RETScreen Energy Efficiency Projects

Facility Types
Commercial & Institutional Buildings Both New & Existing Facilities

Houses & Apartment Buildings

Industrial Plants & Processes

Photo: NRCan

Photo: NRCan

Energy Efficiency Analysis

Optimize supply

Maximize efficiency

Minimize usage

End-use Steps

Fuel

RETScreen Energy Efficiency Model

RETScreen Energy Model - Energy efficiency measures project
Fuels & schedules Fuel Fuel type Fuel consumption - unit Fuel rate - unit Fuel rate Show data Fuel type 1 Electricity MWh $/kWh 0.100 Fuel type 2 Natural gas - m m $/m 0.400 Fuel type 3 #N/A #N/A Fuel type 4 #N/A #N/A Fuel type 5 #N/A #N/A Fuel type 6 #N/A #N/A

Base case vs. proposed case Steps:

Schedule Description Temperature - space heating Temperature - space cooling Temperature - unoccupied Occupancy rate - daily Monday Tuesday Wednesday Thursday Friday Saturday Sunday Occupancy rate - annual

Unit

Schedule 1 24/7 23.0 23.0

Schedule 2 Occupied 21.0 24.0 Unoccupied 3.0 Occupied h/d 18.0 18.0 18.0 18.0 18.0 18.0 18.0 6,570 75%

Schedule 3 Occupied

Schedule 4 Occupied

Schedule 5 Occupied

Schedule 6 Occupied

C C +/-C

Unoccupied Occupied h/d

Unoccupied Occupied h/d

Unoccupied Occupied h/d

Unoccupied Occupied h/d

h/yr % C d d 16.0 242 123

h/d 24 24 24 24 24 24 24 8,760 100%

1. Fuel & schedules

0 0% 0 0% 0 0% 0 0%

Heating/cooling changeover temperature Length of heating season Length of cooling season

Facility characteristics

Show data Incremental initial costs $ 0 0 60,000 Fuel cost savings $ 0 0 28,659 Incremental O&M savings $ 0 0 0 Include measure?

Show: Fuel saved

Heating GJ 0 2,686

Cooling GJ 0 0

Electricity GJ -

Simple payback yr 2.1

Heating system
Boiler

2. Facility characteristics (energy + costs) 3. Summary (energy)

Cooling system
Air-conditioning

Building envelope
Appartment building

Ventilation Lights Electrical equipment Hot water Other

Total 2,686 0 0 60,000 28,659 0 2.09

Summary

Show data Fuel Fuel consumption unit Fuel rate m $ 0.400 Base case Fuel consumption 160,194.2 Proposed case Fuel consumption 88,546.3 Fuel cost savings Fuel cost savings 28,659 28,659

Fuel type Natural gas Total

Fuel cost $ 64,078 $ 64,078 Fuel consumption variance

Fuel cost $ 35,419 $ 35,419

Fuel saved 71,647.8

4. Emission analysis 5. Financial analysis

$ $

Project verification Fuel type Natural gas

Fuel consumption unit m Heating GJ 4,204 2,324 1,880 44.7%

Fuel consumption historical

Fuel consumption Base case 160,194.2 Electricity GJ 0 0 0

Energy Energy - base case Energy - proposed case Energy saved Energy saved - % Benchmark Energy unit Reference unit User-defined Benchmark Energy Energy - base case Energy - proposed case Energy saved

Cooling GJ 0 0 0

Total GJ 4,204 2,324 1,880 44.7%

kWh m m Heating kWh/m 155.7 86.1 69.6

7,500 2,000 Cooling kWh/m 0.0 0.0 0.0 Electricity kWh/m 0.0 0.0 0.0 Total kWh/m 155.7 86.1 69.6

Fuels & Schedules

Fuel types: Natural gas Propane, Kerosene Oil, Coal, etc Biomass User defined Etc.
Fuel Fuel type Fuel consumption - unit Fuel rate - unit Fuel rate Fuel type 1 Electricity MWh $/kWh 0.100

Schedules: Heating and cooling 24/7 Occupancy dependent Set-back temperature Set-up temperature

Fuel type 2 Natural gas - m m $/m 0.400

Fuel type 3 Biomass t $/t 25.000

Facility Characteristics
Heating system

Cooling system
Building envelope Ventilation Lights Electrical equipment Hot water Pumps

