Feasibility Study Template

Geothermal Heating Systems

Electric Sector Customers

DO NOT SUBMIT THIS PAGE WITH COMPLETED STUDY

OVERVIEW

The Feasibility Study Templateis to be used as a guide when preparing a feasibility study report forElectric Sectorbuilding ownersconsidering one or more geothermal sizing options for their existing building, new building or addition. Note that the economics of geothermal systems typically improves for smaller base loaded systems. Systems sized to meet 70% of design heat loss cost less, but can still be expected to provide about 95% of the building base load heating energy needs if ground heat exchangers are adequately sized.

Feasibility studies are not required for Electric Sector customers but are recommended for customers heating with fuel oil or propane.

Existing buildings currently heated by natural gas are not eligible for Feasibility Study Assistance or a System Installation Incentive.

Customers opting to perform the study andapply for feasibility study assistancemust use the following Feasibility Study Template as a minimum in order to minimize review/approval time by Manitoba Hydro.

Electric Sector Participants may be eligible for incentives through the Commercial Geothermal Program. Heating Load Eligibility for Incentives is described in Appendix 1 - Geothermal Project Requirements. Please reference this document when segmenting the loads to complete the tables containing “eligible and ineligible loads”.

INSTRUCTIONS

The feasibility study author must use this template as a minimum and may modify it as required to provide more information (but not less) to meet the requirements of their specific project.

Blue text in brackets and/or italics shaded in grey [Example] indicates instructions to follow or specify text to customize. “XXXX” are placeholders for values. Please replace and/or delete these instructions prior to providing a finalized report to the customer and Manitoba Hydro.

Please follow the format outlined in the document below. Any substantial omissions or deviations from the information/format requested in this template may result in a feasibility study not being accepted by Manitoba Hydro’s Commercial Geothermal Program.

QUESTIONS

If you have any questions/concerns regarding the completion of this feasibility study, please contact:

Denton Vandersteen, P.Eng.

Senior Commercial Systems Engineer - Manitoba Hydro

Telephone: (204) 360-3803

Geothermal Heating System Feasibility Study for

Building Name and Function

Prepared by:

[Consultant Name, Company]

[Include company logo]

Prepared for:

[Client Name]

[City, Province]

[Date]

Based on MH Feasibility Study Template (May 2013 Rev.)

Table of Contents

1.0Executive Summary

2.0Building Characteristics

2.1Building Heating and Cooling Loads

3.0Building Heating and Cooling System Options

3.1Electric System Option (Existing or proposed)

3.2Fossil Fuel System Option (Existing or proposed)

3.3Geothermal Heat Pump (GSHP) System Option

4.0Simple Payback Analysis of Options

5.0Recommendations and Summary

6.0Savings Verification

7.0Project Implementation Schedule

Appendix A - Supporting Documentation

Appendix B - Manitoba Hydro Incentive Calculation

[Upon completion, update Table of Contents by Right clicking over table, selecting “Update Field”, select “Update Entire Table”, and select “OK”.]

1.0Executive Summary

Provide executive summary of the feasibility study.

Include overview of system options, scope of study, customer costs and benefits, potential winter/summer peak kW and kWh electricity demand, and energy savingsof all options considered.

Incentive eligibility

Recommendations

2.0Building Characteristics

Provide a description of the building including:

  • Age and location (address)
  • Total heated floor area
  • Number of storey’s and wall height
  • Basement or crawl space (partial or full)
  • Approximate insulation levels in walls, roof or attic, under floor slab, on grade beam, and basement walls of the building
  • Window types and quantity (dual or triple), window/gross wall area % ratio
  • Property site characteristics including lot size and potential availability of open areas for installing ground loop heat exchanger or water wells
  • If applicable, any other planned improvements, building envelope upgrades or additions that would change the existing building loads that may be done at the same time if the geothermal installation proceeds

If retrofitting an existing building, please provide a description of the existing heating, ventilation, and cooling systems including:

  • System type(s) and quantities
  • Age and condition
  • Equipment input and/or output ratings (Btu/h or kW) and equipment efficiency rating
  • Building system zoning
  • List all heating and other loads (e.g. cooking) served by the above equipment
  • Fuel sources used by the existing systems.

Provide the weather normalized annual heating usage of the existing fuels and electricity of the building in the following table.

