Biomass Feasibility Project Final Report - Xcel Energy

OVERALL STRUCTURE
The evaluation tool is designed to allow the user to develop different “scenarios” that can be
combined later to evaluate different options. There are three scenario types: Feedstock, Power
Plant, and Project. The Project Scenario is comprised of a combination of the first two.
Feedstock Scenario
The development of a feedstock scenario allows the user to build a feedstock development and
delivery system ending with a cost per MMBTU for a fully-processed fuel at the power plant. You
may make as many Feedstock Scenarios as you wish. All Feedstock Scenarios must be logged
to be used for future analysis.
Power Plant Scenario
The development of a power plant scenario allows the user to define the characteristics of an
operating power plant. This includes such things as power plant size, capital costs, operating
expenses, rate of return, inflation, etc… Once a scenario has been defined, it must be logged
to be used for future analysis.
Project Summary
Once a Feedstock Scenario and a Power Plant Scenario have been created and logged, it is
possible to calculate the estimated cost of delivered energy. One may select a Power Plant
Scenario and input different Feedstock Scenarios to evaluate the economic impacts of various
options. One may also conduct sensitivity analysis on the Project Scenarios to understand the
impacts of fluctuating inputs on the final energy cost. Project Scenarios can also be logged for
future reference.
Define
Feedstock
Scenario(s)
Log Scenario
Results
Define Power
Plant
Scenario(s)
Log Scenario
Results
Select a Logged Feedstock
and Power Plant Scenario
RESULT
Estimated Cost of
Delivered Energy
Figure A-2: Evaluation Methodology
Page A-2
Identifying Effective Biomass Strategies:
Quantifying Minnesota’s Resources and Evaluating Future Opportunities