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RETScreen - Biomass Heating Project Model

1. sss 12 Waste heat esee enne 11 12 48 57 Waste Heat Recovery WHR System 12 Waste heat recovery system sssessss 12 48 Waste heat recovery system capacity 12 Weather Data eeeessse 3 5 10 20 21 97 Y Yearly Cash Flows eee 61 75 Year to positive cash flow sss 73 89 BIOH 106 RETScreen Biomass Heating Project Model Notes BIOH 107 www retscreen net
2. esee 19 Biomass resource assessment 42 Blank Worksheets 3 ccc cccesssseceesseeeeeseeeeeeeee 9 76 Brief Description and Model Flow Chart 3 4 Building and yard construction 52 C Calculate GHG reduction cost sss 74 Capacity factor i idee ees 18 Cell Colour Coding eee 5 Click here to Calculate Risk Analysis 93 Click here to Calculate Sensitivity Analysis 89 CO2 CH4 and N20 emission factors 81 84 86 Construction supervision eene 47 Contingencl s 1 coc intend 55 57 Contract negotiations 44 Copyright and Trademark sssse 100 Cost Analysis 3 6 9 12 14 16 18 19 33 36 38 39 57 58 61 62 64 65 66 68 70 71 85 98 Cost Data eicere ii teet eren iis 3 98 Cost of fuel Units eee emet 26 Cost referentes rinnoin 6 39 40 Costing method a ere e ARER 31 Cumulative eoe a er costes 61 75 Cumulative Cash Flows Graph 61 75 GUITENCY is eet ato e EU REA 6 38 40 Currency Options xn ste eR 6 Custom eeren 78 79 80 81 82 84 86 D Data amp Help Access ssssse 5 10 96 97 Debt interest rate 65 92 Debt payments eee 70 74 Debt payments debt term esses 70 DOD Pat Oss ee oerte 65 92 Debt service coverage 74 DIS oMr
3. TT 86 GHG reduction credit duration 62 63 GHG reduction income duration 70 Global Warming Potential of GHG 78 Greenhouse Gas Emission Reduction Analysis 9 Ground Monitoring Stations Data 97 H Heated floor area per building cluster 23 Heating capacity eee 18 Heating design temperature eee 20 Heating energy delivered 19 62 Heating energy demand s 11 25 Heating energy savings income eeee 70 Heating fuel displaced sess 62 Heating fuel requirement eee 19 Heating fuel type s sse 24 Heating Load Calculation 3 9 20 25 Heating Load Calculation amp District Heating Network Design sse 3 9 20 Heating load for building cluster 25 26 Heating system seasonal efficiency 24 I Impact graph 1 ottenere evs 94 Incentives Grants esee 69 Income tax analysis seen 65 Inflation rrr ERE E DUAE 64 Initial SI EN 90 91 Imtial Costs eerte 41 66 68 Initial Costs Credits esses 41 L Length of pipe section see 10 30 Level of r18I6 enano i eto p
4. which represents the true interest yield provided by the project equity over its life before income tax It is also referred to as the return on investment equity ROD or the time adjusted rate of return It is calculated by finding the discount rate that causes the net present value of the project to be equal to zero Hence it is not necessary to establish the discount rate of an organisation to use this indicator An organisation interested in a project can compare the internal rate of return of the project to its required rate of return often the cost of capital The IRR is calculated on a nominal basis that is including inflation If the internal rate of return of the project is equal to or greater than the required rate of return of the organisation then the project will likely be considered financially acceptable assuming equal risk If it is less than the required rate of return the project is typically rejected An organisation may have multiple required rates of return that will vary according to the perceived risk of the projects The most obvious advantage of using the internal rate of return indicator to evaluate a project is that the outcome does not depend on a discount rate that is specific to a BIOH 71 RETScreen Software Online User Manual given organisation Instead the IRR obtained is specific to the project and applies to all investors in the project The model uses the pre tax yearly cash flows and the proj
5. The time requirement is typically 40 to 80 hours at rates ranging from 40 h to 100 h The user can also add to the number of hours or unit costs an amount to cover the actual permit itself Permit costs are usually minor relative to the total project cost Project financing The time and effort required to arrange project financing will vary depending upon the project developer and client relationship In most cases where the client is the building owner and the developer is the product supplier the project financing costs attributable to the project are minimal The building owner will usually finance the project out of capital or O amp M budgets and the product supplier will provide in kind support as required to help arrange the client project financing In the case of an ESCO or local utility developed project much more effort will likely be required to arrange financing negotiate an energy services contract with the building owner and prepare legal documents The cost to obtain project financing will range from 32 to 48 hours at a rate of between 50 h to 100 h The lower end of the range is for building owner product supplier developed projects The higher end of the range applies to ESCO utility type projects Project management The project management cost item should cover the estimated expenses of managing all phases of the development of the project excluding construction supervision Public relations are also included here T
6. The user enters the number of buildings in each building cluster Heating fuel type s The user selects the type of fuel that is used to heat the cluster of buildings A list of common fuels is provided in the drop down list The following table provides the heating value for the heating energy avoided Heating Energy Avoided Fuel Heating Value Natural gas 37 2 MJ m 10 33 kWhim Propane 26 6 MI L 7 39 KWh L Diesel 2 oil 38 7 MI L 10 74 KWEL 6 oil 40 5 MJ L 11 25 kWh L Electricity 1 0 kWh k Wh Other 1 0 Fuel Heating Content Note Propane is expressed in terms of liquefied propane Heating system seasonal efficiency The user enters the average efficiency of the conventional heating system over the season of use This entry is used to calculate the financial value of the system It has no influence on the calculation of the annual energy production Typical values range from 55 for conventional fossil fuel fired heaters to 10046 for electric heaters If a heat pump is used as a base case the user will select Electricity as the heating fuel type and may enter values higher than 10046 to reflect the heat pump coefficient of performance COP e g enter 22596 1f seasonal COP is 2 25 Typical values of heating system efficiency are presented in the table below These values should be reduced by 10 if ducting runs outside of the insulated envelope e g in attics Heating System Type Typical Annual Heating System s
7. These costs are detailed in the following section For small projects single buildings with small heating requirement the cost of the feasibility study relative to the cost of the biomass and or WHR heating system may not be justified In this case the project proponent may choose to go directly to the engineering stage combining some steps from the feasibility and development stages Note The RETScreen Clean Energy Project Analysis Software can also be used to prepare the Feasibility Study Site investigation A site investigation is normally required for biomass and or WHR heating projects with district heating The site visit involves a brief survey of all major buildings under consideration In small district heating systems the user would likely look for clusters of oil or electricity heated buildings with a distance not exceeding 500 m Typical major buildings heated with oil or electricity include schools hospital health clinics churches senior s apartments service garages and community offices BIOH41 RETScreen Software Online User Manual The identification of the most promising buildings or clusters is generally followed by a detailed site and building or clusters analysis The analysis includes measurement of the distance between the various buildings determination of the fuel consumption for each building measurement of the building areas and insulation levels study and documentation of the existing buildi
8. includes product weather and cost databases an online manual a Website an engineering textbook project case studies and a training course Model Flow Chart Complete each worksheet row by row from top to bottom by entering values in shaded cells To move between worksheets simply click on the tabs at the bottom of each screen or on the blue underlined hyperlinks built into the worksheets The RETScreen Model Flow Chart is presented below Five Step Standard Analysis amp Sensitivity amp Risk Analysis m on blue hyperlinks or floating icon to access data Project Cash Flows RETScreen Model Flow Chart BIOH 4 RETScreen Biomass Heating Project Model Data amp Help Access The RETScreen Online User Manual Product Database and Weather Database can be accessed through the Excel menu bar under the RETScreen option as shown in the next figure The icons displayed under the RETScreen menu bar are displayed in the floating RETScreen toolbar Hence the user may also access the online user manual product database and weather database by clicking on the respective icon in the floating RETScreen toolbar For example to access the online user manual the user clicks on the icon X Microsoft Excel 5 File Edit View Insert Format Tools Data Window Help RETScreen Ii GE SRY 3 EX ESAE v v Cu a Online User Manual Online Product Database E Online Weather Database s E140 RE a Decision
9. scenarios Hence the user may retain a record of up to 8 different quantity and cost ranges that can be used in future RETScreen analyses and thus create a localised cost database BIOH 39 RETScreen Software Online User Manual Second currency The user selects the second currency this is the currency in which a portion of a project cost item will be paid for in the second currency specified by the user The second currency option is activated by selecting Second currency in the Cost references drop down list cell This second unit of currency is displayed in the Foreign Amount column If the user selects the unit of currency shown in the Foreign Amount column is Selecting User defined allows the user to specify the currency manually by entering a name or symbol in the additional input cell that appears adjacent to the currency switch cell The currency may be expressed using a maximum of three characters US etc To facilitate the presentation of monetary data this selection may also be used to reduce the monetary data by a factor e g reduced by a factor of a thousand hence k 1 000 instead of 1 000 000 If None is selected no unit of currency is shown in the Foreign Amount column The user may also select a country to obtain the International Standard Organisation ISO three letter country currency code For example if Afghanistan is selected from the currency switch drop down list
10. 52 Energy transfer station s connection type 31 Energy transfer station s cost 31 32 Energy transfer station s cost factor 31 Engineer Soo iege i tein ete red 46 69 Equipment installation eene 53 Equivalent degree days for DHW heating 21 Equivalent full load hours sssessss 21 Equivalent full output hours eeeee 18 Exchange rateno iore REGENT 31 33 F Feasibility study esee 41 68 Feasibility Study eee 41 68 Financial Feasibility eeee 61 71 Financial Parameters eeeeeeee 61 63 Financial Summary 3 9 61 62 63 68 75 77 78 87 90 91 92 93 94 Foreign Amount sssseeeee 39 40 41 98 Fuel consumption annual eee 26 Fuel consumption units eee 26 Fuel conversion efficiency 82 85 86 Fuel MIR i E rE 81 83 85 Buel types enean het 80 82 83 85 Fuel Electricity eite ene e 57 70 G General and administrative esses 56 GHG credit escalation rate sssuus 63 70 GHG emission factor 77 81 82 83 84 85 86 87 GHG emission reduction cost eeees 74 GHG emission reduction credit 63 70 74 93 GHG Emission Reduction Summary
11. 54 56 62 80 96 Overhead dn recreate 54 P Parasitic electricity odit tette 58 Peak energy delivered sss 17 Peak heating load sse 11 Peak Load Heating System 11 15 Peak load system Capacity sese 16 Peak load system fuel esses 15 58 Peak load system fuel type esses 15 Peak load system seasonal efficiency 16 Peak load system steady state efficiency 15 Percentage of peak heating load 12 15 17 18 Percentage of total heating energy demand 12 15 17 19 Perform analysis on eene 88 89 Perform risk analysis too sese 88 Periodic Costs Credits sss 60 71 Permits and approvals sse 44 PIPE Sections 3 2 n eoim pma HE ER 29 PIPE SIZE iii boten e eta aps 30 Preliminary design sese 42 l eat e h EAEE E IRA RR ERES 71 75 Printing a File science eed Aden ee 8 Product Data 3 5 8 10 14 16 17 36 48 96 Project Costs and Savings 61 68 Project debt oerte tiefer 74 Project equity eere erroe ertet 74 Project financing eese 45 Project life ie es 64 Project location eesssssss 10 61 78 89 Project management sss 45 Project name eren 10 61 78 88 Property taxes
12. BIOH 40 RETScreen Biomass Heating Project Model Foreign The user enters the percentage of an item s costs that will be paid for in the second currency The second currency is selected by the user in the Second currency switch Foreign Amount The model calculates the amount of an item s costs that will be paid for in the second currency This value is based on the exchange rate and the percentage of an items costs that will be paid for in the second currency as specified by the user Initial Costs Credits The initial costs associated with the implementation of a biomass and or WHR heating project are detailed below The major categories include costs for preparing a feasibility study performing the project development functions completing the necessary engineering purchasing and installing the energy equipment construction of the balance of plant and costs for any other miscellaneous items Feasibility Study Once a potential cost effective biomass and or WHR heating project has been identified through the RETScreen pre feasibility analysis process a more detailed feasibility analysis study may be required This is particularly the case for large projects with more than one building Feasibility studies typically include such items as a site investigation a local biomass resource assessment a preliminary project design and a final report Feasibility study project management and travel costs are also normally incurred
13. Insurance esee 55 Proposed case GHG emission factor 87 Proposed Case Heating System Biomass Heating Project eene ener 85 R Renewable energy delivered 61 Report preparation eeeeeeeeeeneennne 43 Retail price of electricity sees 64 Risk Analysis for esee 90 S saving a Eie i eer rper eee 7 Second currency seeeeess 6 39 40 41 98 Secondary distribution line pipe 33 52 Secondary distribution line pipe cost 33 Secondary distribution line pipe cost factor 33 Secondary Distribution Lines sss 30 Secondary pipe network oversizing 30 Sensitivity Analysis for sese 90 Sensitivity and Risk Analysis 3 9 88 Sensitivity ran gene eenen e na a a 89 Simple Payback teen 72 Site and building design 0 0 eee eeeeecseeeeeneeeeeeeeee 46 Site Conditions 0 0 0 cceccceessececeesceceesseeceeaeees 10 20 Site investigation esses 41 Spare parts eerta bea eue tete rr 55 Standard 6 38 40 78 81 82 84 86 Suggested back up heating system capacity 17 Suggested biomass boiler capacity 16 Suggested peak load system capacity 15 Summary of main d
14. Natural gas Propane Diesel 2 oil 6 oil Electricity and Other Electricity required The electricity required is the sum of the parasitic electricity entered in the Cost Analysis worksheet and the electricity used by the peak load heating system if any as selected in the Energy Model worksheet Net GHG emission reduction The model calculates the net annual average GHG emission reduction in equivalent tonnes of CO per year tco yr resulting from the implementation of the system instead of the base case or baseline heating system This value is calculated in the GHG Analysis worksheet and it is copied automatically to the Financial Summary worksheet Net GHG emission reduction credit duration The model calculates the cumulative net greenhouse gas GHG emission reduction for the duration of the GHG credit in equivalent tonnes of CO tco resulting from the implementation of the project instead of the base case or baseline system This value is calculated by multiplying the appropriate net annual GHG emission reduction by the GHG reduction credit duration Net GHG emission reduction project life The model calculates the net project life GHG emission reduction for the duration of the project in equivalent tonnes of CO tco resulting from the installation of the project instead of the base case or baseline heating system This value is calculated by multiplying the net annual GHG emission reduction by the pro
15. RETScreen do not include sales taxes In a number of jurisdictions clean energy project costs are often exempt from sales taxes Users will have to consider these costs for their region when preparing their evaluations For example if in a particular region sales tax is applicable to the cost of a biomass and or WHR heating project then the user must add the amount of sales tax to the cost of the project chosen from the proposed range of values Feasibility study The feasibility study item represents the sum of the costs incurred to assess the feasibility of a project It is net of any credits for not having to develop the base case project Considerable detail is provided in the Cost Analysis worksheet for estimating the sub costs for feasibility studies This is done because it will help the project proponent better estimate the costs of the next investment required which is the investment in a feasibility study However for smaller projects the RETScreen analysis may be sufficient to move to the development and engineering phase or to construction Note The RETScreen Clean Energy Project Analysis Software can also be used to prepare the Feasibility Study Development The development item typically represents the sum of the costs incurred to bring a project to the detailed design and construction stage once its feasibility has been proven It is net of any credits for not having to develop the base case project BIOH 68 RETSc
16. System Waste heat is available from many sources The model does not distinguish the origin of the heat Waste heat is assumed to be available at all times and is considered base load for the energy calculations Typical sources of waste heat are heat recovered from a process or cooling of a machine Electricity generating systems are often used For example with a reciprocating engine that produces electricity the jacket and lubrication cooling in combination with exhaust gas cooling can recover heat equal to the shaft power Waste heat recovery system capacity The user enters the waste heat recovery system capacity available in kW This value is transferred to the Cost Analysis worksheet For example a 500 kW diesel electric generator used in a base load mode will provide approximately 500 kW of WHR capacity Use the System Design Graph as displayed in the Energy Model worksheet as a guide Waste energy delivered The model calculates the waste energy delivered in MWh The waste energy delivered is the annual energy production provided by the WHR system Percentage of peak heating load The model calculates the percentage of the WHR system installed capacity with respect to the peak heating load Percentage of total heating energy demand The model calculates the percentage of total heating energy demand supplied by the WHR system BIOH 12 RETScreen Biomass Heating Project Model Biomass Heating System Bi
17. Typically plastic pipes are smaller than DN100 100 mm or 4 and have a maximum temperature rating of 95 C steel pipes are typically rated up to 130 C If a mixed plastic and steel system is designed the rating for the plastic pipes governs the maximum water temperature allowable A minimum supply temperature of 70 C is typically required for supplying heat to domestic hot water BIOH 27 RETScreen Software Online User Manual The next figure illustrates typical district heating temperatures in relation to ambient temperature Medium Temperature MT supply is typical for steel pipe systems Low Temperature LT supply is typical for plastic pipe or mixed type systems MT return is typical for district heating systems with a mixture of old and new buildings LT return represents a system with buildings specifically designed for district heating and optimisation of the return temperature High temperature district heating systems are very rare and typically use supply temperatures that are well above temperatures shown in the following figure i e about 150 C U c o i oo ao w ET E E D o0 c e Q o p Ur Q 10 0 10 Ambient temperature C MT Supply LT Supply MT Return LT Return Typical District Heating Supply and Return Temperatures Design return temperature The user enters the design return temperature for the district heating network A low return temperature is
18. analysis if that is required The direction of the horizontal bar positive or negative provides an indication of the relationship between the input parameter and the financial indicator There is a positive relationship between an input parameter and the financial indicator when an increase in the value of that parameter results in an increase in the value of the financial indicator For example there is usually a negative relationship between initial costs and the net present value NPV since decreasing the initial costs will increase the NPV In some cases there is insufficient data to properly plot the graph For example when the year to positive cash flow is immediate the result is not a numerical value and therefore these values cannot be plotted Median The model calculates the median of the financial indicator The median of the financial indicator is the 50 percentile of the 500 values generated by the Monte Carlo simulation The median will normally be close to the financial indicator value calculated in the Financial Summary worksheet Level of risk The user selects from the drop down list the acceptable level of risk for the financial indicator under consideration The options are 5 10 15 20 and 25 BIOH 94 RETScreen Biomass Heating Project Model The level of risk input is used to establish a confidence interval defined by maximum and minimum limits within which the financial indicator is expect
19. box the data can be pasted to the spreadsheets by clicking on the Paste Data button Only data that are in bold are pasted to the spreadsheets all other data are for reference purposes only Data entered using the online weather database may be overwritten i e the user may prefer to use other data and can manually enter values into the spreadsheets As an alternative the user can use the NASA satellite data particularly for the case when the project location is not close to the given weather station location NASA Global Satellite Data A link to the NASA Surface meteorology and Solar Energy Data Set Website is provided in the online weather database dialogue box The user is able to select the data required for the model by clicking on a region on the world map illustrated on the NASA Website The location is narrowed down to a cell within a specified latitude and longitude The user may simply copy and paste this data to the RETScreen spreadsheets or manually enter these values NASA and CETC Varennes are co operating to facilitate the use of NASA s global satellite solar data with RETScreen and to develop a new global weather database see Surface meteorology and Solar Energy Data Set for the tool This work is sponsored as part of NASA s Earth Science Enterprise Program and is being carried out at the NASA Langley Research Center and at CETC Varennes This collaboration provides RETScreen users access free of charge to satellite da
20. commercial biomass and or WHR heating systems usually use 32 to 150 mm 1 to 6 diameter treated plastic or steel in plastic insulated pipes for heat distribution These pipes have proven to be economical to purchase install and maintain but require water temperatures of less than 130 C 95 C for plastic pipes The pipe diameter varies depending on the heating load of the system When pipe length is used in this section it refers to trench length with two pipes The heat losses for a district heating system vary depending on many factors For example an area with snow cover for a long period has fewer losses than an area with similar temperatures and no snow cover In the RETScreen Biomass Heating model heat losses have not been included as a separate line item The annual heat losses for a modern district heating system are in the range of 2 to 3 of all delivered energy These numbers change if the pipe length is short and delivered energy is high As an example the heat loss is approximately 58 W m for a two pipe system of a DN125 pipes using an average annual supply temperature of 100 C and an average annual return temperature of 50 C The capacity is 3 400 kW for a DN125 pipe assuming a temperature difference of 45 C Additional information may be obtained from the District Heating Handbook Randl v 1997 Design Criteria Design supply temperature The user enters the design supply temperature for the district heating network
21. desirable Lower return temperatures makes it possible to reduce pipe sizes and achieve higher efficiencies for waste heat recovery For older buildings the winter return temperature is likely to be around 75 C For new systems designed to minimise the return temperature 50 C can be achieved See the Typical District Heating Supply and Return Temperatures graph for more information BIOH 28 RETScreen Biomass Heating Project Model Differential temperature The model calculates the differential temperature from the difference between design supply and return temperatures This value is used to calculate the size of the district heating pipes Main Distribution Line The main distribution line is the part of the district heating pipe system that connects several buildings or clusters of buildings to the heating plant The first section exiting the heating plant typically has the largest pipe diameter as it has to serve all the buildings The pipe diameter is reduced as the load decreases farther away from the heating plant The type of pipe can change from steel to plastic if the system is designed as a low temperature supply system i e below 95 C Note If the system consists of only one building connected to the heating plant this pipe is considered to be a secondary line Main pipe network oversizing The user enters a pipe network oversizing factor The selected pipe sizes are then automatically sized for a load that i
22. drop down list whether or not losses are carried forward i e whether or not a loss a negative taxable income in a given year can be used to lower taxes owed in that same year or can be deferred to offset profits from future years If the user selects Yes losses are carried forward and applied against taxable income in the following years thereby reducing the income tax owed up to the accumulated losses years after the losses occur If the user selects No losses are not carried forward but rather lost and thereby never used to offset any other year taxable income If the user selects Flow through losses are not carried forward but rather used in the year in which they occur and applied against profits from sources other than the project or qualify and generate a refundable tax credit thereby reducing the income tax owed in the years in which losses occur Whether losses must be carried forward or not will depend on the tax laws in the jurisdiction in which the project is located The Flow through situation is typically the most advantageous for the project owner and can contribute to make profitable a project which would not appear financially attractive on a pre tax basis The model does not allow losses to be carried backward and does not set a limit on the number of years for carryforwards Depreciation method The user selects the depreciation method from three options in the drop down list None Declining balance and Str
23. e ERE 94 License Agreement essere 101 Loss carryforward eseesseeeeeeree 66 M Main Distribution Line sse 29 Main distribution line pipe ses 35 52 Main distribution line pipe cost factor 35 Main pipe network oversizing een 29 Maximum within level of confidence 95 Median nor ettet iets estes RE MEUS 94 Minimum within level of confidence 95 Miscellaneous ccccccccesseeessscecesssececsseeeeeenes 54 69 Model Flow Chaft ccccceccccccccecsesssseceeececeenseees 3 4 Moisture content on wet basis of biomass 13 Monthly Inputs 20 0 eeeecesceeeseeceeeeeeneeceeeeeeseeeeee 21 N NASA Global Satellite Data sss 97 Nearest location for weather data 10 20 BIOH 104 RETScreen Biomass Heating Project Model Net GHG emission reduction esses 62 Net GHG emission reduction credit duration 62 Net GHG emission reduction project life 62 Net Present Value NPV sssseses 73 89 Number of buildings eee 10 24 Number of buildings in building cluster 24 O O amp M or ds Sete see eie ees 45 55 56 69 70 O amp M labour eseseeseeeeeeeeenenenen enne 55 56 Other 27 43 46 47 50 53