Table 2.0A: Estimated Annual Space Heating Utility Usage

Existing Utility / Annual Energy Consumption / Peak Demand
Winter / Summer
Electricity / XXX,XXX kWh / XXX kVA / XXX kVA
Fossil Fuel (type) / XX,XXX m3 or L
Other Fuels (type) / XX,XXX L

Provide the estimated weather normalized annual utility costs for the existing building. Provide a description of the utility rate structure used in the calculations.

Table 2.0B: Estimated Annual Heating Utility Costs

Existing Utility / Annual Utility Cost / Average Cost per Volume
Electricity / $XXX,XXX / X.XX $/kWh
Fossil Fuel (type) / $XXX,XXX / X.XX $/m3 or $/L

2.1Building Heating and Cooling Loads

Provide a summary of the heating and cooling loads of the building at design conditions.

The building heating and cooling loads shall reflect the loads in which the future system will be designed for. Any planned upgrades to the existing envelope, windows, and/or lighting system during the renovation period shall be included in the load calculations. Provide a description of any planned energy efficiency upgrades to the existing building.

Table 2.1A: Estimated Building Design Heat Loss Load

Space Heating Loads / Design Heating Load
Building Transmission Load / XXX MBH / XXX kW
Infiltration – Continuous Load / XXX MBH / XXX kW
Total Eligible Space Heating Loads / XXX MBH / XXX kW
Total Ineligible Heating Loads (if any) / XXX MBH / XXX kW
Total Eligible & Ineligible Loads / XXX MBH / XXX kW

Table 2.1B: Estimated Building Heat Gain Load

Space Cooling Loads / Design Cooling Load
Building Transmission Load / XXX MBH / XXX kW
Infiltration – Continuous Load / XXX MBH / XXX kW
Infiltration – Intermittent Load / XXX MBH / XXX kW
Ventilation – Continuous Load / XXX MBH / XXX kW
Ventilation – Intermittent Load / XXX MBH / XXX kW
Internal Heat Load / XXX MBH / XXX kW
Solar Heat Load / XXX MBH / XXX kW
Total Cooling Load / XXX MBH / XXX kW

3.0Building Heating and Cooling System Options

3.1Electric System Option

Electric Heating System Description

Provide a description of the existing or proposedelectric system including equipment sizes, number of units, and unit efficiencies.

Provide the estimated annual energy consumptionsfor the electric system option for both theeligible and ineligible space heating and cooling loads along with the estimated annual costs. Provide a description of the blended rate used for the various loads as calculated in Appendix A.

Table 3.1A: Electric System Option Summary

Building Load / Annual Energy Consumption / Annual Energy Cost / BlendedAverage Rates
Eligible Space Heating Loads / XXX,XXX kWh / $ XXX,XXX / $ 0.XXX /kWh
Ineligible Heating Loads (if any)Served with Electricity / XXX,XXX kWh / $ XXX,XXX / $ 0.XXX /kWh
Ineligible Heating Loads (if any) Served with Fossil Fuel
(provide name of fuel here) / XXX,XXX L
XXX,XXX kWhe / $ XXX,XXX / $ 0.XXX / L
$ 0.XXX /kWhe
Cooling Load / XXX,XXX kWh / $ XXX,XXX / $ 0.XXX /kWh
Total Heating & Cooling Loads
(including kWhe fuel equivalents) / XXX,XXX kWhe / $ XXX,XXX / $ 0.XXX /kWhe

Electric Heating System Option Installation Costs

Provide estimated project costs that include equipment and material costs, and installation labour costs. Electrical and fossil fuel service cost should be included in the project costs. If internal labour or engineering is utilized, provide estimated number of hours and hourly rate in estimated project costs. No contingency, GST, spare parts, and maintenance costs should be included in the estimated project costs.

3.2Fossil FuelSystem Option

Fossil Fuel System Description

Provide a description of the existing or proposed fossil fuel system (excluding natural gas) including equipment sizes, number of units, and unit efficiencies.

Provide the estimated annual fossil fuel and electricity consumption for the fossil fuelsystem option for the space heating and cooling loadsalong with the estimated annual costs. Provide a description of the blended rate used for the various loads as calculated in Appendix A.

