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<br /> <br />24 <br />To assess the impact of in-building equipment costs when the IRA reduction is not applied to district energy <br />connections, an additional model was completed with the IRA also applied to the district energy in-building <br />equipment costs. This reversed the outcome presented in Figure 12. Scenario 1, which initially had the <br />highest net present value, now has the lowest at $134 million, a reduction of $41 million. Conversely, <br />Scenario 3, previously the least costly, now has the highest NPV at $148 million. As illustrated in Figure 12, <br />the blue bars represent the scenarios where the IRA is not applied to the in-building equipment for district <br />energy system connections, while the green line represents the results with the IRA applied to the in-building <br />equipment for all scenarios. <br /> <br />Figure 12. Impact of IRA funding on in-building equipment: NPV comparison for green energy scenarios <br />with and without IRA support for district energy connection in-building equipment. <br />5.3.4. ENERGY AND LCCA MODELING SUMMARY <br />The energy model and life-cycle analysis evaluated three scenarios: District Energy – Entire Development, <br />District Energy – Town Center, and Decentralized Geothermal. These scenarios were compared against each <br />other and the baseline (business as usual) to assess the potential benefits and drawbacks of different <br />energy strategies. <br />Prior to applying the IRA funding reduction, the decentralized geothermal scenario had the highest capital <br />cost. However, with IRA funding applied to all heating and cooling equipment in the decentralized buildings, <br />it becomes the most cost-effective option, with the lowest capital cost to implement and the lowest cost per <br />metric ton of carbon avoided. This scenario also provides the lowest projected operating costs, resulting in <br />the lowest NPV among all scenarios. The results of the energy model and life-cycle cost analysis for each <br />scenario are summarized in Table 9. <br />$175 <br />$157 <br />$148 <br />$134 $136 <br />$148 <br />$100 <br />$110 <br />$120 <br />$130 <br />$140 <br />$150 <br />$160 <br />$170 <br />$180 <br />Scenario 1: District Energy - Entire <br />Development <br />Scenario 2: District Energy - Town <br />Center <br />Scenario 3: Decentralized <br />Geothermal <br />Green Energy NPV (MM$) <br />Green Energy Scenarios IRA Applied to All Capital Costs