24. estimated value the risk analysis will consider this value as being the most probable and the minimum and maximum values as being the least probable based on a normal distribution If the debt interest rate is known exactly by the user no uncertainty the user should enter a range of 0 Debt term The debt term is automatically transferred from the Financial Summary worksheet to the Sensitivity worksheet The user enters the debt term range The range is a percentage corresponding to the uncertainty associated with the estimated debt term value The higher the percentage the greater the uncertainty The range specified by the user must be a percentage value between 0 and the BIOH 92 RETScreen Biomass Heating Project Model lowest percentage such that the debt term will always fall between 1 year and the project life The range determines the limits of the interval of possible values that the debt term could take For example a range of 10 for a debt term of 20 years means that the debt term could take any value between 18 and 22 years Since 20 years is the estimated value the risk analysis will consider this value as being the most probable and the minimum and maximum values as being the least probable based on a normal distribution If the debt term is known exactly by the user no uncertainty the user should enter a range of 0 GHG emission reduction credit The GHG emission reduction credit is automatically t
25. floor area per building cluster the heating load for building cluster and the equivalent full load hours Total peak heating load The model calculates the building cluster s total peak heating load which is the heating power required to meet the largest heating load for the year It typically coincides with the coldest day of the year This value is transferred to the Energy Model worksheet Fuel consumption units The model displays the units used for the heating fuel type selected for each building cluster Note that the fuel consumption unit for propane is litres of liquefied propane Fuel consumption annual The model calculates the annual fuel consumption for each building cluster If the fuel consumption is known for the building s this row can be used to determine the Heating load for building cluster For example the user may know from previous years heating bills how many litres of heating oil are purchased In this case the user would vary the Heating load for building cluster value until the fuel consumption value converges to the value shown on their heating bills Cost of fuel units The model displays the units used for the heating fuel type selected for each building cluster Note that the cost of fuel unit for propane is expressed in terms of litres of liquefied propane Unit cost of fuel The user enters the unit cost of the heating fuel type selected for each building cluster The user is given the flexib
26. from the dialogue box to the spreadsheets by clicking on the Paste Data button Only data that are in bold are pasted to the spreadsheets all other data are provided for reference purposes only Data entered using the product database may be overwritten i e the user may prefer to use other data and can manually enter values into the spreadsheets Other information such as product weight and or dimensions is provided to help the user prepare the study The product database contains a link to the Websites of some product suppliers In the case where the Website link cannot be activated the user should try using another browser or can contact the supplier by other means email etc Note To see all the suppliers listed in the product database and their contact information the user can choose Any from the Region input cell The product database is distributed for informational purposes only and does not necessarily reflect the views of the Government of Canada nor constitute an endorsement of any commercial product or person Neither Canada nor its ministers officers employees or agents make any warranty in respect to this database or assumes any liability arising out of this database Some of the product data requirements for the model are provided in the RETScreen Online Product Database To access the product database the user may refer to Data amp Help Access The product database provides information on the equipment associated wi
27. in the Amount column Balance of Plant The balance of plant for a biomass and or WHR heating project typically includes a number of items such as a peak load heating system and possibly a back up heating system It will also include the heat distribution system components such as distribution piping and trenching and the balance of plant will include the building interconnection plumbing required In addition plant building and yard will usually have to be constructed and separate costs for equipment installation and transportation will be included These costs are detailed below The user should remember to consider cost items listed below that may be credited due to the fact that they are required even if the biomass and or WHR heating project does not go forward The user should try to establish the capital cost of equipment that would be installed as an alternative to the biomass and or WHR heating system Typically there are four alternatives in order of largest to lowest potential capital cost crediting 1 New construction where a district heating system is considered conventional 2 New construction where a district heating system would not otherwise be planned 3 Retrofit situations when there are plans to either repair or upgrade an existing heating system 4 Retrofit situations when there are no plans to either repair or upgrade an existing heating system Biomass Peak load heating system As discussed in the Ene
28. low rate of return might be preferred over another project with a high rate of repayment but a long payback period The reason is that the organisation may simply need a faster return of its cash investment The model uses the total initial costs the total annual costs excluding debt payments and the BIOH 72 RETScreen Biomass Heating Project Model total annual savings in order to calculate the simple payback The calculation is based on pre tax amounts and includes any initial cost incentives Year to positive cash flow The model calculates the number of years to positive cumulative cash flow which represents the length of time that it takes for the owner of a project to recoup its own initial investment out of the project cash flows generated The year to positive cash flow considers project cash flows following the first year as well as the leverage level of debt of the project which makes it a better time indicator of the project merits than the simple payback The model uses the year number and the cumulative after tax cash flows in order to calculate this value The year to positive cash flow differs from the discounted payback indicator in that it considers the nominal value of future cash flows rather than the discounted value of future cash flows Net Present Value NPV The model calculates the net present value NPV of the project which is the value of all future cash flows discounted at the discount rate i
29. n a PEE EE nIE tees 65 92 Depreciation method sese 66 Depreciation period essen 67 Depreciation r te epe ote 67 Depreciation tax basis sseeeeere 67 Design Criteria uio udo 27 Design return temperature eeeeeeee 28 Design supply temperature sssssseess 27 Development eere 37 44 47 68 Differential temperature eeeeeen 29 Disclaimer and Indemnification 100 Discount rate 2 tee ren 64 Distribution graph sese 95 District Heating Network Costs 31 District Heating Network Design 3 9 20 27 Domestic hot water heating base demand 21 BIOH 103 RETScreen Software Online User Manual E Effective income tax rate 66 Electricity required eene 62 End of project life 60 66 71 End of project life Cost Credit 71 End use annual energy delivered 87 Energy cost escalation rate sseeeee 64 Energy equipment sese 69 Energy Equipment essere 48 Energy Model 3 9 10 12 14 15 16 20 26 35 48 49 51 52 57 58 61 62 78 79 85 86 87 88 89 Energy system design esee 46 Energy transfer station s ssse 31 32
30. or WHR heating project are detailed below The system characteristics are divided into four sub sections Waste Heat Recovery System Biomass Heating System Peak Load Heating System and Back up Heating System System type The user selects the type of base load heating system considered from the three options in the drop down list WHR waste heat recovery system Biomass biomass heating system and Biomass amp WHR biomass heating system and waste heat recovery WHR combined BIOH 11 RETScreen Software Online User Manual The model assumes that the system type selected will provide the base load heating energy demand with the peak load system meeting the remaining energy demand not met by the base load system Within the base load system the model assumes that the full amount of energy available from the WHR system will be used before energy is supplied by the biomass heating system The System Design Graph provided summarises essential design information for the user For example the stacked bar chart on the left shows the percentage of the installed heating power capacity for each of the heating systems WHR biomass and peak with respect to the peak heating load The bar chart can exceed 100 to allow the system to be oversized The stacked bar chart on the right shows the percentage of total heating energy demand supplied by each of the heating systems The bar chart cannot exceed 100 Waste Heat Recovery WHR
31. system or mitigation system is the proposed project It is defined in terms of its fuel types its emissions of GHG and its conversion efficiencies Note that in all cases the parasitic electricity for pumps and fans if any of the biomass and or WHR heating system are assumed to use the base case electricity system The proposed case system is normally referred to as the mitigation option in standard economic analysis Fuel type The fuel type of the biomass WHR heating system peak load heating system and parasitic electricity entered by the user in the Energy Model worksheet is transferred to the GHG Analysis worksheet Fuel mix The fuel mix of the biomass heating system is calculated from values entered by the user in the Energy Model worksheet The parasitic electricity as entered by the user in the Cost Analysis worksheet forms part of the fuel mix Hence the total fuel mix may exceed 100 given it accounts for parasitic electricity which does not generate any useful heating energy BIOH 85 RETScreen Software Online User Manual CO2 CH4 and N20 emission factors Custom analysis The user enters the CO CH and N5O emission factors corresponding to the fuel types used by the biomass and or WHR heating system The model provides the electricity values corresponding to the electricity mix of the base case electricity system For each fuel type selected units are given in kilograms of gas emitted per gigajoule o
32. that would otherwise be allocated to the conventional energy system should not be included here Training The training required by automated biomass plant operators varies depending on their responsibilities and capabilities The training ranges from about 8 hours for basic operation training to about 30 hours for skilled operators who are being trained to handle all aspects of operation and repairs Repairs mainly involve replacement of electrical components such as motors capacitors timers contractor switches aquastats as well as mechanical components such as the fuel agitator and the feed auger The training rate is approximately 40 h to 100 h BIOH 54 RETScreen Biomass Heating Project Model Contingencies The allowance made for contingency costs depends on the level of accuracy of the cost estimates Contingencies are estimated based on a user selected percentage of the sub total of all project costs Note that contingencies are incremental in the sense that they are derived from project costs including any credits The allowance for contingency items should be based on the level of accuracy associated with the RETScreen pre feasibility estimate of the project costs Typically a pre feasibility level cost analysis should be accurate within 40 to 50 However this accuracy will depend on the expertise of the study team the scale of the project being considered the level of effort put forward to complete the pre feasibi
33. the global electricity mix and per unit of electricity delivered The electricity mix factors thus account for a weighted average of the fuel conversion efficiencies and T amp D losses of the different fuel types For each fuel type selected units are given in kilograms of gas emitted per gigajoule of heat energy generated kg GJ For the global electricity mix shown on the bottom row of the table units are given in kilograms of gas emitted per gigajoule of end use electricity delivered For more information on determining GHG emission factors see the revised IPCC Guidelines for National Greenhouse Gas Inventories CO emission factors for many fuels are included on page 1 13 of the IPCC Reference Manual CH4 and N5O emission factors for a number of fuels are included on pages 1 35 and 1 36 of the IPCC Reference Manual CO2 CH4 and N20 emission factors Standard analysis The model provides the CO2 CH and N5O emission factors which represent the mass of greenhouse gas emitted per unit of energy Emission factors will vary for different types and qualities of fuels and for different types and sizes of power plants The default factors provided are those which are representative of large power plants that feed a central electricity grid On the electricity mix row at the bottom of the table the model calculates the equivalent emission factors for the total electricity mix and per unit of electricity delivered The electricity mix
34. user may also evaluate a single project using different quantity and cost ranges selecting a new range reference Enter new 1 to Enter new 8 enables the user to keep track of different cost scenarios Hence the user may retain a record of up to 8 different quantity and cost ranges that can be used in future RETScreen analyses and thus create a localised cost database BIOH 98 RETScreen Biomass Heating Project Model Training and Support The user can obtain current information on RETScreen Training amp Support at the following Website address www retscreen net e training BIOH 99 RETScreen Software Online User Manual Term of Use Disclaimer and Indemnification RETScreen International is provided on an as is basis Natural Resources Canada nor does its minister officers employees or agents make any representations or warranties either expressed or implied arising by law or otherwise including but not limited to implied watranties of merchantability or fitness for a particular purpose or that the use of the software will not infringe any intellectual property rights of third parties In no event will Natural Resources Canada nor its minister officers employees or agents have any obligations or liability arising from tort or for loss of revenue or profit or for indirect special incidental or consequential damages as a result of your use of the software In consideration of the right to load exe
35. 11 17 18 52 Back up Heating System optional 17 Back up heating system capacity ses 18 Balance of plant seen 69 Balance of Plant 36 51 53 Bar graph caia Siete pei tides 95 Base Case Electricity System Baseline 79 Base case GHG emission factor 87 Base Case Heating System 22 23 77 83 Base Case Heating System Baseline 83 Base Case Heating System and Heating Load 22 23 Benefit Cost B C ratio sssssssseee 73 Bibliography hee tee een 3 102 Biomass 3 9 11 13 14 15 16 17 19 27 42 48 49 51 52 57 58 85 102 Biomass boiler capacity eee 16 Biomass boiler seasonal efficiency 17 Biomass boiler s capacity boilers 14 Biomass boiler s manufacturer 14 Biomass boiler s model sss 14 Biomass boiler s seasonal efficiency 14 Biomass energy delivered sess 15 Biomass equipment installation 49 Biomass fuel type eee 13 15 Biomass Heating Project Model 3 9 Biomass heating system eene 11 48 Biomass Heating System sess 11 13 Biomass requirement
36. 2000 the range of values reported in the Quantity Range and Unit Cost Range columns are for a 2000 baseline year for projects in Canada and in Canadian dollars Selecting None hides the information presented in the Quantity Range and Unit Cost Range columns The user may choose this option for example to minimise the amount of information printed in the final report If the user selects Second currency two additional input cells appear in the next row Second currency and Rate 1st currency 2nd currency In addition the Quantity Range and Unit Cost Range columns change to Foreign and Foreign Amount respectively This option allows the user to assign a portion of a project cost item in a second currency to account for those costs that must be paid for in a currency other than the currency in which the project costs are reported Note that this selection is for reference purposes only and does not affect the calculations made in other worksheets If Enter new 1 or any of the other 8 selections is selected the user may manually enter quantity and cost information that is specific to the region in which the project is located and or for a different cost base year This selection thus allows the user to customise the information in the Quantity Range and Unit Cost Range columns The user can also overwrite Enter new 1 to enter a specific name e g Japan 2001 for a new set of unit cost and quantity ranges The
37. 48 RETScreen Biomass Heating Project Model Typical range of costs for small commercial biomass systems are illustrated in the following table Power Total Costpe Fuel Hin Capacity Component Costs Cost Capacity Size Boiler Burner Chimney Spare Parts KEW Small Commercial Biomass System Costs The user should refer to the biomass boiler system capacity to select the appropriate cost for the burner The number of biomass burners is assumed for this level of analysis to be equal to the number of biomass boilers The burners normally range from 1 to 3 units Typical range of costs for commercial industrial biomass systems are illustrated in the following table Power Capacity Total Cost Cost per Capacity Fuel Bin Size NV mnm 245 nn 272 000 300 000 335 000 376 000 Commercial Industrial Biomass System Costs The biomass systems given in the previous table are built for commercial or industrial usage and are more heavy duty than small commercial biomass systems The above costs include automatic fuel handling system combustion chamber boiler fluegas handling equipment induced draft fan multi cyclone or wet venturi scrubber stack and 1 for initial spare parts For systems with district heating the cost of the distribution pump and the cost of installation are included in the pipe costs The size and cost of the pumps typically one for operations and one for standby or emergency vary by the size and compl
38. RETScreen International Clean Energy Decision Support Centre RETScreen Software Online User Manual ra E I Ji SE amp it J T h b 3 P hc n j j F Ao k ap J 1 LF Can Q W RA E z Z z J Biomass Heating Project Model Natural Resources Canada OI D 2 0 Q Canada Background This document allows for a printed version of the RETScreen Software Online User Manual which is an integral part of the RETScreen Software The online user manual is a Help file within the software The user automatically downloads the online user manual Help file while downloading the RETScreen Software Reproduction This document may be reproduced in whole or in part in any form for educational or nonprofit uses without special permission provided acknowledgment of the source is made Natural Resources Canada would appreciate receiving a copy of any publication that uses this report as a source However some of the materials and elements found in this report are subject to copyrights held by other organizations In such cases some restrictions on the reproduction of materials or graphical elements may apply it may be necessary to seek permission from the author or copyright holder prior to reproduction To obtain information concerning copyright ownership and restrictions on reproduction please contact RETScreen International Disclaimer This report is distributed for informa
39. Support Centre arial 10 B Z U amp E E RETScreen menu maid Training and Support Internet Forums RETScreen Marketplace floating RETScreen toolbar 6 s Case Studies e Textbook RETScreen Menu and Toolbar The RETScreen Online User Manual or help feature is cursor location sensitive and therefore gives the help information related to the cell where the cursor is located Cell Colour Coding The user enters data into shaded worksheet cells All other cells that do not require input data are protected to prevent the user from mistakenly deleting a formula or reference cell The RETScreen Cell Colour Coding chart for input and output cells is presented below Input and Output Cells Model output calculated by the model Yellow User input required to run the model User input required to run the model and online databases available User input for reference purposes only Not required to run the model RETScreen Cell Colour Coding BIOH 5 RETScreen Software Online User Manual Currency Options To perform a RETScreen project analysis the user may select a currency of their choice from the Currency cell in the Cost Analysis worksheet The user selects the currency in which the monetary data of the project will be reported For example if the user selects all monetary related items are expressed in Selecting User defined allows the user to specify t
40. actor until the pipe size is increased If the pipe sizes change when the oversizing factor is 15 this indicates that the selected system can handle 15 more load without having to change the size of the pipes Secondary network pipes are not oversized if for example the new buildings that are intended to be connected in the future will be independent of the existing secondary lines Length of pipe section The user enters the length of each building cluster section of the secondary distribution line In a cluster of buildings of the same size the user should insert the total length of pipe used to connect to the main distribution line For more information see Technical Note on Network Design Pipe size The model calculates the pipe size for each building load of the building cluster Note that the pipe size is selected using the oversizing factor The selection of pipe size for this model uses a simplified method The pipe sizing criteria used allows a pressure drop for the maximum flow between 1 to 2 millibar per meter The maximum velocity in larger pipes is maximised to 3 m s Before construction it is necessary to verify that BIOH 30 RETScreen Biomass Heating Project Model the selected pipe system will be able to withstand all relevant actions and fulfil the safety and functional requirements during its entire service life The final pipe size needs to be verified using detailed calculations including pipe length and fac
41. aight line This selection of the yearly depreciation of assets is used in the model in the calculation of income taxes and after tax financial indicators The user should select the method accepted by the tax departments in the jurisdiction of the project The difference between the End of project life value and its undepreciated capital costs at the end of the project life is treated as income if positive and as a loss if negative When None is selected the model assumes that the project is fully capitalised at inception is not depreciated through the years and therefore maintains its undepreciated value throughout its life BIOH 66 RETScreen Biomass Heating Project Model When Declining balance is selected the model assumes that the capitalised costs of the project as specified by the depreciation tax basis are depreciated at the depreciation rate The portion of initial costs not capitalised is deemed to be expensed during the year of construction i e year 0 When Straight line is selected the model assumes that the capitalised costs of the project as specified by the depreciation tax basis are depreciated with a constant rate over the depreciation period The portion of initial costs not capitalised is deemed to be expensed during the year of construction 1 e year 0 For both declining balance and straight line depreciation the model assumes that the full depreciation allowed for a given year is always taken Also
42. ainty The range specified by the user must be between 0 and 50 The range determines the limits of the interval of possible values that the avoided cost of heating energy could take For example a range of 10 for an avoided cost of heating energy of 90 MWh means that the avoided cost of heating energy could take any value between 81 MWh and 99 MWh Since BIOH 90 RETScreen Biomass Heating Project Model 90 MWh is the estimated value the risk analysis will consider this value as being the most probable and the minimum and maximum values as being the least probable based on a normal distribution If the avoided cost of heating energy is known exactly by the user no uncertainty the user should enter a range of 0 Initial costs The total initial cost is transferred automatically from the Financial Summary worksheet to the Sensitivity worksheet The user enters the initial costs range The range is a percentage corresponding to the uncertainty associated with the estimated initial costs value The higher the percentage the greater the uncertainty The range specified by the user must be between 0 and 50 The range determines the limits of the interval of possible values that the initial costs could take For example a range of 10 for initial costs of 300 000 means that the initial costs could take any value between 270 000 and 330 000 Since 300 000 is the estimated value the risk analysis will consider this value
43. al costs while the cost is defined as the project equity Ratios greater than 1 are indicative of profitable projects The net benefit cost B C ratio similar to the profitability index leads to the same conclusion as the net present value indicator BIOH 73 RETScreen Software Online User Manual Calculate GHG reduction cost The user indicates by selecting from the drop down list whether or not the project GHG emission reduction cost should be calculated In order to calculate the true economic not financial cost of GHG emission reductions a number of other parameters such as the GHG emission reduction credit debt ratio etc should be set to 0 In addition Income tax analysis would be set to No and other taxes would also be set to 0 This option is more applicable to economists as it requires a careful analysis of assumptions used GHG emission reduction cost The model calculates the GHG emission reduction cost The GHG emission reduction cost is calculated by dividing the annual life cycle savings ALCS of the project by the net GHG emission reduction per year averaged over the project life For projects with a net increase in GHG emission the GHG emission reduction cost is irrelevant and hence not calculated Project equity The model calculates the project equity which is the portion of the total investment required to finance the project that is funded directly by the project owner s The project equity is deem
44. and 1 36 of the IPCC Reference Manual The default values provided by the model are given in the Default Emission Factors and Conversion Efficiencies table BIOH 84 RETScreen Biomass Heating Project Model Fuel conversion efficiency The base case heating system fuel conversion efficiency for each building cluster is entered by the user in the Heating Load amp Network worksheet as the heating system seasonal efficiency and is transferred to the GHG Analysis worksheet The fuel conversion efficiency represents the annual average efficiency of energy conversion from primary heat potential to actual heating energy output This value is used to calculate for each fuel type the aggregate GHG emission factor and therefore is only relevant for fuel types which actually produce greenhouse gases i e with non zero CO CH 4 and N5O emission factors Units are given as a percentage of actual heating energy output gigajoules of heating energy to primary heat potential gigajoules of heat or electricity GHG emission factor The model calculates the GHG emission factor for the base case heating system for each building cluster Values are calculated based on the individual emission factors and the fuel conversion efficiency Units are given in tonnes equivalent of CO emission per megawatt hour of end use heating energy delivered tco MWh Proposed Case Heating System Biomass Heating Project The proposed case heating
