This module covers how to estimate project costs including Equipment costs combination of procurement and installation including construction costs associated with the microgrid equipment Design costs costs for AampE to perform a detailed design as well as a portion of the engineerin ID: 627018
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Module 11 -Cost Estimation
This module covers how to estimate project costs including:Equipment costs – combination of procurement and installation (including construction) costs associated with the microgrid equipmentDesign costs – costs for A&E to perform a detailed design as well as a portion of the engineering analysis necessary to design a microgridEngineering costs – costs to do detailed engineering analysis of the performance and controls for the microgridOverhead costs – costs associated with other entities such as city or military personnel, regulatory agencies, etc. necessary to install the microgridIf overhead costs are not known, these costs are factored into the 25% contingency cost factor to estimate overall costs for a project
1Slide2
Elements of cost estimation
To simplify the cost calculation, the cost components are broken down into the following categories:Installation Costs – costs to procure and install all equipment involved in conceptual designs including construction firm overhead costsCost for construction overhead for installation can be optionally be calculated separately from equipment procurement costs and then tabulated as long as this is done consistently throughout the estimation processDesign and Engineering Costs – costs for detailed A&E firm design plans, and engineering involved in installation, testing and final implementation of conceptual design. Estimated to be 25% of the total installation costsContingency Costs – Additional 25% contingency added to account for unanticipated costs associated with the conceptual design such as base or city planning related costs.
Overall Construction Costs – Sum of installation, design and engineering as well as contingency costs. Approximately 1.5X of installation costs
If any of these costs are more directly known, for example design costs are $350K, from an estimate from an A&E firm, these costs can be substituted for this formula used to estimate these costs.
2Slide3
Installation costs
Installation costs include the following cost componentsDistribution Infrastructure CostsGenerator CostsCyber Security and Controls CostsRetrofit Costs (if needed)CHP, PV and Energy Storage (if included)Labor for installation
3Slide4
Distribution infrastructure costs
Distribution infrastructure costs are all costs associated with connecting clusters of buildings together using underground or overhead conductors. This includes:Cabling – costs of conductors (overhead (OH) or underground (UG))Trenching and Conduits – trenching, duct bank and conduit costs for UG cables; OH conductors would be costed for pole structuresManholes – access to buildings and connections for UG systemsTransformers – it may be necessary to install transformers to connect building loads to the microgrid if existing transformers cannot be used; transformers are also needed to step up voltages from generators to medium voltage levels
4Slide5
Generator costs
Generator costs are all costs associated with providing N-1 redundant generation to individual buildings or clusters of buildings. This includes:Generators – Natural gas, diesel, microturbines, fuel cells, etc. which supply the main energy source to the microgridATS – Automatic transfer switches to connect and disconnect backup generators from critical building loadsParallel Switchgear – In some cases more expensive parallel switchgear is required to connect multiple generators togetherAdditional Fuel Storage – Additional fuel tanks to supply diesel fuel to diesel engines for longer duration outages; can also use propane storage for natural gas engines; some engines are rated for other sources like JP or biofuels during emergency conditions
5Slide6
Retrofit costs
Retrofit costs are all costs associated with upgrading building service equipment to meet the DBT, such as raising equipment for flood conditions. This includes:Relocation of Service equipment – Switchboards, panelboards, transformers, and wiring to be above the DBT for the buildingNew Equipment – if equipment cannot be relocated, additional or duplicate equipment must be provided
Demo/Restructuring – Any costs associated with demolition and restructuring of the existing building structure in order to be able to supply power to meet the DBT
