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Electricity Generation Sustainability Index User's Guide
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Electricity Generation Sustainability Index
User’s Guide
Biomass
Solar Coal
Sustainability
Natural
Wind
Gas
Neus Vila-Brunet, Thomas G. Johnson and Thomas Marrero

University of Missouri
December 2011
EGSI User Guide Page 2 of 51
Table of Contents
1 INTRODUCTION: A FEASIBILITY AND SUSTAINABILITY ANALYSIS TOOL............................... 5
1.1 What the User’s Guide will tell you .................................................................................................................................................. 6
1.2 First-time Users and Experienced Users .......................................................................................................................................... 7
1.3 Questions and Comments .................................................................................................................................................................. 7
2 INTRODUCING PROJECT DATA ..................................................................................................... 7

2.1 Capital Costs .................................................................................................................................................................................... 10
2.1.1 Civil Structural Material and Installation ............................................................................................ 11
2.1.2 Mechanical Equipment Supply and Installation .................................................................................. 11
2.1.3 Electrical, Instruments &Controls Supply and Installation ................................................................. 11
2.1.4 Project Indirect Costs ........................................................................................................................... 11
2.1.5 Owner's Costs (excluding project financing costs) .............................................................................. 11
2.2 Operation and Maintenance Expenses (O&M) ............................................................................................................................. 12

2.2.1 Non-fuel Fixed Operating & Maintenance (FOM) .............................................................................. 12
2.2.2 Non-fuel Variable Operating & Maintenance (VOM)......................................................................... 12
2.2.3 Fuel Variable Operating & Maintenance ............................................................................................. 13
2.3 Other Parameters............................................................................................................................................................................. 13
2.4 Income ............................................................................................................................................................................................... 13
2.5 Social Indicators ............................................................................................................................................................................... 14
3 SUSTAINABILITY INDICATORS .................................................................................................... 14
3.1 Technology Characteristics ............................................................................................................................................................. 15
3.2 Location Characteristics.................................................................................................................................................................. 16
3.3 Life Cycle Analysis ........................................................................................................................................................................... 16
3.4 Economic and Social Impacts ......................................................................................................................................................... 17
3.5 Financial and Efficiency Evaluation............................................................................................................................................... 18
4 COMPARING PROJECT SUSTAINABILITY INDEX INDICATORS ............................................... 19
4.1 Generation Technology Comparison Ranking .............................................................................................................................. 20

5 DEFAULT DATA AND DATA SOURCES ....................................................................................... 21
5.1 Technology Characteristics and Costs ........................................................................................................................................... 21
5.2. Location Characteristics Data ....................................................................................................................................................... 28
5.3. Life Cycle Analysis Data................................................................................................................................................................. 28
5.4 Economic and Social Impacts Data ................................................................................................................................................ 29
5.5 Financial and Efficiency Evaluation Data ..................................................................................................................................... 29
6 BIOMASS EGSI TOOL .................................................................................................................... 29
6.1 Installing Biomass EGSI Solver Tool ............................................................................................................................................. 29
6.2 A Brief Tour of the Biomass EGSI tool .......................................................................................................................................... 30
6.3 Planning a Biomass Electricity Project .......................................................................................................................................... 34

6.3.1 Technology and Costs .......................................................................................................................... 34
6.3.2 Feedstocks ............................................................................................................................................ 34
6.3.3 Costs and Availability of Fuels ............................................................................................................ 35
6.3.4 Ash Disposal Costs .............................................................................................................................. 36
6.4 Setting up the biomass EGSI tool for Your Area .......................................................................................................................... 36
6.4.1 Biomass Resources .............................................................................................................................. 36
6.4.2 Default Biomass Characteristics .......................................................................................................... 41
6.4.3 Other Biomass ...................................................................................................................................... 42
6.5 Creating Scenarios and Sensitivity Analyses ................................................................................................................................. 42

6.5.1 What Are Scenarios and Sensitivity Analyses? ................................................................................... 42
6.5.2 Populating the Biomass Assumptions Page ......................................................................................... 42
6.6 Running the Biomass EGSI tool ..................................................................................................................................................... 43

6.6.1 Finding an Optimum Solution ............................................................................................................. 43
6.6.2 Printing Results .................................................................................................................................... 44
6.7 Interpreting the Scenario Summary Sheet .................................................................................................................................... 44

6.7.1 Biomass Usage and Costs .................................................................................................................... 44
6.7.2 Other Costs........................................................................................................................................... 44
6.8 Troubleshooting ............................................................................................................................................................................... 44

6.8.1 Solver Results Messages ...................................................................................................................... 44
6.8.2 Solver Parameters ................................................................................................................................ 45
6.8.3 Changing the Security Level for Macro Virus Protection ................................................................... 45
APPENDIX: TECHNOLOGIES PROCESS FLOW DIAGRAMS ........................................................ 46
REFERENCES ................................................................................................................................... 51
Acknowledgements
Scott A. Stanley, Undergraduate Research Assistant and B.A. candidate in Chemical Engineering, analyzed
data for the report.
Alex Christopher Tichy, Undergraduate Research Assistant and B.A. candidate in Chemical Engineering,
analyzed data for the report.
1 Introduction: A Feasibility and Sustainability Analysis Tool

The Electricity Generation Sustainability Index (EGSI) allows users to evaluate any new
electricity generation project in Missouri in terms of its feasibility, several sustainability related
indicators and an overall sustainability index. The five electricity energy sources that one can
evaluate and compare are: a) coal, b) natural gas, c) wind, d) solar and e)biomass.
EGSI allows the user to:

1. Evaluate the feasibility of the project via financial indicators;
2. Evaluate the impacts of the project via financial, economic, environmental and social
indicators;
3. Determine whether the project is economically, environmentally and socially sound; and
4. Make consistent and comparative analyses of all alternatives having a benchmark
reference.
The EGSI distinguishes between two main phases of a project—the initial investment phase and
the operation and maintenance phase. The main components of the EGSI are: a) location
characteristics, b) life cycle assessment (LCA), c) social and economic impacts, and d) financial
and efficiency evaluation.
The location characteristics evaluation determines input availability and consequently

production costs and revenues. Location characteristics evaluated for each energy source
include:
1. Coal and natural gas: whether the county already has an power plant supplied by coal or
natural gas (as an indicator of the level of infrastructure investment needed);
2. Wind: meters per second at 30 and 70 meters above ground;
3. Solar: radiation (kWh/m2/day) for photovoltaic and thermal technologies; and
4. Biomass:
a) Available inputs per county; and
b) Fuel, handling, ash disposal and transportation costs (via biomass EGSI tool).
The Life Cycle Assessment (LCA) approach chosen in this study is based on the SETAC-EPA
project and hence several parts of the ISO 14040 can be assessed using this model
(Environmental Protection Agency 2011; Society of Environmental Toxicology and Chemistry
2011). The LCA analysis developed follows a hybrid method that combines the input-output
approach with a production-process approach. This requires the decomposition of the electricity
sector into its various energy sources. The main LCA indicators are environmental and are
associated with each project cost component, including:
1. Water use;
2. Energy use;
3. Greenhouse gas generation;
4. Hazardous waste generation; and
5. Toxic release emissions.
Economic and Social impacts are reported quantitatively and qualitatively respectively.
Economic indicators reported are:
1. Output multiplier;
2. Labor income effect;
3. Employment effect; and
4. Value added effect.
Social indicators reported are:
1. Health impacts due to toxins:
2. Visual impacts:
3. Noise impacts;
4. Odor;
5. Displacement;
6. Pollution; and
7. River damage.
Financial evaluation of the project is reported in terms of the project’s internal rate of return
(IRR). Efficiency evaluation of the project is done at two levels:
1. $ Millions of dollar invested per MWh per year; and
2. $ Millions profit or loss per MWh per year.
We recommend that the weights that combine the six parts of the sustainability index rating be
defined by the residents of the affected community or region. This consultative process provides
politicians and citizens with a higher degree of awareness of their resources and related
capabilities and impacts. It also leads to a more comprehensive awareness of the range of
possibilities for electricity generation. This approach has been tested and adopted by the Choice
Awareness program developed in Denmark (Lund 2000).
This manual is designed to guide EGSI users as they enter data into the EGSI tool. The EGSI
tool for biomass energy projects has an extra step compared to the other four energy sources.
The extra step involves the estimation of the project’s cost minimizing strategies (fuel, handling,
ash disposal and transport). This step is relatively data intensive. Once these minimum variable
costs for electricity generation from biomass are obtained, they are linked into the EGSI
Biomass Project Data sheet where the remainder of the information needed by the program
should be entered. If the user is satisfied with current or predetermined variable costs related to
biomass fuel, handling, ash disposal and transport there is no need to do this extra step and
these values may be entered directly into the Project Data tab.
1.1 What the User’s Guide will tell you

Section 1 gives a brief introduction to the Electricity Generation Sustainability Index (EGSI)
Tool. It briefly describes its features and applications and how the guide is organized.
Section 2 describes the inputs related to the common worksheet for all the energy sources, the
EGSI project data worksheet.
Section 3 describes the indicators related to the common worksheet for all the energy sources,
the EGSI sustainability index worksheet.
Section 4 describes how to produce project-comparison reports.
Section 5 lists and describes the data sources used for the default scenarios in the EGSI tool.
Section 6 shows how to install the EGSI solver tool and set up a computer to use it. The main
requirement is that the user install the solver add-in, included in on your MS Office software, in
order to be able to estimate the minimum biomass input variable costs. Section 6.2 shows how
to apply the specific part of the EGSI tool related to the mix of biomass sources and describes
each of the related worksheets. Section 6.3 presents brief instructions for planning a biomass
power project from the perspective of the EGSI tool user. Section 6.4 describes the steps
necessary to collect and enter data for a particular biomass power project. These data describe
the biomass capacity of the project region. The user will need to complete this procedure only
once for any particular project, although periodic updates of the data will be necessary if the
biomass EGSI tool is used on an ongoing basis. This step requires access to detailed data on
agricultural and forestry land uses, and on sources of biomass in the vicinity of the proposed
power plant. All the necessary information is posted on the Web, and Section 5 explains how to
find it. The setup procedure should take, at most, 2 or 3 hours of data collection and entry.
Section 6.5 covers scenarios and sensitivity, or “what-if,” analyses for biomass projects.
Conducting a what-if analysis with the EGSI tool is relatively simple and takes just a few
minutes. This procedure allows the user to consider the implications of changes in capital costs,
fuel costs, availability of fuels, transportation costs, ash disposal costs, operating and
maintenance costs, and prices of electricity for the project and the region. With just a little more
effort, the user can calculate the implications of particular changes in biomass availability and
opportunities to use unusual fuels by changing basic assumptions. Section 6.6 provides specific
instructions for solving the optimizer and running the EGSI tool. Section 6.7 discusses the
interpretation of the results and how to relate them to the EGSI sustainability index worksheet,
and finally Section 6.8 covers Solver Add-in troubleshooting.
1.2 First-time Users and Experienced Users