45. and or labour costs that would have been spent on the base case or conventional energy system The user can input both a quantity amount and unit cost Note that the credit item is expressed as a negative value in the Amount column Engineering The engineering phase includes costs for the biomass and or WHR heating plant site and building design energy system design tenders and contracting and construction supervision If the project is awarded on a design build basis then all of these costs would be included in prices provided by the equipment supplier or contractor responsible for the project If the project is awarded by tender based on specifications prepared by a consultant then there will be engineering charges from the consultant overseeing the project and perhaps the equipment supplier Site and building design Site layout includes the selection of the building or cluster of buildings to be heated by the biomass and or WHR heating system selecting the site for the biomass heating plant determining where approach roads should go for site access and determining the boundaries of the plant yard The buildings used to house small commercial heating plants and for fuel storage are usually similar to a heated garage The buildings must have a concrete floor and the walls of the fuel storage reserve must be strong enough to permit the use of a front end loader The time required to carry out a site layout and building design is typical
46. as being the most probable and the minimum and maximum values as being the least probable based on a normal distribution If the initial costs are known exactly by the user no uncertainty the user should enter a range of 0 Annual costs The annual cost is transferred automatically from the Financial Summary worksheet to the Sensitivity worksheet but does not include debt payments The user enters the annual cost range The range is a percentage corresponding to the uncertainty associated with the estimated annual costs value The higher the percentage the greater the uncertainty The range specified by the user must be between 0 and 50 The range determines the limits of the interval of possible values that the annual costs could take For example a range of 10 for an annual cost of 80 000 means that the annual cost could take any value between 72 000 and 88 000 Since 80 000 is the estimated value the risk analysis will consider this value as being the most probable and the minimum and maximum values as being the least probable based on a normal distribution If the annual costs are known exactly by the user no uncertainty the user should enter a range of 0 BIOH 91 RETScreen Software Online User Manual Debt ratio The debt ratio is automatically transferred from the Financial Summary worksheet to the Sensitivity worksheet The user enters the debt ratio range The range is a percentage corresponding to t
47. aste heat is not the developer of the biomass and or WHR heating system In other cases removing the waste heat can improve the generators efficiency and no cost or a negative cost is applied Biomass The Energy Model worksheet calculates the amount of biomass fuel used on an annual basis This value is copied to the Cost Analysis worksheet Biomass fuel e g woodchips or sawdust may be purchased from a separate independent company on a weight or volume basis Alternatively the organisation that owns and operates the biomass heating plant may also have a forest operation and produce its own fuel However for the purpose of this analysis methods for supplying biomass fuel are not covered in detail At the pre feasibility analysis stage a range of values for biomass fuel in tonne is sufficient to prepare a study The user can perform a sensitivity analysis for various biomass fuel costs If the biomass and or WHR heating project passes this quick screen during the pre feasibility analysis study the follow up feasibility level analysis can consider various supply options in much more detail BIOH 57 RETScreen Software Online User Manual Typical costs for biomass fuel e g woodchips or sawdust range from 0 tonne to 85 tonne In some cases wood waste may be available at no charge 0 to the biomass plant owner other than loading and trucking costs For example retail prices delivered to large customers for woodchips in t
48. ates Gordon 1989 Currency To perform a RETScreen project analysis the user may select a currency of their choice from the Currency cell in the Cost Analysis worksheet The user selects the currency in which the monetary data of the project will be reported For example if the user selects all monetary related items are expressed in Selecting User defined allows the user to specify the currency manually by entering a name or symbol in the additional input cell that appears adjacent to the currency switch cell The currency may be expressed using a maximum of three characters US Y etc To facilitate the presentation of monetary data this selection may also be used to reduce the monetary data by a factor e g reduced by a factor of a thousand hence k 1 000 instead of 1 000 000 If None is selected all monetary data are expressed without units Hence where monetary data is used together with other units e g kWh the currency code is replaced with a hyphen KWh The user may also select a country to obtain the International Standard Organisation ISO three letter country currency code For example if Afghanistan is selected from the currency switch BIOH 38 RETScreen Biomass Heating Project Model drop down list all project monetary data are expressed in AFA The first two letters of the country currency code refer to the name of the country AF for Afghanistan and the third letter to
49. ciency 0 Standard boilers furnaces with pilot light 55 to 65 M d efficiency boilers furnaces spark ignition 65 to 75 High efficiency or condensing boilers furnaces 75 to 85 Electric resistance 100 Air source heat pump 130 to 200 Ground source heat pump 250 to 350 Typical Heating System Seasonal Efficiencies Suggested biomass boiler capacity The model calculates the suggested biomass boiler capacity required to meet the peak heating load as set by the design requirements established above This value is calculated by subtracting the WHR if included system capacity and the base load biomass boiler capacity from the peak heating load Biomass boiler capacity The user enters the peak load biomass boiler capacity The model assumes that the capacity is the energy output of the biomass boiler as biomass energy systems are typically rated on output Use the System Design Graph as displayed in the Energy Model worksheet as a guide This value is transferred to the Cost Analysis worksheet The user can consult the RETScreen Online Product Database for more information BIOH 16 RETScreen Biomass Heating Project Model Biomass boiler seasonal efficiency The user enters the peak load biomass boiler seasonal efficiency This value is generally lower than the steady state efficiency because it is calculated on a seasonal basis In other words the steady state efficiency is for full load conditions while the seasonal ef
50. cute and use RETScreen International the recipient Licensee shall indemnify and save harmless Natural Resources Canada Licensor and its employees and agents from and against and shall be responsible for all claims demands losses costs including solicitor and client costs damages actions suits or proceedings arising out of related to or occasioned by any use of RETScreen International by the Licensee The Licensor shall have the right to defend any such action or proceeding with counsel of its own selection Copyright and Trademark The RETScreen International Clean Energy Project Analysis Software and the accompanying manual and databases are copyright of the Minister of Natural Resources Canada 1997 2005 Duplication in any manner is forbidden without prior written permission which may be obtained by contacting RETScreen International CANMET Energy Technology Centre Varennes Natural Resources Canada 1615 Lionel Boulet P O Box 4800 Varennes Quebec CANADA J3X 1S6 Tel 1 450 652 4621 Fax 1 450 652 5177 E mail rets nrcan gc ca Minister of Natural Resources Canada 1997 2005 RETSCREEN is a registered trademark of the Minister of Natural Resources Canada BIOH 100 RETScreen Biomass Heating Project Model License Agreement The use of RETScreen International is subject to the terms detailed in the RETScreen Software License Agreement which is available at the following Website ad
51. d since many of the costs associated with the Balance of Plant will be installed even if the biomass and or WHR heating project does not go forward The second most cost effective installation is likely for retrofit situations when there are plans to either repair or upgrade an existing heating system However it is certainly possible that high heating costs could make the biomass and or WHR heating system financially attractive even in retrofit situations that do not meet the above criteria The first two situations give examples where the installation of the biomass and or WHR heating project is credited for material and labour costs that would have been spent on a conventional heating system had the biomass and or WHR component not been utilised The user determines which initial cost items that should be credited It is possible that engineering and design and other development costs could also be credited as some of the time required for these items would have to be incurred for a conventional heating system A credit input cell is provided to allow project decision makers to keep track of these items when preparing the project cost analysis Type of analysis The user selects the type of analysis from the drop down list For a Pre feasibility analysis less detailed and lower accuracy information is typically required while for a Feasibility analysis more detailed and higher accuracy information is usually required A reminde
52. d below Annual Energy Balance The summary items here are calculated and or entered in the Energy Model and GHG Analysis worksheets and transferred to the Financial Summary worksheet Project name The user defined project name is entered for reference purposes only in the Energy Model worksheet and it is copied automatically to the Financial Summary worksheet Project location The user defined project name is entered for reference purposes only in the Energy Model worksheet and it is copied automatically to the Financial Summary worksheet Renewable energy delivered The Energy Model worksheet calculates the renewable energy delivered MWh by the project which is the sum of the waste heat recovery and biomass heating energy delivered BIOH 61 RETScreen Software Online User Manual Heating energy delivered The Energy Model worksheet calculates the heating energy delivered MWh This energy displaces the heating energy that would have otherwise been delivered by the base case heating system The heating energy delivered is used in conjunction with the weighted average avoided cost of heating energy to calculate the heating energy savings Heating fuel displaced The heating fuel displaced is the type of heating energy displaced by the addition of the project The heating fuel type selected for each cluster are entered in the Heating Load amp Network worksheet The following types of fuels are available in the model
53. d by the Earth s surface from escaping Instead this outgoing radiation is absorbed by the greenhouse gases and then partially re emitted as thermal radiation back to Earth warming the surface Greenhouse gases that are most relevant to energy project analysis are carbon dioxide CO2 methane CH and nitrous oxide N5O these gases are considered in the RETScreen GHG emission reduction analysis The GHG Analysis worksheet of each Workbook file has been developed with a common framework so as to simplify the task of the user in analysing the viability of different projects Hence the description of each parameter is common for most of the items appearing in the worksheet One of the primary benefits of using the RETScreen software is that it facilitates the project evaluation process for decision makers The GHG Analysis worksheet with its emission related input items e g fuel mix fuel conversion efficiency and its calculated emission factor output items e g GHG emission factor allows the decision maker to consider various emission parameters with relative ease However the user should be aware that this ease of use may give a project developer a too optimistic and simplified view of what is required in setting a baseline for a proposed project As such it is suggested that the user take a conservative approach in calculating the baseline emission factor for the project particularly at the pre feasibility analysis stage In order to determ
54. d with estimating the heating load for the biomass and or WHR heating system are detailed below Technical Note on Network Design The purpose of this technical note is to provide the user with a sample design of a district heating network used within the RETScreen model The example described below refers to the default values that come with the BIOH3 xls RETScreen workbook file for the base case and heating load section and the district heating network design section In a district heating system thermal energy in the form of hot water is distributed from the central heating plant to the individual buildings The thermal energy is distributed using networks of insulated underground arterial pipeline main distribution line and branch pipelines secondary distribution lines The network can either be designed as a branched system as shown in the following figure or as a looped system Community System Building Cluster Layout BIOH 22 RETScreen Biomass Heating Project Model The previous figure shows how the different building clusters are connected to the main distribution line i e section 1 2 etc Note that the office building cluster 4 and the apartment building cluster 5 are not put in the same building cluster as they have different heating loads If they are put together the secondary pipe size will be incorrect The following table provides a summary of the heating loads and pipe lengths for the building clu
55. dress www retscreen net license html The user is encouraged to properly register at the RETScreen Website so that the Centre may periodically inform the user of product upgrades and be able to report on the global use of RETScreen BIOH 101 RETScreen Software Online User Manual Bibliography American Society of Heating Refrigerating and Air Conditioning Engineers ASHRAE ASHRAE Handbook Fundamentals Volume 1997 Arkay K and Blais C The District Energy Option in Canada Community Energy Technologies CANMET Natural Resources Canada 1996 Chabot B Personal Communication 1999 Community Energy Technologies CETC 1997 The Danish Energy Agency Engerstatistics 1995 1999 Fenhann J Personal Communication January 2000 Fenhann J Projections of Emissions of Greenhouse Gases Ozone precursors and Sulphur Dioxide from Danish Sources until 2010 The Danish Energy Agency December 1999 Hayden S Personal Communication CETC 1997 Leng G RETScreen International A Decision Support and Capacity Building Tool for Assessing Potential Renewable Energy Projects UNEP Industry amp Environment 3rd Quarter 2000 Martinot E and McDoom O Promoting Energy Efficiency and Renewable Energy GEF Climate Change Projects and Impacts October 1999 Pre Publication Draft Global Environment Facility 1999 McCallum B Small Scale Automated Biomass Energy Heating Systems A Viabl
56. e Option For Remote Canadian Communities Natural Resources Canada Canadian Forest Service Great Lake Forestry Centre and CEDRL 1997 McCallum B Case Studies of Small Commercial Biomass Combustion Systems in PEI Natural Resources Canada June 1995 Randlgv P District Heating Handbook European District Heating Pipe Manufacturers Association ISBN87 90488 00 8 1997 Sandor R Walsh M and Leblanc A Creating a Market for Carbon Emissions Gas Industry Opportunities published in Natural Gas June 1999 Sykes B Personal Communication CFS 1997 BIOH 102 RETScreen Biomass Heating Project Model Index A Aflet tax eaa e ee de taret 72 15 90 After tax IRR and ROI eee 90 Annual COStS tsi este at n e EE EN 75 91 Annual Costs Credits esses 55 Annual Costs and Debt esses 69 Annual Energy Balance sess 61 Annual Energy Production s s s 18 Annual GHG emission reduction 87 Annual heating degree days below 18 C 20 Annual Life Cycle Savings esses 73 Annual Savings or Income seeeesss 70 As fired heating value of biomass 14 Avoided cost of heating energy 63 90 B Background Information sess TT 78 Back up heating system
57. e a fuel conversion efficiency of 35 which indicates that 35 of the heat content of the coal is transformed into electricity fed to the grid Units are given as a percentage of primary heat potential gigajoules of heat to actual power plant output gigajoules of electricity Fuel types which emit no GHGs e g solar have a default value of 10096 Fuel conversion efficiency Standard analysis The model provides the fuel conversion efficiency for the selected fuel type The fuel conversion efficiency is the efficiency of energy conversion from primary heat potential to actual power plant output This value is used to calculate for each fuel type the aggregate GHG emission factor and therefore is only relevant for fuel types which actually produce greenhouse gases i e with non zero CO CH and N5O emission factors For example a typical coal fired power plant could have a fuel conversion efficiency of 35 which indicates that 3596 of the heat content of the coal is transformed into electricity fed to the grid Units are given as a percentage of primary heat potential gigajoules of heat to actual power plant output gigajoules of electricity Fuel types which emit no GHGs e g solar have a default value of 100 The default values provided by the model are given in the Default Emission Factors and Conversion Efficiencies table BIOH 82 RETScreen Biomass Heating Project Model Transmission and distribution losse
58. e information presented in the Quantity Range and Unit Cost Range columns The user may choose this option for example to minimise the amount of information printed in the final report If the user selects Second currency two additional input cells appear in the next row Second currency and Rate 1st currency 2nd currency In addition the Quantity Range and Unit Cost Range columns change to Foreign and Foreign Amount respectively This option allows the user to assign a portion of a project cost item in a second currency to account for those costs that must be paid for in a currency other than the currency in which the project costs are reported Note that this selection is for reference purposes only and does not affect the calculations made in other worksheets If Enter new 1 or any of the other 8 selections is selected the user may manually enter quantity and cost information that is specific to the region in which the project is located and or for a different cost base year This selection thus allows the user to customise the information in the Quantity Range and Unit Cost Range columns The user can also overwrite Enter new 1 to enter a specific name e g Japan 2001 for a new set of unit cost and quantity ranges The user may also evaluate a single project using different quantity and cost ranges selecting a new range reference Enter new 1 to Enter new 8 enables the user to keep track of different cost
59. e the material is transferred someone must be on hand to receive it and or arrange for the transfer Freight costs to isolated areas may be difficult to estimate and it is advisable to check for best routing As an example the weight of the energy equipment for a common biomass heating system sold in North America is approximately 460 kg for a 75 kW unit biomass burner boiler and miscellaneous parts and 1 840 kg for a 200 kW unit Other These input cells are provided to allow the user to enter cost or credit items that are not included in the information provided in the above cost category The user must enter a positive numerical value in the Unit Cost column A cost item may be entered in the grey input cell as Other The user then selects Cost from the drop down list in the unit column The user can input both a quantity amount and unit cost BIOH 50 RETScreen Biomass Heating Project Model This item is provided to allow for project technology and or regional differences not specifically covered in the generic information provided A credit item may be entered in the grey input cell as Credit The user then selects Credit from the drop down list in the unit column The project may be credited for material and or labour costs that would have been spent on the base case or conventional energy system The user can input both a quantity amount and unit cost Note that the credit item is expressed as a negative value
60. easonal efficiency Standard boilers furnaces with pilot light 55 to 65 Mid efficiency boilers furnaces spark ignition 65 to 75 High efficiency or condensing boilers furnaces 75 to 85 Electric resistance 100 Air source heat pump 130 to 200 Ground source heat pump 250 to 350 Typical Heating System Seasonal Efficiencies BIOH 24 RETScreen Biomass Heating Project Model Heating Load Calculation Heating load for building cluster The user enters the heating load for building cluster The user can refer to the next figure CET 1997 to estimate the building heating load per unit of building heating surface area This value depends on the design temperature for the specific location and on the building insulation efficiency The heating load for building cluster is used to calculate the peak heating load for the heating system Typical values for building heating load range from 40 to 120 W nv SC E z UO 2 o0 e o am 35 30 25 20 15 10 Heating design temperature C Building Heating Load Chart Note The values in this figure are more appropriate for residential buildings Heating energy demand The model calculates the buildings cluster s annual heating energy demand which is the amount of energy required to heat the building s in the building cluster including domestic hot water BIOH 25 RETScreen Software Online User Manual This value is calculated from the heated
61. ect life to calculate the internal rate of return After tax Internal Rate of Return and Return on Investment The model calculates the after tax internal rate of return which represents the true interest yield provided by the project equity over its life It is also referred to as the return on investment equity ROI or the time adjusted rate of return It is calculated by finding the discount rate that causes the net present value of the project to be equal to zero Hence it is not necessary to establish the discount rate of an organisation to use this indicator An organisation interested in a project can compare the internal rate of return of the project to its required rate of return often the cost of capital The IRR is calculated on a nominal basis that is including inflation If the internal rate of return of the project is equal to or greater than the required rate of return of the organisation then the project will likely be considered financially acceptable assuming equal risk If it is less than the required rate of return the project is typically rejected An organisation may have multiple required rates of return that will vary according to the perceived risk of the projects The most obvious advantage of using the internal rate of return indicator to evaluate a project is that the outcome does not depend on a discount rate that is specific to a given organisation Instead the IRR obtained is specific to the project and app
62. ed to be disbursed at the end of year 0 i e the development construction year It is calculated using the total initial costs the initial cost incentives and the debt ratio Project debt The model calculates the project debt which is the portion of the total investment required to implement the project and that is financed by a loan The project debt leads to the calculation of the debt payments and the net present value It is calculated using the total initial costs and the project equity Debt payments The model calculates the debt payments which is the sum of the principal and interest paid yearly to service the debt Whereas debt payments are constant over the debt term the principal portion increases and the interest portion decreases with time In that respect it is similar to the yearly annuity paid to reimburse the mortgage of a house Debt payments are calculated using the debt interest rate the debt term and the project debt Debt service coverage The model calculates the debt service coverage for each year of the project and reports the lowest ratio encountered throughout the term of debt The debt service coverage is the ratio of the operating benefits of the project over the debt payments This value reflects the capacity of the project to generate the cash liquidity required to meet the debt payments It is calculated by BIOH 74 RETScreen Biomass Heating Project Model dividing net operation income or saving
63. ed to fall The level of risk represents the probability that the financial indicator will fall outside this confidence interval The limits of the confidence interval are automatically calculated based on the median and the level of risk and are shown as Minimum within level of confidence and Maximum within level of confidence It is suggested that the user select a level of risk of 5 or 10 which are typical values for standard risk analysis Minimum within level of confidence The model calculates the Minimum within level of confidence which 1s the lower limit of the confidence interval within which the financial indicator likely falls It is the percentile of the distribution of the financial indicator corresponding to half the level of risk defined by the user For example for a Minimum within level of confidence value of 1596 IRR a level of risk of 10 means that 5 half the level of risk of the possible IRR values are lower than 15 Maximum within level of confidence The model calculates the Maximum within level of confidence which is the upper limit of the confidence interval within which the financial indicator likely falls It is the percentile of the distribution of the financial indicator corresponding to 10096 minus half the level of risk For example for a Maximum within level of confidence value of 2596 IRR a level of risk of 1096 means that 95 of the possible IRR values are lower than 25 Distribution grap
64. eet BIOH 87 RETScreen Software Online User Manual Sensitivity and Risk Analysis As part of the RETScreen Clean Energy Project Analysis Software a Sensitivity and Risk Analysis worksheet is provided to help the user estimate the sensitivity of important financial indicators in relation to key technical and financial parameters This standard sensitivity and risk analysis worksheet contains two main sections Sensitivity Analysis and Risk Analysis Each section provides information on the relationship between the key parameters and the important financial indicators showing the parameters which have the greatest impact on the financial indicators The Sensitivity Analysis section is intended for general use while the Risk Analysis section which performs a Monte Carlo simulation is intended for users with knowledge of statistics Both types of analysis are optional Inputs entered in this worksheet will not affect results in other worksheets Use sensitivity analysis sheet The user indicates by selecting from the drop down list whether or not the optional Sensitivity and Risk Analysis worksheet is used to conduct a sensitivity analysis of the important financial indicators If the user selects Yes from the drop down list the sensitivity analysis section will open and the user should complete the top part of the worksheet The user will need to click on Calculate Sensitivity Analysis button to get the results Perform