6Slide7
Example of retrofits
Flood Zone
Raise equipment above flood zone
Install additional
Backup generation
Building
Building electrical infrastructureSlide8
CHP, PV and energy storage costs
CHP, renewables and energy storage are all costs associated with utilizing any of these opportunities with the conceptual designs to provide additional benefits. This includes:CHP – combined cooling, heating and power; excess heat of building used to supply building heating and cooling relieving electrical requirements and making system more reliableRenewables – use of renewables to offset generation use to reduce fuel requirements and emissionsEnergy Storage – use of energy storage to provide non-interruptible power to certain loads or other applications such as smoothing PV and ramp rates of generators to make system more efficient
8Slide9
Example CHP benefit analysis
Location
CHP Size (kW)
Peak Electric Load (kW)
Electric Savings ($2013)
Natural Gas Savings ($2013)
CHP NG Costs ($2013)
O&M Costs ($2013)
Net Savings ($2013)
Installed System Cost ($2013)
Payback (Years)
Bldg
A
100
142.7
$70.6k
$33.0k
$73.9k
$8.0k
$21.7k
$221.0k
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Bldg
B
37.5
56.4
$40.7k
$16.7k
$30.0k
$6.1k
$21.3k
$81.0k
4
Bldg
C
15
20.7
$9.9k
$5.6k
$9.0k
$1.5k
$5.0k
$27.0k
6
Bldg
D
100
142.7
$62.6k
$33.0k
$75.2k
$8.0k
$12.4k
$224.9k
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Example PV benefit analysis
Service
Usable
PV Output
(kW)
System
Cost
Energy
Value
Payback:
(years)
Bldg A
550
$2635k
$156.6k
10.5
Bldg B
360
$1724k
$102.5k
10.5
Bldg C
300
$1437k
$85.4k
10.5
Bldg D
240
$1150k
$68.4k
10.5
Bldg E
210
$1006k
$59.8k
10.5Slide11
Cyber security and control costs
Cyber security and control costs are all costs associated with providing cyber security and controls to individual buildings or clusters of buildings. This includes:Control infrastructure – Costs to install communications infrastructure necessary for microgrid controls (including monitoring, cyber security and protection)Control Center – Laptops, pagers, etc. with different levels of access to monitor and control microgrids Generator Controls – Local as well as overall supervisory controls involved with synchronization, startup and outputs of generators and isolation devicesSystem Protection – Devices involved in detecting and clearing faults which may occur within microgrids
11Slide12
Microgrid Element Costs
12COST ESTIMATE WORKSHEET
Equipment/Approach
Equipment and Installation Costs ($K)
Construction Overhead(20%) ($K)
Design
Overhead
(12.5%) ( $K)
Engineering Overhead
(12.5%) ($K)
Total
Costs
($K)
Total Costs with Contingency (25%) ($K)
Pin and Sleeve
Building rewiring
10
2
2.52.5
1721.5Pin and sleeves1022.52.51721.5Portable GeneratorsCost
2 x Cost
Individual Building Hardening Building rewiring
1022.52.51721.5Building GeneratorsCost
2 x Cost
Microgrids
Controls100202525170215Fiber Optic Communications50
106.256.2572.5090Building rewiring100201313146
182GeneratorsCost 2 x CostTrenching and Cable50/1000 ft
100/1000ft
PV
Installed Costs
3.50/kW
PPA 0.12/kWhr
Batteries
Installed costs 4.25/kW
CHP
Installed costs
2.25/kW
MA Incentive
(0.75/kW)
Fuel Storage
2/1000 gal 4/1000 gal
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Example system
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Example system load data
14Slide15
Example system with microgrid
15Slide16
Cost calculations for example microgrid
16Slide17
Another example microgrid
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900 kW
New Diesel
Generation
Utility Power
Dedicated
Microgrid
Feeder
(Existing Conduit)
Other
Loads
100 kW Solar PV Array
50 kW Microturbine
200 kW Diesel Generator
600 kWh Battery Storage System
Tie to Storage
Resources
Critical Building Loads
Breaker
Breaker
SubstationSlide18
Cost spreadsheet with engineering, design and contingency costsEquipment
Equipment and Installation costs ($K)
Construction OH (20%) ($K)
Design OH (12.5%) ($K)
Engineering OH (12.5%) ($K)
Total Costs ($K)
Total Costs with Contingency (25%) ($K)
Microgrid Breaker
100.0
20.0
12.5
12.5
145.0
181.3
Underground Feeder
530.0
106.0
66.3
66.3
768.5
960.6
Microgrid
Controls
375.0
75.0
46.9
46.9
543.8
679.7
Misc Equip
250.0
50.0
31.3
31.3
362.5
453.1
Total w/o Generation
1255.0
251.0
156.9
156.9
1819.8
2274.7
Generation
1600 kW New Generation
1200.0
240.0
150.0
150.0
1740.0
2280.0
Total w/generation
2455.0
491.0
306.9
306.9
3559.8
4554.7
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