Air Port Sustainability Plan

8/10/2019 Air Port Sustainability Plan

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EMGT-6225

Economic Decision MakingTerm Project1

Airport Sustainability Plan Economic Analysis


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Agenda

Introduction

Scope

Assumptions

Baseline

Vertical wind turbines

Solar panels

Lighting

Qualitative considerations

EMGT-6225Economic Decision MakingTerm Project


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Introduction

Airport facility (A) operated by State agency (B)

Undergoing a full renovation

Required to fulfill state environmental mandates as well

as own sustainability plan

Economic analysis comparing: Four lighting alternatives

Two vertical-axis wind turbines

Fixed-angle photovoltaic panels

EMGT-6225Economic Decision Making - Project


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Scope

Economic analysis on renewable power supply and

lighting options to meet the criteria outlined below

Using record data and manufacture technical data

Investment alternatives to be considered mutually

exclusive

Criteria: state mandates require 2.5% of energy for new

construction projects to come from a renewable source

State agencies (B) stainability plan requires a reductionin energy consumption of 20% from the current baseline



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Assumptions

12Mph wind speed average is considered as an annual constant

Solar panels are installed at most efficient angle

Shipping, Installation included in initial investment

MARR = 5%, or 10% for finance options composed of:

Expected rate of inflation 5%

Traditional inflation-free rate of interest for risk-free loans 3% -

5%

Maintenance is negligible



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Baseline Analysis


-1200000

-1000000

-800000

-600000

-400000

-200000

0

0 5 10 15 20 25

Baseline Energy Cash Flow

Present Worth of Baseline: $ (8,820,672.22)

Increase utility rate per year = 3%

Facility energy consumption: 5,525,081 KWhr

Facility energy consumption is considered constant for the planning

horizon of 20 years


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Wind Turbine Overview


Pacwind Seahawk Pacwind Delta II

Voltage Output 0 - 190 Volts 0 -120 Volts

Current Output 0 - 20 Amps 0 - 80 Amps

Estimated Energy

Savings/year 94348.8 KWhr 95472 KWhr

Hight 4' Feet 14' Feet

Diameter 2.5 Feet 13' Feet

Weight 60 lbs 200 lbs

Cost with shiping and

installation$7,000 U.S. $47,000 U.S.


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Wind Turbine Analysis


PW1 PW2 WinnerWind Seahawk (9,062,046.40)$ (9,467,253.24)$ Wind Delta II Wind Seahawk

Finance Seahawk (9,118,907.27)$ (9,583,150.78)$ Finance Delta II Finance Seahawk

Finance Seahawk (9,118,907.27)$ (9,062,046.40)$ no finance seahawk no finance seahawk

IRR and ERR calculations yielded the same recommendations


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Wind Turbine Analysis


$(1,000,000.00)

$(800,000.00)

$(600,000.00)

$(400,000.00)

$(200,000.00)

$-

$200,000.00

$400,000.00

$600,000.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

Pay back periods without discount factor

Delta II Seahawk


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Solar Overview



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Solar Analysis


Wind VS Solar

PW1 PW2 Winner

Solar (9,904,155.41)$ (9,062,046.40)$ Seahawk Seahawk

Finance Solar (10,093,304.84)$ (9,062,046.40)$ Seahawk Seahawk



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Solar Analysis


$(1,400,000.00)

$(1,200,000.00)

$(1,000,000.00)

$(800,000.00)

$(600,000.00)

$(400,000.00)

$(200,000.00)

$-

$200,000.00

$400,000.00

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

No Discount Payback


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Lighting Overview



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Lighting Analysis


PW1 PW2 Winner

HID (7,660,218.11)$ (6,371,965.07)$ DIM HID DIM HID

LED (6,884,959.57)$ (6,371,965.07)$ DIM HID DIM HID

DIM LED (6,538,523.76)$ (6,371,965.07)$ DIM HID DIM HID

DIM HID Finance (6,478,550.19)$ (6,371,965.07)$ DIM HID DIM HID



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Comparison of Options


PW1 PW2 Winner

Wind Seahawk (9,062,046.40)$ (9,467,253.24)$ Wind Delta II Wind Seahawk

Finance Seahawk (9,118,907.27)$ (9,583,150.78)$ Finance Delta II Finance SeahawkFinance Seahawk (9,118,907.27)$ (9,062,046.40)$ no finance seahawk no finance seahawk

PW1 PW2 Winner

HID (7,660,218.11)$ (6,371,965.07)$ DIM HID DIM HID

LED (6,884,959.57)$ (6,371,965.07)$ DIM HID DIM HID

DIM LED (6,538,523.76)$ (6,371,965.07)$ DIM HID DIM HIDDIM HID Finance (6,478,550.19)$ (6,371,965.07)$ DIM HID DIM HID

PW1 PW2 Winner

Solar (9,904,155.41)$ (9,062,046.40)$ Seahawk Seahawk

Finance Solar (10,093,304.84)$ (9,062,046.40)$ Seahawk Seahawk

Lighting Renewable

Final Decisions DIM HID Seahawk

Total investment (15,434,011.47)$

Wind Comparisons

Light Comparisons

Wind VS Solar


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Qualitative considerations

Shall not be quantified until a detailed design is done Size implications of different turbines

Quantity implications of different turbines

Angle of the panels (engineering considerations)

These are not good investments (were looking for the option that

costs us least)

Cost shipping and installation has been factored into the initial

investment cost.



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17EMGT-6225Economic Decision Making Term Project

THANK YOU

Questions?

Documents

Air Port Sustainability Plan