Table 3.2A: Fossil Fuel System Option Summary

Building Load / Annual Energy Consumption / Annual Energy Cost / BlendedAverage Rates
Eligible SpaceHeating Load
(provide name of fuel here) / XXX,XXX L
XXX,XXX kWhe / $ XXX,XXX / $ 0.XXX /L
$ 0.XXX /kWhe
Ineligible Heating Loads (if any) Served with Electricity / XXX,XXX kWhe / $ XXX,XXX / $ 0.XXX /kWhe
Ineligible Heating Loads (if any) Served with Fossil Fuel
(provide name of fuel here) / XXX,XXX L
XXX,XXX kWhe / $ XXX,XXX / $ 0.XXX / L
$ 0.XXX /kWhe
Cooling Load / XXX,XXX kWh / $ XXX,XXX / $ 0.XXX /kWh
Total Heating & Cooling Loads (including kWhe fuel equivalents) / XXX,XXX kWhe / $ XXX,XXX / $ 0.XXX /kWhe

Fossil Fuel System Option Installation Costs

Provide estimated project costs that include equipment and material costs, and installation labour costs. Fossil fuel and electric service cost contributions should be included in the project costs. If internal labour or engineering is utilized, provide estimated number of hours and hourly rate in estimated project costs. No contingency, GST, spare parts, and maintenance costs should be included in the estimated project costs.

3.3Geothermal Heat Pump (GSHP)System Option

If an electric heat base case has been adequately justified, a geothermal heat pump system sized to provide up to 100% of the base building transmission and infiltration heating loads onlywill be eligible for an incentive.Customers are not eligible for incentives for geothermal capacity installed to serve ventilation loads.

It is not normally cost effective to size geothermal heating systems for non-continuous or intermittent; heating loads (ventilation and door openings) therefore this capacity is not eligible for incentive. Fossil fuels are considered the base case for these loads and ventilation loads.

Geothermal System Option Description

Provide a description of the geothermal heat pump system type being proposed (e.g. horizontal closed loop, vertical open loop, etc.). Provide the estimated design heating and cooling capacities and efficiencies of the proposed equipment required at design conditions. Provide a minimum of two sizing options indicating what portion of the design space heating load (example: 50%, 70% or 100%) that will be covered by geothermal heat pump system. Indicate what source of auxiliary heating is used. Indicate the geothermal sizing criteria as a percentage of the base design heating load.

Provide the estimated annual utility consumption and costs for the geothermal heat pump options for space heating and cooling.

Table 3.3A: Geothermal Heat Pump System Option Summary

Option A: XX%Sized(Smaller Option)
Space Heating Loads / Annual Energy Consumption / Annual Energy Cost / Blended Average Rates
Geothermal Heating / XXX,XXX kWh / $ XXX,XXX / $ 0.XX /kWh
Auxiliary Electricity / XXX,XXX kWh / $ XXX,XXX / $ 0.XX / kWh
Auxiliary Fossil Fuel / XXX,XXX kWhe / $ XXX,XXX / $ 0.XX /kWhe
Cooling Load / XXX,XXX kWh / $ XXX,XXX / $ 0.XX /kWh
Total Load / XXX,XXX kWhe / $ XXX,XXX / $ 0.XX /kWhe
Option B: XX%Sized(Larger Option)
Heating Load / Annual Energy Consumption / Annual Energy Cost / Blended Average Rates
Geothermal Heating / XXX,XXX kWh / $ XXX,XXX / $ X.XXX /kWh
Auxiliary Electricity / XXX,XXX kWh / $ XXX,XXX / $ X.XX / kWh
Auxiliary Fossil Fuel / XXX,XXX kWhe / $ XXX,XXX / $ X.XX /kWhe
Cooling Load / XXX,XXX kWh / $ XXX,XXX / $ X.XXX /kWh
Total Load / XXX,XXX kWhe / $ XXX,XXX / $ X.XXX /kWhe

Geothermal System Option Installation Costs

Provide estimated project costs that include equipment and material costs, and installation labour costs. Electrical and fossil fuel service cost contributions should be included in the project costs. If internal labour or engineering are utilized, provide estimated number of hours and hourly rate inestimated project costs. No contingency, GST, spare parts, and maintenance costs should be included in the estimated project costs.

4.0Simple Payback Analysis of Options

Provide a summary of the estimated annual space heating and cooling utility consumption and costs for all the options available to the building owner.

Table 4.1A: Summary of Estimated Annual Energy Consumption and Costs

Electric System Option / Fossil Fuel System Option / GSHP System Smaller Option A
XX%Sized / GSHP System Larger Option B
XX%Sized
Annual Electricity Consumption & Cost / XXX,XXX kWh
$ XXXXX / XX,XXX kWh
$ XXXXX / XXX,XXX kWh
$XXXXX / XXX,XXX kWh
$ XXXXX
Annual Fossil Fuel Consumption & Cost / XXX,XXX L
$ XXXXX / XXX,XXX L
$ XXXXX / XXX,XXX L
$ XXXXX / XXX,XXX L
$ XXXXX
Total Annual Energy Costs / $ XXX,XXX / $ XXX,XXX / $ XXX,XXX / $ XXX,XXX

Provide a summary of the estimated annual savings, project incremental, and simple payback compared against the electric and fossil fueloptionsfor all the options available to the building owner.