If using the EGSI tool for the first time please read this guide entirely before attempting to use
the spreadsheet. Then return to Section 6 and follow instructions for installing the Solver Add-in.
Once this is done it shouldn’t be necessary to return to Section 6 except to install the EGSI
Solver Add-in tool on a new computer.
Section 6 will be useful not only to first-time users, but also to return-users who use the EGSI
tool only infrequently. Section 6.3 should be helpful each time a new biomass project is being
considers. Users will probably return to Section 6.4 only when biomass data updates are
necessary.
For those who do not plan to generate electricity from biomass sources or already have
reasonable estimates of variable costs related to the biomass project there is no need to install
the Solver Add-in and do need to go over Section 6. Sections 2, 3, and 4 contain the material
that will be referred to most often.
1.3 Questions and Comments

The authors hope the EGSI tool is easy to use and valuable when considering the adoption or
expansion of a sustainable energy project or when comparing electricity energy sources and
related technologies. If you have questions about the EGSI tool or the guide, please contact
Thomas G. Johnson at johnsontg@missouri.edu or Thomas R. Marrero at
marrerot@missouri.edu. The authors would also appreciate comments on ways that the EGSI
tool and guide can be improved.
2 Introducing Project Data

When you open the EGSI tool you may see a security warning at the top left corner of your
screen, below the tool bar (see Figure 1). This security warning tells you that the macros in the
Excel worksheet have been disabled. Click the options button and select 'Enable this content'.
Otherwise the EGSI tool won't perform correctly.
Figure 1: Macros Security Warning
Once the macros are enabled, go to the worksheet related to your energy source and
technology characteristics. In the Home tab you will see the eleven options available, click on
the one that corresponds to your project and you'll automatically be taken to the Project Data
worksheet for your project.
If you already have your project well defined you will probably have good projections for most of
the necessary data. On the contrary, if you haven’t calculated your initial investment or your
operation and maintenance costs then you'll need to do some research to get estimates for
these values. To complete this step select and choose from each of the four initial dropdown
menus (default/user data, project location, investor type and regional purchase coefficient) an
alternative that best describes your project. Remember, that if you don't choose from each of
the four initial dropdown menus, EGSI will not perform correctly.
All EGSI worksheets are designed so that they can be printed with a minimum use of paper.
Project data worksheets, the biomass assumptions sheet, as well as the comparative
sustainability index and the sustainability index comparison rating sheets should be printed in
landscape format. The sustainability index for each energy and technology and biomass
scenario summary should to be printed in portrait format.
All project data worksheets look similar to the one in Figure 2. Each energy source has a
different color tab: coal/ grey, natural gas/ purple, wind/blue, solar energy/orange, and
biomass/green. Each energy source has a specific project data worksheet depending on the
technology used in the project. The various technologies considered follows:
Coal:
Advanced Generation
Advanced Generation (AG) Coal Carbon Capture and Storage (CCS)
Natural Gas:
Natural Gas Combined Cycle (CC)
Advanced Generation (AG) Natural Gas Combined Cycle (CC)
Advanced Generation (AG) Natural Gas Combined Cycle (CC) with Carbon Capture and
Storage (CCS)
Wind:
Standard Turbine
Solar:
Thermal
Photovoltaic small projects
Photovoltaic large projects
Biomass:
Biomass Combined Cycle (CC)
Biomass Bubbling Fluidized Bed (BBFB)
Figure 2: Project Data sheet for Advanced Generation Coal Electricity Generator Technology
The main characteristics of each technology profile are explained in Section 3.1.
There are four initial dropdown menus that you have to define. Figure 2 illustrates three of the
dropdown menus. These three dropdown menus require you to specify:
1. Whether you wish to introduce your own data or use the default estimate (if you chose to
use the default estimates then you are not required to make selections from the
remaining dropdown menus in this section),
2. The county in which the project is located, and
3. What type of investor will own the facility.
Figure 3, shows a dropdown menu (top left corner) where you choose the type of Regional
Purchase Coefficients that best applies to your project. The Regional Purchase Coefficients
determines the spatial distribution of your investments and expenses. For instance, if you
choose the 100% local option you are assuming that all your investment and expenses will be
sourced in the region of the project. However, it is quite likely that not all the inputs for your
facility will be produced in the local region, so ‘imports’ will be required; if that it is the case, then
you should select whether the import levels are most like National or State shares. It often
makes sense to first introduce all the inputs and costs values and then “play” with the different
options that the Regional Purchase Coefficient menu provides until you determine which option
best fits your situation.
Figure 3: Project Data sheet for Advanced Generation Coal Electricity Generator Technology
The EGSI tool’s distribution of project costs follows that presented in Updated Capital Cost
Estimates for Electricity Generation Plants, Energy Information Administration (EIA 2010). This
EIA Report is the source of default data for each energy and technology. The user may input
alternate data in the shaded cells.
2.1 Capital Costs

Capital costs can be estimated in one of two ways: as overnight costs or as full costs. Overnight
capital cost is an estimate of the cost at which a plant could be constructed assuming that the
entire process from planning through completion could be accomplished in a single day. This
approach accounts for all costs in the planning and development of a power plant including the
basic interconnection to the grid at the plant site, but excluding financial costs. This approach
avoids the need to estimate financing costs and construction duration. Starting with these
overnight cost estimates, EIA's electricity modeling then explicitly takes account of the time
required to bring each generation technology online and the costs of financing construction in
the period before a plant becomes operational.
EGSI uses overnight costs for default values in order to be consistent across energy source and
technology alternatives. The full costs alternative can be used if your project planning is quite
advanced and the available cost data is reliable.
In EGSI capital costs include the total project engineering design, procurement and construction
(EPC) cost and owner's costs organized into five components (Figure 3 includes the first three
of these components).
2.1.1 Civil Structural Material and Installation

This component includes “allowance for site preparation such as clearing, roads, drainage,
underground utilities installation, concrete for foundations, piling material, structural steel supply
and installation; and buildings” (EIA 2010, pp.2-6).
2.1.2 Mechanical Equipment Supply and Installation

The second component includes “major equipment, including but not limited to, boilers,
scrubbers, cooling tower, steam turbine (ST) generators, solar panels, CTs, as well as auxiliary
equipment such as material handling, fly and bottom ash handling, pumps, condensers, and
balance of plant (BOP) equipment such as fire protection, as applicable to a given technology”
(EIA 2010, pp. 2-6).
2.1.3 Electrical, Instruments &Controls Supply and Installation

This category includes “electrical transformers, switchgear, motor control centers, switchyards,
distributed control systems (DCS) and instrumentation. It also includes electrical commodities,
such as wire, cable tray, and lighting. Cost estimates are based upon a cross section of
projects” (EIA 2010, pp.2-7).
2.1.4 Project Indirect Costs

Indirect costs include “engineering, distributable labor and materials, craft labor overtime and
incentives, scaffolding costs, construction management, and start-up and commissioning. The
fees and contingency include contractor overhead costs, fees and profit, and construction
contingency. Contingency in this category is considered 'contractor' contingency, which would
be held by a given contractor to mitigate its risk in the construction of a project” (EIA 2010, pp.2-
7).
2.1.5 Owner's Costs (excluding project financing costs)

Finally, owner’s costs include “development costs, preliminary feasibility and engineering
studies, environmental studies and permitting, legal fees, project management (including third-
party management), insurance costs, infrastructure interconnection costs (e.g., gas, electricity),
owner's contingency, and property taxes during construction. The electrical interconnection cost
includes an allowance for the plant switchyard and a subsequent interconnection to an
'adjacent' (e.g. within a mile) of the plant, but does not include significant transmission system
upgrades” (EIA 2010, pp.2-7).
As Figure 3 indicates, each component of capital cost includes optional values (in addition to the
default values) from which you can choose to best represent your project. It will often be
impossible to find an option that perfectly reflects your situation in which case the closest option
should be chosen. In cases where there are more than two inputs that seem appropriate you
should choose two that represent that largest investment or expense.
Some cells in Figure 3 have borders and are not shaded. These cells contain formulas rather
than data and are locked. Similarly, the two adjacent columns in the right hand side of the cost
column are also automatically defined, and do not require data unless you wish to override the
default values.
2.2 Operation and Maintenance Expenses (O&M)

EGSI O&M expenses consist of non-fuel O&M costs and fuel-related expenses. Non-fuel O&M
expenses are divided between fixed and variable; variable expenses include the prorated part of
general expenses in the default EGSI values. Definitions and default values are obtained from
the Updated Capital Cost Estimates for Electricity Generation Plants report of the Energy
Information Administration (EIA 2010, pp.2-7). Below you have lists of accounts that go with
each definition, they are not extensive lists, but they provide an idea of how the classification
should be done.
2.2.1 Non-fuel Fixed Operating & Maintenance (FOM)

FOM expenses are those expenses incurred at a power plant that do not vary significantly with
power generation and include the following categories (EIA, 2011 p. 2-8):
1. Staffing and monthly fees under pertinent operating agreements
2. Typical bonuses paid to the given plant operator
3. Plant support equipment which consists of equipment rentals and temporary labor
4. Plant-related general administrative expenses (postage, telephone, etc.)
5. Routine preventive and predictive maintenance performed during operations
6. Maintenance of structure and grounds
7. Other fees required for a project to participate in the relevant National Electric Reliability
Council region and be in good standing with the regulatory bodies.
Routine preventive and predictive maintenance expenses do not require an extended plant
shutdown and include the following categories:
1. Maintenance of equipment such as water circuits, feed pumps, main steam piping, and
demineralizer systems
2. Maintenance of electric plant equipment, which includes service water, DCS,
condensate system, air filters, and plant electrical.
3. Maintenance of miscellaneous plant equipment such as communication equipment,
instrument and service air, and water supply system.
4. Plant support equipment which consists of tools, shop supplies and equipment rental,
and safety supplies.
2.2.2 Non-fuel Variable Operating & Maintenance (VOM)

VOM expenses are production-related expenses which vary with electrical generation and
include the following categories, as applicable to the given power plant technology (EIA 2010,
pp. 2-8):
1. Raw water
2. Waste and wastewater disposal expenses
3. Purchase power, demand charges and related utilities
4. Chemicals, catalysts and gases
5. Ammonia (NH3) for selective catalytic reduction (SCR), as applicable
6. Lubricants
7. Consumable materials and supplies
Major general expenses are also considered inside the VOM expenses category. Major general
expenses generally require an extended outage, are typically undertaken no more than once
per year; and are assumed to vary with electrical generation or the number of plant starts based
on the given technology and specific original equipment manufacturer recommendations and
requirements (EIA 2010, pp. 2-8).
1. Scheduled major overhaul expenses for maintaining the prime mover equipment at a
power plant
2. Major maintenance labor
3. Major maintenance spares parts costs
4. Balance of Plant (BOP) major maintenance
5. Major maintenance boiler, ST, associated generator and emission reduction catalysts
2.2.3 Fuel Variable Operating & Maintenance

