Energy Efficiency Should Come before Burning Biomass

The Town’s Energy Committee recently reviewed the proposed $1.6 million wood-chip heating system. In June, the Energy Committee held a joint meeting with the CCS Board and expressed its concerns about the scope of work, particularly the need for energy analysis and the lack of focus on energy efficiency. Since then, we agree unanimously that spending money on a wood-chip heating system is not the right choice at this time.

The school’s existing boilers are functioning and serviceable and have not yet reached the end of their lifetimes. Since cost-effective energy efficiency measures have not yet been addressed, the proposed wood-chip heating system could result in overcapacity and overspending in energy plant and equipment. By incorporating energy-efficient design in building improvements, CCS will save on energy use and costs without needing to add to the energy source.

While heating the school with a renewable fuel should be a future goal, the numbers do not stack up at this time. The initial savings of adding the wood-chip heating system to the existing oil-heating system are an estimated $10,000 per year in gross savings (assuming an oil price about $2 per gallon), but this is not enough to cover the annual bond payment of approximately $55,000. Even using the school’s assumptions of a high inflation rate of 6.25% per year for the oil and a low inflation rate of 3.25% for wood chips (spreadsheets available at ccsvt.us), the wood-chip heating system is not cost-effective; that is, the savings from adding a wood-chip system will not cover the initial investment of $1.6 million. In its 30-year lifetime, this installation generates a surprising net loss of $500,000 (calculated as net present value).

The Energy Committee urges the School Board to commission an energy analysis so that cost-effective energy improvements can be prioritized and budgeted over time before spending on this questionable project. This is not the time for speculative investments – we need a logical approach to energy based on sound analysis and prudent use.

We are pleased to see that the School Board is now working with Efficiency Vermont. We hope to see energy efficiency improvements incorporated into the scope of works for the renovation.

Charlotte Energy Committee (Anne Bijur, Jennifer Chiodo, Dora Coates, Ted Fisher, Suzy Hodgson, Catherine Hughes, Sylvia Knight, Michelle Lussier, Hans Ohanian, David Pill and Bob Wright)

 

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