Fans
Motors

Facility Characteristics
Process electricity Process heat

Process steam
Steam losses Heat recovery Compressed air Refrigeration Other

Summary Section
Fuel summary Project verification Benchmark
Benchmark Energy unit Reference unit Benchmark Energy Energy - base case Energy - proposed case Energy saved

kWh m Heating kWh/m 112 74 38

7,500 Cooling kWh/m 51 29 23 Electricity kWh/m 66 18 48 Total kWh/m 229 121 108

Emission & Financial Analysis

Method 1
RETScreen Energy Model - User-defined
User-defined User-defined Energy Green power Other Base case Grid electricity kW % MWh $/kW $/kWh $/kWh Proposed case Wind turbine 2,000 30% 5,256 2,000 0.010 0.150 Technology Power capacity Capacity factor Electricity exported to grid Incremental initial costs O&M (savings) costs Electricity export rate

Method 2
RETScreen Energy Model - Energy efficiency measures project
Fuels & schedules Fuel Fuel type Fuel consumption - unit Fuel rate - unit Fuel rate Show data Fuel type 1 Electricity MWh $/kWh 0.100 Fuel type 2 Natural gas - m m $/m 0.400 Fuel type 3 #N/A #N/A Fuel type 4 #N/A #N/A Fuel type 5 #N/A #N/A Fuel type 6 #N/A #N/A

RETScreen Cost Analysis - Energy efficiency measures project

Schedule Description Temperature - space heating Temperature - space cooling Temperature - unoccupied Occupancy rate - daily Monday Tuesday Wednesday Thursday Friday Saturday Sunday Occupancy rate - annual Unit

Settings Schedule 1 24/7 Method 1 Method 2

23.0 23.0

Schedule 2 Occupied 21.0 24.0

Schedule 3

Schedule 4

Schedule 5 Occupied Notes/Range

Schedule 6

Notes/Range
OccupiedSecond currency Occupied Occupied

Second currency None

C C +/-C

Cost allocation
UnoccupiedUnit Unoccupied Quantity Unoccupied Unit cost UnoccupiedAmount

Emission Analysis GHG emission factor (excl. T&D) tCO2/MWh 0.211 5,256

h/yr % C d d

Base case electricity system (Baseline) Country - region Canada Electricity exported to grid GHG emission Base case Proposed case Gross annual GHG emission reduction GHG credits transaction fee Net annual GHG emission reduction GHG reduction income GHG reduction credit rate

Fuel type All types MWh

T&D losses % 5.0% T&D losses

GHG emission factor tCO2/MWh 0.222 8.0%

Heating/cooling changeover temperature Length of heating season Length of cooling season

Facility characteristics

Show: Fuel saved

Heating GJ 0 2,686

Unoccupied Initial costs (credits) 3.0 Feasibility study Occupied Feasibility study h/d h/d Sub-total: 24 18.0 Development 24 18.0 Development 24 18.0 Sub-total: 24 18.0 Engineering 24 18.0 Engineering 24 18.0 Sub-total: 24 18.0 Energy efficiency measures 8,760 6,570 Incremental initial costs 100% 75% Balance of system & miscellaneous 16.0 Spare parts 242 Transportation 123 Training & commissioning User-defined Contingencies Show dataInterest during construction Sub-total: Incremental Total initial costs

Relative costs

Occupied cost Occupied Occupied RETScreen Emission Analysis h/d h/d Reduction h/d

Occupied $ Energy h/d efficiency measures

$ $ $ $ $

project
0.0%

Emission Analysis
cost

Method 1 Method 2 cost Method 3

0 0% 0 0%

0.0%

Global warming potential of GHG 21 tonnes CO2 = 1 tonne CH4 tonnes CO2 = 1 tonne N2O (IPCC 1996) (IPCC 1996) 310

0.0%

tCO2 tCO2 tCO2 % tCO2

1,167 93 1,074 0.0% 1,074

Heating system
Boiler

Cooling system
Air-conditioning

Building envelope
Appartment building

is equivalent to

218

Cars & light trucks not used

$/tCO2

0.00

Ventilation Lights Electrical equipment Hot water Other

Total 2,686

Annual costs (credits) O&M O&M (savings) costs Parts & labour 0 User-defined Contingencies 0 Sub-total: Fuel cost - proposed case Natural gas Sub-total: Annual savings 0 0 Fuel cost - base case Natural gas Sub-total:

Cooling GJ

Electricity GJ

initial costs $ 0 0 60,000

60,000

Financial Analysis Financial parameters Inflation rate Project life Debt ratio Debt interest rate Debt term Initial costs Incremental initial costs Other Total initial costs Incentives and grants Annual costs and debt payments O&M (savings) costs Fuel cost - proposed case Debt payments - 10 yrs Other Total annual costs Annual savings and income Fuel cost - base case Electricity export income Other Total annual savings and income Financial viability Pre-tax IRR - equity Pre-tax IRR - assets Simple payback Equity payback

