Download RETScreen - Biomass Heating Project Model

RETScreen® Biomass Heating Project Model
Engineering
The engineering item typically represents the sum of the costs of the design activities required to
go from the development stage to the construction stage of a project. It also includes costs for
construction supervision. It is net of any "credits" for not having to develop the base case project.
Energy equipment
The energy equipment item typically represents the sum of the purchasing and installation costs
of the energy equipment, less any "credits" for not having to purchase or install base case
equipment.
Balance of plant
The balance of plant item represents the sum of the purchasing, construction and installation
costs of all the elements of the energy system other than the equipment costs less any "credits"
for not having to purchase or install base case equipment.
Miscellaneous
The miscellaneous item includes all the costs not considered in any of the other initial costs
categories that are required to bring a project to the operational stage.
Incentives/Grants
The user enters the financial incentive; this is any contribution, grant, subsidy, etc. that is paid
for the initial cost (excluding credits) of the project. The incentive is deemed not to be refundable
and is treated as income during the development/construction year, year 0, for income tax
purposes.
For example, in Canada the Renewable Energy Deployment Initiative (REDI) may provide a
25% contribution for certain energy systems used for heating and cooling applications. The
contribution is 40% for systems installed in Canada's remote communities. More information
may be obtained from the REDI Website or by calling 1-877-722-6600.
Annual Costs and Debt
The total annual costs are calculated by the model and represent the yearly costs incurred to
operate, maintain and finance the project. It is the sum of the O&M costs, the fuel/electricity
costs and debt payments. Note that the total annual costs include the reimbursement of the
"principal" portion of the debt which is not, strictly speaking, a cost but rather an outflow of
cash. These costs are described briefly below.
BIOH.69