These are the energy costs related to the energy source of the power plant. For instance, in the
case of a coal power plant this cost is the coal cost per unit multiplied by the amount of coal
purchased during a year. In the case of wind and solar energy sources this cost is zero.
2.3 Other Parameters

The other parameters considered by EGSI are basically the main financial parameters
associated with your project and some parameters associated with specific regulations. These
values are used for the estimation of the internal rate of return and profit or loss per MWh/yr for
instance, and the other financial and efficiency indicators. The wholesale price of electricity (in
cents per kWh) must be entered in order to calculate the financial indicators. The tool will not
run without this data.
2.4 Income
The EGSI income accounts are annually based. The first three are automatically calculated
based on the information introduced in the other parameters part as well as the technology
characteristics specified at the top of the Project Data sheet. The other accounts values vary
substantially from project to project and must be estimated by the investor. The important
aspect to take into account is that there are several potential sources of “green power” revenue
that you should explore when you are planning a renewable energy power investment. These
are revenues that are available only to electricity producers that use renewable energy sources,
such as biomass, the sun, and the wind, or that use clean technology. The revenues are:
Renewable Energy Production Incentives (REPI): Payments from the federal government
designed to encourage use of renewable energy (for more information on REPI go to
http://apps1.eere.energy.gov/repi/) (Renewable Energy Production Incentives 2011).
Green energy premium pricing: A surcharge paid voluntarily by consumers for electricity from
renewable sources.
SO2 allowances: Utilities that emit less sulfur dioxide than their permits allow can accumulate
credits for their avoided emissions and sell them to high emitters.
NOx allowances: As with SO2 allowances, utilities that emit less nitrogen oxides than their
permits allow can sell credits to high emitters.
Carbon credits: Credits for avoided emissions of carbon dioxide and other “greenhouse” gases
can be sold on a voluntary basis.
Revenues from the sale of steam, heat or other savings are revenues that the facility will
receive, on an annual basis, from the sale of steam or heat (or other by-products) to outside
consumers. For a farm, lumber mill, or other enterprise these “revenues” are actually savings
realized by using the steam and/or heat from its biomass project on site, thereby avoiding (or
reducing) purchases of these forms of energy. The default value for these revenues is zero.
One-time cost savings are capital costs avoided by undertaking the project. Such avoided
costs could include those of transmission system upgrades or decommissioning costs. The
default value for these savings is zero.
2.5 Social Indicators

The social indicators project by EGSI are the most commonly used indicators in the
sustainability index literature. In their research, Evans et al. (2009) provided the qualitative
indicators for the renewable energy sources of power plants. EGSI extends these indicators to
coal and natural gas as well. The qualitative range allowed in EGSI social indicators include
none, minor and major impact.
3 Sustainability Indicators
All the energies evaluated in EGSI have a Sustainability Index tab that looks like Figure 4. The
sustainability indicators are divided into:
1. Technology characteristics,
2. Location characteristics,
3. Life cycle analysis (LCA),
4. Economic and social impacts, and
5. Financial and efficiency evaluation.
The first section of the Sustainability Index tab reports a summary of each of the five EGSI
indicators while the second section reports all the components of the main indicators reported in
the first section plus other complementary indicators. The Electricity Generation Sustainability
Index (EGSI) tool is formed by the combination of the environmental, economic, social and
financial characteristics of the project. How each sustainability indicator of EGSI should be
weighted is a decision for the stakeholders and community residents involved. As the Choice
Awareness concept indicates, the more democratic and inclusive the project evaluation process,
the more social welfare can be increased (Lund 2000).
Figure 4: Sustainability Index tab of Large Solar Photovoltaic energy plant (Henry County)
3.1 Technology Characteristics

The first part of the sustainability tab reports the main project technology characteristics:
1. Nominal capacity (kW),
2. Heat rate (Btu/kWh),
3. Capacity factor,
4. Overnight capital cost ($/kW),
5. Non-fuel fixed O&M cost ($/kW), and
6. Non-fuel variable O&M cost ($/kW).
EGSI reports indicators in dollars per kW (dollars per real capacity, which is nominal capacity
times capacity factor). By presenting the indicator in dollars per kW, EGSI ensures comparability
among technologies, otherwise the different technologies’ nominal capacities and capacity
factors wouldn’t allow for indicator comparability.
3.2 Location Characteristics

Location characteristics will vary for each energy source. The outcome reported for coal and
natural gas energies indicates whether currently (2008 data) there is another power plant in the
county selected. It is assumed that if there is another power plant in the county some fix
investment costs may be minimized for the new project since related infrastructure may already
exist. It also assumes that it is preferrable to increase the capacity of the already existing plant
rather than building a new one. In terms of wind energy, the key location characteristic is the
power generation potential (watts per second) average for the county given the technology
characteristics introduced in the Project Data sheet. The key location characteristic for solar
energy is the average county solar radiation (kWh) given the reported technology
characteristics. The solar energy Sustainability Index tab also reports the annual distribution of
solar energy generation in the county by month. In terms of biomass energy, location
characteristics include the tons and costs of the inputs available in the area along with the
transportation, handling and ash disposal costs for the project considered. EGSI default results
are based on default O&M cost data (fixed and variable) for biomass only, without considering
transportation, handling and ash disposal costs.
3.3 Life Cycle Analysis

Life Cycle Analysis (LCA) is conducted at two levels: a) annual operation and maintenance
(O&M) costs and b) the annual O&M costs plus initial investment costs. This distinguished each
project’s short term environmental impacts from its long term project impacts. The LCA included
five categories:
1. Water used,
2. Energy used,
3. Greenhouse gases (GHG) generated,
4. Hazardous wastes generated, and
5. Toxic releases generated.
A detailed list of the components of each LCA indicator is presented below.

1. Water Use (kGal)
2. Energy Use (TJ)
3. Total Energy TJ
4. Coal TJ
5. NatGas TJ
6. Petrol TJ
7. Bio/Waste TJ
8. NonFossElect TJ
9. Green House Gases (GHG) generation (tonnes)
10. Total tones CO2e
11. CO2 Fossil tones CO2e
12. CO2 Process tones CO2e
13. CH4 tones CO2e
14. N2O tones CO2e
15. HFC/PFCs tones CO2e
16. Hazardous Waste Generation (st)
17. Carcinogens Mg C2H3Cl eq
18. Non-carcinogens Mg C2H3Cl eq
19. Respiratory inorganics kg PM2.5 eq
20. Ozone Dep kg CFC-11 eq
21. Respiratory organics kg C2H4 eq
22. Aquatic ecotoxicity Gg TEG water

23. Terrestrial ecotoxicity Gg TEG soil
24. Terrestrial acid/nutrikg SO2 eq
25. Aquatic acidif kg SO2 eq
26. Aquatic eutro kg PO4 P-lim
The life cycle impacts are estimated by multiplying the demand for each project input (the
various costs) by the investor margin option selected (second dropdown menu of the project
data tab), and by the effects of each of the LCA component related to the project input.
Multiplying the final demand by the investor margin converts the final demand values from
purchaser price to producer price1. Next the tool multiplies these producer-priced inputs by the
appropriate multipliers to get the life cycle impacts of each capital cost component and each
O&M cost component in terms of each life cycle indicator. It is important to note that the life
cycle indicators are reported in both total values and total values per unit of real generation
capacity (nominal capacity times capacity factor). These per-unit indicators allow comparisons
among alternative energy projects. Finally, the life cycle indicators are reported for the proposed
annual power plant production levels. Hence, one can distinguish between the initial, short
run,and long run environmental impacts. As a complement to the life cycle indicators, one also
has estimates of the three types of pollutants calculated in the technological part of the
sustainability indicator (SO2, NOx and CO2 in lb/MMBtu units).
It is important to remember that the default values in the LCA calculator are good estimates of
average situations but for particular projects are crude because they assume average and
historical levels of total capital and O&M costs. Hence, for accurate life cycle impact analyses
we strongly recommend using actual project information in the EGSI calculator. Life cycle
coefficients are based on information contained in the Carnegie Mellon project named Economic
Input-Output Life Cycle Assessment (EIOLCA) (Mellon). For further information about the
source of the LCA effects and the default LCA estimates see Section 5.
3.4 Economic and Social Impacts

Economic impacts are evaluated at four levels:
1. Total output (aggregate sales of all firms in the region)
2. Labor income,
3. Employment, and
4. Value added.
The values of these indicators vary depending on the investor type and regional purchase
coefficients selected. The multipliers and effects associated with each project are expressed in
producer prices. Finally all the impacts are aggregated to arrive at the total values for the
indicators. As a result, final values include the initial investment impacts and the O&M impacts.
Multipliers and effects values come from the IMPLAN 2007 data.
It is important to note that the economic indicators are reported as total impacts and impacts per
unit of real generation capacity (nominal capacity by capacity factor). The per-unit indicators
allow more meaningful comparisons among alternative projects. As in the case of the life cycle
analysis it is important to remember that the default coefficients are crude approximations that
1
Purchaser prices are always greater than or equal to producer prices. Purchase price equals producer price plus
margins. Margins include transportation, wholesale margins, retail margins, and indirect taxes.
should be replaces with real project information if possible. For more information about the data
source and default values see Section 5.
There are seven social indicators reported by EGSI:

1. Health impacts due to toxins,
2. Visibility,
3. Noise,
4. Odor,
5. Displacement, and
6. River damage.
These indicators are evaluated qualitatively as none, minor, or major impacts. Default data is
based on the Evans et al. study (Evans et al. 2009).
3.5 Financial and Efficiency Evaluation

EGSI reports four financial and efficiency indicators:
1. Internal rate of return (IRR),
2. Investment recovery period,
3. $ Million invested per MWh per year, and
4. Profit (loss) per kWh.
Internal rate of return on investment (IRR) is perhaps the key feasibility indicator generated
by the EGSI tool. EGSI measures IRR by calculating the rate of interest that, if applied to the
entire investment, would lead to a breakeven between costs and revenues. One way to interpret
this indicator is to think of it as the interest rate that could be paid on a loan for the entire
investment without either losing money or making any profit. The interest rate entered in the
Project Data page no has effect on IRR. Rather, IRR is an indicator to be compared to the
interest rate. The IRR also does not affect the gross or net margin indicators; in fact, IRR is an
alternative measure to the net margin indicator. The net margin will be greater than zero if IRR
is larger than the interest rate assumed in the Scenario Summary. The net margin will be
negative if the IRR is less than the interest rate. A negative IRR occurs when the gross margin
is negative.2
Investment Recovery Period (IRP) (years) is an indicator of the time needed (normally years)
in order to recover the initial capital investment. EGSI divides the project capital costs (EPC) by
the annual cash flow (revenues minus costs) and identifies the number of years necessary in
order to recover the project capital costs.
$ Million invested per MWh per year is an indicator of the amount invested per unit of
electricity produced. This indicator is a proxy for the project productivity.
Profit (loss) per MWh is the net margin divided by the actual number of megawatt-hours
produced per year. The value will be positive when the project makes money and negative
when it loses money.
2
Note that larger investments lead to smaller absolute IRRs because, whether gross returns are negative or
positive, they become smaller relative to the investment.
4 Comparing Project Sustainability Index Indicators