Summary

Show data

% yr % % yr

2.0% 20 70% 7.00% 10

Fuel type Natural gas Total

Fuel Fuel consumption Fuel End of project life unit Fuel rate consumption m $ 0.400 160,194.2

Periodic costs (credits) Base case User-defined

Fuel cost 64,078 64,078

$ $

Project verification Fuel type Natural gas

Fuel consumption unit m Heating GJ 4,204 2,324 1,880 44.7%

Fuel consumption historical

Fuel consumption Base case 160,194.2 Electricity GJ 0 0 0

Fuel consumption variance

$ $ $ $

4,000,000 4,000,000

100.0% 0.0% 100.0% 0.0%

14,000,000

Energy Energy - base case Energy - proposed case Energy saved Energy saved - %

Cooling GJ 0 0 0

Total GJ 4,204 2,324 1,880 44.7%

Cumulative cash flows graph

Benchmark Energy unit Reference unit User-defined Benchmark Energy Energy - base case Energy - proposed case Energy saved

kWh m m Heating kWh/m 155.7 86.1 69.6

7,500 2,000 Cooling kWh/m 0.0 0.0 0.0 Electricity kWh/m 0.0 0.0 0.0 Total kWh/m 155.7 86.1 69.6

Cumulative cash flows ($)

$ $ $ $ $

0 398,657 451,217

12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 0 -2,000,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

0 0 RETScreen Financial Analysis - Energy efficiency measures project $ 60,000 100.0% 0% 0% Financial parameters Project costs and savings/income summary Yearly cash flows Base case system GHG summary (Baseline) General Initial costs Year Pre-tax % $ Fuel cost escalation % 2.0% Feasibility study 0.0% $ 0 # $ project $ rate CO2 emission CH4 emission N2O2.0% emission Fuel Inflation rate % Development 0.0% $ GHG emission 0 0 -60,000 p-d $ Fuel mix rate $ factor factor factor Engineering consumption factor GHG1emission 29,232 Discount % 12.0% 0.0% $ 0 cost life yr 40 Power system 0.0% $ tCO2/MWh 0 2 29,817 Fuel type % 60,000 kg/GJ kg/GJ MWh tCO2 % $ Project $ kg/GJ Heating system 0.0% $ 0 3 299 30,413 Natural gas 100.0% 1,668 0.179 $ 60,000 $ Finance Cooling system 0.0% $ 0 4 299 31,022 Total 100.0% 1,668 0.179 Enter number of months $ 0.0% Incentives and grants $ User-defined 0.0% $ 0 5 31,642 Fuel cost Incremental Include $ 60,000 100.0% Debt ratio measure? % Energy efficiency measures 100.0% $ 60,000 6 32,275 savings O&M savings Simple payback $ 0 Balance of system & misc. 0.0% $ 0 7 32,920 $ $ yr Debt Proposed case summary (Energy efficiency measures Unit system GHG Quantity Unit cost Amount project) Equity $ 60,000 Total initial costs 100.0% $ 60,000 8 33,579 % 9 34,250 0 0 - Debt interest rate project $ emission - CH4 emission CO2 N2O emission Fuel Debt term yr Incentives and grants $ GHG emission 0 10 34,935 project Debt payments $ factor $/yr 0 11 35,634 Fuel mix factor factor consumption factor GHG emission 0 0 12 36,347 cost $ kg/GJ Fuel type % kg/GJ kg/GJ Annual costs and debt paymentsMWh tCO2/MWh tCO2 O&M $ 0 13 37,074 $ 100.0% - $ Natural % gas 922 0.179 165 28,659 0 2.1 Income tax analysis Fuel cost - proposed case $ 35,419 14 37,815 $ Total 100.0% 922 0.179 165 Effective income tax rate % Debt payments - 0 yrs $ 0 15 38,571 T&D losses Total Loss carryforward? No Total annual costs $ 35,419 16 165 39,343 m 88,546 $ 0.400 $ 35,419 Depreciation method Declining balance 17 40,130 $ 1 35,419 GHG emission reduction summary Half-year rule - year yes/no Yes Periodic costs (credits) 18 40,932 Depreciation tax basis % $ 0 19 41,751 Unit Quantity Unit cost rate Amount Depreciation % $ 0 Net 20 42,586 Gross annual annual 28,659 0 2.09 Depreciation period yr 15 End of project life - cost 0 21 Years of Base case Proposed case GHG emission $ GHG credits GHG emission 43,438 available? yes/no No 22 44,306 m 160,194 $ Tax holiday 0.400 $ 64,078 occurrence GHG emission GHG emission reduction transaction fee reduction Tax holiday duration yr Annual savings and income 23 45,193 $ 64,078 Energy efficiency measures yr tCO2 tCO2 tCO2 % tCO2 Fuel cost - base case $ 64,078 24 46,096 project 1 to -1 299 165 134 134 Annual income Electricity export income $ 0 25 47,018 Unit Year Unit cost Amount Proposed case Fuel cost savings Electricity export income GHG reduction income - 0 yrs $ 0 26 47,959 cost $ Electricity exported to grid MWh 0 Customer premium income (rebate) $ 0 27 48,918 $ Fuel Fuel cost rate 134 $/MWh 0.00 Other (cost) - yrs Cars & light trucks not $ used 0 28 49,896 Net annual emission reduction Electricity export $ tCO2 is equivalent to income 27.2 cost GHG consumption Fuel cost Fuel saved savings Electricity export income $ 0 CE production income - yrs $ 0 29 50,894 88,546.3 $ 35,419 71,647.8 $ export escalation 28,659 rate Electricity % Total annual savings and income $ 64,078 30 51,912 $ 35,419 $ 28,659 31 52,950 GHG reduction income 32 54,009 tCO2/yr 0 33 55,089 Net GHG reduction tCO2/yr 134 Financial viability 34 56,191 Net GHG reduction - 40 yrs tCO2 5,342 Pre-tax IRR - equity % 50.7% 35 57,315 GHG reduction credit rate $/tCO2 Pre-tax IRR - assets % 50.7% 36 58,461 GHG reduction income $ 0 37 59,631 GHG reduction credit duration yr After-tax IRR - equity % 50.7% 38 60,823 Net GHG reduction - 0 yrs tCO2 0 After-tax IRR - assets % 50.7% 39 62,040 GHG reduction credit escalation rate % 40 63,281 Simple payback yr 2.1 41 0 Customer premium income (rebate) Equity payback yr 2.0 42 0 Electricity premium (rebate) % 43 0 Electricity premium income (rebate) $ 0 Net Present Value (NPV) $ 225,387 44 0 Heating premium (rebate) % Annual life cycle savings $/yr 27,340 45 0 Heating premium income (rebate) $ 0 46 0 Cooling premium (rebate) % Benefit-Cost (B-C) ratio 4.76 47 0 Cooling premium income (rebate) $ 0 Debt service coverage No debt 48 0 Customer premium income (rebate) $ 0 Energy production cost $/MWh -791.21 49 0 GHG reduction cost $/tCO2 (205) 50 0 Other income (cost) Energy MWh Cumulative cash flows graph Rate $/MWh 1,800,000 Other income (cost) $ 0
Duration Escalation rate Clean Energy (CE) production income CE production CE production credit rate CE production income CE production credit duration CE production credit escalation rate yr % MWh $/kWh $ yr % Energy delivered (MWh) 922 922 1,400,000 0 1,200,000
Cumulative cash flows ($)