Annual Energy Cost Savings ($) = (Base Option Annual Energy Costs - Proposed Option Annual Energy Costs)

Incremental Project Cost ($) = (Proposed Option Project Costs - Base Option Project Costs)

Provide the estimated simple paybacks in years compared against the Electric and Fossil Fuel Options for all the options available to the building owner.

Simple Payback (Years) = (Proposed Option Project Costs - Base Option Project Costs) divided by (Base Option Annual Energy Costs - Proposed Option Annual Energy Costs)

Base Options are the electric option and the fossil fuel option.

Manitoba Hydro incentives are available for only the unoccupied base building transmission and infiltration load covered by the geothermal heat pump system. Appendix B contains the calculation method for the incentive.

Table 4.1B: Summary of Incremental Costs, Savings & Simple Payback of all Options

Compared to Electric System Option
Fossil Fuel System Option / GSHP System Smaller Option A
XX%Sized / GSHP System Larger Option B
XX%Sized
Annual Energy Cost Savings / $ XXX,XXX / $ XXX,XXX / $ XXX,XXX
Incremental Cost / $ XXX,XXX / $ XXX,XXX / $ XXX,XXX
Simple Payback / XX.X years / XX.X years / XX.X years
Simple Paybackwith Incentive / XX.X years / XX.X years / XX.X years
Compared to Fossil Fuel System Option
Electric System Option / GSHP System Smaller Option A
XX%Sized / GSHP System Larger Option B
XX%Sized
Annual Energy Cost Savings / $ XXX,XXX / $ XXX,XXX / $ XXX,XXX
Incremental Cost / $ XXX,XXX / $ XXX,XXX / $ XXX,XXX
Simple Payback / XX.X years / XX.X years / XX.X years
Simple Paybackwith Incentive / XX.X years / XX.X years / XX.X years

Provide a summary of the incremental project costs of the GSHP options available to the building owner.

Incremental Project Cost ($) = (GSHP Option B Project Costs - GSHP Option A Project Costs)

Provide the estimated simple paybacks in years comparison between the two GSHP Sizing Options available to the building owner.

Simple Payback (Years) = (GSHP Option B Project Costs - GSHP Option A Project Costs) divided by (GSHP Option A Annual Energy Costs - GSHP B Annual Energy Costs)

Manitoba Hydro incentives are available for the unoccupied base building transmission and infiltration load covered by the geothermal heat pump system. Appendix B contains the calculation method for the incentive.

Table 4.1C: Summary of Estimated Annual Heating/Cooling Energy Cost Savings between the GSHP Options

Compared to GSHP Smaller Option A - XX%Sized
Description / GSHP System Larger Option B
XX%Sized
Incremental Annual Energy Cost Savings / $ XXX,XXX
Incremental Costof GSHP Option B to Option A / $ XXX,XXX
Simple Paybackofthe Sizing Increment / XX.X years
Simple Paybackofthe Sizing Increment with Incentives / XX.X years

5.0Recommendations and Summary

Indicate the system option recommended for implementation and the justification for its selection.

6.0Savings Verification

Provide a brief description of how and when the energy savings verification could be accomplished if desired by the customer or Manitoba Hydro.

Provide a description of testing instrumentation, measurement points, and the duration of testing for the purpose of savings verification.

7.0Project Implementation Schedule

Estimated Commencement / Estimated Completion
Design Phase / Month/Year / Month/Year
Construction Phase / Month/Year / Month/Year

Provide any comments regarding the implementation schedule here.

Appendix A - Supporting Documentation

Provide the following information:

  • Tabulated electricity and fossil fuelusage histories, new load estimatesand utility/fuel costs for the existingbuilding system(s), if applicable.
  • Design and annual heating and cooling load and costs calculations documentation for of all options studied based on load calculations or estimated from billing usage histories.
  • Degree day normalization calculations applied to billing usage histories.
  • Load calculations.
  • Detailed capital costs estimates.
  • Electrical energy and demand or blended electricity rate saving calculations.
  • Equipment performance data (manufacturers catalog data.
  • Assumptions that were used in the calculations and estimates.
  • Other supporting documents.

Appendix B - Manitoba Hydro Incentive Calculation