As information on a particular project is introduced to the spreadsheet the Sustainability Index
tab for that particular energy and technology (and the relevant areas of the SI Comparison tab)
are being populated. Once all information is entered for several alternative projects the results
will automatically appear in the comparison tab. If you don't have project data you can select
'Default' data in the Project Data tab and the default results will appear in the Sustainability
Index and Sustainability Index Comparison tab. The Sustainability Index Comparison tab is
shown in Figure 5.
Figure 5: Electricity Generation Sustainability Index Comparison
As you can see from Figure 5, some of the indicators provided in the Sustainability Index tab are
also reported in the Sustainability Index Comparison tab. The Sustainability Index Comparison
tab reports only those indicators that are comparable, that is in the same units and comparable
capacities for each technology. Financial indicators are comparable always as long as the costs
used are for same time (year). It is very important when comparing projects to be aware of the
units of analysis so that reasonable conclusions can be made.
When comparing energy sources and technologies it is important to take into account the
seasonality characteristics of each energy source as well as the flexibility associated with each
technology. Depending on the electricity demand that the project seeks to supply (for instance
to cover the electricity demand peaks of summer) it may be more feasible at all levels to
develop a renewable energy such as solar. In other cases, when the demand that the project
seeks to supply represents an incremental increase in electricity demand, it may be more
feasible to invest in some other renewable or non-renewable energy source.
The Sustainability Index tabs associated with solar energy generate graphs with monthly
average solar energy potential in the county of the project given the technology characteristics.
The monthly details of these graphs allow the investor to assess the seasonality of this type of
energy relative to demand, and hence to complement the solar energy capacity with other
energy sources to reduce the likelihood that demand will exceed the maximum electricity
generation capacity of the solar energy project during peak seasons.
Technology flexibility characteristics are based on the easiness (costs involved and resulting
environmental impacts) of shutting down and turning on the generators. Some energy sources
and technologies are more easily adapted to demand fluctuations than others.
4.1 Generation Technology Comparison Ranking

In the SI Comparison Rating tab, EGSI uses six indicators to formulate a rating for each
technology so that the user may assess which technology ranks the best. Of the six indicators,
two are cost related (overnight capital cost and non-fuel fixed O&M cost), two are environment
related (GHG generation and energy use), and two are economic-impact related (output
multiplier and employment effect). The indicators are presented in a per kW unit to allow
comparability. The user should note that the SI Comparison Rating tab does not indicate
whether the energy technologies are profitable.
Figure 6 shows the layout of the SI Comparison Rating Tab. The first table lists the specific
values for the six comparable indicators used to formulate EGSI’s rating for each technology.
EGSI weights the six indicators using one of two possible variations. The first variation is the
‘Default Weight’, which weights the six indicators equally (17%). The second variation is the
‘User Weight’. Here the user needs to decide how to weight the six indicators. Make sure the
values entered in the ‘User Weight’ add to one.
The ‘Ranking’ table uses the values in the first table to ordinally rank the technologies within
each of the six indicators. The highest value indicates the most desirable technology within the
particular indicator.
In the second row of tables, the SI Comparison Rating tab incorporates the weights attributed to
the six indicators with the left table using default weights and the right table using user weights.
The total default and user SI ranking is the weighted sum of the individuals.
EGSI generates two graphs visually comparing each technology’s aggregate index values and
the total SI ranking value. The tallest bar represents the best-rated technology with the default
weighted graph on the left and the user weighted graph on the right.
Figure 6: Electricity Generation Sustainability Index Rating
5 Default Data and Data Sources

If the user selects 'Default' in the dropdown menu in the Project Data tab (Figure 2), the results
obtained are based on the assumption that the project is located in Henry County, that the
investor type is industry, and that the regional purchase coefficient that best fits the project is
Missouri. Given the location input specificities related to a biomass power plant project, the
default values provided by EGSI exclude the variable costs associated with bio-fuel,
transportation, ash disposal and handling costs. However, EGSI provides default values for all
other indicators. EGSI default data and indicator data come from various sources. The following
sub-sections describe the defaults data.
5.1 Technology Characteristics and Costs

The default technology characteristics and project costs in EGSI are based on the Updated
Capital Cost Estimates for Electricity Generation Plants report, Energy Information
Administration (EIA 2010) and use the energy prices and plant operation days per year from the
Congressional Research Service report to Congress, “Power Plants: Characteristics and Costs,”
(Kaplan 2008).
Default data follow the common boundary approach. The use of common boundary for costing
is important in order to make coherent project comparisons. For this reason the capital costs
and O&M costs are carefully defined and disaggregated in order to allow more accurate
comparability. If your goal is to compare several projects, be sure to define a common boundary
so that the final comparisons are reliable (EIA 2010, pp.2).
When the user selects default on the Project Data sheet, the default values fill the default
column for the first half of the Project Data sheet. In the bottom half of the Project Data sheet,
default values for the bordered cells also appear. It is important, if the user chooses to evaluate
a project with default values, that the user deletes any values entered in the shaded cells on the
Project Data sheet. Otherwise the cost/kW column and the percentage of total cost column will
be calculated incorrectly. When the user selects default all the indicators appear in the SI
(Sustainability Index) tab as well as the Project Data sheet.
Default cost estimates are in 2010 fourth quarter dollars and based on the EIA Updated Capital
Cost Estimates of Electricity Generation Plants report (EIA 2010). The energy prices and plant
operating hours per year are from the Congressional Research Service report named Power
Plants: Characteristics and Costs (Kaplan 2008). The EGSI default values incorporate regional
adjustments for Henry County. The regional adjustment factor considers variability in:
1. Construction costs,
2. The structure of wholesale power markets that affect financing costs,
3. The length of time required to bring each type of plant into service, and
4. The availability capacity solar and wind generation plants (EIA 2010).
The Updated Capital Cost Estimates for Electricity Generation Plants report (EIA 2010) provides
the total values for all the technologies in EGSI associated with the following accounts:
1. Capital Cost
a. Civil and Structural Material and Installation
b. Mechanical Equipment Supply and Installation
c. Electrical/I&C Supply and Installation
d. Project Indirects
e. Fee and Contingency
f. Owner's Costs (excluding project finance)
2. O&M Expenses
a. Fixed O&M Expense
b. Variable O&M Expense
Since the costs presented by the EIA report are aggregated to these categories and not detailed
further, EGSI disaggregates the categories according to the detailed default accounts provided
under each encompassing category in the Project Data sheet. Hence, EGSI default results are
based on the assumption that the default project incorporates all the inputs available within each
encompassing category that the Project Data sheet presents, and splits the total costs provided
by the Updated Capital Cost Estimates for Electricity Generation Plants report in an average
way for all the input accounts. As a result, EGSI default distribution of the total capital and O&M
costs in the specific accounts probably differs substantially from the distribution of an actually
project, so EGSI default indicators should be interpreted as an initial approximation. For more
accurate results the investor should provide his or her own project technology characteristics
and costs distribution.
Table 1 presents the default technology characteristics and main associated plant costs. For
further details, please consult the Updated Capital Cost Estimates for Electricity Generation
Plants report, Energy Information Agency (EIA 2010).
Table 1: Default Technology Characteristics and Main Costs
Plant Characteristics Plant Costs

Variable
Nominal Overnight Fixed O&M O&M Cost
Capacity Heat Rate Capital Cost Cost (2010
(kilowatts) (Btu/kWh) (2010 $/kW) (2010$/kW) $/MWh)
Coal
Advanced PC 650,000 8,800 $3,167 $35.97 $4.25
Advanced PC with CCS 650,000 12,000 $5,099 $76.62 $9.05
Natural Gas
Conventional NGCC 540,000 7,050 $978 $14.39 $3.43
Advanced NGCC 400,000 6,430 $1,003 $14.62 $3.11
Advanced NGCC with CCS 340,000 7,525 $2,060 $30.25 $6.45
Wind
Onshore Wind 100,000 N/A $2,438 $28.07 $0.00
Solar
Solar Thermal 100,000 N/A $4,692 $64.00 $0.00
Small Photovoltaic 7,000 N/A $6,050 $26.04 $0.00
Large Photovoltaic 150,000 N/A $4,755 $16.70 $0.00
Biomass
Biomass CC 20,000 12,350 $7,894 $338.79 $16.64
Biomass BFB 50,000 13,500 $3,860 $100.50 $5.00
Source: Updated Capital Cost estimates for Electricity Generation Plants report (EIA 2010)
The default greenhouse gas emissions (SO2, NOx, and CO2) for each technology are based on
the assumption that the project implements the best available control technology (BACT). With
respect to carbon capture sequestration (CCS) technologies, which are not currently considered
proven or BACT by regulating bodies, EGSI assumes capture and sequestration technologies
that are currently in development for large-scale deployment, and at industry expected rates of
CO2 removal (i.e., 90 percent).
The technological characteristics of the default EGSI coefficients of each energy source and
power plant category are detailed below. For larger images of the process flow diagrams, see
appendix A.
Coal
Advanced Pulverized Coal (APC)
“The Advanced Pulverized Coal Facility is a nominal 650MW coal-fired supercritical steam-
electric generating unit built in a greenfield location. This unit employs a supercritical Rankine
power cycle in which coal is burned to produce steam in a boiler, and is expanded through a
turbine to produce electric power. The steam is then condensed and the condensate liquid
pumped back to the boiler; the boiler feedwater is converted to steam once again to complete
the Rakine power cycle” (EIA 2010 pp.4-1). Figure 7 presents a flow diagram of the advanced
pulverized coal plant process. All the technologies flow diagrams are presented in a higher view
scale at appendix A.
Source: Updated Capital Cost estimates for Electricity Generation Plants report (EIA 2010 4-1)
Figure 7: Advanced Pulverized Coal process flow diagram.
Advanced Pulverized Coal with Carbon Capture Sequestration (APC/CCS)

The plant configuration for the APC with CCS facility is the same as the APC case with two
exceptions: a) an amine scrubbing system, utilizing monoethanolamine as a solvent, to capture
CO2 from the flue gas, and b) the scaling of the boiler to a larger size (EIA 2010, pp. 4-2).
Source: Updated Capital Cost estimates for Electricity Generation Plants report (EIA, 2010 pp4-2).
Figure 8: Advanced Pulverized Coal with Carbon Capture Sequestration (APC/CCS) process
flow diagram
Natural Gas
Conventional Natural Gas Combined Cycle (NGCC)

“The facility utilizes two natural gas-fueled F-class combustion turbines and associated electric
generators, two supplemental-fired heat recovery steam generators, and one condensing steam
turbine and associated electric generator operating in combined-cycle model” (EIA 2010 pp.5-
2).
Figure 9: Conventional Natural Gas Combined Cycle (NGCC) process flow diagram
Advanced Generation Natural Gas Combined Cycle (AG-NGCC)