After-tax $ -60,000 29,232 29,817 30,413 31,022 31,642 32,275 32,920 33,579 34,250 34,935 35,634 36,347 37,074 37,815 38,571 39,343 40,130 40,932 41,751 42,586 43,438 44,306 45,193 46,096 47,018 47,959 48,918 49,896 50,894 51,912 52,950 54,009 55,089 56,191 57,315 58,461 59,631 60,823 62,040 63,281 0 0 0 0 0 0 0 0 0 0

Cumulative $ -60,000 -30,768 -951 29,463 60,484 92,126 124,401 157,321 190,900 225,150 260,086 295,720 332,066 369,140 406,955 445,527 484,869 524,999 565,931 607,682 650,268 693,706 738,012 783,205 829,301 876,320 924,279 973,196 1,023,093 1,073,987 1,125,899 1,178,849 1,232,858 1,287,948 1,344,139 1,401,454 1,459,916 1,519,546 1,580,370 1,642,409 1,705,690 1,705,690 1,705,690 1,705,690 1,705,690 1,705,690 1,705,690 1,705,690 1,705,690 1,705,690 1,705,690

1,600,000

$ $ $ $

0 788,400 788,400

1,000,000 800,000

% % yr yr

34.6% 12.3% 5.4 3.2

Year

Fuel type 1 Natural gas 2 3 4 5 6 7 8 9 # # # # # # # # #

Clean energy Yes No No No No No No No No No No No No No No No No No

600,000 400,000 200,000

0 0 -200,000 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40

Year

Project Example: Hot Water

Apartment building 40 units Reduce flow by 35% Reduce supply temp from 60 to 55 oC Heat recovery, 20% efficiency, cost $15,000 O&M (water) savings $3,000/year Fuel switch oil to natural gas New water heater cost $40,000

See project database template: Hot water - Apartment

Questions?

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