65. el version and the speed of the computer When the sensitivity analysis is updated the button disappears If the user makes any changes to the input parameters or navigates through any of the other worksheets the button will reappear The user will then have to click on the button to update the sensitivity analysis calculations so that the results reflect the changes BIOH 89 RETScreen Software Online User Manual Sensitivity Analysis for This section presents the results of the sensitivity analysis Each table shows what happens to the selected financial indicator e g After tax IRR and ROI when two key parameters e g Initial costs and Avoided cost of heating energy are varied by the indicated percentages Parameters are varied using the following fraction of the sensitivity range 1 1 2 0 1 2 1 Original values which appear in the Financial Summary worksheet are in bold in these sensitivity analysis results tables Results which indicate an unviable project as defined by the user threshold will appear as orange cells in these sensitivity analysis results tables All parameter values used for the calculations are taken from the Financial Summary worksheet and all the sensitivity variations are evaluated at the level of that worksheet This is a partial limitation of this sensitivity analysis worksheet since some parameter values are calculated from inputs in other worksheets but those inputs are not changed Ho
66. ely 1 to 2 of the total annual energy delivered by the biomass system The low end is for larger systems while the higher end of the range is for smaller systems Small commercial biomass systems use electricity to run the fuel feed system the burner fan and the circulation pumps The electricity to run the fuel feed system the burner fan and the circulation pumps of a small commercial biomass system can vary from roughly 2 000 kWh for small systems 75 kW to 6 000 kWh for large systems 250 kW For a commercial size biomass system the parasitic load varies between manufacturers The following table can be used as a guideline Power Capacity Connected Load AV hp Parasitic Load for Commercial Size Biomass Systems BIOH 58 RETScreen Biomass Heating Project Model For a system with less than 500 m of total pipe length and 500 kW of peak heating load the parasitic electricity for the district heating distribution pumps can be estimated to be 0 5 kW The approximate district heating pump load for a larger district heating system can be estimated using the following formula P M Q C T where pump load kW total pipe length for main distribution line m total peak heating load kW constant 58 7 10 6 C m difference between the supply temperature and the return temperature of the do0o0tz Il distribution system The parasitic annual demand can be estimated using the following formula D P E
67. ent degree days in DHW heating range from 2 to 10 degree days day A low hot water heating requirement is equivalent to 2 degree days day while a high hot water heating requirement e g hospital is equivalent to 6 to 10 degree days day If there is no need for hot water heating the value 0 is calculated by the model Equivalent full load hours The model calculates the equivalent full load hours which is defined as the annual energy demand divided by the total peak heating load for a specific location This value is expressed in hours and is equivalent to the number of hours that a heating system sized exactly for the peak heating load would operate at rated capacity to meet the annual heating energy demand The typical values for the equivalent full load hours is in the range from 1 500 to 4 200 hours The upper range increases if the system has a high domestic hot water load or process load Monthly Inputs The user enters the monthly degree days below 18 C The monthly degree days are the sum of the degree days for each day of the month Degree days for a given day represent the number of Celsius degrees that the mean temperature is above or below a given base Thus heating degree days are the number of degrees below 18 C The user can consult the RETScreen Online Weather Database for more information BIOH 21 RETScreen Software Online User Manual Base Case Heating System and Heating Load The system characteristics associate
68. exity of the system The built in formulas for estimating pipe costs include the cost of the pump and the cost of installation Biomass equipment installation The user enters the biomass equipment installation costs per kW The kW capacity of the biomass heating system is transferred from the Energy Model worksheet Typical equipment installation costs for small commercial and commercial industrial boilers are illustrated in the following tables BIOH 49 RETScreen Software Online User Manual Power Labour Plumbing Electrical Cost per Capacity Capacity 40 7h materials materials kW XV 1 1 t 4U0 h ct 70h Small Commercial Boiler Installation Costs Power Piping Electrical Refractory Equipment Cost per Capacity Capacity Installation Installation Installation Installation S kW V ours ours ours ours h a h Commercial Industrial Boiler Installation Costs Installation costs for district heating distribution pumps are included in the pipe costs Transportation The transportation costs for the biomass heating and or WHR system equipment vary depending on weight and size of material to be shipped and distance from the factory Normally the material is shipped by truck unless there is no road access to the site in which case other methods such as rail air winter road or boat are required Some projects will require more than one freight carrier For example truck to rail line then to a barge or plane Each tim
69. f primary heating energy generated kg GJ CO2 CH4 and N20 emission factors Standard analysis The model provides the CO CH and N O emission factors corresponding to the fuel types for the biomass and or WHR heating system The electricity values correspond to the electricity mix of the base case electricity system For each fuel type selected units are given in kilograms of gas emitted per gigajoule of primary heating energy generated kg GJ Fuel conversion efficiency Fuel conversion efficiencies for both the biomass and the peak heating system are entered in the Energy Model worksheet and transferred to the GHG Analysis worksheet Fuel conversion efficiencies for both the waste heat recovery and parasitic electricity are set to 100 Units are given as a percentage of actual heating energy output gigajoules of heating energy to primary energy input gigajoules of heat GHG emission factor The model calculates the GHG emission factor for the proposed project Values are calculated based on the individual CO CH and N5O emission factors and the fuel conversion efficiency Units are given in tonnes equivalent of CO emission per megawatt hour of end use heating energy delivered tco MWh GHG Emission Reduction Summary Based on the GHG emission data entered the model calculates the annual reduction in GHG emissions when the base case system is displaced with the proposed case system BIOH 86 RETScreen B
70. f the biomass boiler capacities The user can consult the RETScreen Online Product Database for more information or to change the number of boilers shown Biomass boiler s manufacturer The user enters the name of the biomass boiler s manufacturer for reference purposes only The user can consult the RETScreen Online Product Database for more information Biomass boiler s model The user enters the name of the biomass boiler s model for reference purposes only The user can consult the RETScreen Online Product Database for more information Biomass boiler s seasonal efficiency The user enters the biomass boiler seasonal efficiency This value is generally lower than the steady state efficiency because it is calculated on a seasonal basis In other words the steady state efficiency is for full load conditions while the seasonal efficiency takes into consideration the lower efficiency part load conditions that occur during the year The seasonal efficiency is also related to the particular boiler chosen and the operating temperature of the system This value is used to estimate the biomass fuel requirement to meet the biomass system energy demand Typical values for seasonal efficiency of a biomass boiler range from 60 to 90 The seasonal efficiency is typically higher for two burner systems than a one burner system The user can consult the RETScreen Online Product Database for more information BIOH 14 RETScreen Biomass Heat
71. f the debt The model uses the debt interest rate to calculate the debt payments For example at a minimum the debt interest rate will correspond to the yield of government bonds with the same term as the debt term A premium is normally added to this rate the spread to reflect the perceived risk of the project Debt term The user enters the debt term year which is the number of years over which the debt is repaid The debt term is either equal to or shorter than the project life Generally the longer the term the more the financial viability of a energy project improves The model uses the debt term in the calculation of the debt payments and the yearly cash flows The term of the debt normally falls within a 1 to 25 year range It should not exceed the estimated project life Income tax analysis The user indicates by selecting from the drop down list whether or not income tax should be factored into the financial analysis If the user selects Yes certain input fields will be added to allow the user to customise the income tax analysis according to the specific circumstances of the project In some situations the after tax return of a project can be more attractive than its pre tax return For biomass and or WHR heating systems installed in private homes and paid for by the home owner it is likely that the user would select No given all cash flows would come from after tax money The income tax analysis allows the model to calcu
72. factors thus account for a weighted average of the fuel conversion efficiencies and T amp D losses of the different fuel types For each fuel type selected units are given in kilograms of gas emitted per gigajoule of heat energy generated kg GJ For the total electricity mix shown on the bottom row of the table units are given in kilograms of gas emitted per gigajoule of end use electricity delivered For more information on determining GHG emission factors see the revised IPCC Guidelines for National Greenhouse Gas Inventories CO emission factors for many fuels are included on BIOH 81 RETScreen Software Online User Manual page 1 13 of the IPCC Reference Manual CH and N5O emission factors for a number of fuels are included on pages 1 35 and 1 36 of the IPCC Reference Manual The default values provided by the model are given in the Default Emission Factors and Conversion Efficiencies table Fuel conversion efficiency Custom analysis The user enters the fuel conversion efficiency for the selected fuel type The fuel conversion efficiency is the efficiency of energy conversion from primary heat potential to actual power plant output This value is used to calculate for each fuel type the aggregate GHG emission factor and therefore is only relevant for fuel types which actually produce greenhouse gases i e with non zero CO CH and N5O emission factors For example a typical coal fired power plant could hav
73. ficiency takes into consideration the lower efficiency part load conditions that occur during the year The seasonal efficiency is also related to the particular boiler chosen and the operating temperature of the system This value is used to estimate the biomass fuel requirement to meet the peak load biomass system energy demand Typical values for seasonal efficiency of a biomass boiler range from 60 to 90 The seasonal efficiency is typically higher for two burner systems than a one burner system The user can consult the RETScreen Online Product Database for more information Peak energy delivered The model calculates the peak energy delivered in MWh The peak energy delivered is the annual energy production provided by the peak load heating system Percentage of peak heating load The model calculates the percentage of the installed capacity of the peak load heating system with respect to the peak heating load Percentage of total heating energy demand The model calculates the percentage of total heating energy demand supplied by the peak load heating system The model assumes that the WHR system is used in base load mode with the biomass system taking second priority If a WHR system is not included in the design the model assumes that the biomass heating system is used in base load mode In each case the model assumes that energy is supplied by the peak load heating system only after all the energy is first supplied by the WHR syste
74. g fuel mix This database is available free of charge at the To illustrate this alternative analysis method for a biomass and or WHR heating project based in Nova Scotia Canada the provincial government might determine the baseline to be the weighted average of the current generation mix This can be calculated by simply entering the current fuel mix into the grid along with the appropriate emissions coefficient For this example and with information provided by Natural Resources Canada the user would select the following fuel types and associated fuel mix coal with 78 of the fuel mix large hydro with 9 6 oil with 5 natural gas with 5 and biomass with 3 of the fuel mix and T amp D losses of 8 for all fuel types Some users may prefer to perform a much more detailed analysis of the GHG reduction potential of the project e g an economist working for a public utility commission The model allows for a more detailed analysis regarding T amp D losses and using the Custom option under the Type of analysis drop down list the user can prepare an even more detailed analysis regarding emission factors etc If the user has access to dispatch information from the local utility the Base Case Electricity System table can be used to model the marginal fuel use on the grid which may more accurately represent the fuels and the emissions that are being displaced by the proposed project For example if dispatch information shows that the f
75. g on altitude heating system type design temperatures etc Set the peak load steady state efficiency to 100 if boilers are rated on an output basis rather than on a heating value input basis Suggested peak load system capacity The model calculates the suggested peak load boiler capacity required to meet the heating load as set by the design requirements established above This value is calculated by subtracting the WHR if included system capacity and the biomass boiler capacity from the peak heating load BIOH 15 RETScreen Software Online User Manual Peak load system capacity The user enters the peak load system capacity If the capacity is below the suggested peak load system capacity the system cannot meet the peak heating load at design conditions Use the System Design Graph as displayed in the Energy Model worksheet as a guide This value is transferred to the Cost Analysis worksheet Peak load system seasonal efficiency The user enters the peak load system seasonal efficiency This value is generally lower than the steady state efficiency because it is calculated on a seasonal basis This value is used to estimate the peak load fuel requirement to meet the peak load heating system energy demand Typical values for seasonal efficiency for peak load heating systems range from 55 to 350 Typical values of heating system efficiency are presented below Heating System Type Typical Annual Heating System seasonal effi
76. gy system The periodic credit item is entered in the grey input cell The user then selects Credit from the drop down list in the unit column The interval in years over which the periodic credit is incurred is entered in the period column The amount of the credit incurred at each interval is entered in the unit cost column Note that the credit item is expressed as a negative value in the Amount column End of project life The user enters the value of the project at the end of its life This amount is also commonly referred to as the salvage value or disposal value If the salvage value of the project at the end of its life is positive then the user selects Credit from the drop down list in the unit column in order to express this item as a negative value However if the costs of remediation or decommissioning that must be incurred at the end of the project life exceed the salvage value then the user must select Cost from the drop down list The user must enter a positive numerical value in the Unit Cost column Note At this point the user should go to the optional GHG Analysis worksheet BIOH 60 RETScreen Biomass Heating Project Model Financial Summary As part of the RETScreen Clean Energy Project Analysis Software a Financial Summary worksheet is provided for each project evaluated This common financial analysis worksheet contains six sections Annual Energy Balance Financial Parameters Project Costs and Sa
77. h This histogram provides a distribution of the possible values for the financial indicator resulting from the Monte Carlo simulation The height of each bar represents the frequency 96 of values that fall in the range defined by the width of each bar The value corresponding to the middle of each range is plotted on the X axis Looking at the distribution of financial indicator the user is able to rapidly assess its variability In some cases there is insufficient data to properly plot the graph For example when the year to positive cash flow is immediate the result is not a numerical value and therefore these values cannot be plotted Bar graph The bar graph summarises the maximum and minimum financial indicator values that can be expected according to the level of risk defined by the user BIOH 95 RETScreen Software Online User Manual Product Data Some of the product data requirements for the model are provided in the RETScreen Online Product Database To access the product database the user may refer to Data amp Help Access The product database provides information on the equipment associated with the project From the online product database dialogue box the user may obtain product specification and performance data as well as company contact information From the dialogue box the user selects the Region followed by the Supplier Individual Boiler Capacity Model and Number of Boilers The data can be pasted
78. he area of Charlottetown Prince Edward Island are in the range of 27 tonne The retail price of sawmill waste is in the range of 15 tonne McCallum 1995 In isolated areas biomass fuel costs can be significantly higher as high as 85 tonne The user may want to contact the local government forestry office or local woodchip suppliers to obtain more information on local fuel woodchip costs Peak load system fuel The Energy Model worksheet calculates the volume of peak load heating system fuel required on an annual basis This value is copied to the Cost Analysis worksheet Cost for peak load heating system fuel in a specific location can be obtained from local suppliers The purchase of fuel for peak load heating purposes is usually under the responsibility of the heating plant owner assuming that the boiler is located in the biomass heating plant In some cases the peak load heating systems may be located in the client buildings and the client may then incur the charges for the peak load system fuel Parasitic electricity The parasitic electricity is the electrical energy required to run the biomass and or WHR heating system and the district heating distribution pumps on an annual basis The user enters the approximate kWh electrical consumption in the quantity cell and the price of electricity kWh in the unit cost cell A rough estimate of the parasitic electricity required to run the biomass and or WHR heating system is approximat
79. he currency manually by entering a name or symbol in the additional input cell that appears adjacent to the currency switch cell The currency may be expressed using a maximum of three amy dH B characters US Y etc To facilitate the docs Fabdedreii presentation of monetary data this selection may also be used to reduce the monetary data by a factor e g reduced by a factor of a thousand hence k 1 000 instead of 1 000 000 If None is selected all monetary data are expressed without units Hence where monetary data is used together with other units e g kWh the currency code is replaced with a hyphen KWh The user may also select a country to obtain the International Standard Organisation ISO three letter country currency code For example if Afghanistan is selected from the currency switch drop down list all project monetary data are pL pac expressed in AFA The first two letters of the percentage 565 country currency code refer to the name of the pesonday pd country AF for Afghanistan and the third letter to the name of the currency A for Afghani For information purposes the user may want to assign a portion of a project cost item in a second currency to account for those costs that must be paid for in a currency other than the currency in which the project costs are reported To assign a cost item in a second currency the user mus
80. he time required for public relations varies according to the technical complexity of the project the number of stakeholders involved the volume of fuel required and the size of the potential fuel supply area The elapsed time for the development of a biomass and or WHR heating project falls in the mid range as compared with other projects Projects can be developed within a one to two year time period The project development management time will usually take between 30 to 80 hours at rates of between 50 h to 100 h Travel and accommodation This cost item includes all travel related costs excluding time required to develop the project BIOH 45 RETScreen Software Online User Manual Other These input cells are provided to allow the user to enter cost or credit items that are not included in the information provided in the above cost category The user must enter a positive numerical value in the Unit Cost column A cost item may be entered in the grey input cell as Other The user then selects Cost from the drop down list in the unit column The user can input both a quantity amount and unit cost This item is provided to allow for project technology and or regional differences not specifically covered in the generic information provided A credit item may be entered in the grey input cell as Credit The user then selects Credit from the drop down list in the unit column The project may be credited for material
81. he uncertainty associated with the estimated debt ratio value The higher the percentage the greater the uncertainty The range specified by the user must be a percentage value between 0 and the lowest percentage such that the debt ratio will always fall between 0 and 100 The range determines the limits of the interval of possible values that the debt ratio could take For example a range of 10 for a debt ratio of 70 means that the debt ratio could take any value between 63 and 77 Since 70 is the estimated value the risk analysis will consider this value as being the most probable and the minimum and maximum values as being the least probable based on a normal distribution If the debt ratio is known exactly by the user no uncertainty the user should enter a range of 0 Debt interest rate The debt interest rate is automatically transferred from the Financial Summary worksheet to the Sensitivity worksheet The user enters the debt interest rate range The range is a percentage corresponding to the uncertainty associated with the estimated debt interest rate value The higher the percentage the greater the uncertainty The range specified by the user must be between 0 and 50 The range determines the limits of the interval of possible values that the debt interest rate could take For example a range of 10 for a debt interest rate of 20 means that the debt interest rate could take any value between 18 and 22 Since 20 is the
82. here air travel is time consuming and expensive it may be better to include more than one potential project in the feasibility study to spread the site visit costs over a number of projects and not just one building In the case of isolated areas rates for air travel will vary considerably Airfares are typically twice those for similar distances in populated areas Since travel is a large component of the cost of doing work in isolated areas and the range of cost so variable it is advised to contact a travel agent with experience in arranging such travel Accommodation rates are typically twice the going rate for modest accommodation in populated areas Typical rates for modest hotel rooms can range from 180 to 250 per day in the more isolated areas Other These input cells are provided to allow the user to enter cost or credit items that are not included in the information provided in the above cost category The user must enter a positive numerical value in the Unit Cost column A cost item may be entered in the grey input cell as Other The user then selects Cost from the drop down list in the unit column The user can input both a quantity amount and unit cost BIOH 43 RETScreen Software Online User Manual This item is provided to allow for project technology and or regional differences not specifically covered in the generic information provided A credit item may be entered in the grey input cell as Credit The u
83. ility in the model to determine what is the conventional or base case energy system The user will need to determine this value according to the cost units given in the table Heating values are also given in the table below Heating Energy Cost Unit Fuel Heating Yalue Avoided Natural gas 37 2 Min 10 33 KWh Propane 26 6 MIL 7 39 EWH L Diesel 2 oil 38 7 MI L 10 74 kWhiL 6 ail 40 5 MIL 11 25 kWh L Electricity 1 0 kWh kWh Other 1 0 Energy Cost Unit and Heating Content Energy Mines and Resources Canada 1985 BIOH 26 RETScreen Biomass Heating Project Model Note that the cost unit of propane is expressed in terms of litres of liquefied propane The unit cost of fuel is used in conjunction with the total heating energy demand the heating value and the base case heating system seasonal efficiency to calculate the total fuel cost In cases when the heating energy avoided is electricity the user will normally enter the retail price of electricity as the unit cost of fuel Note that the heating value for the Other type of heating energy avoided has been set to 1 0 This implies that the user must enter the cost in terms of per MWh of heating energy content of the fuel considered Total fuel cost The model calculates the total fuel cost for each building cluster District Heating Network Design This section is used to prepare a preliminary design and cost estimate for the district heating network Small
84. ine the net benefits of obtaining carbon finance for the project the user can evaluate the project twice once including the value of the carbon credits and the associated transaction costs and once without and then compare the results BIOH 77 RETScreen Software Online User Manual Use GHG analysis sheet The user indicates by selecting from the drop down list whether or not the optional GHG Analysis worksheet is used to conduct an analysis of GHG emission reduction If the user selects Yes from the drop down list then the user should complete the GHG Analysis worksheet Certain input fields will be added to the Financial Summary worksheet in order to calculate the GHG emission reduction income and cost If the user selects No from the drop down list then the user should go directly to the Financial Summary worksheet Type of analysis The user selects the type of analysis from the two options in the drop down list Standard and Custom Standard analysis uses many pre defined parameters in the calculations whereas Custom analysis requires that these parameters be entered by the user Background Information Project name The user defined project name is entered for reference purposes only in the Energy Model worksheet and it is copied automatically to the GHG Analysis worksheet Project location The user defined project location is entered for reference purposes only in the Energy Model worksheet and it i
85. ing Project Model Biomass energy delivered The model calculates the biomass energy delivered in MWh The biomass energy delivered is the annual energy production provided by the biomass heating system Percentage of peak heating load The model calculates the percentage of the installed capacity of the biomass heating system with respect to the peak heating load Percentage of total heating energy demand The model calculates the percentage of total heating energy demand supplied by the biomass heating system Peak Load Heating System Peak load system fuel type The user selects the peak load heating system fuel type from the drop down list The user can also choose a biomass peak load heating system The model then assumes that the biomass fuel type is the same chosen under Biomass fuel type in the section above For more information on the default heating values used for each peak load system fuel type see Unit cost of fuel Peak load system steady state efficiency The user enters the peak load steady state efficiency This value is used to calculate the suggested peak load system capacity Use the System Design Graph as displayed in the Energy Model worksheet as a guide Typical values for steady state efficiency of a peak heating system range from 50 to 350 Hayden 1997 efficiencies above 100 can occur when for instance the peak heating system is a heat pump The peak load steady state efficiency varies dependin