“The Advanced Generation design is the same as the Conventional NGCC, except H-class
combustion turbines are utilized in lieu of F-class, and there is only one combustion turbine/heat
recovery steam generator supporting the steam turbine included” (EIA 2010, pp.6-1).
Figure 10: Advanced Generation Natural Gas Combined Cycle (AG-NGCC) process flow
diagram
Advanced Generation Natural Gas Combined Cycle with Carbon Capture Sequestration (AG-
NGCC/CCS)
“The plant configuration for the AG-NGCC/CCS facility is the same as the AG-NGCC facility
with the exception that an amine system based on monoethanolamine as the solvent is included
for CO2 capture from the flue gas. The captured CO2 is compressed to approximately 2,000 psia
(pounds per square inch absolute) for injection into a pipeline at the plant fence line” (EIA 2010
pp. 7-1).
Figure 11: Advanced Generation Natural Gas Combined Cycle with Carbon Capture
Sequestration (AG-NGCC/CCS) process flow diagram
Wind
“The onshore wind facility basis is 100 MW from 67 wind turbine generators, each with a rated
capacity of 1.5 MW. The turbines are each supported by a conical steel tower, which is widest at
the base and tapers in diameter just below the nacelle. A foundation provides the tower with a
firm anchor to the ground. The nacelle is attached to the top of the tower and contains the main
mechanical components of the wind turbine, which include a variable-speed generator,
transmission, and yaw drive. The rotor hub connects to the transmission through one end of the
nacelle, and the rotor is then connected to the hub” (EIA 2010, pp.21-1).
Source: Free net resource.

Figure 12: Wind Energy electricity process flow diagram
Solar
Solar Thermal - Central Station (SO)

“The 100 MW Solar Thermal facility uses a solar concentrating thermal process based on direct
steam, power towers, and heliostat mirror technology. The solar thermal facility incorporates a
Rankine-cycle reheat steam turbine which receives steam from a solar steam generator and a
solar superheater and reheated steam from a solar reheater. The solar steam generator, solar
superheater, and solar reheater are all installed at the top of a tower adjacent to a power block
located at grade. The tower and power block are generally in the center of a heliostat solar field.
The solar energy heats water in the steam generator, superheater and reheat boiler to make
steam that runs the steam turbine. The solar field and power generation equipment are started
up each morning after sunrise and insolation (or light intensity) build-up, and are shut down in
the evening when insolation drops below the level required for keeping the steam turbine online”
(EIA 2010, pp.23-1).
Source: CRS Report, Power Plant Characteristics and Costs

Figure 13: Solar Thermal - Central Station (SO) flow diagram
Photovoltaic - Central Station (PV)

“A 7 MW photovoltaic facility uses several ground-mounted, fixed-tilt semiconductor panels in an
array to directly convert incident solar radiation in the form of photons into DC electricity, which
can then be inverted to AC. Additional balance-of-plant components include metal racks and
foundations to support fixed panels and keep them aligned at the current angle, a DC-to-AC
inverter, AC and DC wiring, combiner boxes where individual strings of panels are connected
prior to being fed into the inverter, and a control system to control and monitor output by
adjusting the balance of voltage and current to yield maximum power” (EIA 2010, pp.24-1).
A 150 MW photovoltaic facility is essentially a significant modular expansion of the 7 MW

facility.

Figure 14: Photovoltaic - Central Station (PV) process flow diagram
Biomass
Biomass Combined Cycle (BCC)
“The biomass combined-cycle facility utilizes approximately 500 tons per day of wood (at 25
percent of moisture), or 37- dry tons per day for the production of 20 MW net of electricity. The
facility consists of a biomass gasification system for the conversion of the wood to syngas, a
clean-up system for the syngas, and a combined-cycle plant using the syngas as fuel” (EIA
2010, pp.13-1).

Figure 15: Biomass Combined Cycle (BCC) process flow diagram
Biomass Bubbling Fluidized Bed (BBFB)

“The Biomass Bubbling Fluidized Bed facility utilized approximately 2,000 tons per day of wood
(at 50% maximum moisture) for the production of 50MW net of electricity. The BBFB facility
consists of a BFB boiler, which will flow to the steam turbine generator. Steam leaving the
turbine will be totally condensed in a shell and tube surface condenser. The liquid will be
pumped from the 'hotwell' of the condenser through a series of feedwater heaters for purposes
of pre-heating the water with steam turbine extraction steam. The combination of feedwater
heating and waste heat flowing through the economizer is included to improve cycle efficiency”
(EIA 2010, pp.14-1).
Source: Updated Capital Cost estimates for Electricity Generation Plants report (EIA, 2010 14-1).
Figure 16: Biomass Bubbling Fluidized Bed (BBFB) process flow diagram
5.2. Location Characteristics Data

Location characteristics data are retrieved from several sources depending on the energy and
technology being analyzed. The following paragraphs explain location characteristics of each
energy/feed type.
Coal and Natural Gas

Coal and natural gas location characteristics are based on the State Energy Profiles report of
the EIA that indicates the county location of coal and natural gas plants with capacity over
100MW (last updated November 2009) (EIA 2009).
Wind
Annual county average wind speed at 30 meters above ground level (small turbines of up to 50
kW, on-farm or residential use) and at 70 meters above ground level (large utility-scale wind
turbines of 750 KW or 2MW) comes from the Missouri Department of Natural Resources
(Missouri Department of Natural Resources 2011). Information about the process to calculate
the average region wind power given your technology can be found at
http://windpower.generatorguide.net/wind-speed-power.html (Wind 2011).
Solar
Monthly county solar characteristics data comes from the National Renewable Energy
Laboratory (NREL). Information can be found at: http://www.nrel.gov/ (NREL 2011).
Information needed to estimate annual average county solar power given your technology can
be found at: http://www.countrysidemag.com/issues/91/91-3/Rex_A_Ewing.html (Countryside
2011)
Biomass
Biomass county specific data, as explained in section 6.4, are available from two main sources:
a) National Agricultural Statistical Service (NASS) on line at http://www.nass.usda.gov/,
(National Agricultural Statistical Service 2011) and b) U.S. Forest Service, online at
http://srsfia2.fs.fed.us/php/tpo2/tpo.php (U.S. Forest Service 2011).
5.3. Life Cycle Analysis Data

Life cycle analysis data comes from the Carnegie Mellon project, Economic Input-Output Life
Cycle Assessment (EIOLCA). EGSI coefficients come from a model based on producers' prices
for 2002. EOILCA accounts were linked to IMPLAN data accounts in order to make them
compatible. It is important to remember that EGSI life cycle indicators are based on the total
capital and O&M costs from the EIA Updated Capital Cost Estimates for Electricity Generation
Plants report, but the distribution of these total costs to the specific accounts of the Project Data
tab are based reflect average conditions. Hence, the cost distribution is generally not
representative of an actual project and the LCA impacts should be interpreted as an
approximation. For more accurate LCA impacts the investor project characteristics should be
introduced into the EGSI tool. More information about this source can be found at:
http://www.eiolca.net/ (Mellon).
5.4 Economic and Social Impacts Data

EGSI economic multipliers and effects are derived from the IMPLAN system. Specifically, they
are based on purchaser-price values from 2007 Missouri data. It is important to remember that
EGSI economic indicators are based on the total capital and O&M costs from the EIA Updated
Capital Cost Estimates for Electricity Generation Plants report, but the distribution of these total
costs to the specific accounts of the Project Data tab are based on average cases. Hence, the
cost distribution is not representative of an actual project and the economic impacts should be
interpreted as an approximation. For more accurate economic impact estimates the investor
project characteristics shouldbe introduced into the EGSI tool.
More information about the IMPLAN system can be found at: http://implan.com/V4/Index.php
(IMPLAN Systems 2011).
EGSI default social impacts for renewable energy sources are obtained from Evans et al. study
(Evans et al. 2009)
5.5 Financial and Efficiency Evaluation Data

The default price of electricity used in the tool is the national wholesale price of $2.83 cents per
kWh. This value is based on the average 2007 electricity wholesale prices from the U.S. Electric
Power Industry Wholesale Prices and NYMEX Futures Data (EIA 2011). Local prices will
generally be different. In some cases, small generators will receive retail prices.
6 Biomass EGSI tool

The EGSI biomass tool allows you to estimate the minimum bio-fuel, transportation, ash
disposal and handling costs required based on the electrical generation required and the
biomass resources in Missouri.
6.1 Installing Biomass EGSI Solver Tool

Installing the EGSI solver tool on your computer is necessary if you plan to estimate the
minimum costs related to the inputs, transportation, ash disposal and handling requirements of
your production plan. If you have reasonable estimates of such costs, then you don't need to
estimate them again.
In order to run the biomass EGSI solver tool you will need to have a Microsoft Excel version XP,
2002, or newer. You will need to install or have someone install the Solver Add-in which is not
installed in a typical (or default) installation of Excel. This add-in is available on the MS Office
CD. Install the Solver Add-in as follows:
1. Be sure you have a copy of your MS Office CD.

2. Open your Excel program.

3. Click on the Microsoft Office Icon at the top left corner.
4. Click on the Excel Options on the right bottom corner.
5. Click on Add-ins.
6. Click Solver Add-in and click OK (this activates the Solver Add-in).
The biomass EGSI tool starts on the Biomass Assumptions page and ends on the Fuel Data
page. If this is the first time you have used this spreadsheet, read Section 6.2 for a brief tour of
the biomass EGSI spreadsheets. If you are familiar with the layout of biomass EGSI
spreadsheets skip section 6.2 and go to section 6.3.
6.2 A Brief Tour of the Biomass EGSI tool

