Technoeconomic Opportunity Analysis for Local Power Generation in Falls City, Nebraska
Falls City is a small community in Nebraska interested in understanding how energy from local energy systems could support the community's economic development planning. To address the current community needs and address the future energy demand technical assistance conducted through the Communities Local Energy Action Program (Communities LEAP) assessed the technical and economic opportunities of adding energy technologies to Falls City's municipally owned and operated electric utility system. The modeling performed considered the technical and economic feasibility of technologies using the System Advisor Model (SAM). The modeling explored three technology configurations using multiple years of historical weather and wholesale cost data (2015-2022 & a typical meteorological year), and two different wholesale escalation rates (0.3% and 2.5%). Wholesale energy prices were based on the Southwest Power Pool's (SPP) real-time energy market and the annual escalation rates of these rates based on historical SPP wholesale and national retail electricity price trends. Results from the modeling showed that at current CAPEX costs and SPP wholesale electricity costs no technology combination averaged across the scenarios run provide a positive net present value (NPV). External financial support, changes in market conditions, and additional revenue streams would help create more economically favorable projects. As conditions change re-evaluation may be necessary.