86. ing system is defined in terms of its fuel types its emissions of GHG and its conversion efficiencies The base case system is normally referred to as the reference or baseline option in standard economic analysis Fuel type The fuel type of the base case heating system for each building cluster entered by the user in the Heating Load amp Network worksheet is transferred to the GHG Analysis worksheet Fuel mix The fuel mix of the base case heating system is calculated from the total average heating demand value derived in the Heating Load amp Network worksheet It represents the ratio of the demand of a single building cluster to the total demand of all building clusters BIOH 83 RETScreen Software Online User Manual CO2 CH4 and N20 emission factors Custom analysis For the base case heating system the user enters the CO2 CH and N5O emission factors corresponding to the heating fuel type selected If the heating fuel type is electricity emission factors of the base case electricity mix are used CO CH and N O emission factors represent the mass of greenhouse gas emitted per unit of energy generated Emission factors will vary for different types and qualities of fuels and for different types and sizes of heating equipment For each fuel type selected units are given in kilograms of gas emitted per gigajoule of heating energy generated kg GJ For more information on determining GHG emission factors
87. intenance including filling fuel storage monitoring of the equipment and emptying ash bins Travel and accommodation For larger biomass and or WHR heating systems in isolated areas it is possible that an annual allowance may be required for travel room and board costs associated with annual maintenance and inspection by an system expert However for well designed and maintained systems this will not be required General and administrative Annual general and administrative costs include the costs of bookkeeping preparation of annual statements bank charges communication a billing heat clients etc General and administrative costs are project specific and depend on the nature of the business enterprise These costs normally start at a range of 500 to 2 000 per year and can be significantly higher for larger scale projects with many heat clients Other These input cells are provided to allow the user to enter cost or credit items that are not included in the information provided in the above cost category The user must enter a positive numerical value in the Unit Cost column A cost item may be entered in the grey input cell as Other The user then selects Cost from the drop down list in the unit column The user can input both a quantity amount and unit cost This item is provided to allow for project technology and or regional differences not specifically covered in the generic information provided BIOH 56 RETScree
88. iomass Heating Project Model Base case GHG emission factor The model transfers the base case GHG emission factor calculated in the base case heating system baseline section This value represents the amount of GHG emitted per unit of heating energy delivered for the base case system Units are given in tonnes equivalent of CO emission per megawatt hour of heating energy delivered tco MWh Proposed case GHG emission factor The model transfers the proposed case GHG emission factor calculated in the proposed case heating system section This value represents the amount of GHG emitted per unit of heating energy delivered if the biomass and or WHR heating system is installed Units are given in tonnes equivalent of CO emission per megawatt hour of end use heating energy delivered tco MWh End use annual energy delivered The model displays the end use annual energy delivered as calculated in the Energy Model worksheet Units are given in megawatt hours of end use heating energy delivered MWh Annual GHG emission reduction The model calculates the annual reduction in GHG emissions estimated to occur if the proposed project is implemented The calculation is based on emission factors of both the base case and the proposed case system and on the end use annual energy delivered Units are given in equivalent tonnes of CO emission per year tco yr Note At this point the user should complete the Financial Summary worksh
89. ion for a biomass and or WHR heating project based upon local site conditions and system characteristics Results are calculated in common megawatt hour MWh units for easy comparison of different technologies Site Conditions The site conditions associated with estimating the annual energy production of a biomass and or WHR heating project are detailed below Project name The user defined project name is given for reference purposes only For more information on how to use the RETScreen Online User Manual Product Database and Weather Database see Data amp Help Access Project location The user defined project location is given for reference purposes only Nearest location for weather data The user enters the weather station location in the Heating Load amp Network worksheet and it is copied automatically to the Energy Model worksheet Note At this point the user should complete the Heating Load amp Network worksheet Number of buildings The model calculates the total number of buildings from data entered by the user in the Heating Load amp Network worksheet Total pipe length The model calculates the total pipe length from data entered in the Heating Load amp Network worksheet The total pipe length is equal to the sum of Total pipe length for main distribution line and Length of pipe section for the secondary distribution line length Total pipe length is equal to trench length the trench contains both su
90. istribution line pipe cost 35 Summary of main distribution line pipe length 35 Summary of main distribution line pipe size 35 System Characteristics seeeeeeee 11 SyStent type nocet pee ren 11 T Tax holiday available eee 67 Tax holiday duration eee 68 Technical Note on Network Design 22 23 29 30 Tenders and contracting sss 47 Threshold ret erre otii 89 Total building cluster connection cost 34 Total district heating network costs 35 Total fuel COSt 1 cere ice eres 27 Total peak heating load sess 26 Total pipe length eese 10 30 31 Total pipe length for main distribution line 10 30 Tramingi eee neto paier 3 54 99 Training and Support esse 3 99 Transmission and distribution losses 83 Transportation eeeeeeeeeeerenen rennen 50 53 Travel and accommodation 42 43 45 56 Type of analysis eene 36 78 79 BIOH 105 RETScreen Software Online User Manual U Uniticost of filel ioc 5e een 15 26 Units Symbols amp Prefixes sess 7 Use GHG analysis sheet sess 78 Use sensitivity analysis sheet sss 88 W Waste energy delivered
91. ity This value may be used in the Cost Analysis worksheet if a back up system is used Annual Energy Production Items associated with calculating the annual energy production and fuel required of the biomass and or WHR heating project are detailed below Percentage of peak heating load The model calculates the percentage of the installed capacity of the system type specified by the user with respect to the peak heating load Heating capacity The heating system heating capacities entered by the user are summarised here Units switch The user can choose to express the capacity in different units by selecting among the proposed set of units MW million Btu h boiler hp ton cooling hp W This value is for reference purposes only and is not required to run the model Equivalent full output hours The model calculates the equivalent full output hours of the WHR biomass and peak load heating systems Capacity factor The model calculates the capacity factor of the WHR biomass and peak load heating systems which is the annual energy production of the these systems expressed as a percentage of their potential energy output if used at rated capacity continuously over a one year period BIOH 18 RETScreen Biomass Heating Project Model Percentage of total heating energy demand The model calculates the percentage of total heating energy demand supplied by the system type specified by the user Heating energ
92. ject life BIOH 62 RETScreen Biomass Heating Project Model Financial Parameters The items entered here are used to perform calculations in this Financial Summary worksheet Values for each parameter will depend on the perspective of the user e g building owner vs energy services company ESCO Avoided cost of heating energy The model calculates the weighted average avoided cost of heating energy from individual cluster values entered in the Heating Load amp Network worksheet The avoided cost of heating energy is used in conjunction with the heating energy delivered to calculate the annual heating energy savings The model escalates the avoided cost of heating energy yearly according to the energy cost escalation rate starting from year and throughout the project life GHG emission reduction credit The user enters the GHG emission reduction credit per tonne of CO tco It is used in conjunction with the net GHG emission reduction to calculate the annual GHG emission reduction income Preliminary estimates predict the market price of GHG emission reduction credits in the USA will range from US 4 to US 95 per tonne of CO with 5 to 8 per tonne being the most likely range Sandor 1999 As of 2003 the global market price has typically been in the range of US 3 to US 5 per tonne of CO The value entered is assumed to be representative of year 0 i e the development year prior to the first year of operatio
93. l types defined in the Heating Load amp Network worksheet or the peak heating system defined in the Energy Model worksheet is electricity Otherwise this analysis applies only to the parasitic electricity used for the pumps fans and other auxiliary equipment which represents a relatively small amount of energy For example in North America when preparing a GHG emission reduction analysis for a biomass and or WHR heating project where central grid electricity is used it is often reasonable to assume that a combined cycle natural gas power plant is the proxy plant In this case the user need only select Natural gas as the fuel type with a 100 fuel mix and use the default T amp D losses of 8 For the case of an isolated grid a diesel genset would likely be the proxy power plant with Diesel 2 oil chosen as the fuel type It is also possible to define the grid and the mix of the different power plants with their respective fuels fuel mix and different T amp D losses e g distributed generators such as photovoltaics will have lower T amp D losses This information is usually available through the local electric utility the utility regulator and or through government For example the United States Environmental Protection Agency US EPA provides The Emissions amp Generation Resource Integrated Database called E GRID This is a database featuring environmental characteristics of electric power generation in the US includin
94. late after tax cash flows and after tax financial indicators In all cases the model assumes a single income tax rate valid throughout the project life and applied to net income Note that the analysis is based among others on net initial and annual costs i e any credits entered in the Cost Analysis worksheet for these two categories are not treated separately This leads to a reasonably accurate tax analysis unless the initial and or annual credits are of the same order of magnitude as the corresponding costs and fall under a different depreciation schedule for tax purposes BIOH 65 RETScreen Software Online User Manual Effective income tax rate The user enters the effective income tax rate which is the effective equivalent rate at which the net income derived from the project is taxed For example in most jurisdictions this would correspond to the combined federal provincial state and or local income tax rates for businesses Net taxable income is derived from the project cash inflows and outflows assuming that all revenues and expenses are paid at the end of the year in which they are earned or incurred The effective income tax rate is assumed to be constant throughout the project life Note that sales tax should be considered in the Initial Costs section of the Cost Analysis worksheet and that property tax should be considered in the Annual Costs section Loss carryforward The user indicates by selecting from the
95. lies to all investors in the project The model uses the after tax yearly cash flows and the project life to calculate the internal rate of return Simple Payback The model calculates the simple payback year which represents the length of time that it takes for an investment project to recoup its own initial cost out of the cash receipts it generates The basic premise of the payback method is that the more quickly the cost of an investment can be recovered the more desirable is the investment For example in the case of the implementation of a biomass and or WHR heating project a negative payback period would be an indication that the annual costs incurred are higher than the annual savings generated The simple payback method is not a measure of how profitable one project is compared to another Rather it is a measure of time in the sense that it indicates how many years are required to recover the investment for one project compared to another The simple payback should not be used as the primary indicator to evaluate a project It is useful however as a secondary indicator to indicate the level of risk of an investment A further criticism of the simple payback method is that it does not consider the time value of money nor the impact of inflation on the costs On the other hand the payback period is often of great importance to smaller firms that may be cash poor When a firm is cash poor a project with a short payback period but a
96. limited wood resource use it is assumed here that only a brief biomass resource assessment is required during the feasibility analysis stage One basic question must be answered by the user Are there substantial sustainable wood resources within a reasonable transport distance using efficient vehicles This can be addressed by conducting a brief aerial survey or by travelling surrounding roads and waterways to assess standing wood resources The time required to carry out a brief biomass resource assessment is typically 6 to 12 hours depending on the extent of the field survey and the amount of data collection and analysis involved Typical rates for biomass resource assessment experts range from 40 h to 100 h This assessment can usually be combined with the site investigation The costs of charter flights may need to be added if an aerial survey is required add to Travel and accommodation Preliminary design A preliminary design that synthesizes the above information is required The design is usually based on design approaches used in most existing small biomass and or WHR heating systems Some elements such as the building yard or approach roads will be specific to the proposed plant sites BIOH 42 RETScreen Biomass Heating Project Model The time required for a preliminary design analysis is 6 to 8 hours depending on the number of buildings involved and any features unique to the site The rate is approximately 40 h t
97. lity study and the availability of accurate information It is certainly possible that the RETScreen user experienced with biomass and or WHR heating project developments could estimate costs in the range of 5 to 40 of the total initial project costs Annual Costs Credits There are a number of annual costs associated with the operation of a biomass and or WHR heating system These could include property taxes insurance spare parts O amp M labour travel and accommodations and general administrative expenses and contigencies In addition costs for biomass fuel peak load fuel oil and parasitic electricity consumption will also be incurred These costs are detailed in the following section O amp M Property taxes Insurance Generally biomass and or WHR heating systems should not increase property taxes with the exception of the plant building constructed In some cases a community may even provide a tax incentive for biomass and or WHR heating installations The owners of a biomass and or WHR heating system will normally require insurance to protect their interests This will include fire insurance public liability insurance and accident insurance to cover repairs in the event of accidental damage The cost of fire insurance public liability insurance and accident insurance normally amount to 500 to 1 500 per year The costs vary depending on the capital value of the biomass and or WHR heating system and whether the heating plant
98. ls at the front door upon which vehicles can dump fuel unless a small enough vehicle is available to unload inside the building Plant building construction material costs will likely range from 170 m to 350 m2 The user should obtain an estimate from local building contractors as this item can represent a significant amount of the total project costs Other uses for the building e g workshop lumber drying kiln etc should also be considered Existing buildings should be used if possible to help avoid this cost The length of approach roads and the area of the yard vary depending on the particular site the volume of wood that is to be stored in the yard and the delivery vehicles that are to be used The roads and yards must permit vehicles to manoeuvre and back up without difficulty Making them too small could cause a lot of problems The cost of approach roads and yard construction vary significantly depending on the required road and yard area the soil material and the proximity of gravel pits The cost is typically 100 m to 200 m and sizes range between 90 to 150 m In some cases additional land may need to be purchased for the yard and building construction If this is the case add the land costs in m to the yard construction costs If land is to be leased include the lease cost under Other in the Annual Costs section Equipment installation The labour required to install the balance of plant will typically range fr
99. ly 12 to 18 hours Variables include site restrictions type of delivery vehicles to be used and the turning space required and space needed to store woodchips Rates of 40 h to 100 h are common Energy system design The heating plant design is generally quite straight forward for small commercial biomass systems with only small variations Factors to be determined include the number of burner boiler units the size capacity of the units the fuel type the auger size the auger speed BIOH 46 RETScreen Biomass Heating Project Model the gearbox reduction ratio the auger motor size 3 4 or hp and unique system options such as alarms The heat distribution system design is an important design component in small commercial biomass systems Design tasks include selection of a routing for the heat distribution piping determining the appropriate diameter of piping determining where and how to interconnect with the heating systems of the various buildings and selecting and locating any heat metres to be used The time required to design a biomass and or WHR heating system is typically 14 to 30 hours at rates of 40 h to 100 h The primary time variables are the level of automation required the number of buildings involved the different types of heat distribution systems present in the existing buildings e g hot water hot air and the ease or difficulty of interconnecting with each building Tenders and contracting Upo
100. ly use discount rates ranging anywhere from 3 to 18 with 6 to 11 being the most common values Project life The user enters the project life year which is the duration over which the financial feasibility of the project is evaluated Depending on circumstances it can correspond to the life expectancy of the energy equipment the term of the debt or the duration of a heat purchase or energy service agreement Although the model can analyse project life s up to 50 years the project life of a well designed biomass and or WHR heating system typically falls between 20 and 30 years BIOH 64 RETScreen Biomass Heating Project Model Debt ratio The user enters the debt ratio which is the ratio of debt over the sum of the debt and the equity of a project The debt ratio reflects the financial leverage created for a project the higher the debt ratio the larger the financial leverage The model uses the debt ratio to calculate the equity investment that is required to finance the project For example debt ratios typically range anywhere from 0 to 90 with 50 to 90 being the most common In cases where the biomass and or WHR heating system cost is incorporated into the cost of a house or building and tied to its mortgage the debt ratio will likely be between 50 and 75 Debt interest rate The user enters the debt interest rate which is the annual rate of interest paid to the debt holder at the end of each year of the term o
101. m and or the biomass heating system in regards to the peak heating load and total heating energy demand Back up Heating System optional Suggested back up heating system capacity Back up heating system capability may be part of a district heating system A common rule of thumb is that each heating plant should have back up capability equal to the largest unit on the system Arkay 1996 For example a back up boiler may be utilised in the case of a boiler shutdown or during an interruption in the biomass fuel supply The model calculates the largest unit capacity by comparing the sizes of the base load and the peak load heating systems For new construction projects a new oil fired back up boiler is likely purchased For retrofit situations the existing oil fired heating system may be used as a back up The use of a back up heating BIOH 17 RETScreen Software Online User Manual system depends on the design philosophy of the user The back up heating system provides greater security but at a higher cost in new systems A used oil boiler will often suffice as a back up unit In other cases a designer may choose not to include a back up unit rather relying only on the peak load boiler Back up heating system capacity The user enters the back up heating system capacity according to the back up heating system capacities available on the market or available in a retrofit situation and the suggested back up heating system capac
102. m is provided to allow for project technology and or regional differences not specifically covered in the generic information provided A credit item may be entered in the grey input cell as Credit The user then selects Credit from the drop down list in the unit column The project may be credited for material and or labour costs that would have been spent on the base case or conventional energy system The user can input both a quantity amount and unit cost Note that the credit item is expressed as a negative value in the Amount column Miscellaneous This category is for all of the miscellaneous costs that occur during a project and have not been taken into account in the previous sections For biomass and or WHR heating projects these costs can include contractors overhead training and contingencies Overhead A general contractor will normally apply a mark up on their costs to cover overhead and on sub contractors costs to cover contract administration The overhead rate ranges from 10 to 3096 of the entire project cost For biomass and or WHR heating projects another way to estimate this cost is to consider the time a general contractor or project manager would be required to manage the construction of the project A range of 36 to 120 hours depending upon the scale of the project at rates of 50 h to 100 h could be expected The incremental overhead includes only the amount directly related to the energy project Any overhead
103. m will be able to withstand all relevant actions and fulfil the safety and functional requirements during its entire service life The final pipe size needs to be verified BIOH 29 RETScreen Software Online User Manual using detailed calculations including pipe length and factor in the number of valves connection points elbows etc Total pipe length for main distribution line The model calculates the total pipe length for the main distribution network Secondary Distribution Lines The secondary distribution lines are the part of the district heating pipe system that connects individual buildings to the main distribution line If the system consists only of one building connected to the heating plant this pipe is considered a secondary line Secondary pipe network oversizing The user enters a pipe network oversizing factor The selected pipe sizes are then automatically sized for a load that is increased by the oversizing factor entered by the user Pipe oversizing is used if it is expected that the system load will increase in the future For example if a community studied requires a 500 kW heating system but there is a plan to add additional housing that would require an additional load of 50 kW an oversizing factor of 10 would ensure that the new housing can be connected at a later date The oversizing factor is also used to test how much extra load the selected system can accommodate This is achieved by changing the f
104. mpleted first The Cost Analysis worksheet should then be completed followed by the Financial Summary worksheet The GHG Analysis and Sensitivity worksheets are optional analyses The GHG Analysis worksheet is provided to help the user estimate the greenhouse gas GHG mitigation potential of the proposed project The Sensitivity worksheet is provided to help the user estimate the sensitivity of important financial indicators in relation to key technical and financial parameters In general the user works from top down for each of the worksheets This process can be repeated several times in order to help optimise the design of the biomass heating project from an energy use and cost standpoint In addition to the worksheets that are required to run the model the Introduction worksheet and Blank Worksheets 3 are included in the Biomass Heating Project Workbook file The Introduction worksheet provides the user with a quick overview of the model Blank Worksheets 3 are provided to allow the user to prepare a customised RETScreen project analysis For example the worksheets can be used to enter more details about the project to prepare graphs and to perform a more detailed sensitivity analysis BIOH 9 RETScreen Software Online User Manual Energy Model As part of the RETScreen Clean Energy Project Analysis Software the Energy Model and Heating Load amp Network worksheets are used to help the user calculate the annual energy product
105. must be insured on its own or whether insurance for the plant is merely added to insurance for other equipment and facilities A more accurate cost can be estimated by contacting an insurance broker Spare parts The annual maintenance and repair costs for Wear items in small commercial biomass plants range from roughly 200 to 600 per year per burner For larger systems use 1 of equipment BIOH 55 RETScreen Software Online User Manual costs The variables include the number of burners the size of the fuel hopper and the fuel type Larger fuel hoppers have greater mechanical stresses Sawdust and bark generally contain some dirt that causes much more wear on fuel feed augers O amp M labour Labour is required to fill the fuel hopper and scraping the ash off the grate on a daily basis Every three to four weeks accumulated fly ash must be cleaned out of the boiler Automated biomass plants are rugged and reliable but annual maintenance and repair labour costs must be expected for wear items such as pumps feed motors capacitors and feed augers The labour for the filling of the fuel hopper the scraping of the grate and for periodic cleaning of the boiler normally takes 8 to 12 hours per month 96 to 144 hours per year at a rate of 15 h to 30 h In many cases the operator s perform these tasks as part of a job that includes other related or non related tasks For larger plants assume 1 to 2 hours per day for general ma