This section provides an overview of the biomass EGSI tool. If the EGSI tool is on your
computer, you may want to open it and follow along.
When you first open the biomass EGSI tool, the values already presented in the spreadsheets
represent default levels for most general variables (prices, energy contents of fuels, etc.). The
default values are zero for locally specific variables such as crop production and distances,
which you will later fill in. Your first step is to save the workbook on one of the drives on your
computer. For example, you can create a subfolder in your My Documents folder entitled EGSI
tool, or a similar title.
At the bottom of the screen you will see a horizontal list of green tabs with the names of the five
sheets that make up the biomass EGSI tool and two sheets that make the biomass
sustainability index estimation (the other energy sources just have the two last sheets; each
energy source has a different color tab assigned). From left to right the biomass EGSI related
sheets are:
 Biomass Assumptions
 Scenario Summary
 Fuel Cost Summary
 Optimizer
 Fuel Data
 Biomass Project Data (one sheet for Combined Cycle technology and one sheet for
Bubbling Fluidized Bed technology)
 Biomass SI (Sustainability Index) (one sheet for each technology)
(Depending on the screen resolution and the size of the window you have opened, you may
need to use the horizontal scroll bar below the tabs bar to view all the sheet names.)
The first sheet you should see is the Biomass Assumptions sheet (see Figure 17). This sheet is
designed to print out on a single landscape page. The sheet is divided into three sections. The
first section is the Non-fuel Costs section where you can enter key cost parameters. In the
center is the Bio-Fuel Costs section where you will enter assumptions about the price,
transportation and handling costs, and ash disposal costs for each type of fuel. You will also
enter the moisture content and the percent availability here (the percent availability is the portion
of the total supply of each fuel that the generator can reasonably expect to obtain. In estimating
the percent availability, you can take into account such issues as competing markets for the fuel
and the need to leave some crop residue in the field for erosion control.) In the bottom left, you
will enter miscellaneous data, which the biomass EGSI tool then transforms into the variables
on the bottom right. The blue colored sections of the sheet highlight the values that may be
changed by the user.
Figure 17: Scenario Assumptions sheet
Next click on the tab labeled Scenario Summary (the second tab of the Biomass EGSI). This sheet shows the
minimum-cost fuel mix given the assumptions at the time of the last optimization calculation (this process is
explained more fully in Sections 6.5 and 6.6).
Figure 18: Scenario Summary sheet
The third sheet is the Fuel Cost Summary sheet. This page shows the “delivered and prepared” (ready to be
fed directly in the boiler or conversion device without further processing) costs of each biomass fuel per county
location in dollars per million Btu. Figure 19 shows the Fuel Cost Summary sheet.
Figure 19: Fuel Cost Summary sheet

The fourth sheet (Figure 20) is the Optimizer page. Excel varies the values on this page, subject to
constraints, also on this page, until it finds an optimal solution, the minimum cost for the biomass specified.
The Optimizer page is unprotected, but users should change nothing on it. This sheet must be visible when
the Solver routine is running, in order for the Solver to work properly.
Figure 20: Part of the Optimizer sheet
Fuel data sheet is for data input. The Fuel Data sheet (Figure 21) accepts input (in the shaded cells) and
converts the data into a form usable by the Optimizer. This process is discussed in Section 6.4.
Figure 21: Part of Fuel Data sheet
On some sheets, you will notice small red triangles in the upper right corner of some cells. These triangles
indicate that the cell has a comment, which you can read by hovering your mouse over the cell. The comments
usually explain how the cell is calculated or give instructions on how to get data to enter into a section of the
sheet.
If you are ready to start developing or running scenarios, proceed to Section 6.3.
6.3 Planning a Biomass Electricity Project

Biomass EGSI tool is data-intensive. It needs several different types of data. Some data are general and are
included as default values in the Biomass EGSI tool. Still other data are place-specific and must be entered by
the user before the biomass EGSI tool can be used. Section 6.4 covers the collection and entry of this last
category of data. Section 6.3—this section—describes planning that must be done and the decisions that must
be made before this data can be collected. Values identified in Section 6.3 must be input to the biomass EGSI
tool. The input process is described in Section 6.5.
The planning process consists of the following steps:

1. Choose a biomass power technology.
2. Determine the size of the plant in megawatts and estimate capital costs.
3. Estimate operating and maintenance costs.
4. Choose a maximum haul distance.
5. Determine the counties within this distance (this is your fuel “market shed”).
6. Determine the types of fuel available within the market shed that are compatible with your technology.
7. Determine transportation routes and distances from each county or location to the facility.
8. Organize the fuels and sources into distance categories;this step is used if it is necessary to save
space on the spreadsheet.
9. Make estimates of fuel costs and availability, and of transportation costs
When a detailed plan is in place, you are ready to use the Biomass EGSI tool and use it for analyses. The
following paragraphs explain the planning steps in greater detail.
6.3.1 Technology and Costs

The first step is to choose a technology. In most cases this choice has already been made. Once the decision
on technology is made, you will need to decide on the desired size of the facility, needed investments in
handling facilities, expected operation and maintenance costs, and so forth.
Estimated capital costs should include all new investments made necessary by the project (see Section 2
explanation of capital costs and check the Biomass Project Data tab for guidance about the different types of
related inputs). Existing facilities used in the project should be valued at their next highest use. New and
existing facilities that are shared with other uses should be prorated.
Estimated operating and maintenance costs should include those costs made necessary by the new project.
Operating and maintenance costs on existing facilities should be charged to this project only if they could be
avoided if the project wasn’t undertaken (see Section 2 explanation of operating and maintenance costs and
the Biomass Project Data tab for guidance about the different types of related inputs).
If the investment in biomass power allows you to avoid some other required investment, such as a required
upgrade to a conventional boiler, this cost saving should be estimated so that it can be credited to the project.
6.3.2 Feedstocks
The first step in determining which feedstocks to introduce is to define the “market shed” (supply region) for
biomass feedstocks. One important determinant of market shed is the distance over which fuel may be
transported. Another is transportation mode—truck, rail, or barge—and transportation infrastructure. The
longer the distance over which fuel may be hauled, the more area that can be included in the source area.
Biomass EGSI tool will determine the lowest-cost fuels and sources, so it is best to choose a distance great
enough to include all possible fuel sources. If transportation costs make the distance infeasible, biomass EGSI
tool will confirm this. Since much of the data are organized by county, make a list of all counties within the
market shed.
Some special fuels (poultry litter and building demolition materials, for example) can be hauled exceptionally
long distances if the price is low enough. These should not be used to define the long-term fuel market shed
for things like crop and forest residue, which generally must be drawn from shorter distances.
In some cases, the technology will be chosen, and the facility planned, on the basis of a particular feedstock.
Then it won’t be necessary to define the market shed, and evaluating feedstocks will be unnecessary.
Most projects, however, are likely to be flexible about fuel types and sources. In these cases, the next step is
to determine what kinds of biomass feedstocks are available in the vicinity of the facility and compatible with
your technology. Make a list of these potential fuels. The biomass EGSI tool will determine the feasibility of
each fuel and location, but don't list fuels that are clearly not technically feasible or available, so that you avoid
data collection for these unsuitable materials
The biomass EGSI tool can find a feasible and cost-minimizing fuel mix for a limited number of fuel/location
combinations (less than 200 combinations). For this reason, the biomass EGSI tool has been organized to
work as efficiently as possible by identifying two categories of fuel—ubiquitous fuels and occasional-source
fuels. The model allows a total of 7 ubiquitous fuels at 16 different average distances and 11 occasional fuels
at 7 average distances [3]. To accommodate this structure, you should separate the available fuels into those
that are most commonly available (“ubiquitous”) and those that are available at only a few locations
(“occasional”). The default organization of the biomass EGSI tool includes crop residues and forest harvest
residues in the ubiquitous fuels category and wood processing waste and specialty biomass crops in the
occasional source category, but you can rearrange these fuels if you want by following the rules of Excel
spreadsheet construction.
For fuels in the ubiquitous category, up to 16 average distances from the generation facility should be chosen.
Since most data are at the county level, the easiest and most accurate way to estimate these distances is to
calculate haul distances from the center of each county in the market shed to the facility. If there are fewer than
16 counties in the market shed, then each county may be treated separately. If there are more than 16
counties expected to contribute fuel, then some of those counties at a comparable distance from the facility
should be aggregated into a single distance category and the average distance recalculated.
If a certain fuel type occurs in a limited, contiguous portion of a county, the distance from the center of that
specific area should be used. If a significant part of your fuel supply will come from a single location, such as a
large sawmill, you may wish to use the exact distance to that location for that fuel volume.
Similarly, for occasional fuels, the user should determine which counties will contribute each fuel type. If there
are more than 7 counties, some counties should be aggregated to fit into the 7-category limit.
6.3.3 Costs and Availability of Fuels

The costs of fuels and their availability will be variable and cannot be predicted with certainty, but it is important
to get reasonable estimates of the range over which they will vary. Suppliers should be consulted to determine
the most likely costs and the high and low extremes. These extremes will allow you to do sensitivity analyses
(discussed in Section 6) and to bound the problem.
Estimates should also be made of the percentage of total biomass quantities in the feedstock supply region
that can be procured for power generation. There may be competing, nonfuel, markets for some types of
biomass. For example, crop residues play an important role in soil conservation and soil fertility, and some
available residues must usually be left in the fields. Some farmers will choose not to sell any residues at all. So
only a fraction of actual residues will be available for power generation.
3
These two categories use 7 × 16 = 112 and 11 × 7 =77, or a total of 189 of the 200 variables permitted by the Calculator Add-in.
6.3.4 Ash Disposal Costs

Ash from burnt biomass may not have to be disposed in the same way as coal ash—that is, as landfill.
Disposal of biomass ash is generally less costly. In fact, biomass ash may be a source of revenue. It contains
some crop nutrients and can also be used to condition acid soils. Biomass ash may, therefore, have value as a
soil additive. Potential disposal alternatives and markets should be explored.
6.4 Setting up the biomass EGSI tool for Your Area

This section shows you how to set the biomass EGSI tool for the feedstocks available in counties in your
market shed. You will use data from two prime sources: the U.S. National Agriculture Statistical Service
(NASS) provides data on crop-based fuels and the U.S. Forest Service (FS) provides data on forest harvest
residues on wood processing residues. Data from both services are available on the World Wide Web.
The following instructions explain how to load fuel data into the biomass EGSI tool to find the optimum mix and
sources of feedstocks. If your project will use only a single, dedicated source of solid feedstock, the Optimizer
routine won't be needed and you can go to Section 6.5.
6.4.1 Biomass Resources

Historical Crop and Hay Production Data
Biomass EGSI tool uses estimates of available hay and crop residues to calculate costs of procuring biomass
for feedstocks. Ideally, these estimates of available feedstocks will be based on projected cropping patterns
and yields. You can develop such projections from recent historical data. Historical data on harvested acres,
yields, and total production of major crops by county are available from the National Agricultural Statistical
Service (NASS) on line at http://www.nass.usda.gov/. You can use data from the most recent year, or if this
year is not considered typical, you can use data from some other year, or even take an average of recent
years.
Once at the NASS Web site (see Figure 22), follow this procedure:
1. Click on Quick Stats 1.0 (or the latest available source).
2. Click on the last drop-down box, “State and County Data.” Choose the “County – Crops” option and
click Go.
3. When the next page opens, use the drop-down box under “step  select data items” and choose
the crop of interest. Note that the name of the crop may not precisely match the name used for the
biomass on the EGSI tool spreadsheet. For hay, choose Hay All; for corn stover, choose Corn for
Grain; for sorghum straw, choose Sorghum for Grain; for Wheat Straw, choose Wheat All; for rice
straw, choose Rice All.4 (biomass EGSI tool will automatically convert the crop data to the amount
of crop residue available for fuel.)
4. Under “step  select data practices,” choose the “Total For Crop” option, the last option in that box.
5. Under “step  select years,” select one or more years for which you want data. Averaging 5 to 10
years of production will help avoid over- or underestimating yields on the basis of a single abnormal
year's data. (NASS strives to add the previous fall's data by March 1 of each year.)
6. Under “step  select location,” use the “Primary Location” drop-down box to select the state for
which you need data and click on that state. The page will take a few seconds to refresh itself. After
the page refreshes, use the “Secondary Location” drop-down box and click on the county of
interest. You can select additional counties by using the Control + Enter key combination. Once the
counties are selected, click on the “Add” button. Once again, the page will take a few seconds to
refresh itself.
7. Click the “Get Data” button at the bottom of the page and a new page will open with the requested
data in tabular form (Figure 23). If you are asking for a lot of data—from several counties for several
years, for example—you can use the “Download CSV (Units as separate column within CSV)”
4
The NASS site does note show data for switch grass, hybrid poplar, hybrid willow, bagasse, and poultry litter. If you want to
evaluate these biofuels, contact your county agent for local production information.
button near the bottom of the page to dump the data into an Excel spreadsheet for manipulation
such as developing county average yields for multiyear periods. You can then enter the production
data, in terms of tons, bushels, or hundredweight (CWT) per county into the “Fuel Data” worksheet
of the Calculator.
Figure 22: NASS crop statistics (www.nass.usda.gov/).
Figure 23: NASS data display for All Hay from 2006 - 2008 in Five Missouri Counties.
Forest Harvest Residues and Wood Processing Residues

