Energy Efficiency Course at UNI Homework Number 1 Prof. Pritpal Singh Due Date and Time: 5:00p.m.

on Friday June 21, 2013

1 An office building is billed based on the rate structure given in Table 5.3. As a money saving strategy, during the 21 days per month that the office is occupied, it has been decided to shed 10 kW of load for an hour during the period of peak demand in the summer. a. How much energy will be saved (kWh/mo)? b. By what amount will their bill be reduced ($/mo) during those months? c. What is the value of the energy saved in /kWh?

2. Suppose a small business can elect to use either the time-of-use (TOU) rate schedule shown below or the rate structure involving a demand charge. During the peak demand period they use 100 kW of power and 24,000 kWh/month, while off-peak they use 20 kW and 10,000 kWh/month.

a. Which rate schedule would give the lowest bills? b. What would their load factor be (assume a 30-day month)? 3. Better windows for a building adds $3/ft2 of window but saves $0.55/ft2 per year in reduced heating, cooling and lighting costs. With a discount rate of 12%: a. What is the net present value (NPV) of the better windows over a 30-year period with no escalation in the value of the annual savings? b. What is the internal rate of return (IRR) with no escalation rate? c. What is the NPV if the savings escalates at 7%/yr due to fuel savings? d. What is the IRR with that fuel escalation rate? 4. A 30 kW photovoltaic system on a building reduces the peak demand by 25 kW and reduces the annual electricity demand by 60,000 kWh/yr. The PV system costs $135,000 to install, has no

annual maintenance costs, and has an expected lifetime of 30 years. The utility rate structure charges $0.07/kWh and $9/kW per month demand charge. a. What annual savings in utility bills will the PVs deliver? b. What is the internal rate of return on the investment with no escalation in utility rates? c. If the annual savings on utility bills increases 6% per year, what is the IRR? 5. A small, 10-kW wind turbine that costs $15,000 has a capacity factor of 0.25. If it is paid for with a 6-%, 20-year loan, what is the cost of electricity generated (/kWh)? 6. The cost of fuel for a small power plant is currently $10,000 per year. The owners discount rate is 12 percent and fuel is projected to increase at 6% per year over the 30-yr life of the plant. What is the levelized cost of fuel?