Martin Kokonya ENERGY PROJECTS IDENTIICATION AND ANALYSIS TOOLS ADB FINESSE Training Course on Renewable Energy and Energy Efficiency for Poverty Reduction 19 th – 23 rd June 2006, Nairobi-Kenya

Martin Kokonya Overview

Martin Kokonya Introduce participants to project identification and analysis tools Compare the analysis tools Introduce RETScreen Project Identification and Analysis software tool Objectives

Martin Kokonya Two Part Presentation Introduction to project analysis tools RETScreen Project analysis software tool Topics

Martin Kokonya Part 1 - Introduction to Project Identification and Analysis Tools Project identification and analysis tools Examples Spreadsheet based tools Comparison of spreadsheet based tools Spreadsheet based tools - Advantages and disadvantages Topics - Part 1

Martin Kokonya Part 2 - Introduction to RETScreen Software Background Areas of Application Download Overview of RETScreen Worksheets Available Features and their use Colour coding Basic Operation of RETScreen Topics - Part 2

Martin Kokonya Part 1 Introduction to Project Identification & Analysis Tools

Martin Kokonya Introduction Energy projects assessment The need for analysis tools Introduction PART 1 Tools Examples Comparison of Spreadsheet Based Tools Advantages of Spreadsheet Based Tools Disadvantage of Spreadsheet Based Tools Tool Selection Criteria Spreadsheet Based Tools

Martin Kokonya Introduction PART 1 Tools Examples Comparison of Spreadsheet Based Tools Advantages of Spreadsheet Based Tools Disadvantage of Spreadsheet Based Tools Tool Selection Criteria Energy projects assessment The need for analysis tools Spreadsheet Based Tools

Martin Kokonya Tools - Examples Introduction PART 1 Tool Examples Comparison of Spreadsheet Based Tools Advantages of Spreadsheet Based Tools Disadvantage of Spreadsheet Based Tools Tool Selection Criteria Spreadsheet Based Tools

Martin Kokonya Spreadsheet Based Tools Introduction PART 1 Tool Examples Comparison of Spreadsheet Based Tools Advantages of Spreadsheet Based Tools Disadvantage of Spreadsheet Based Tools Tool Selection Criteria Spreadsheet Based Tools

Martin Kokonya Spreadsheet Tools - A Comparison Features Requirements (cost, training etc.) Level of Knowledge required Introduction PART 1 Tool Examples Comparison of Spreadsheet Based Tools Advantages of Spreadsheet Based Tools Disadvantage of Spreadsheet Based Tools Tool Selection Criteria Spreadsheet Based Tools

Martin Kokonya Spreadsheet Tools - Advantages Ease of use Require little training Universal availability Relatively cheap Easy to use graphical feature Introduction PART 1 Tool Examples Comparison of Spreadsheet Based Tools Advantages of Spreadsheet Based Tools Disadvantage of Spreadsheet Based Tools Tool Selection Criteria Spreadsheet Based Tools

Martin Kokonya Spreadsheet Tools - Disadvantages Some models/algorithms can be implemented through spreadsheets Upper limit on number of rows Does not support calculation of more advanced statistics/analysis Limited search and retrieval features Limited visualization features Data sharing problems Data validation Difficult to relate different data sets, hence need for duplication Introduction PART 1 Tool Examples Comparison of Spreadsheet Based Tools Advantages of Spreadsheet Based Tools Disadvantage of Spreadsheet Based Tools Tool Selection Criteria Spreadsheet Based Tools

Martin Kokonya Tool Selection Criteria Functionality -Range of class of problems supported Functionality -Range of technologies supported Functionality - Models supported Functionality - Outputs Functionality - Inputs Stage of development Usage Interface to databases, GIS, visualization tools etc. Documentation On-going support Ease of us Introduction PART 1 Tool Examples Comparison of Spreadsheet Based Tools Advantages of Spreadsheet Based Tools Disadvantage of Spreadsheet Based Tools Tool Selection Criteria Spreadsheet Based Tools

Martin Kokonya Part 2 Introduction to RETScreen

Martin Kokonya RETScren - Background Leading software for assessing viability of renewable energy technologies and projects Started in 1996 Developed by Natural Resources Canada (Nrcan) in collaboration with UNEP, NASA and Worldbank Over 70,000 users in 211 countries Background PART 2 Areas of Application Overview Basic Operation Benefits Availability

Martin Kokonya RETScren - Background -components Standardized project analysis software Product, cost and international weather databases Online manual Case studies etextbook Background PART 2 Areas of Application Overview Basic Operation Benefits Availability

Martin Kokonya Areas of Application Used for analysis of different types of energy efficient and renewable technologies (RETS) covering: Energy production Life-cycle costs Greenhouse gas emission reductions Background PART 2 Areas of Application Overview Basic Operation Benefits Availability

Martin Kokonya Areas of Application - Technologies Background PART 2 Areas of Application Overview Basic Operation Can be applied to industrial, commercial, institutional, community, residential and utilities for the following technologies Benefits Availability

Martin Kokonya Availability Background PART 2 Areas of Application Overview Basic Operation Benefits Availability

Martin Kokonya Availability - Where to Get it Background PART 2 Areas of Application Availability Overview Basic Operation Where to Get It How to Down Load It How to Install It Free-of-Charge for download Available at RETScreen website ( Benefits