106. n Biomass Heating Project Model A credit item may be entered in the grey input cell as Credit The user then selects Credit from the drop down list in the unit column The project may be credited for material and or labour costs that would have been spent on the base case or conventional energy system The user can input both a quantity amount and unit cost Note that the credit item is expressed as a negative value in the Amount column Contingencies A contingency allowance should be included to account for unforeseen annual expenses and will depend on the level of accuracy of the operation and maintenance cost estimate section It is usual to carry a contingency allowance for at least the replacement of the most expensive component subject to catastrophic failure The contingency allowance is calculated based on an estimated percentage of the other operation and maintenance costs It typically ranges from 1 25 to 10 but could be as high as 20 This is especially true in the case of project in isolated areas To meet repair costs for a biomass and or WHR heating system a contingency fund of 2 000 to 3 000 depending on the size and fuel type is minimally required Fuel Electricity Waste heat The Energy Model worksheet calculates the amount of waste heat used on an annual basis This value is copied to the Cost Analysis worksheet The user enters the cost of waste heat in MWh A cost might be charged if the owner of the w
107. n year 1 The model escalates the GHG emission reduction credit value yearly according to the GHG credit escalation rate starting from year 1 and throughout the project life GHG reduction credit duration The user enters the GHG reduction credit duration year This value typically represents the number of years for which the project receives GHG reduction credits It is used to determine the annual GHG reduction income GHG credit escalation rate The user enters the GHG credit escalation rate 46 which is the projected annual average rate of increase in the GHG emission reduction credit over the life of the project This permits the user to apply rates of inflation to the market price of GHG emission reduction credits which may be different from general inflation BIOH 63 RETScreen Software Online User Manual Retail price of electricity The retail price of electricity is transferred from the Cost Analysis worksheet This value is used in conjunction with the electricity required by the biomass and or WHR heating system in order to calculate the system annual cost of fuel electricity This value is assumed to be representative of year 0 i e the development year prior to the first year of operation year 1 The model escalates the retail price of electricity yearly according to the energy cost escalation rate starting from year 1 and throughout the project life Energy cost escalation rate The user enters the energy c
108. n completion of the various engineering tasks tender documents may be required by the project developer They are prepared for the purpose of selecting contractors to undertake the work Once tenders are released the contracting process is required to both negotiate and establish contracts for the completion of the project The time required to produce a set of bid documents will vary depending upon the complexity and the size of the project If bid documents are required 12 to 20 hours at rates of 40 h to 100 h are possible Construction supervision The construction supervision cost item summarises the estimated costs associated with ensuring that the project is constructed as designed Construction supervision is provided either by the consultant overseeing the project or by the equipment supplier or the project manager Construction supervision involves regular visits to the job site to inspect the installation Depending of the project size this task can take between 30 to 80 hours at rates of 40 h to 100 h Travel time to the site for construction supervision is in addition to the range given Travels costs should be included in the Development section Other These input cells are provided to allow the user to enter cost or credit items that are not included in the information provided in the above cost category The user must enter a positive numerical value in the Unit Cost column A cost item may be entered in the grey inpu
109. n in this cell will change the results in the worksheet Sensitivity range The user enters the sensitivity range which defines the maximum percentage variation that will be applied to all the key parameters in the sensitivity analysis results tables Each parameter is varied by the following fraction of the sensitivity range 1 1 2 0 1 2 1 This value is used in the sensitivity analysis section only The sensitivity range entered by the user must be a percentage value between 0 and 50 Threshold The user enters the threshold value for the financial indicator selected The threshold is the value under which for the After tax IRR and ROI and Net Present Value NPV or over which for Year to positive cash flow the user considers that the proposed project is not financially viable Results which indicate an unviable project as defined by the user threshold will appear as orange cells in the sensitivity analysis results tables This value is used in the sensitivity analysis section only Click here to Calculate Sensitivity Analysis The Click here to Calculate Sensitivity Analysis button updates the sensitivity analysis calculations using the input parameters specified by the user i e Perform analysis on and Sensitivity range input cells The sensitivity analysis tables are updated each time the user clicks on this button The sensitivity analysis calculations can take up to 15 seconds to run depending on the Exc
110. n today s currency NPV is thus calculated at a time 0 corresponding to the junction of the end of year 0 and the beginning of year 1 Under the NPV method the present value of all cash inflows is compared against the present value of all cash outflows associated with an investment project The difference between the present value of these cash flows called the NPV determines whether or not the project is generally a financially acceptable investment Positive NPV values are an indicator of a potentially feasible project In using the net present value method it is necessary to choose a rate for discounting cash flows to present value As a practical matter organisations put much time and study into the choice of a discount rate The model calculates the NPV using the cumulative after tax cash flows In cases where the user has selected not to conduct a tax analysis the NPV calculated will be that of the pre tax cash flows Annual Life Cycle Savings The model calculates the annual life cycle savings which is the levelized nominal yearly savings having exactly the same life and net present value as the project The annual life cycle savings are calculated using the net present value the discount rate and the project life Benefit Cost B C ratio The model calculates the net benefit cost B C ratio which is the ratio of the net benefits to costs of the project Net benefits represent the present value of annual revenues or savings less annu
111. nd The Danish Energy Agency 1999 For Custom projects if a specific fuel type is not included in the drop down list the user may choose Other and manually enter values for the remainder of the row inputs The order in which reference fuels or power plants are listed in this table is irrelevant CO emission CH emission NO emission Fuel conversion factor factor factor ficiency kg kg kg Coal Natural gas Nuclear Large hydro 8 oil Diesel 2 oi Geothermal Biomass wood Small hydro Wind Solar Propane Default Emission Factors and Conversion Efficiencies BIOH 80 RETScreen Biomass Heating Project Model Fuel mix The user enters the fuel mix of the base case electricity system for each fuel type Units are given as percentages of total electricity supplied Note that the user should verify that the sum of all fuel types listed in the fuel mix column equals 100 CO2 CH4 and N20 emission factors Custom analysis The user enters the CO2 CH and NO emission factors for the different fuel types They represent the mass of greenhouse gas emitted per unit of energy Emission factors will vary for different types and qualities of fuels and for different types and sizes of power plants For grid connected projects the user should enter factors representative of large generating plants On the electricity mix row at the bottom of the table the model calculates the equivalent emission factors for
112. nd commissioning Each stage could represent an increase of a magnitude or so in expenditure and a halving of the uncertainty in the project cost estimate This process is illustrated for hydro projects in the Accuracy of Project Cost Estimates figure Gordon 1989 At the completion of each step a go or no go decision is usually made by the project proponent as to whether to proceed to the next step of the development process High quality but low cost pre feasibility and feasibility studies are critical to helping the project proponent screen out projects that do not make financial sense as well as to help focus development and engineering efforts prior to construction The RETScreen Clean Energy Project Analysis Software can be used to prepare both the initial pre feasibility analysis and the more detailed feasibility analysis BIOH 37 RETScreen Software Online User Manual f Range of accuracy ol estimates 4 equal to estimated cost divided bv final L3 st assuming constant currency value T sus Pre tender estimate P PR N cost accuracy within 10 N 1 3 All tenders received 12 Ti X cost accuracy within 5 2 1 1 a N Jo 1 t mm x 1 0 Ooo 0 9 d a bem Construct j 0 8 0 7 d N Feasibility stud RAI P ad cost accura t os 9 Y 0 5 j x Pre feasibility study ost accuracy within 40 to 50 Time Accuracy of Project Cost Estim
113. nd or WHR heating system This worksheet is also used to prepare a preliminary design and cost estimate for the district heating network The user should return to the Energy Model worksheet after completing this section Site Conditions Nearest location for weather data The user enters the weather station location with the most representative weather conditions for the project This is for reference purposes only The user can consult the RETScreen Online Weather Database for more information Heating design temperature The user enters the heating design temperature which represents the minimum temperature that has been measured for a frequency level of at least 1 over the year for a specific area ASHRAE 1997 The design temperature is used to determine the heating energy demand The user can consult the RETScreen Online Weather Database for more information Typical values for heating design temperature range from approximately 40 to 15 C Note The heating design temperature values found in the RETScreen Online Weather Database were calculated based on hourly data for 12 months of the year The user might want to overwrite this value depending on local conditions For example where temperatures are measured at airports the heating design temperature could be 1 to 2 C milder in core areas of large cities The user should be aware that when modifying the design temperature the monthly degree days and the heating load for buildi
114. nergy systems used for heating and cooling applications The contribution is 4096 for systems installed in Canada s remote communities More information may be obtained from the REDI Website or by calling 1 877 722 6600 Annual Costs and Debt The total annual costs are calculated by the model and represent the yearly costs incurred to operate maintain and finance the project It is the sum of the O amp M costs the fuel electricity costs and debt payments Note that the total annual costs include the reimbursement of the principal portion of the debt which is not strictly speaking a cost but rather an outflow of cash These costs are described briefly below BIOH 69 RETScreen Software Online User Manual O amp M The operation and maintenance O amp M costs are the sum of the annual costs that must be incurred to operate and maintain the energy system in excess of the O amp M cost required by the base case energy system The model uses the O amp M cost to calculate the total annual costs and the yearly cash flows Fuel Electricity The annual cost of fuel electricity to run the biomass WHR heating system and or peak load heating system is transferred from the Cost Analysis worksheet Debt payments debt term The model calculates the debt payments which is the sum of the principal and interest paid yearly to service the debt Whereas debt payments are constant over the debt term the principal portion increases and the i
115. ng a File To save a RETScreen Workbook file standard Excel saving procedures should be used The original Excel Workbook file for each RETScreen model cannot be saved under its original distribution name This is done so that the user does not save over the master file Instead the user should use the File Save As option The user can then save the file on a hard drive diskette CD etc However it is recommended to save the files in the MyFiles directory automatically set by the RETScreen installer program on the hard drive The download procedure is presented in the following figure The user may also visit the RETScreen Website at f www retscreen net for more information on the download i procedure It is important to note that the user should not MyFiles WIND3 xls RETScreen Download Procedure BIOH 7 RETScreen Software Online User Manual change directory names or the file organisation automatically set by RETScreen installer program Also the main RETScreen program file and the other files in the Program directory should not be moved Otherwise the user may not be able to access the RETScreen Online User Manual or the RETScreen Weather and Product Databases Printing a File To print a RETScreen Workbook file standard Excel printing procedures should be used The workbooks have been formatted for printing the worksheets on standard letter size paper with a print quality of 600 d
116. ng cluster might have to be adjusted accordingly Annual heating degree days below 18 C The model calculates the total annual heating degree days below 18 C by summing the monthly degree days entered by the user Degree days for a given day represent the number of Celsius degrees that the mean temperature is above or below a given base Thus heating degree days are the number of degrees below 18 C The user can consult the RETScreen Online Weather Database for more information BIOH 20 RETScreen Biomass Heating Project Model Domestic hot water heating base demand The user enters the estimated domestic hot water heating base demand as a percentage of the annual heating energy demand To simulate non weather dependent process demands the percentage of domestic hot water base demand can be varied Typical values for domestic hot water heating base demand range from 10 to 25 As an example a hospital will probably use 25 of its heating energy to heat domestic hot water while a regular office building may use only 10 of its heating energy to heat domestic water If no domestic water heating is required the user will enter 0 Equivalent degree days for DHW heating The model calculates the equivalent degree days for DHW heating While building heating is often calculated from climatic normals which are expressed in degree days the domestic hot water heating load is often expressed in degree days day Typical values for equival
117. ng heating systems and locations including notes on any attributes or problems for conversion to biomass energy selection of a possible site for the biomass heating plant preparation of a layout of approach roads and a plant yard for outdoor storage of chipped wood Site visit time includes the time required to arrange meetings survey the site obtain the necessary information and any travel time but not travel expenses see Travel and accommodation The time required for a site survey detailed building and site analysis varies according to the number of buildings involved and the complexity of the existing heating system Obtaining fuel consumption data can sometimes add to the time required The cost of a site visit is influenced by the planned duration and travel time to and from the site The range at the site is typically 7 to 16 hours at a rate of approximately 40 h to 100 h Biomass resource assessment Biomass and or WHR heating projects are not considered renewable energy unless the biomass is harvested in a sustainable manner The user must carefully consider the biomass resource to ensure that there is a sufficient local biomass resource to meet the projects energy requirements in a environmentally appropriate and financially feasible manner With small commercial wood biomass systems it is unlikely that the annual woodchip consumption will exceed 1 500 tonnes which is relatively small for most forested regions Because of this
118. nt arrangement established Items here include costs for contract negotiations permits and approvals project financing development phase project management and any development related travel costs These costs are detailed in the following section Contract negotiations If there is a decision to proceed with the project based on a positive result of the feasibility study the project proponent will need to establish a fiscal operating arrangement and negotiate a contract with one or more appropriate project stakeholders This can be very time consuming particularly if there are a number of different stakeholders involved for example a fuel supplier a heating plant operator and several clients who wish to purchase heat The time required typically ranges from 32 to 80 hours at rates ranging from 50 h to 100 h Permits and approvals A number of permits and approvals may be required by local authorities for the construction of the project The cost of acquiring the necessary permits and approvals is calculated based on an estimate of the time required to complete the necessary work These agencies include local BIOH 44 RETScreen Biomass Heating Project Model building and electrical inspectors boiler inspectors fire safety inspectors forestry fuel supply and an emissions regulating authority The time required depends on the number of agencies involved and what is specifically required to meet their rules and regulations
119. nterest portion decreases with time In that respect it is similar to the yearly annuity paid to reimburse the mortgage of a house Debt payments are calculated using the debt interest rate the debt term and the project debt Annual Savings or Income The total annual savings represent the yearly savings realised due to the implementation of the project From the perspective of an energy services company these savings will be viewed as income It is directly related to the avoided cost of heating energy derived from implementing the project Heating energy savings income The model calculates the heating energy savings which represent the additional cost that would have been incurred if this heating energy had been delivered by the base case energy system The heating energy savings are equal to the product of the heating energy delivered and the avoided cost of heating energy The yearly value of heating energy savings is escalated at the energy cost escalation rate GHG reduction income duration The model calculates the GHG emission reduction income which represents the income or savings generated by the sale or exchange of the GHG emission reduction credits It is calculated from the annual net GHG emission reduction and the GHG emission reduction credit value The yearly value of GHG emission reduction income is escalated at the GHG credit escalation rate BIOH 70 RETScreen Biomass Heating Project Model Periodic Cos
120. o 100 h Report preparation A summary report should be prepared which describes the feasibility study its findings and recommendations The written report will contain data summaries charts tables and illustrations which clearly describe the proposed project This report should be in sufficient detail regarding costs performance and risks to enable project lenders and other decision makers to evaluate the merits of the project The cost of the report preparation is calculated based on an estimate of the time required by a professional to complete the necessary work and should also include the time required to manage the overall feasibility study preparation Typically 16 to 32 hours is required The major variables are the number of buildings involved the complexity of interconnecting the buildings any unique requirements regarding the location of the plant any unusual wood supply requirements e g the need for a wood supply yard and conclusions and recommendations regarding the supply of woodchips The rate is approximately 40 h to 100 h Travel and accommodation This cost item includes all travel related costs excluding time required to prepare all sections of the feasibility study by the various members of the feasibility study team These expenses include such things as airfare car rental lodging and per diem rates for each trip required For local travel a supplier may not charge for time and expenses For isolated areas w
121. om 25 h to 50 h and will require 500 to 700 hours to construct the building and carry out the installation of all the equipment listed above for the Balance of Plant sub section Transportation The transportation costs for the biomass system equipment vary depending on weight and size of material to be shipped and distance from the factory Normally the material is shipped by truck unless there is no road access to the site in which case other methods such as rail air winter road or boat are required Some projects will require more than one freight carrier For example truck to rail line then to a barge or plane Each time the material is transferred someone must be on hand to receive it and or arrange for the transfer Freight costs to isolated areas may be difficult to estimate and it is advisable to check for best routing As an example a 75 kW oil boiler weighs approximately 770 kg while a 400 kW oil boiler weighs approximately 5 900 kg BIOH 53 RETScreen Software Online User Manual Other These input cells are provided to allow the user to enter cost or credit items that are not included in the information provided in the above cost category The user must enter a positive numerical value in the Unit Cost column A cost item may be entered in the grey input cell as Other The user then selects Cost from the drop down list in the unit column The user can input both a quantity amount and unit cost This ite
122. omass is available in many forms The model is designed to evaluate the energy available from any biomass source It should be noted that the most successful biomass heating systems use a consistent fuel The fuel can be a mixture of fuel types size distribution and moisture content as long as the mixture stays constant When the fuel changes the system might require manual re tuning to achieve full efficiency and minimize emissions Biomass fuel type The user selects the biomass fuel type from the drop down list If the fuel available is not listed select a fuel that has a similar heating value as found in the table below The heating value listed is the higher heat value on a dry basis Heating value HV i t Bagasse Peat Rice husks Switcherass Wheat straw Wood high HV Wood medium HV Wood low HV Biomass Fuel Type and Corresponding Heating Value The heating value can change depending on its origin Typically wood bark has a higher heating value then the white wood The heating value is also reduced over time from harvesting Moisture content on wet basis of biomass The user enters the moisture content on wet basis of the biomass to be fed into the biomass system Typical values for moisture content of wood range from 10 to 50 Freshly chipped wood averages from 40 to 55 moisture content Fuel dried until it reaches a moisture content of 30 to 40 is ideal for most small commercial burners Sykes 1997 For wood fuel
123. ormulas if Formula costing method is selected or the user enters these costs if Detailed costing method is chosen The building s heating system is normally connected indirectly to the district heating system via energy transfer stations located in the basement or where a boiler would normally be located Direct systems connect the district heating system directly to the building s heating system Energy transfer station s cost factor If the user selects the Formula costing method then an energy transfer station cost factor can be entered This factor is used to modify the built in formula to compensate for local variations in construction costs inflation etc BIOH 31 RETScreen Software Online User Manual Energy transfer station s cost If the user selects the Formula costing method then the energy transfer station cost for all the buildings in each cluster is calculated by the model The costs are calculated using the next figure This figure can also be useful if the user has selected the Detailed costing method If the Detailed costing method is selected then the user enters the energy transfer station s cost per building cluster The model then calculates the total costs for all building clusters 350 000 300 000 250 000 200 000 150 000 un j LL o c un O OQ 100 000 50 000 0 1 500 2 000 ETS size kW Typical Costs for Energy Transfer Station s The costs
124. ost escalation rate which is the projected annual average rate of increase for the cost of energy over the life of the project This permits the user to apply rates of inflation to fuel electricity costs which are different from general inflation for other costs For example North American electric utilities currently use energy cost escalation rates ranging anywhere from 0 to 5 with 2 to 3 being the most common values Inflation The user enters the inflation rate which is the projected annual average rate of inflation over the life of the project For example inflation for the next 25 years in North America is currently forecasted to range between 2 and 3 Discount rate The user enters the discount rate which is the rate used to discount future cash flows in order to obtain their present value The rate generally viewed as being most appropriate is an organisation s weighted average cost of capital An organisation s cost of capital is not simply the interest rate that it must pay for long term debt Rather cost of capital is a broad concept involving a blending of the costs of all sources of investment funds both debt and equity The discount rate used to assess the financial feasibility of a given project is sometimes called the hurdle rate the cut off rate or the required rate of return The model uses the discount rate to calculate the annual life cycle savings For example North American electric utilities current
125. pe cost factor can be entered This factor is used to modify the built in formula to compensate for local variations in construction costs inflation etc Summary of main distribution line pipe size The model summarises the pipe sizes specified in the main distribution line sizing section Summary of main distribution line pipe length The model calculates the total length of the main pipe for each pipe diameter Summary of main distribution line pipe cost If the user selects the Formula costing method then the main distribution line pipe cost for all main pipe sections is calculated by the model The costs are calculated using the same formula as for secondary distribution line pipe costs see the Typical Costs for Secondary Distribution Line Pipes graph If the Detailed costing method is selected then the user enters the total cost for the main distribution line pipe cost for each pipe size categories The model calculates the total costs for all the main distribution pipe costs The costs shown are for the supply and installation of two pipes per meter of trench The cost per meter is for two pre insulated district heating type pipes in a trench approximately 600 mm deep the costs also include restoration of the existing sidewalk or road Rocky terrain or installation in areas that have many old utility services e g telephone electricity sewage water etc could substantially increase the quoted costs Typical main dis
