Software

RELCOST Financial Model

The RELCOST Financial model, a Microsoft Excel spreadsheet template, is used for evaluating the financial viability of energy projects. It can be used to evaluate a variety of factors key to project success, such as the minimum power sales price, the optimum mix of equity and capital to attract investors, or sensitivity to incentives. Methods of evaluating financial performance provided by RELCOST are: life cycle cost analysis, pro forma statements, sensitivity analysis, and financial ratios.

Pro forma financial statements provided are the Income Statement, Cash Flow Statement, Balance Sheet, and Sources/Uses of Funds Statement for each project year in the 30-year analysis period. Flexible user inputs include capital costs for construction, funding (equity, grants, and loans), operating costs (purchased fuels, labor, materials/expendables, etc.), taxes and fees (depreciation, tax credits, franchise costs, tax rates, etc.), cost escalation factors, income from energy, power and co-product sales, and income from sales of carbon offsets, renewable energy credits and renewable energy production incentives.

RELCOST includes a spider diagram utility, which allows visually assessing project sensitivity to variations in key inputs, such as changes in fuel prices or cost overruns. The ability to rapidly conduct "What If" evaluations enables the user to determine those factors that represent the greatest amount of risk to the project, obtain guidance on key points of negotiation, identify break-even values, and examine alternative scenarios. Up to nine scenarios may be defined for each project. The ability to easily switch between scenarios facilitates selecting alternatives, such as system design options or funding choices.

RELCOST Financial Template - Most Recent Version

• RELCOST Financial Blank Template - Excel 2010 (Right-click Link and Save) (8 MB) - Latest update: 26 January 2021 (important update)

Example Analysis with Latest Version

• 400 kW CHP Example (8 MB) Latest update: 26 January 2021

Example Analyses (previous versions)

• 1000 kW CHP at Medical Center (8 MB) Latest update: 23 Nov 2016
• CHP: 300 kW reciprocating engines at hotel (8 MB) Latest update: 02 Dec 2015
• District Heating CHP: 40 MW Gas Turbine at Medical Center (8 MB) Example Using the Scenarios Feature
• Biomass CHP with organic rankine cycle turbine and green house heating (3.9 MB)
• CHP at University Campus (4 MB)
• CHP at Food Processing Plant (4 MB)
• Biomass CHP at Paper Mill (4 MB)
• Industrial CHP (3.8 MB)
• Biomass Heating at Rural Hospital (4 MB)

User Manual and Instructions

• RELCOST Financial Manual - PDF 1.4 MB - April 2010
• Introduction to RELCOST, January 2014
• Using RELCOST’s Scenarios Option, January 2014

Presentations

World Energy Engineering Congress 2010, Washington DC, December 8, 2010

• Introduction to RELCOST Presented by Carolyn Roos, PhD. Washington State University Extension Energy Program

Farm Energy Assessment Meeting Portland, OR September 18, 2009

• Background on RELCOST Results and Interpretation Carolyn Roos, PhD. Washington State University Extension Energy Program

HEATMAP and RELCOST Workshop Accra, Ghana, May 13 to 15, 2009

• Industrial CHP Example: Walk-Through of Input & Results Presented by Carolyn Roos, PhD. Washington State University Extension Energy Program

GeoFund IGA-Geothermal Workshop Istanbul, Turkey 15-20 February 2009

• Economics and Financing of Geothermal Projects R. Gordon Bloomquist, Ph.D. Washington State University Extension Energy Program (Retired)
• Geothermal Project Development Management and Financing Presented by R. Gordon Bloomquist, Ph.D. Washington State University Extension Energy Program (Retired)
• Introduction to Financial Modeling Considerations R. Gordon Bloomquist, Ph.D., IGA & Mr. Jeff Ponsness, EnSight and WSU
• RELCOST Financial* Geothermal Power Production, Base Case
• RELCOST Financial* Geothermal Power Production, Base case (with incentives)

*These are not the current version of the spreadsheet and should be used only as example applications.  Download the blank template above for the current version.

EPA’s Spark Spread Estimator

This tool calculates the difference between the delivered electricity price and the total cost to generate power with a prospective CHP system. Download it