Martin Kokonya Availability - How to Download it Background PART 2 Areas of Application Overview Basic Operation Where to Get It How to Down Load It How to Install It Go to RETScreen website ( Select link for Software and data or download free A page listing the models that can be download will appear Select model of interest, e.g. Wind energy A page will appear with download message at the bottom Click on download bottom to login (for registered users) or to register before download begins Benefits Availability

Martin Kokonya Availability - Installation Background PART 2 Areas of Application Availability Basic Operation Where to Get It How to Down Load It How to Install It Open the download file on your computer Follow on-screen installation instructions Do not change directory names set by RETScreen installer program Do not change file organization set by RETScreen installer program Do not move the RETScreen program file and other files in the “Program” directory Benefits Overview

Martin Kokonya RETScreen - An Overview Background PART 2 Areas of Application Overview Basic Operation Benefits Availability

Martin Kokonya RETScreen Overview - Worksheets Background PART 2 Areas of Application Availability Overview Basic Operation Worksheets Available Features Colour Coding 1. Energy Model 2. Cost Analysis 3. GHG Analysis 4. Financial Summary 5. Sensitivity & Risk Analysis Benefits

Martin Kokonya RETScreen Overview - Worksheets Background PART 2 Areas of Application Availability Overview Basic Operation Worksheets Available Features Colour Coding Energy Worksheets INPUTS  Location of Energy project  Type of system used in the base case  Technology to be used  Renewable energy source (for RETS)  Loads (where applicable) OUTPUTS  Annual energy production or saving Benefits

Martin Kokonya RETScreen Overview - Worksheets Background PART 2 Areas of Application Availability Overview Basic Operation Worksheets Available Features Colour Coding Cost Analysis INPUTS  Initial, annual & periodic costs for proposed system  Credits for any based case costs that are avoided OUTPUTS, Either  Pre-feasibility analysis or  Feasibility analysis Benefits

Martin Kokonya RETScreen Overview - Worksheets Background PART 2 Areas of Application Overview Basic Operation Worksheets Available Features Colour Coding GHG Emission Reduction Model Determines annual reduction in the emission of GHG because of use of proposed technology instead of base technology Benefits Availability

Martin Kokonya RETScreen Overview - Worksheets Background PART 2 Areas of Application Overview Basic Operation Worksheets Available Features Colour Coding Benefits Financial Summary INPUTS  Avoided cost of energy  Production credits  GHG emission reduction credits  Inflation, discount rates, taxes OUTPUTS, Either  Financial indicators, e.g.NPV to evaluate financial viability  Cumulative cash flow Availability

Martin Kokonya RETScreen Overview - Worksheets Background PART 2 Areas of Application Availability Overview Basic Operation Worksheets Available Features Colour Coding Sensitivity & Risk Analysis Model Determines how uncertainty in various estimates of various key parameters may affect the financial viability of the project. Can perform either sensitivity analysis or risk analysis or both. Benefits

Martin Kokonya RETScreen Overview - Features (Recap) Background PART 2 Areas of Application Availability Overview Basic Operation Worksheets Available Features Colour Coding Product Data Weather Data Cost Data Unit options Currency options Benefits

Martin Kokonya RETScreen Overview -Features (Recap) Background PART 2 Areas of Application Availability Overview Basic Operation Worksheets Available Features Colour Coding Inputs Site location information Renewable resources condition Equipment specification Avoided cost Financing type Interest rates, project life, taxes Incentives Benefits

Martin Kokonya RETScreen Overview - Features (recap) Background PART 2 Areas of Application Availability Overview Basic Operation Worksheets Available Features Colour Coding Outputs Energy production Financial savings GHG emission reductions ROI, NPV etc. Life-cycle cost Cashflow analysis Benefits

Martin Kokonya RETScreen Overview - Cell Colour Coding Background PART 2 Areas of Application Overview Basic Operation Worksheets Available Features Colour Coding The RETScreen cell colour coding scheme Benefits Availability

Martin Kokonya RETScreen - Operation Background PART 2 Areas of Application Availability Overview Basic Operation Benefits

Martin Kokonya RETScreen Operation - Getting Started Background PART 2 Areas of Application Availability Overview Basic Operation Getting Started Saving a File Printing On the Windows desktop, go to start Select All programs, then RETScreen International Select one of the two icons (not the RETScreen website) RETScreen International start screen will appear Click on “Click Here to Start” button to Benefits

Martin Kokonya RETScreen Operation - Saving a File Background PART 2 Areas of Application Availability Overview Basic Operation Getting Started Saving a File Printing Use standard Excel procedure Original Excel Workbook file foe each RETScreen model should not be saved under its original distribution name Use”File, Save As” option to avoid overwriting the master File can saved on different media (Hard disk, diskette, flush disk etc.) Recommended to save files in “MYFiles” directory automatically set by the RETScreen installer program Benefits

Martin Kokonya RETScreen Operation - Printing Background PART 2 Areas of Application Overview Basic Operation Getting Started Saving a File Printing Use standard Excel Printing Procedure Wookbooks formatted for standard “letter size” and 600dpi printing quality Set the right print quality through “File, Page Setup, Page Print Quality” then select the proper dpi rating for the printer " Benefits Availability

Martin Kokonya RETScreen - Benefits Background PART 2 Areas of Application Overview Basic Operation Reduces the cost of pre-feasibility and feasibility Reduces subjectivity in project assessment Standardized Wide range of analysis models for different technologies Simple to use Worldwide usage Minimal hardware requirements Free of charge Well supported Benefits Availability

Martin Kokonya End