126. pi If the printer being used has a different dpi rating then the user must change the print quality dpi rating by selecting File Page Setup Page and Print Quality and then selecting the proper dpi rating for the printer Otherwise the user may experience quality problems with the printed worksheets BIOH 8 RETScreen Biomass Heating Project Model Biomass Heating Project Model The RETScreen International Biomass Heating Project Model can be used world wide to easily evaluate the energy production or savings life cycle costs and greenhouse gas emissions reduction for biomass and or waste heat recovery WHR heating projects ranging in size from large scale developments for clusters of buildings to individual building applications The model can be used to evaluate three basic heating systems using waste heat recovery biomass and biomass and waste heat recovery combined It also allows for a peak load heating system to be included e g oil fired boiler The model is designed to analyse a wide range of systems with or without district heating Six worksheets Energy Model Heating Load Calculation amp District Heating Network Design Heating Load amp Network Cost Analysis Greenhouse Gas Emission Reduction Analysis GHG Analysis Financial Summary and Sensitivity and Risk Analysis Sensitivity are provided in the Biomass Heating Project Workbook file The Energy Model and Heating Load amp Network worksheets are co
127. plate or shell and tube heat exchangers for both heating and domestic hot water a circulation pump an expansion tank self actuating control valves and an energy meter For larger buildings the energy transfer station will be site assembled but will consist of the equipment with the same functions as for smaller buildings Secondary distribution line pipe cost factor If the user selects the Formula costing method the secondary distribution line pipe cost factor can be entered This factor is used to modify the built in formula to compensate for local variations in construction costs inflation etc Exchange rate The user enters the exchange rate to convert the calculated Canadian dollar costs into the currency in which the project costs will be reported The rate entered must be the value of one Canadian dollar expressed in the currency in which the project costs will be reported Note The user should first select the currency at the top of the Cost Analysis worksheet Secondary distribution line pipe cost If the user selects the Formula costing method then the secondary distribution line pipe costs for all pipes connecting each cluster to the main distribution pipe are calculated by the model The costs are calculated using the next figure This figure can also be useful if the user has selected the Detailed costing method If the Detailed costing method is selected then the user enters the total cost for the secondary dist
128. pply and return lines BIOH 10 RETScreen Biomass Heating Project Model Heating energy demand The model calculates the heating energy demand from the data entered in the Heating Load amp Network worksheet Units switch The user can choose to express the energy in different units by selecting among the proposed set of units GWh Gcal million Btu GJ therm kWh hp h MJ This value is for reference purposes only and is not required to run the model Peak heating load The model calculates the peak heating load from data entered in the Heating Load amp Network worksheet Units switch The user can choose to express the load in different units by selecting among the proposed set of units MW million Btu h boiler hp ton cooling hp W This value is for reference purposes only and is not required to run the model System Characteristics The model can evaluate heating system designs consisting of waste heat recovery and various boiler types 1 Waste heat recovery WHR system 2 Biomass heating system 3 Peak load heating system designed to meet a small portion of the annual energy demand during peak heating periods and 4 Back up heating system optional which is used in case of system shutdown or because of an interruption in the waste heat recovery system or biomass fuel supply The system characteristics associated with estimating the annual energy production of a biomass and
129. r to the user that the range of values for cost items mentioned in the manual are for a 2000 baseline year in Canadian dollars Some of this data may be time sensitive so the user should verify current values where appropriate The approximate exchange rate from Canadian dollars to United States dollars and to the Euro was 0 68 as of January 1 2000 BIOH 36 RETScreen Biomass Heating Project Model To put this in context when funding and financing organisations are presented with a request to fund an energy project some of the first questions they will likely ask are how accurate is the estimate what are the possibilities for cost over runs and how does it compare financially with other options These are very difficult to answer with any degree of confidence since whoever prepared the estimate would have been faced with two conflicting requirements e Keep the project development costs low in case funding cannot be secured or in case the project proves to be uneconomic when compared with other energy options e Spend additional money and time on engineering to more clearly delineate potential project costs and to more precisely estimate the amount of energy produced or energy saved To overcome to some extent such conflicts the usual procedure is to advance the project through the following four stages e Pre feasibility analysis e Feasibility analysis e Development including financing and engineering e Construction a
130. ransferred from the Financial Summary worksheet to the Sensitivity worksheet The user enters the GHG emission reduction credit range The range is a percentage corresponding to the uncertainty associated with the estimated GHG emission reduction credit value The higher the percentage the greater the uncertainty The range specified by the user must be a percentage value between 0 and 50 The range determines the limits of the interval of possible values that the GHG emission reduction credit could take For example a range of 10 for a GHG emission reduction credit of 5 tco means that the GHG emission reduction credit could take any value between 4 5 tco and 5 5 tco Since 5 tco is the estimated value the risk analysis will consider this value as being the most probable and the minimum and maximum values as being the least probable based on a normal distribution If the GHG emission reduction credit is known exactly by the user no uncertainty the user should enter a range of 0 Click here to Calculate Risk Analysis The Click here to Calculate Risk Analysis button updates the risk analysis calculations using the input parameter ranges specified by the user Clicking on this button starts a Monte Carlo simulation that uses 500 possible combinations of input variables resulting in 500 values of the selected financial indicator The impact graph the median the minimum and maximum confidence levels and the distribution graph a
131. re calculated using these results and updated each time the user clicks on the button Click here to Calculate Risk Analysis The risk analysis calculations can take up to 1 minute to run depending on the Excel version and the speed of the computer When the risk analysis is updated the button disappears BIOH 93 RETScreen Software Online User Manual If the user makes any changes to the input range values or navigates through any of the other worksheets the button will reappear The user will then have to click on the button to update the risk analysis calculations so that the results reflect the changes Impact graph The impact graph shows the relative contribution of the uncertainty in each key parameter to the variability of the financial indicator The X axis at the bottom of the graph does not have any units but rather presents a relative indication of the strength of the contribution of each parameter The longer the horizontal bar for a given input parameter the greater is the impact of the input parameter on the variability of the financial indicator The input parameters are automatically sorted by their impact on the financial indicator The input parameter at the top Y axis contributes the most to the variability of the financial indicator while the input parameter at the bottom contributes the least This tornado graph will help the user determine which input parameters should be considered for a more detailed
132. reen Biomass Heating Project Model Engineering The engineering item typically represents the sum of the costs of the design activities required to go from the development stage to the construction stage of a project It also includes costs for construction supervision It is net of any credits for not having to develop the base case project Energy equipment The energy equipment item typically represents the sum of the purchasing and installation costs of the energy equipment less any credits for not having to purchase or install base case equipment Balance of plant The balance of plant item represents the sum of the purchasing construction and installation costs of all the elements of the energy system other than the equipment costs less any credits for not having to purchase or install base case equipment Miscellaneous The miscellaneous item includes all the costs not considered in any of the other initial costs categories that are required to bring a project to the operational stage Incentives Grants The user enters the financial incentive this is any contribution grant subsidy etc that is paid for the initial cost excluding credits of the project The incentive is deemed not to be refundable and is treated as income during the development construction year year 0 for income tax purposes For example in Canada the Renewable Energy Deployment Initiative REDI may provide a 2596 contribution for certain e
133. rgy Model description a typical biomass and or WHR heating system includes a heating system that is utilised to meet the peak period load The cost of a peak load heating system ranges from approximately 85 kW for large oil units e g 400 kW unit to 100 kW for small oil units e g 75 kW unit The cost of an oil tank plumbing and breaching smoke pipe should also be included these costs range from 3 000 to 6 000 for each boiler The capacity of the boiler s is automatically copied from the Energy Model worksheet The combined costs will likely range from approximately 10 000 to 34 000 133 kW to 85 kW per oil boiler BIOH 51 RETScreen Software Online User Manual Back up heating system As discussed in the Energy Model section a typical biomass and or WHR heating system may also include an optional back up heating system which will provide back up in case of a heating system shut down The installation of a new oil fired back up heating system may be necessary unless the existing boiler can be utilised as a back up The cost of a back up heating system ranges from 6 000 to 28 000 for oil boilers ranging in size from 75 to 400 kW The cost of plumbing and breaching smoke pipe should also be included these costs range from 3 000 to 4 000 The combined costs range from 9 000 to 32 000 107 kW to 75 kW per oil boiler also see description of Peak load heating system note that the fuel tank is not included wi
134. ribution pipes cost per building cluster The model then calculates the total costs for all building clusters BIOH 33 RETScreen Software Online User Manual E un o UO 300 400 500 600 Pipe size mm Typical Costs for Secondary Distribution Line Pipes The costs shown are for the supply and installation of the supply and return pipes in the i e 2 pipes trench The cost per meter in the previous figure is for two pre insulated district heating type pipes in a trench approximately 600 mm deep the costs also include repair of the existing sidewalk or road Rocky terrain or installations in areas with a number of existing services e g telephone electricity sewage water etc could increase the calculated cost substantially Typical secondary distribution line pipe costs can be broken down as follows 45 for material 45 for installation and 10 for associated distribution pump system Total building cluster connection cost The model calculates the total building cluster connection cost using the values entered by the user detailed method or calculated by the model formula method for energy transfer stations and secondary distribution pipes The model also calculates the total cost of connecting all building clusters BIOH 34 RETScreen Biomass Heating Project Model Main distribution line pipe cost factor If the user selects the Formula costing method then a main distribution line pi
135. risk analysis too The user indicates by selecting from the drop down list whether or not the optional risk analysis section is used to conduct a risk analysis of the important financial indicators in addition to the sensitivity analysis In the risk analysis section the impact of each input parameter on a financial indicator is obtained by applying a standardised multiple linear regression on the financial indicator If the user selects Yes from the drop down list then the risk analysis section will open and the user should complete the lower half of the worksheet The analysis will be performed on the financial indicator selected by the user in the Perform analysis on input cell at the top right The user will need to click on Calculate Risk Analysis button in the Risk Analysis section at the lower half of this worksheet to get the results Project name The user defined project name is entered for reference purposes only in the Energy Model worksheet and it is copied automatically to the Sensitivity worksheet BIOH 88 RETScreen Biomass Heating Project Model Project location The user defined project location is entered for reference purposes only in the Energy Model worksheet and it is copied automatically to the Sensitivity worksheet Perform analysis on The user selects from three options in the drop down list the financial indicator to be used for both the sensitivity and risk analyses Modifying the selectio
136. s The user enters the transmission and distribution T amp D losses of the base case electricity system which includes all energy losses between the power plant and the end user This value will vary based on the voltage of transport lines the distance from the site of energy production to the point of use peak energy demands ambient temperature and electricity theft In addition T amp D system type e g AC vs DC and quality may also influence losses The model calculates the weighted average of the T amp D losses of the global electricity mix on the bottom row of the table Units are given as a percentage of all electricity losses to electricity generated It is reasonable to assume T amp D losses of 8 to 10 in modern grids in industrialised countries and 10 to 20 in grids located in developing countries GHG emission factor The model calculates the GHG emission factor for each reference fuel type Values are calculated based on the individual emission factors the fuel conversion efficiency and the T amp D losses The weighted GHG emission factor for the total electricity mix is calculated on the bottom row of the table Units are given in tonnes equivalent of CO emission per megawatt hour of end use electricity delivered tco MWh Base Case Heating System Baseline The base case heating system or baseline system represents the system to which the biomass and or WHR heating system is compared The base case heat
137. s moisture content is normally expressed on a wet basis In some cases information of moisture content on a dry basis instead of on a wet basis may be available to the user and the following conversion should be applied moisture content wet basis moisture content dry basis 1 moisture content dry basis Typically fuels that have a moisture content above 50 to 55 require drying before they can be used as a fuel BIOH 13 RETScreen Software Online User Manual As fired heating value of biomass The model calculates the as fired heating value of biomass using the biomass dry heating value and the moisture content The as fired heating value of biomass is the energy content of tonne of the particular fuel type on a wet basis This value is used to calculate the biomass annual fuel requirement for the system Typical values for moist heating value for biomass range from 10 800 to 15 900 MJ tonne The lower the moisture content the higher the heating value of the biomass fuel Hayden 1997 Biomass boiler s capacity boilers The user enters the biomass boiler capacity The model assumes that the capacity is the energy output of the biomass boiler as biomass energy systems are typically rated on output Use the System Design Graph as displayed in the Energy Model worksheet as a guide This value is transferred to the Cost Analysis worksheet If more than one biomass boiler is proposed then the value entered is the sum o
138. s net cash flows before depreciation debt payments and income taxes by debt payments principal and interest The debt service coverage is a ratio used extensively by the potential lenders for a project to judge its financial risk The model assumes that the cumulative cash flows are used to finance a sufficient debt service reserve before any distributions to the shareholders Yearly Cash Flows Pre tax The model calculates the net pre tax cash flows which are the yearly net flows of cash for the project before income tax It represents the estimated sum of cash that will be paid or received each year during the entire life of the project Note that the initial costs are assumed to occur at the end of year 0 and that year 1 is the first year of operation of the project Annual costs and savings given in the Financial Summary worksheet which reflect amounts valid for year zero are thus escalated one year in order to determine the actual costs and savings incurred during the first year of operation i e year 1 After tax The model calculates the net after tax cash flows which are the yearly net flows of cash for the project after income tax It represents the estimated sum of cash that will be paid or received each year during the entire life of the project Note that the initial costs are assumed to occur at the end of year 0 and that year 1 is the first year of operation of the project Annual costs and savings given in the Financial S
139. s copied automatically to the GHG Analysis worksheet Global Warming Potential of GHG The model indicates the global warming potential of methane CH4 and nitrous oxide N20 If the user selects the Custom type of analysis different values from the default values provided may be entered by the user Researchers have assigned Global Warming Potentials GWPs to greenhouse gases to allow for comparisons of their relative heat trapping effect The higher the global warming potential of a gas the greater the contribution to the greenhouse effect For example nitrous oxide is 310 times more effective than carbon dioxide at trapping heat in the atmosphere GWPs of gases are defined as a unit multiple of that given to carbon dioxide CO which is assigned a reference value of 1 i e the GWP of CO is 1 and the GWP of N5O is 310 The default values are those defined by the Revised Intergovernmental Panel on Climate Change IPCC Guidelines for Greenhouse Gas Inventories 1996 BIOH 78 RETScreen Biomass Heating Project Model Base Case Electricity System Baseline To perform the RETScreen GHG emission reduction analysis for the project the user will need to define the baseline also called base case or reference case electricity system Often this will simply imply defining a proxy plant and its associated fuel Note Defining the Base Case Electricity System carefully is more important if one of the base case heating system fue
140. s increased by the oversizing factor entered by the user Pipe oversizing is used if it is expected that the system load will increase in the future For example if a community studied requires a 500 kW heating system but there is a plan to add additional housing that would require an additional load of 50 kW an oversizing factor of 10 would ensure that the new housing can be connected at a later date The oversizing factor is also used to test how much extra load the selected system can accommodate This is achieved by changing the factor until the pipe size is increased If the pipe sizes change when the oversizing factor is 15 this indicates that the selected system can handle 15 more load without having to change the size of the pipes Pipe sections The user indicates by selecting from the drop down list whether or not a building cluster is connected to a section of the main distribution line The user also specifies the length of each section of the main distribution line The model then calculates the total load connected to the section and selects the pipe size For more information see example in Technical Note on Network Design The selection of pipe size for this model uses a simplified method The pipe sizing criteria used allows a pressure drop for the maximum flow between 1 to 2 millibar per meter The maximum velocity in larger pipes is maximised to 3 m s Before construction it is necessary to verify that the selected pipe syste
141. see the revised IPCC Guidelines for National Greenhouse Gas Inventories CO emission factors for many fuels are included on page 1 13 of the IPCC Reference Manual CH and N5O emission factors for a number of fuels are included on pages 1 35 and 1 36 of the IPCC Reference Manual CO2 CH4 and N20 emission factors Standard analysis For the base case heating system the model provides the CO2 CH and N5O emission factors corresponding to the heating fuel type selected If the heating fuel type is electricity emission factors of the base case electricity mix are used CO CH and N O emission factors represent the mass of greenhouse gas emitted per unit of energy generated Emission factors will vary for different types and qualities of fuels and for different types and sizes of heating equipment The default factors provided are those which are representative of large heating plants For smaller plants and for greater accuracy the user may select the Custom type of analysis and specify the emission factors For each fuel type selected units are given in kilograms of gas emitted per gigajoule of primary heating energy generated kg GJ For more information on determining GHG emission factors see the revised IPCC Guidelines for National Greenhouse Gas Inventories CO emission factors for many fuels are included on page 1 13 of the IPCC Reference Manual CH4 and N5O emission factors for a number of fuels are included on pages 1 35
142. ser then selects Credit from the drop down list in the unit column The project may be credited for material and or labour costs that would have been spent on the base case or conventional energy system The user can input both a quantity amount and unit cost Note that the credit item is expressed as a negative value in the Amount column Development Once a potential biomass and or WHR heating project has been identified through the feasibility study to be desirable to implement project development activities may follow For some projects the feasibility study development and engineering activities may proceed in parallel depending on the risk and return acceptable to the project proponent For biomass heating projects with district heating there are a number of possible project developers Currently a common approach is for the client to be the building owner with the developer being the local biomass and or WHR system product supplier who provides complete design build services General contractors may also be the developer purchasing the biomass and or WHR heating system on behalf of the building owner It is also possible that an Energy Services Company ESCO or the local community utility or public works department could be the project developer where they purchase the biomass and or WHR heating system and sell the energy to local building owners Estimating the costs of the development phase will depend on the particular developme
143. shown for the energy transfer station include supply and installation in a new building If the building needs to be converted from steam or electric baseboard heating the costs are substantially higher and should be confirmed by a local contractor It should be noted that building owners sometimes choose to remove existing boilers and domestic hot water storage tanks to gain valuable floor space Each energy transfer station consists of prefabricated heat exchanger units one for the space heating system and a second for domestic hot water heating The energy transfer station is provided with the necessary control equipment as well as all the internal piping The energy transfer station is designed for ease of connection to the building s internal heating and hot water system BIOH 32 RETScreen Biomass Heating Project Model Domestic hot water tanks and boilers are typically replaced with only a heat exchanger Where the domestic hot water consumption is large storage tanks can be used Typically each building includes an energy meter These meters record district heating water flow through the energy transfer station By measuring the temperature difference of incoming and return water temperature the energy usage is calculated Prefabricated energy transfer stations with heat exchanger units for both heating and domestic hot water are available for single family residences and small multi family residences They consist of brazed
144. sters shown in the previous figure Heated floor Number of Heating load Length of a cluster area dux buildings m Building cluster 2 Ho spital oi xliiwlA School building ner to i e os Office building 1 000 1 65 15 iE E Apartment building 1 500 1 100 25 Community System Base Case Heating System and Heating Load Base Case Heating System Heated floor area per building cluster The user enters the total heated floor area for the building s in a cluster A building cluster is any number of similar buildings connected to a single point of the distribution system The heated floor area per building cluster is the floor surface area of the building s that have to be heated multiplied by the number of floors The user obtains this value for each of the buildings included in the biomass and or WHR heating system and summarises the values to enter the cluster total heating surface area See Technical Note on Network Design Typical values for total floor heating surface area range from 500 to 9 000 m Most commercial or institutional buildings will have a heating surface exceeding 500 m A typical value of heating surface area for an individual house is 140 m Note When the user enters 0 or leaves the heated floor area per building cluster cell blank the remaining column in this section is greyed out BIOH 23 RETScreen Software Online User Manual Number of buildings in building cluster
145. t cell as Other The user then selects Cost from the drop down list in the unit column The user can input both a quantity amount and unit cost This item is provided to allow for project technology and or regional differences not specifically covered in the generic information provided BIOH 47 RETScreen Software Online User Manual A credit item may be entered in the grey input cell as Credit The user then selects Credit from the drop down list in the unit column The project may be credited for material and or labour costs that would have been spent on the base case or conventional energy system The user can input both a quantity amount and unit cost Note that the credit item is expressed as a negative value in the Amount column Energy Equipment The energy equipment as defined here includes the waste heat recovery system biomass boilers and burners and the associated spare parts chimney stacks plumbing electrical equipment installation and transportation costs The user may refer to the RETScreen Online Product Database for supplier contact information in order to obtain prices or other information required These costs are detailed below Waste heat recovery system The user enters the waste heat recovery cost per kW The kW capacity is transferred from the Energy Model worksheet This value includes both equipment and installation costs The cost for the waste heat recovery WHR system varies considerabl
146. t select the option Second currency from the Cost references drop down list cell Name of Prefix Symbol for Prefix Some currency symbols may be unclear on the screen e g this is caused by the zoom settings E M List of Units Symbols and Prefixes BIOH 6 RETScreen Biomass Heating Project Model of the sheet The user can increase the zoom to see those symbols correctly Usually symbols will be fully visible on printing even if not fully appearing on the screen display Units Symbols amp Prefixes The previous table presents a list of units symbols and prefixes that are used in the RETScreen model Note 1 The gallon gal unit used in RETScreen refers to US gallon and not to imperial gallon 2 The tonne t unit used in RETScreen refers to metric tonnes Unit Options To perform a RETScreen project analysis the user must choose between Metric units or Imperial units from the Units drop down list If the user selects Metric all input and output values will be expressed in metric units But if the user selects Imperial input and output values will be expressed in imperial units where applicable Note that if the user switches between Metric and fei Imperial input values will not be automatically converted BESgESSLU SS E into the equivalent selected units The user must ensure that values entered in input cells are expressed in the units shown RETScreen Savi
