Laserfiche WebLink
TCAAP Energy Integration Resiliency Framework <br />Energy Source Implementation <br /> <br /> <br /> 43 <br />CHP Economic Results <br /> Traditional Scenario CHP Scenario <br />Grid Power 4,172,302 kWh 1,364,734 kWh <br />CHP Power - 2,807,568 kWh <br />Total Power 4,172,302 kWh 4,172,302 kWh <br /> <br />Boiler Heating 14,865 MMBtu 5,105 MMBtu <br />CHP Heating - 9,760 MMBtu <br />Total Heating 14,865 MMBtu 14,865 MMBtu <br /> <br />Electric Costs $417,000 $136,000 <br />Boiler Gas $130,000 $35,000 <br />CHP Gas $ - $145,000 <br />CHP O and M1 $ - $56,000 <br />Annual Costs $547,000 $372,000 <br /> <br />CHP Project Cost $800,000 $4,600,000 <br /> <br />25-Year Cost $21,520,000 $21,505,000 <br />25-Year Difference $ - $15,000 <br />Note: <br />1. Incremental cost difference <br />Table 13: CHP project economic results <br />3.2.4.3. Interpretation of the economic analysis <br />The economics of the CHP system are tied to the energy loads connected to the system. As shown in <br />Table 13, the annual costs of the initial proposed CHP operations are significantly reduced from the <br />traditional scenario. The primary factor contributing to the 25-year cost of the CHP is the capital cost <br />for the initial construction of the system. If additional energy load was connected to the initial system, <br />the debt service payments could be spread out across more energy consumers, and energy rates could <br />be decreased. In order to optimize the economic return of a CHP system, the remaining capacity of its <br />thermal energy output (approximately 1 MMBtu/hr) could be utilized. If the thermal demand of TCAAP <br />development included higher continuous loads (light manufacturing processes, restaurants, domestic <br />hot water, etc.), the 25-year savings could be increased by an estimated $900,000.