Wind Energy Feasibility Study - Town Of Orleans

Wind Energy Facility Economic AnalysisTown of Orleans, MA3.2 Value of Wind Turbine Generated ElectricityThe revenue from the wind turbine project is the sum of the avoided electricity cost plus theexcess power credit plus the sale of REC credits (discussed in the next section) for each MWhour of electricity produced. The value of the avoided cost of electricity is estimated based onthe current monthly per kWh charges. Given typical monthly usage of 39,440 kWh, the totalcharges would be $6,757. A summary of the charges and presented in Table 3-1 below:Table 3-1: Estimated Value of Net Metering CreditsMonthly Water Department Use: 39,440 kWhRate (kWh) Total AmountCustomer Service/Demand 0.01636 $ 645Distribution 0.01354 $ 534Transition 0.02082 $ 821Transmission 0.00761 $ 300Energy Use 0.10999 $ 4,338Renewable Energy 0.00050 $ 20Energy Conservation 0.00250 $ 99Total Electric Cost 0.17132 $ 6,757Value of Retail Offset 0.15196 kWhValue of Excess Power 0.15196 kWhThe amount of electricity generated by the Elecon T600-48 wind turbine is expected to be 1,338MWh annually. Based on the rates above, the value of the avoided electricity cost is estimated tobe approximately $114,000 per year. The value of the excess power credit, that is the amount ofelectricity produced which is not used by the water department, is estimated to be an additional$88,000 per year. The value of the REC credits, based on the total MWh of electricity producedby the wind turbine, is estimated to be $53,000 per year. The total annual first year benefit istherefore estimated to be approximately $255,000 per year. The value of the benefit is expectedto increase and decrease with rising and falling energy costs. The model uses a 2% annual15