1. Renewable Energy Project Analysis Course - Module 1
Renewable Energy Project Analysis with RETScreen® Software
Renewable Energy Project Analysis Course - Module 1
Energy Model
Cost Analysis
GHG Analysis
Financial Summary
Cash Flow Graph
© Minister of Natural Resources Canada 2001 – 2002.

2. Objectives Illustrate role of preliminary feasibility studies
Demonstrate how the RETScreen® software works
Show how RETScreen® makes it easier to help identify & assess potential projects
© Minister of Natural Resources Canada 2001 – 2002.

3. Development & Engineering Construction & Commissioning
Energy Project Implementation Process
Pre-feasibility
Analysis
Feasibility Analysis
Development & Engineering
Significant barrier
RE projects not being considered up-front!
Construction & Commissioning
© Minister of Natural Resources Canada 2001 – 2002.

4. Questions
What is an acceptable level of accuracy for project cost estimates?
How much do these studies typically cost?
© Minister of Natural Resources Canada 2001 – 2002.

5. Accuracy vs. Investment Cost Dilemma
$100 to $1,000,000!

6. When should RE technologies be assessed?
Need for energy system
New construction or planned renovation
High conventional energy costs
Interest by key stakeholders
Approvals possible
Funding & financing accessible
Good local RE resource, etc.
Pre-feasibility
Analysis
Feasibility Analysis
Preliminary feasibility studies
© Minister of Natural Resources Canada 2001 – 2002.

7. Project Viability (Wind Example) Depends on Several Factors
RE resource available at project site
(e.g. wind speed)
Equipment performance
(e.g. wind turbine power curve)
Initial project costs
(e.g. wind turbines, towers, engineering)
“Base case” credits
(e.g. diesel generators for remote sites)
On-going and periodic project costs
(e.g. cleaning of wind turbine blades)
Wind Turbine & Tower
© Minister of Natural Resources Canada 2001 – 2002.

8. Project Viability Depends on Several Factors - cont.
Avoided cost of energy
(e.g. wholesale electricity price)
Financing
(e.g. debt ratio & length, interest rate)
Taxes on equipment & income (or savings)
Environmental characteristics of energy displaced
(e.g. coal, natural gas, oil, large hydro, nuclear)
Environmental credits and/or subsidies
(e.g. greenpower rates, GHG credits, grants)
Decision-maker’s definition of cost-effective
(e.g. payback period, IRR, NPV, RE production costs)
© Minister of Natural Resources Canada 2001 – 2002.

9. Why Use RETScreen®? Simplifies preliminary evaluations
Requires relatively small amounts of information
Calculates key technical and financial viability indicators automatically
Costs 1/10th the amount of other assessment methods
Standardized procedures allow objective comparisons
Increases potential for successful RE project implementation
© Minister of Natural Resources Canada 2001 – 2002.

10. Mean daily global radiation in the plane of the PV array
RETScreen® Validation - Example Accuracy of Solar Resource Tilt-up Model within 7% !
Iqaluit, NT
90º Array Tilt
Mean daily global radiation in the plane of the PV array
Measured Data
Calculated Data
Source: Thevenard, et al, 1997

11. RETScreen® Software Demonstration
Generic features
Models standardised
Cell colour coding
On-line manual
Product data
Cost data & currencies
Weather data
ground sites
satellites
Financial analysis method
Wind energy project example

13. Cell Colour Coding
© Minister of Natural Resources Canada 2001 – 2002.

24. Yellowknife School Solarwall Under Construction
RETScreen® Software Financial Analysis Method
Comparison:
Base Case vs. Proposed Case
Conventional system vs. renewable energy system
Example:
Standard building cladding (siding) and a natural gas fired air heater
vs.
Solarwall cladding with solar air heating plus the conventional natural gas fired air heater
Yellowknife School Solarwall Under Construction
Photo Credit: Arctic Energy Alliance
© Minister of Natural Resources Canada 2001 – 2002.

25. Software Demo 20 MW Wind Energy Project
Input/Output
(RETScreen®)
Project location:
Wind speed:
GHG emissions reduction:
Wind turbine cost:
RE production credit:
GHG credit (coal plant):
Debt term:
Positive cash flow:
Return on investment:
Scenario #1
(Merchant Plant)
Calgary, AB
4.4 m/s
25,123 tCO2/yr
$1,200/kW
$0/kWh
$0/ton
10 years
52 years
- 6.4%
Scenario # 2
(Green Power Plant)
Pincher Creek, AB
Lethbridge  7.0 m/s
 63,486 tCO2/yr
 $1,000/kW
 $0.025/kWh
 $5/ton
 15 years
5.5 years
22.0%
© Minister of Natural Resources Canada 2001 – 2002.

26. Software Demo Scenario 1
(Merchant Plant)
Calgary, AB
4.4 m/s
$1,200/kW
25,123 tCO2/yr
$0/kWh
$0/ton
10 years
52 years
- 6.4%
© Minister of Natural Resources Canada 2001 – 2002.

27. Software Demo Wind Speed & GHG Emission Reduction
Scenario # 1a
(Green Power Plant)
Pincher Creek, AB
Lethbridge  7.0 m/s
63,486 tCO2/yr
18.8 years
4.2%
© Minister of Natural Resources Canada 2001 – 2002.

28. Software Demo Wind Turbine Cost
Scenario # 1b
$1,000/kW
17.0 years
6.0%
© Minister of Natural Resources Canada 2001 – 2002.

29. Software Demo RE Production Credit
Scenario # 1c
$0.025/kWh
10.3 years
17.1%
© Minister of Natural Resources Canada 2001 – 2002.

30. Software Demo GHG Emissions Credit
Scenario # 1d
$5/ton
7.9 years
19.5%
© Minister of Natural Resources Canada 2001 – 2002.

31. Software Demo Debt Term
Scenario # 2
15 years
5.5 years
22.0%
© Minister of Natural Resources Canada 2001 – 2002.

32. Questions?
© Minister of Natural Resources Canada 2001 – 2002.