Step 8 Summary of Findings

Upon completion of the preliminary screening process, a summary table should be developed for each application opportunity. Generally, the table will include estimated capital costs and rebates, which will yield net capital costs, and estimated costs and savings for energy, OM&R, and other resource, which will yield net savings. From the net capital costs and savings figures, simple pay backs can be computed for each project opportunity.

Given the fast changing energy market, it is often useful to construct two sets of preliminary economic performance values: the first based on current conditions and energy supply costs and the second on rudimentary consideration of measure interactivity and future energy supply costs. The two sets of values will establish a range from which each opportunity can be judged.

Based on the results of the economic performance screening process, measure recommendations can be categorized as:

• Likely — appears to be desirable from an economic and practical standpoint and has been generally well received

• Marginal — may be deficient in one of the criteria categories, but is strong in the others

• Rejected — has had initial interest and support, but will clearly not pass one or more of the critical tests for implementation

This summary will be the tool used in final discussions with the host facility prior to determining the proposed portfolio of measures. The facility may have overriding interest to accept or reject individual measures in the recommendations. At this point, it is important to eliminate projects that fail preliminary screening in order to reduce the cost and time associated with the detailed study phase of the process. Application opportunities that are ranked as marginal can be further scrutinized with an additional round of screening in an effort to re-categorize them as either likely or rejected.

Once estimated energy savings, system life, construction costs and utility rebates, and energy price sensitivities are established, simplified life-cycle analyses will be performed as the final economic screening in the preliminary study phase. These financial analysis techniques are discussed in Chapter 42.

Guide to Alternative Fuels

Guide to Alternative Fuels

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