An important source of information on forest harvest residues and wood processing residues is available on
line from the U.S. Forest Service. The Forest Service site will provide the data you need for the following
biofuels, as listed on the “Fuel Data” page of the EGSI tool workbook (see Section 6.2):
1. Softwood Bark Residue

2. Hardwood Bark Residue
3. Fine Softwood Residue
4. Fine Hardwood Residue
Follow the steps below to find and enter data on local wood residues.
1. Make a list of counties within a reasonable distance from your plant (usually less than 100 miles). This
is your biomass market shed.
2. Go to http://srsfia2.fs.fed.us/php/tpo2/tpo.php (use internet Explorer as your navigator, other navigators
may not be able to pull out the tables).
3. Check the National TPO Reports button and click on Continue. This will take you to a forms page (See
Figure 23).
4. Scroll to the state where your biomass market shed is located. Check the button for Specific Counties.
(If your market shed lies in more than one state, go to just one of them. You'll repeat steps 4 to 14 later
for the other state or states.) (See Figure 25).
5. Scroll down the menu of counties and select a single county on your list.
6. Scroll down the form to the last section and select Table X.10 and then, using the Shift key, also select
Table X.11 (See Figure 26).
7. Click on Continue.
8. A new page will open (titled TPO Reports), containing two tables, X.10 and X.11. Neither table will list
the name of the county selected, since it is designed to report the total of all counties selected in step 5.
But if you have selected only one county, then these data are for that county.
9. The first table (X.10, “Volume of timber removals by State, species group, removals class and source”)
reports forest products including harvesting (logging) residue in thousands of cubic feet (see Figure 27).
10. Record the values in the Logging Residues column for Softwood All Sources and Hardwood All
Sources (listed in the row for either the state or All States, since the values will be the same).
11. Scroll down to the second table (X.11, “Volume of bark and wood residue by type of residue, softwood,
hardwood, and use). This table reports wood processing by-products in thousands of cubic feet (see
Figure 28). From the All by-products column, record Bark Residue Softwood, Bark Residue Hardwood,
Wood Residue (coarse) Softwood, and so on for all six categories (again in thousands of cubic feet). Be
sure to keep softwood values separate from hardwood values, if both are present, because their Btu
content will differ.
12. Switch back to the forms page, scroll up to your state and select a second county.
13. Scroll down to the last section and check to see that Tables X.10 and X.11 are still selected. Click on
Continue.
14. Repeat steps 8 through 13 until you have recorded data for all counties in your chosen fuel market
shed.
15. Forest harvest residues (logging residues) are entered by county, just as crop residues are. Enter data
(in units of thousands of cubic feet) in the Fuel Data sheet of the EGSI tool (cells C4 to D19). Biomass
EGSI tool will combine these values and convert them to tons.
16. Values for wood processing residues are generally smaller than those for forest harvest residues. They
too are entered by county. However, Biomass EGSI tool accepts data for a maximum of seven sources
(distances). If you have data for more than seven counties, exclude very small quantities and/or
combine counties at similar distances so that you have seven or fewer sources. Enter names for these
sources in cells A23 to A29 of the Fuel Data sheet, the average distances from the sources to your plan
in cells B23 to B29, and finally the aggregated data from Table X.11 in cells C23 toH27 of the Biomass
EGSI tool.
Figure 24: U.S. Forest Service, National Total Product Output Reports
Figure 25: U.S. Forest Service, State and Counties Selection

Figure 26: U.S. Forest Service, Table X10 and X11 Selection
Figure 27: Table X.10 in Timber Outline Reports (used to determine logging residue)
Figure 28: Table X.11 in Timber Outline Reports (used to determine wood processing by-products)
Another source of data, in addition to the U.S. Forest Service, is state forestry commissions. Some states may
have data that are more recent or more detailed than the federal data. Check with the Missouri forestry
commission for this information.
Standing Timber Resources

If your project's market shed includes woodlands, a significant portion of your biomass supply could come from
this standing timber resource without causing disruption of existing lumber markets. This is because, in many
areas across the United States, forest stands are in a condition of “excess stock”—that is, too many trees per
acre are causing forest problems ranging from low growth and die-off to increased risk of forest fires. The
excess timber can be removed from many stands in a way that maintains an optimal rate of growth for the
forest after thinning has been done.
Because of the wide variety of forest types and forest stand conditions across the country, a central reference
location for tonnage values per acre isn't available. But users of the biomass EGSI tool can develop legitimate
values so that they can consider this fuel resource by working with state or federal foresters in their project
area. Once you have developed tonnage values for your location, you can use the biomass EGSI tool
characteristic values for forest harvest residue (energy content, alkali, residue, tons per thousand cubic foot,
and so forth), or you can enter more accurate values if they are available from local experts. You can input
average annual tonnage values, by location, in column AN on the Fuel Data sheet. In establishing your
average annual tonnage values, take into account how long it will take local stands to replenish the harvested
timber so that you will have a sustainable rotation of thinning events.
6.4.2 Default Biomass Characteristics

For the primary biomass feedstocks, the biomass EGSI tool comes with default values of energy content
(Btu/dry lb), alkali (lb/MM Btu), ash content, and so forth. You can review the default values on the Fuel Data
sheet under Default Values for Fuels to see if they are appropriate for your project, and you can change them
as necessary. However, in most cases these defaults will be the best available, and in fact one of the goals for
the biomass EGSI tool is to make them available to users.
6.4.3 Other Biomass

If you want to add new types of biomass to the default list, you can easily do so. Or, if you want to conserve
space on the spreadsheet, you can substitute new fuels for those on the default list. When you add or
substitute fuels, follow the checklist below to be certain that all the necessary data are entered into the
biomass EGSI tool.
1. Average annual supply (tons, Centum weight(?), pounds, etc.)
2. Miles from source to facility
3. Transportation cost per mile
4. Energy content (Btu per dry lb)
5. Alkali content (lb/MMBtu)
6. Residue/grain ratio (if applicable) (for cotton stalks, the appropriate ratio would be residue/bale)
7. Pounds per bushel (if applicable)
8. Tons per thousand cubic feet (if applicable)
9. Ash content (percent)
10. Moisture content (percent)[5]
When you add or substitute fuels, be very careful that units have been treated correctly so that errors are not
introduced into the biomass EGSI tool.
6.5 Creating Scenarios and Sensitivity Analyses

At this point the biomass EGSI tool should be completely populated with data on biomass sources and
characteristics, and details about the facility. However, in addition to fuel data you have already entered into
the calculator, as described in Section 6.4, you must provide certain technical data on the Scenario
Assumptions page.
6.5.1 What Are Scenarios and Sensitivity Analyses?

A scenario is a complete and consistent set of assumptions about costs, fuel characteristics, and fuel
availability that, when introduced to a model, will lead to unique set of projections or predictions. A scenario’s
assumptions may be based on known conditions, expected conditions, or extreme (best-case or worst-case)
conditions. When assumptions are based on known conditions, the resulting scenario is an ex post, or after the
fact, calculation of consequences. When the assumptions are based on expected conditions, then the scenario
is a prediction. If the assumptions are extreme, then the scenario is a best-case scenario or worst-case
scenario and the exercise is referred to as sensitivity analysis. Other scenarios, for assumptions between the
extremes, are sometimes referred to as “what if” analyses.
6.5.2 Populating the Biomass Assumptions Page

Non-Fuel Costs
Three different types of cost should now be entered on the Biomass Assumptions page:
Installed capital costs include all those expenditures necessary before the biomass project can be undertaken
(see Section 2 for an explanation of capital costs and check the Biomass Project Data tab for guidance about
the different types of related inputs). Capital cost required for, or which will benefit, non-biomass power
operations should be prorated on the basis of use by the biomass EGSI tool. For example, if a handling facility
is installed that will be used for coal or gas as well as for biofuels, and then the investment attributed to this
project should be prorated on a proportion-of-use basis.
After the plant is operating, it is subject to annual fixed costs (for example, insurance), fuel-related variable
costs, and general variable costs that are not fuel-related (for example, machinery repairs). Operation and
maintenance costs reflect these fixed and variable costs (see Section 2 explanation of operation and
5
The moisture content is on a wet basis, that is, moisture content percent = 100 (lb water)/(lb water + lb dry matter).
maintenance costs and check the Biomass Project Data tab for guidance about the different types of related
inputs).
Bio-Fuel Specific Costs

Biomass-fuel specific costs should only be specified if alternative fuels from various locations will be used to
generate electricity. If your project will use a dedicated source of fuel no information is needed for this section.
These costs include all those per unit (usually per ton) costs of using a particular fuel, such as price per ton,
transportation cost per ton-mile, handling costs per ton, average storage costs per ton per year, and per ton
ash disposal costs. These are the values you were asked to input in Section 6.4.
You may input different values of fuel-specific costs for each feedstock. If you expect prices to change during
the year, use an average value for the price. If the quantity used varies throughout the year, use the weighted
average value for the quantity. You are also asked to estimate the percentage of available biomass you expect
to obtain for fuel. The default value suggested for the value is 25%.
Other Data
Four additional data elements for the Biomass Assumptions page must be provided by your technology
vendor. They are:
1. Maximum gross electrical generation rate
2. Proportion of generation after internal consumption
3. Capacity factor
4. Fuel Btu/hour required
The EGSI tool uses these data to determine the values in the lower right-hand corner of the page: maximum
net generation rate, electricity generated per year, Btu/kWh gross, and Btu/kWh net.
Maximum gross generation rate, in MW units, is the capacity of the boiler per hour before energy is
consumed internally. The proportion of generation after internal consumption accounts for the use of
energy to power the plant itself; it is calculated by dividing net MW generation by gross MW generation, with
the ratio expressed in percent. The capacity factor is the percentage of time you can reasonably expect the
plant to operate, allowing for maintenance. The capacity factor for a plant is partially dependent on the type of
biomass conversion technology chosen. A 15-MW facility that consumes 1 MW internally (93.3% generation
after internal consumption), and has a capacity factor of 91%, would operate 332 days per year and generate
111,600 MWh/year (15 MW × 93.3% × 24 hours/day × 365 days/year × 91%).
Fuel Btu/hour required is the amount of energy required to operate the boiler in order to produce the
maximum gross generation rate. It therefore determines the amount of fuel consumed. The equipment
manufacturer should specify this value.
6.6 Running the Biomass EGSI tool

