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<br /> <br />25 <br /> <br />Scenario 1: <br />District <br />Energy – <br />Entire <br />Development <br />Scenario 2: <br />District <br />Energy – <br />Town <br />Center <br />Scenario 3: <br />Decentralized <br />Geothermal <br />Capital Cost (With Reductions) (MM$) $162 $140 $130 <br />Green Energy NPV (MM$) $175 $157 $148 <br />2030 Operational Cost Savings (MM$) $0.7 $0.8 $1.0 <br />Life Cycle Operational Cost Savings (MM$) $25.0 $27.6 $36.3 <br />Life Cycle GHG Savings (tons) 357,000 358,000 358,000 <br />Capital $ per Ton CO2 Avoided ($) $453 $391 $364 <br />Table 9. Life cycle cost analysis results. <br />The analysis assumes that IRA funding does not apply to the in-building equipment costs for buildings <br />connected to a district energy system. However, if IRA funding were applied to in-building costs in all three <br />scenarios, the results would be reversed. Scenario 1 would become the lowest-cost option, with the lowest <br />net present value (NPV) and lowest cost per metric ton of carbon avoided. <br />6. Renewable Electrical Energy Strategies <br />Multiple renewable energy strategies are available to serve the needs of Rice Creek Commons, including <br />both on- and off-site options, as described below. <br />6.1. Xcel Energy’s Planned Energy Mix <br />In 2023, 42% of the energy used to generate the electricity sold by Xcel came from renewable energy <br />sources.3 Including nuclear power, 64% of the energy was from carbon-free sources.4 Xcel plans for these <br />percentages to continue increasing (Table 10), and by 2040, Minnesota law requires all electricity sold in the <br />state to be from carbon-free sources.5,6 Because of this rapid decarbonization, any grid electricity used at <br />RCC will have a relatively low carbon footprint over the life of the buildings. <br /> <br /> <br />3 Xcel Energy, Certified Renewable Percentage for Minnesota, 2023. To avoid allocating renewable energy attributes to <br />multiple entities, this percentage only includes sources where the renewable energy certificates (RECs) were retired on <br />behalf of all customers. Additional renewable energy was generated through programs like Windsource, where the <br />customers receive the RECs. <br />4 Xcel Energy, Generating Power: Energy Mix Breakdown (Upper Midwest), accessed September 20, 2024. <br />5 Xcel Energy, 2024-2040 Upper Midwest Integrated Resource Plan, filed February 1st, 2024. <br />6 M.S. 216b.1691