study
0.0%
Development
0.0%
Engineering
0.0%
Power system
100.0%
Heating system
0.0%
Cooling system
0.0%
Balance of system & misc.
0.0%
Total initial costs
100.0%

$
$
$
$
$
$
$
$

45,000
45,000

Incentives and grants

Annual costs and debt payments

O&M
Fuel cost - proposed case
Debt payments - 10 yrs
Total annual costs

$
$
$
$

1,956
225,471
227,426

$
$
$
$

$
$
$
$
$
$

244,802
244,802

%
%
%
%
yr
yr
$
$/yr
$/tCO2

41.4%
41.4%
41.4%
41.4%
2.6
2.5
142,999
15,754
4.18
No debt
(84)

Periodic costs (credits)

End of project life Annual savings and income

Fuel cost - base case
Customer premium income (rebate)
Electricity export income
CE production income - 10 yrs
GHG reduction income - 21 yrs
Total annual savings and income
Financial viability
Pre-tax IRR - equity
Pre-tax IRR - assets
After-tax IRR - equity
After-tax IRR - assets
Simple payback
Equity payback
Net Present Value (NPV)
Annual life cycle savings
Benefit-Cost (B-C) ratio
Debt service coverage
GHG reduction cost

Yearly cash flows

Year
Pre-tax
#
$
0
(45,000)
1
17,724
2
18,078
3
18,440
4
18,808
5
19,185
6
19,568
7
19,960
8
20,359
9
20,766
10
21,181
11
21,605
12
22,037
13
22,478
14
22,927
15
23,386
16
23,854
17
24,331
18
24,817
19
25,314
20
25,820
21
26,336
22
26,863
23
27,400
24
27,948
25
28,507
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
-

After-tax

Cumulative

$
(45,000)
17,724
18,078
18,440
18,808
19,185
19,568
19,960
20,359
20,766
21,181
21,605
22,037
22,478
22,927
23,386
23,854
24,331
24,817
25,314
25,820
26,336
26,863
27,400
27,948
28,507
-

$
(45,000)
(27,276)
(9,198)
9,241
28,050
47,234
66,803
86,762
107,121
127,887
149,069
170,674
192,711
215,189
238,116
261,502
285,356
309,686
334,504
359,817
385,637
411,974
438,837
466,237
494,186
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693
522,693

Cumulative cash flows graph

600,000

Net GHG reduction

Net GHG reduction - 25 yrs
GHG reduction credit rate
GHG reduction income
GHG reduction credit duration
Net GHG reduction - 21 yrs
GHG reduction credit escalation rate

Cumulative cash flows ($)

500,000
GHG reduction income

400,000
300,000
200,000
100,000
0
0

10

(100,000)
Year

19/12/2005; CHP16-B.xls

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

RETScreen Sensitivity and Risk Analysis - Combined cooling, heating & power project
Sensitivity analysis for After-tax IRR - equity
After-tax IRR - equity
20%
12
%

Perform analysis on
Sensitivity range
Threshold

Fuel cost - base case

$
195,842
220,322
244,802
269,283
293,763

Fuel cost - proposed case

$
180,376
202,924
225,471
248,018
270,565

-20%
-10%
0%
10%
20%

36,000
-20%
negative
negative
51.2%
120.6%
190.0%

40,500
-10%
negative
negative
45.8%
107.4%
169.1%

Initial costs
45,000
0%
negative
negative
41.4%
96.9%
152.4%

49,500
10%
negative
negative
37.8%
88.2%
138.7%

$
54,000
20%
negative
negative
34.8%
81.1%
127.3%

-20%
-10%
0%
10%
20%

36,000
-20%
179.0%
115.1%
51.2%
negative
negative

40,500
-10%
159.3%
102.5%
45.8%
negative
negative

Initial costs
45,000
0%
143.6%
92.5%
41.4%
negative
negative

49,500
10%
130.7%
84.3%
37.8%
negative
negative

$
54,000
20%
120.0%
77.4%
34.8%
negative
negative

-20%
-10%
0%
10%
20%

36,000
-20%
52.3%
51.8%
51.2%
50.7%
50.1%

40,500
-10%
46.7%
46.2%
45.8%
45.3%
44.8%

Initial costs
45,000
0%
42.3%
41.8%
41.4%
40.9%
40.5%

49,500
10%
38.6%
38.2%
37.8%
37.4%
37.0%

$
54,000
20%
35.5%
35.2%
34.8%
34.4%
34.0%

Value
45,000
1,956
225,471
244,802

Range (+/-)
10%
10%
10%
10%

Minimum
40,500
1,760
202,924
220,322

Maximum
49,500
2,151
248,018
269,283

O&M
$
1,565
1,760
1,956
2,151
2,347

Risk analysis for Net Present Value (NPV)

Net Present Value (NPV)

Perform analysis on
Parameter
Initial costs
O&M
Fuel cost - proposed case
Fuel cost - base case

Unit
$
$
$
$

Impact - Net Present Value (NPV)

-0.80

-0.60

-0.40

-0.20

0.00

0.20

0.40

0.60

Sorted by the impact

Fuel cost - base case

Fuel cost - proposed case
Initial costs
O&M

0.80

Relative impact (standard deviation) of parameter

Median
Level of risk
Minimum within level of confidence
Maximum within level of confidence

$
%
$
$

134,999
20%
-12,065
300,486

Distribution - Net Present Value (NPV)

14%
12%

Frequency

10%
8%
6%
4%
2%
0%
-214,467

-145,041

-75,616

-6,190

63,235

Minimum

132,661

202,087

271,512

Median

340,938

Maximum

Level of confidence = 80%

10.0%

(12,065)

410,364

134,999

19/12/2005; CHP16-B.xls

10.0%

300,486

RETScreen Tools - Combined cooling, heating & power project

Settings - Microturbine for Utilities - Minnesota, USA
User-defined fuel

Heating value & fuel rate

Water & steam

User-defined fuel - solid

Unit conversion

GHG equivalence

User-defined fuel - gas

Heat rate

Custom 1

Landfill gas

Electricity rate - time of use

Custom 2

As fired fuel

Electricity rate - monthly

Custom 3

Unit conversion
Distance
Area
Volume
Weight
Pressure
Temperature
Power (load)
Energy (demand)
Heating value
Emission factor
Load

Unit

Quantity

Unit

Quantity

mi
m
m
kg
bar
C

1.0000
1.0000
1.0000
1,000.0000
1.0000
10.0000

m
ft
ft
t
kPa
F

1,609.3440
10.7639
35.3147
1.0000
100.0000
50.0000

MW
MJ
MJ/kg
kg/GJ
W/m

1.0000
1.0000
10.0000
50.0000
70.0000

RT
Btu
Btu/lb
kg/kWh
Btu/ft

284.3451
947.8171
4,299.2261
0.1800
22.1899

187

tCO2

is equivalent to

159

GHG equivalence
Net annual GHG emission reduction

19/12/2005; CHP16-B.xls

Acres of forest absorbing carbon