Economic & Community Benefits of Heat Recovery. William L Fraser, P.E. Senior Mechanical Engineer Alaska Native Tribal Health Consortium

Transcription

1 Economic & Community Benefits of Heat Recovery William L Fraser, P.E. Senior Mechanical Engineer Alaska Native Tribal Health Consortium

2 Economic & Community Benefits What are we talking about when we say Economic & Community Benefits? What is the nature of the benefits? What is the magnitude of the benefits? Who is actually receiving them? What s the Payback?

3 Definition of Terms Economic Benefit = Amount of money that will be saved or generated as a result of an action Community Benefit = Economic, social, and environmental benefits that accrue to a community There is overlap between these benefits

4 Nature of Recovered Heat Benefits Greenhouse Gas Fossil Fuel Use Economic Activity Healthcare Economic Activity School Operations Economic Activity Local Taxes Utility Rates Better QOL

5 Magnitude of Benefits: ANTHC-DEHE Energy Program Projects- Annual Fuel Savings

6 Direct Fuel Savings by Community (Partial List) Community Present Value of Lifetime Energy Savings Annual Cost Savings Savings (annual gallons of (DCCED fuel price (20 years, 3.5% real cost fuel) report January 2012) increase of fuel) Minto 11,000 $ 55,550 $ 1,698,000 Allakaket 7,300 $ 45,041 $ 1,370,000 Kwigillingok 4,500 $ 29,025 $ 858,200 Goodnews Bay 5,000 $ 26,500 $ 1,732,900 McGrath 6,000 $ 44,820 $ 1,319,200 Savoonga 9,000 $ 50,490 $ 1,477,200 Selawik 11,875 $ 73,268 $ 2,157,000 Shungnak* 10,400 $ 64,168 $ 1,889,400 Ambler* 10,300 $ 63,551 $ 1,871,200 Sleetmute 2,068 $ 15,199 $ 450,000 Russian Mission 2,200 $ 12,650 $ 375,500 Stebbins 57,000 $399,570 $11,830,000 Toksook Bay* 4,800 $35,000 $1,038,000 Deering* 8,000 $46,846 $1,387,000 Totals 136,643 gal $ 961,740 $ 29,453,000 DCCED Fuel Price can be significantly different than fuel price paid by the community

7 Who is getting Heat Recovery? 64% Water Utilities & Washeterias 26% Schools 6% Clinics 2% Community Government Buildings 2% Other Buildings* * Businesses

8 Local Impact on Piped water Service

9 Local Impact on Water Rates The poorest Alaskan households spend up to 47% of their income on energy, more than five times their urban neighbors. - Commonwealth North 2012 Energy needs comprise 30 to 60 percent of a community s water system operating costs and up to 30 percent of a community s total energy. Typical direct savings from recovered heat are $20-$80 / per household per month. Alaska Rural Utility Cooperative

10 Village Impact on Electrical Rates On large HR systems (eg Stebbins) the HR surcharge reduces electrical production cost for the community, and can lead to lower electrical rates.

11 Village Economic Impact Village economic impact is mostly from reduced water & sewer rates, clinic and tribal government fuel savings. City Clincs Water Business Direct effect: $962,000 * (64% + 2% +6.3% +1.5%) = $712,000 Multiplier Effect: $712,000 * 0.18 = $128,000 Total Benefit = $840,000 / year & 0.5 jobs * Understanding Alaska s Remote Rural Economy by Scott Goldsmith Jan 2008

12 Village Community Benefit: Better Health from affordable piped water service Infants in villages with limited water service have 5x more hospitalization for Lower Respiratory Tract Infection (LRTI) In villages with the lowest level of water service, about 1 in 3 infants are hospitalized each year for LRTI Infants in villages with limited water service have 11x more hospitalization for pneumonia compared to the U.S. population Hennessy TW, Ritter T, Holman R, et al. The Relationship Between In-Home Water Service and the Risk of Respiratory Tract, Skin and Gastrointestinal Tract Infections Among Rural Alaska Natives. American Journal of Public Health 2008;98:

13 Hospitalization rates for infants according to water service in village of residence < 10% 10-79% >= 80% Largest Town LRTI** Pneumonia** RSV* RSV Pneumonia *P=.08 for trend **P=.05 for trend Source: Hennessy et. al., 2008

14 Village Economic & Community Benefits: More money for travel to school competitions Lower Utilites Better Health

15 State Economic Benefit Direct state benefit is from School fuel savings. Direct effect is $962,000 * (26%) = $250,000 Multiplier Effect: $366,000 Total Benefit = $616,000 / year 3.5 Jobs Job numbers are fuzzy... * Understanding Alaska s Remote Rural Economy by Scott Goldsmith Jan 2008 Division Name: Department Name #

16 US Economic Benefit The Economic Multiplier for United States is ~1.5* Some jobs will be lost from reduced fuel consumption and reduced healthcare expenditures Some jobs will be gained from increased sales Primary benefit is shifting expenditures from healthcare and fuel production to other productive activities. * IMF Working Paper Fiscal Multipliers and the State of the Economy 2012

17 United States Economic Benefit: Medical Care Cost savings Piped water may cut clinic visits for LRTIs by half Piped water may reduce hospital visits for LRTIs by a third In communities with piped water & sewer, preliminary data suggests ~$2,200 saved annually per child in direct health care expenditures alone. Institute of Social and Economic Research, Preliminary data, 2009

18 World Benefit: Greenhouse Gas Reduction Crude Oil Savings = CO2 emission reduction = Sulphur Dioxide Reduction = Nitrogen Oxide Reduction = 574,000 gallons / year 1516 Tons / Year Tons / Year 5.84 Tons / Year

19 Payback on Recovered Heat Heat recovery systems typically have a direct payback in fuel savings between 2 and 10 years. Factors influencing payback are: Distance between Power plant and User Amount of available recovered heat Condition of power plant and user s system Quality of recovered heat needed.

20 Recovered Heat Benefits Greenhouse Gas Fossil Fuel Use Economic Activity Healthcare savings Economic Activity School Operations Economic Activity Jobs Lower Taxes Lower Utility Rates Better Q.O.L.