147. ta e g the amount of solar energy striking the surface of the earth global temperatures and wind speeds simply by clicking on links in either the RETScreen software or the NASA Website These data had previously only been available from a limited number of ground monitoring stations and are critical for assessing the amount of energy a project is expected to produce The use of these data results in substantial cost savings for users and increased market opportunities for industry while allowing governments and industry to evaluate regional renewable energy resource potential BIOH 97 RETScreen Software Online User Manual Cost Data Typical cost data required to prepare RETScreen studies are provided in the RETScreen Online Cost Database and in the Online Manual This database is built into the right hand column of the Cost Analysis worksheet Data are provided for Canadian costs with 2000 as a baseline year The user also has the ability to create a custom cost database The user selects the reference from the Cost Analysis worksheet that will be used as a guideline for the estimation of costs associated with the implementation of the project This feature allows the user to change the Quantity Range and the Unit Cost Range columns The options from the drop down list are Canada 2000 None Second currency and a selection of 8 user defined options Enter new 1 Enter new 2 etc If the user selects Canada
148. th the back up heating system Energy transfer station s The number of buildings and cost of the energy transfer station s is automatically copied from the Heating Load amp Network worksheet Secondary distribution line pipe The total length and cost of the secondary distribution line pipe is automatically copied from the Heating Load amp Network worksheet Main distribution line pipe The total length and cost of the main distribution line pipe is automatically copied from the Heating Load amp Network worksheet Building and yard construction To prepare an initial estimate of the total building and yard construction cost the user could simply insert the building size and then use a combined cost based on plant building of 220 n to 470 m Typical building sizes for small commercial biomass combustion systems are given in the table Boiler Size Floor area Ceiling Height XV ft TS 3 62 5 45 19 8 re 12 250 435275 314rF 14 2x 250 728725518 m 24 2 5DD IS3eu12 156 m 43 fuel storage 4 5xl7 78 5m 15 Typical Building Sizes for Small Commercial Biomass Systems BIOH 52 RETScreen Biomass Heating Project Model Note that for a 2 500 kW system fuel storage space should also be included The building including the fuel reserve space should be insulated to keep the woodchips from freezing Free space may be used as a heated work space The buildings will have a concrete pad with containment wal
149. th the project From the online product database dialogue box the user may obtain product specification and performance data as well as company contact information Product manufacturers interested in having their products listed in the product database can reach RETScreen International at RETScreen International CANMET Energy Technology Centre Varennes Natural Resources Canada 1615 Lionel Boulet P O Box 4800 Varennes Quebec CANADA J3X 1S6 Tel 1 450 652 4621 Fax 1 450 652 5177 E mail rets nrcan gc ca BIOH 96 RETScreen Biomass Heating Project Model Weather Data This database includes some of the weather data required in the model To access the weather database the user may refer to Data amp Help Access While running the software the user may obtain weather data from ground monitoring stations and or from NASA s satellite data Ground monitoring stations data is obtained by making a selection for a specific location from the Online Weather Database dialogue box NASA s satellite data is obtained via a link to NASA s Website from the dialogue box Ground Monitoring Stations Data From the dialogue box the user selects a region then a country then a sub region provinces in Canada states in the United States and N A in the rest of the countries and finally a weather station location The weather station usually corresponds to the name of a city town within the selected country From the dialogue
150. the model does not incorporate the half year rule used in some countries and according to which depreciation is calculated over only half of the capitalised cost during the first year of operation of the equipment Depreciation tax basis The user enters the depreciation tax basis which is used to specify which portion of the initial costs are capitalised and can be depreciated for tax purposes The remaining portion is deemed to be fully expensed during the year of construction year 0 For example if a project costs 20 000 to evaluate feasibility study and develop and 80 000 to design engineering build install and commission the user could enter 80 as the depreciation tax basis in order to depreciate only the engineering energy equipment balance of plant and miscellaneous costs while the feasibility and development costs would be fully expensed during year 0 Depreciation rate The user enters the depreciation rate which is the rate at which the undepreciated capital cost of the project is depreciated each year The depreciation rate can vary widely according to the class of assets considered and the jurisdiction in which the project is located Depreciation period The user enters the depreciation period year which is the period over which the project capital costs are depreciated using a constant rate The depreciation period can vary widely according to the class of assets considered and the jurisdiction in which
151. the name of the currency A for Afghani For information purposes the user may want to assign a portion of a project cost item in a second currency to account for those costs that must be paid for in a currency other than the currency in which the project costs are reported To assign a cost item in a second currency the user must select the option Second currency from the Cost references drop down list cell Some currency symbols may be unclear on the screen e g this is caused by the zoom settings of the sheet The user can then increase the zoom to see those symbols correctly Usually symbols will be fully visible on printing even if not fully appearing on the screen display Cost references The user selects the reference from the Cost Analysis worksheet that will be used as a guideline for the estimation of costs associated with the implementation of the project This feature allows the user to change the Quantity Range and the Unit Cost Range columns The options from the drop down list are Canada 2000 None Second currency and a selection of 8 user defined options Enter new 1 Enter new 2 etc If the user selects Canada 2000 the range of values reported in the Quantity Range and Unit Cost Range columns are for a 2000 baseline year for projects in Canada and in Canadian dollars This is the default selection used in the built in example in the original RETScreen file Selecting None hides th
152. the project is located Tax holiday available The user indicates by selecting from the drop down list whether or not the project can benefit from a tax holiday If the user selects Yes the tax holiday applies starting in the first year of operation year 1 up to the tax holiday duration The income tax calculation for the development construction year year 0 is not affected BIOH 67 RETScreen Software Online User Manual Tax holiday duration The user enters the tax holiday duration year which is the number of years over which the tax holiday applies starting in the first year of operation year 1 For example in India certain renewable energy projects are given a five year tax holiday Project Costs and Savings Most of the summary items here are calculated and or entered in the Cost Analysis worksheet and transferred to the Financial Summary worksheet Some calculations are made in the Financial Summary worksheet Initial Costs The total initial costs represent the total investment that must be made to bring a project on line before it begins to generate savings or income The total initial costs are the sum of the estimated feasibility study development engineering energy equipment balance of plant and miscellaneous costs and are inputs in the calculation of the simple payback the net present value and the project equity and debt It is important to note that the range of possible costs listed throughout
153. the unit of currency shown in the Foreign Amount column is AFA The first two letters of the country currency code refer to the name of the country AF for Afghanistan and the third letter to the name of the currency A for Afghani Some currency symbols may be unclear on the screen e g this is caused by the zoom settings of the sheet The user can then increase the zoom to see those symbols correctly Usually symbols will be fully visible on printing even if not fully appearing on the screen display Rate 1st currency 2nd currency The user enters the exchange rate between the currency selected in Currency and the currency selected in Second currency The exchange rate is used to calculate the values in the Foreign Amount column Note that this selection is for reference purposes only and does not affect the calculations made in other worksheets For example the user selects the Afghanistan currency AFA as the currency in which the monetary data of the project is reported i e selection made in Currency input cell this is the lst currency The user then selects United States currency USD from the Second currency input cell this is the 2nd currency The user then enters the exchange rate in the Rate AFA USD input cell i e the amount of AFA needed to purchase 1 USD Using this feature the user can then specify what portion in the Foreign column of a project cost item s costs will be paid for in USD
154. tional purposes and does not necessarily reflect the views of the Government of Canada nor constitute and endorsement of any commercial product or person Neither Canada nor its ministers officers employees or agents makes any warranty in respect to this report or assumes any liability arising out of this report ISBN 0 662 40451 3 Catalogue no M39 119 2005E PDF Minister of Natural Resources Canada 1997 2005 RETScreen Biomass Heating Project Model TABLE OF CONTENTS Brief Description and Model Flow Chart ccsccsssscssssccssssccssssscssscscsssccssssssssscscssssssscsssssce Biomass Heating Project Model sssccsssscssssssssssssssssscsscsssssscsescssssscssssssssssssssssssssssasssssasecssane Energy MOodebinaisosndi caso ee eiae SE sevsaatalannecsioeiasehaaCiseuna FE ERA HAERES ep URN ORO URS Fa ERU Roa o essa FU Heating Load Calculation amp District Heating Network Design e eeeeeeeeee 20 COSE AMAT SIS Sees oct genk vean eSI URNA e NH sade beas oi Ne Dr Ye o RIETI Fn cOPE pin ies pa Qa pa ide n Rc Eoi ea OO Financial Summary e n Greenhouse Gas GHG Emission Reduction Amallysis ccsscccsssssssssccssssccsssccsssscsssssceses 7 7 Sensitivity and Risk Amal ysis csoccscocssssssssssssssssscsssecsescsssssssssssssssssssssessecsssesssasecssasesssesesees OO Product Dd 1 ssoncasiscasevontdavcudaccesetsaceusdecdsasssevseeousscesussosvusewesvunvevsavoadenoeb
155. tor in the number of valves connection points elbows etc District Heating Network Costs In this section two alternative methods are provided for assessing the costs for district heating pipes and energy transfer stations Formula costing and Detailed costing Total pipe length The model calculates the total pipe length as the sum of the total pipe length for the main distribution line and the total pipe length for the secondary distribution lines Costing method The user selects the type of costing method The options from the drop down list are Formula and Detailed If the formula method is selected the model calculates the costs according to built in formulas If the detailed method is selected the user enters the Energy Transfert Station ETS and secondary distribution pipes costs per building cluster and the main distribution line pipe cost by pipe size categories The costs calculated by the formula method are based on typical Canadian project costs as of January 2000 The user can adjust these costs to local conditions using the cost factors in the cells below and by the Exchange rate cell Energy transfer station s connection type The user selects the energy transfer connection type from the two options in the drop down list Direct and Indirect If Direct is selected the model sets the costs for energy transfer stations to 0 If Indirect is selected the model calculates the costs according to built in f
156. tribution line pipe costs can be broken down as follows 45 for material 45 for installation and 10 for associated distribution pump system Total district heating network costs The model calculates the total district heating network costs which include the total cost of secondary and main distribution pipes plus the total cost of the energy transfer station s Note The user should return to the Energy Model worksheet BIOH 35 RETScreen Software Online User Manual Cost Analysis As part of the RETScreen Clean Energy Project Analysis Software the Cost Analysis worksheet is used to help the user estimate costs associated with a biomass and or WHR heating project These costs are addressed from the initial or investment cost standpoint and from the annual or recurring cost standpoint The user may refer to the RETScreen Online Product Database for supplier contact information in order to obtain prices or other information required Typically the lowest cost automated biomass heating installations normally occur in the following situations e distances between buildings are relatively short existing heating systems use hot water and are easy to connect into e anexisting building can house the heating plant and e new access roads are not required The most cost effective installations of biomass and or WHR heating systems normally occur in new construction particularly where a district heating system is planne
157. ts Credits The periodic costs and periodic credits entered by the user in the Cost Analysis worksheet are transferred here The model escalates the periodic costs and credits yearly according to the inflation rate starting from year and throughout the project life From an income tax perspective periodic costs and credits are treated as operating expenses rather than capital investments and are therefore fully expensed in the year they are incurred End of project life Cost Credit The value of the project at the end of its life entered by the user in the Cost Analysis worksheet is transferred here This amount is also commonly referred to as the salvage value or disposal value The salvage value entered is assumed to be representative of year 0 ie the development construction year prior to the first year of operation year 1 The model escalates the salvage value yearly according to inflation rate starting from year 1 and up to the end of the project life i e the schedule year reported in the model For tax purposes the difference between the project salvage value and its undepreciated capital costs at the end of the project life is treated as income if positive and as a loss if negative Financial Feasibility The results provide the decision maker with various financial indicators for the proposed project Pre tax Internal Rate of Return and Return on Investment The model calculates the pre tax internal rate of return
158. uel used on the margin is natural gas 85 of the BIOH 79 RETScreen Software Online User Manual time and fuel oil 15 of the time the user would enter these details into the base case table along with the corresponding GHG coefficients The resulting baseline is often referred to as the operating margin Another baseline option referred to as the build margin can be calculated by modeling recent capacity additions for example the 5 most recent plants that have been added to the grid The build margin can be modeled in the base case table by entering recent capacity additions along with their relative generating capacities scaled to total 10096 and appropriate GHG coefficients It is suggested that the user take a conservative approach in calculating the baseline emission factor for the project particularly at the pre feasibility analysis stage Fuel type The user selects the fuel type from the options in the drop down list The RETScreen software can model the GHG emissions of any electricity supply system The fuel type is the fuel s or power plant s which will be displaced by the proposed project If the user selects one of the fuel types from the drop down list default emission factor and fuel conversion efficiency values will be inserted into the row inputs of the table The default emission factors and conversion efficiencies of various fuel types are given in the table below Fenhann J 1999 Fenhann J 2000 a
159. ummary worksheet which reflect amounts valid for year zero are thus escalated one year in order to determine the actual costs and savings incurred during the first year of operation i e year 1 Cumulative The model calculates the cumulative cash flows which represent the net after tax flows accumulated from year 0 It uses the net flows to calculate the cumulative flows Cumulative Cash Flows Graph The cumulative cash flows are plotted versus time in the cumulative cash flows graph These cash flows over the project life are calculated in the model and reported in the Yearly Cash Flows table BIOH 75 RETScreen Software Online User Manual Blank Worksheets 3 These worksheets are provided to allow the user to prepare a customised RETScreen project analysis For example the worksheets can be used to enter more details about the project to prepare graphs to perform a more detailed sensitivity analysis and to create a custom database The user may also use these worksheets to develop a companion model to RETScreen BIOH 76 RETScreen Biomass Heating Project Model Greenhouse Gas GHG Emission Reduction Analysis As part of the RETScreen Clean Energy Project Analysis Software a GHG Analysis worksheet is provided to help the user estimate the greenhouse gas emission reduction mitigation potential of the proposed project This common GHG emission reduction analysis worksheet contains four main sections Backgro
160. und Information Base Case System Baseline Proposed Case System Project and GHG Emission Reduction Summary The Background Information section provides project reference information as well as GHG global warming potential factors The Base Case Electricity System and the Base Case Heating System sections provide a description of the emission profile of the baseline system representing the baseline for the analysis The Proposed Case Heating System section provides a description of the emission profile of the proposed project i e the biomass and or WHR heating project The GHG Emission Reduction Summary section provides a summary of the estimated GHG emission reduction based on the data entered by the user in the preceding sections and from values entered or calculated in the other RETScreen worksheets e g annual energy delivered Results are calculated as equivalent tonnes of CO avoided per annum This is an optional analysis inputs entered in this worksheet will not affect results reported in other worksheets except for the GHG related items that appear in the Financial Summary and Sensitivity worksheet Greenhouse gases include water vapour carbon dioxide CO methane CH4 nitrous oxide N20 ozone O3 and several classes of halo carbons that is chemicals that contain carbon together with fluorine chlorine and bromine Greenhouse gases allow solar radiation to enter the Earth s atmosphere but prevent the infrared radiation emitte
161. undssenssceeapasscueseesceenscesaam oO Weather Dalai iet at Oe Oei deas saosa soono e rope ertia Hber M Oca Ur is Es MU Cast Datauaiuty co Paseo tret bsr duy Ep Ques o cepe DEEP METH REV eS WADE EE RVER E rio UKl Col breves ssp S Training and SUDDOEE ved cig sce csc na NEP eee PON PY cada co casins eh eoo ee YER Fn uox do ied pa e E er ike Rios es VO jay OF UT 9 L Bibliography 222a dede ovid eaYa Fdo rav Ya sai don ze ve a aa vvv x ga do Er Tua 0k eiee ssteissi ossos sses LOZ Index 52er eite icto oves etae cte PU E eue edet xe ctec ese u Ted eite ic Need ete ectesuea deserto cctsebes bees esee EU BIOH 3 RETScreen Software Online User Manual Brief Description and Model Flow Chart RETScreen International is a clean energy awareness decision support and capacity building tool The core of the tool consists of a standardised and integrated clean energy project analysis software that can be used world wide to evaluate the energy production life cycle costs and greenhouse gas emission reductions for various types of energy efficient and renewable energy technologies RETs Each RETScreen technology model e g Solar Air Heating Project etc is developed within an individual Microsoft Excel spreadsheet Workbook file The Workbook file is in turn composed of a series of worksheets These worksheets have a common look and follow a standard approach for all RETScreen models In addition to the software the tool
162. vings Financial Feasibility Yearly Cash Flows and Cumulative Cash Flows Graph The Annual Energy Balance and the Project Costs and Savings sections provide a summary of the Energy Model Cost Analysis and GHG Analysis worksheets associated with each project studied In addition to this summary information the Financial Feasibility section provides financial indicators of the project analysed based on the data entered by the user in the Financial Parameters section The Yearly Cash Flows section allows the user to visualise the stream of pre tax after tax and cumulative cash flows over the project life The Financial Summary worksheet of each Workbook file has been developed with a common framework so the task of the user in analysing the viability of different project types is made simpler This also means the description of each parameter is common for most of the items appearing in the worksheet One of the primary benefits of using the RETScreen software is that it facilitates the project evaluation process for decision makers The Financial Summary worksheet with its financial parameters input items e g discount rate debt ratio etc and its calculated financial feasibility output items e g IRR simple payback NPV etc allows the project decision maker to consider various financial parameters with relative ease A description of these items including comments regarding their relevance to the preliminary feasibility analysis is include
163. wever for most cases this limitation is without consequence If required the user can use the blank worksheets Sheetl etc to perform a more detailed analysis Risk Analysis for This section allows the user to perform a Risk Analysis by specifying the uncertainty associated with a number of key input parameters and to evaluate the impact of this uncertainty on after tax IRR and ROI year to positive cash flow or net present value NPV The risk analysis is performed using a Monte Carlo simulation that includes 500 possible combinations of input variables resulting in 500 values of after tax IRR and ROI year to positive cash flow or net present value NPV The risk analysis allows the user to assess if the variability of the financial indicator is acceptable or not by looking at the distribution of the possible outcomes An unacceptable variability will be an indication of a need to put more effort into reducing the uncertainty associated with the input parameters that were identified as having the greatest impact on the financial indicator Avoided cost of heating energy The avoided cost of heating energy is automatically transferred from the Financial Summary worksheet to the Sensitivity worksheet The user enters the avoided cost of heating energy range The range is a percentage corresponding to the uncertainty associated with the estimated avoided cost of heating energy value The higher the percentage the greater the uncert
164. where parasitic annual demand kWh pump load kW d II equivalent full load hours h For example the pump capacity for a system with 2 000 m total pipe length 1 500 peak heating load and 40 C differential temperature is estimated as follows P 2 000 m 1 500 kW 58 7 10 6 C m 40 C 4 4 kW With 2 500 equivalent full load hours the parasitic annual demand for the distribution pumps is estimated as follows D 44kW 2 500h 11 000 kWh BIOH 59 RETScreen Software Online User Manual Periodic Costs Credits This section is provided to allow the user to specify the periodic costs associated with the operation of the system over the project life Grey input cells are provided to allow the user to enter the name of a periodic cost and periodic credit item The user must enter a positive numerical value in the Unit Cost column A periodic cost represents recurrent costs that must be incurred at regular intervals to maintain the project in working condition A periodic cost item is entered in the grey input cell The user then selects Cost from the drop down list in the unit column The interval in years over which the periodic cost is incurred is entered in the period column The amount of the cost incurred at each interval is entered in the unit cost column The project may also be credited for periodic costs that would have been incurred over the project life of the base case or conventional ener
165. y delivered The model calculates the heating energy delivered by the system type specified by the user Units switch The user can choose to express the energy in different units by selecting among the proposed set of units GWh Gcal million Btu GJ therm kWh hp h MJ This value is for reference purposes only and is not required to run the model Biomass requirement The model calculates the biomass requirement This value is the amount of biomass fuel expressed in wet as fired metric tonnes per year consumed by the biomass heating system in order to meet the specified biomass heating system annual energy production This output value is calculated using the annual energy delivered of the biomass system the as fired heating value of biomass and the biomass boiler seasonal efficiency The value is transferred to the Cost Analysis worksheet Heating fuel requirement The model calculates the heating fuel requirement expressed in units as shown per year consumed by the peak load heating system This value is transferred to the Cost Analysis worksheet BIOH 19 RETScreen Software Online User Manual Heating Load Calculation amp District Heating Network Design As part of the RETScreen Clean Energy Project Analysis Software the Heating Load Calculation amp District Heating Network Design worksheet is used in conjunction with the Energy Model worksheet to estimate the heating load for the proposed biomass a
166. y depending on the source of waste heat For example a reciprocating engine with a 100 kW WHR system consisting of heat exchangers a control system for jacket cooling and a recovery boiler for exhaust gas and lubrication oil the typical cost would be 100 000 or 1 000 kW Biomass heating system The user enters the biomass heating system cost per kW The kW capacity and number of boilers is transferred from the Energy Model worksheet The following tables provide typical values of cost per capacity in kW The user may refer to the RETScreen Online Product Database for supplier contact information in order to obtain prices or other information required The biomass boiler s cost is determined by the capacity The price differential between the biomass systems in each category is relatively small because the labour and many ancillary components such as pumps fittings and controls remain largely the same regardless of capacity The cost of biomass burner s is determined by the overall capacity and cost of components used However the price differential between small burners and large ones is normally small This is due to the fact that certain standard components are required regardless of the capacity rating Examples include the control panel the auger drive motor fabrication labour Components for which the costs vary somewhat include reduction gearboxes augers size and weight of the fuel hoppers and combustion cells BIOH

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