6.6.1 Finding an Optimum Solution
Once you have entered all scenario data into the Biomass Assumptions sheet, you can calculate an
optimum solution by running the Solver Add-in, following these steps:
1. Go to the Optimizer sheet
2. Click on Data tab, Solver (into the Analysis 'tab') Tools, Solver, Solve. The solver will run for a few
seconds to about a minute (if a window pops up telling you the maximum time limit has been exceed,
click Continue). If the data have been entered correctly, the Solver Results dialog box will come up,
announcing “Solver found a solution. All constraints and optimality conditions have been satisfied.” If
you get this message, go on to step 3. If any other message comes up, an optimal solution has not
been found. In some cases the Solver simply stopped before a solution was found. Repeat step 2. If the
Solver still fails to find a solution, note the error message and go to Section 10, Troubleshooting, to
determine the cause of the problem.
3. In order to view the results of a new scenario on the Scenario Summary page, you must save each new
scenario. If you wish to save this scenario, click “Save Scenario…” on the Solver Results box and
follow instructions. If you do not wish to save the results, click Okay. When you save a new scenario,
the previous scenario values are replaced on the Scenario Summary page.
Note: It is essential that the Solver be run after changes have been made on the Biomass Assumptions sheet.
If you overlook this step, many of the values on the Scenario Summary sheet will change to reflect changes in
costs or revenues, but the fuel mix is probably suboptimal. If you have any doubts about the solution, rerun
Solver to assure that you are working with an optimum mix of fuels.
6.6.2 Printing Results

To print the results of the scenario, go to the Scenario Summary page and click the printer icon on the upper
menu, or click File, Print.
6.7 Interpreting the Scenario Summary Sheet

The biomass EGSI tool uses the data you have entered to calculate part of the variable costs of producing
electricity. It searches over the various fuel stocks and over the locations to find the combination that minimizes
the variable costs.
The biomass EGSI tool then reports the optimal inputs of feedstocks and the various costs in the Scenario
Summary sheet and the Scenario Summary sheet automatically reports the results to the Project Data sheet
that estimates the SI indicators reported. All costs shown in the Scenario Summary sheet are annual in 2010
4th quarter dollars.
6.7.1 Biomass Usage and Costs

The Annual Biomass Usage and Costs table lies within the Scenario Summary sheet. It lists the total amount of
each feedstock and the total cost of the material. Quantities are measured in annual wet or “as received”
tons.[6]
6.7.2 Other Costs

The Other costs table is just below the Biomass Usage and Costs table. This table simply summarizes the
transportation, handling, ash disposal, and operations and maintenance costs assumed in the scenario.
Operations and maintenance cost is equal to that assumed in the Scenario Assumptions sheet. The others are
calculated on the basis of the minimum-cost fuel mix.
6.8 Troubleshooting
6.8.1 Solver Results Messages
If all data have been entered correctly, you should see the message “Solver found a solution” when you run the
biomass EGSI tool. If another message should appear, check the list of error message below to determine
what the problem may be.
Message: “Solver has converged to current solution. All constraints are satisfied.”
Problem: The Solver has not necessarily found an optimum solution. This may indicate that the Solver
parameters are wrong.
Solution: Click on Data, Solver (inside the Analysis 'tab'). Make sure that Assume Linear Model and
Assume Non-Negative boxes are both checked.
Message: “Solver could not find a feasible solution.”
6
The Fuel Cost Summary sheet shows the delivered cost per million BTU for each fuel, from each source, for comparison purposes.
Problem: The Solver has failed to find a solution to the scenario as you have described it. One possibility is
that there is not enough fuel to produce the amount of electricity demanded. Another possibility is that the
constraints are inconsistent; for example, the maximum constraints may be negative, or less than the minimum
constraints.
Solution: Check to see that all data have been entered correctly, that units have been correctly interpreted,
and that some data have not been left out. Or, if the problem is related to insufficient fuel, the Btu produced
(cell K3) will be less than Btu required (cell J3). If these seem correct, check the Solver parameters.
Message: “Set Target Cell must be a single cell on the active sheet.”
Problem: The Solver has been invoked from a sheet other than the Optimizer sheet.
Solution: Open the Optimizer sheet (click on Optimizer tab at the bottom of the screen) and invoke Solver
again.
Message: “Internal Rate of Return = #DIV/0!”

Problem: Capital costs have not been entered on the Scenario Assumptions sheet. Biomass EGSI tool
assumes that some investment is necessary to enable the use of biomass.
Solution: Enter the capital costs for the project. If no capital costs are necessary, ignore the Internal Rate of
Return.
Message: “This document was opened with Macros disabled. If you wish to Enable Macros, you should close
and re-open the document, choosing the ‘Enable Macros’ option.”
Problem: Solver will not work because security level for macro protection is at too high a level.
Solution: See “Changing the Security Level for Macro Virus Protection” below.
6.8.2 Solver Parameters

Unless biomass EGSI tool has been modified in some way, the correct Solver parameters are as follows:
Set Target Cells: $B$3
By Changing Cells: $C$29:$L$35, $C$8:$I$23
Subject to the Constraints: $C$29:$L$35 <= $C$66:$L$72

$C$29:$L$35 >= 0
$C$8:$I$23 <= $C$47:$I$62
$C$8:$I$23 >= 0
$K$37 >= $J$3
6.8.3 Changing the Security Level for Macro Virus Protection

To change your PC’s security setting so that it will allow the Calculator’s macros to run, follow this procedure:
1. On the Tools menu, click Options.
2. Click the Security tab.
3. Under Macro Security, click Macro Security.
4. Click the Security Level tab, and then select the security level you want to use (medium or low).
Appendix: Technologies Process Flow Diagrams
Source: Updated Capital Cost estimates for Electricity Generation Plants report (EIA 2010 4-1)
Figure A1: Advanced Pulverized Coal process flow diagram.
Figure A2: Advanced Pulverized Coal with Carbon Capture Sequestration (APC/CCS) process flow diagram
Figure A3: Conventional Natural Gas Combined Cycle (NGCC) process flow diagram
Figure A4: Advanced Generation Natural Gas Combined Cycle (AG-NGCC) process flow diagram
Figure A5: Advanced Generation Natural Gas Combined Cycle with Carbon Capture Sequestration (AG-
NGCC/CCS) process flow diagram

Figure A6: Wind Energy process flow diagram
Source: CRS Report, Power Plant Characteristics and Costs

Figure A7: Solar Thermal - Central Station (SO) flow diagram

Figure A8: Photovoltaic - Central Station (PV) process flow diagram

Figure A9: Biomass Combined Cycle (BCC) process flow diagram
Figure A10: Biomass Bubbling Fluized Bed (BBFB)process flow diagram

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Electricity Generation Sustainability Index User's Guide

Technical Report · December 2011

Neus Vila-Brunet Thomas Gordon Johnson

SEE PROFILE SEE PROFILE

The user has requested enhancement of the downloaded file.

Neus Vila-Brunet, Thomas G. Johnson and Thomas Marrero

1 INTRODUCTION: A FEASIBILITY AND SUSTAINABILITY ANALYSIS TOOL............................... 5

1.1 What the User’s Guide will tell you .................................................................................................................................................. 6

1.2 First-time Users and Experienced Users .......................................................................................................................................... 7

1.3 Questions and Comments .................................................................................................................................................................. 7

2 INTRODUCING PROJECT DATA ..................................................................................................... 7

2.2 Operation and Maintenance Expenses (O&M) ............................................................................................................................. 12

2.3 Other Parameters............................................................................................................................................................................. 13

2.4 Income ............................................................................................................................................................................................... 13

2.5 Social Indicators ............................................................................................................................................................................... 14

3 SUSTAINABILITY INDICATORS .................................................................................................... 14

3.1 Technology Characteristics ............................................................................................................................................................. 15

3.2 Location Characteristics.................................................................................................................................................................. 16

3.3 Life Cycle Analysis ........................................................................................................................................................................... 16

3.4 Economic and Social Impacts ......................................................................................................................................................... 17

3.5 Financial and Efficiency Evaluation............................................................................................................................................... 18

4 COMPARING PROJECT SUSTAINABILITY INDEX INDICATORS ............................................... 19

4.1 Generation Technology Comparison Ranking .............................................................................................................................. 20

5.1 Technology Characteristics and Costs ........................................................................................................................................... 21

5.2. Location Characteristics Data ....................................................................................................................................................... 28

5.3. Life Cycle Analysis Data................................................................................................................................................................. 28

5.4 Economic and Social Impacts Data ................................................................................................................................................ 29

5.5 Financial and Efficiency Evaluation Data ..................................................................................................................................... 29

6 BIOMASS EGSI TOOL .................................................................................................................... 29

6.1 Installing Biomass EGSI Solver Tool ............................................................................................................................................. 29

6.2 A Brief Tour of the Biomass EGSI tool .......................................................................................................................................... 30

6.3 Planning a Biomass Electricity Project .......................................................................................................................................... 34

6.5 Creating Scenarios and Sensitivity Analyses ................................................................................................................................. 42

6.6 Running the Biomass EGSI tool ..................................................................................................................................................... 43

6.7 Interpreting the Scenario Summary Sheet .................................................................................................................................... 44

6.8 Troubleshooting ............................................................................................................................................................................... 44

APPENDIX: TECHNOLOGIES PROCESS FLOW DIAGRAMS ........................................................ 46

1 Introduction: A Feasibility and Sustainability Analysis Tool

EGSI allows the user to:

The location characteristics evaluation determines input availability and consequently

1.1 What the User’s Guide will tell you

Section 4 describes how to produce project-comparison reports.

1.2 First-time Users and Experienced Users

1.3 Questions and Comments

2 Introducing Project Data

Figure 1: Macros Security Warning

2.1 Capital Costs

2.1.1 Civil Structural Material and Installation

2.1.2 Mechanical Equipment Supply and Installation

2.1.3 Electrical, Instruments &Controls Supply and Installation

2.1.4 Project Indirect Costs

2.1.5 Owner's Costs (excluding project financing costs)

2.2 Operation and Maintenance Expenses (O&M)

2.2.1 Non-fuel Fixed Operating & Maintenance (FOM)

2.2.2 Non-fuel Variable Operating & Maintenance (VOM)

7. Consumable materials and supplies

2.2.3 Fuel Variable Operating & Maintenance

2.3 Other Parameters

2.5 Social Indicators