part 1: overview of cogeneration and its status in asia - Fire

Summary of country study – Bangladesh 145
What if the electricity price escalates faster?
Internal Rate of Return
50%
45%
40%
35%
30%
REPM
GTPM
GTTM
6% 7% 8% 9% 10% 11% 12% 13%
Electricity Price Escalation Rate
From the sensitivity analysis of the potential cogeneration alternatives for the recycled paper
mill, the reciprocating engine power match option meeting power requirement of 2750 kW is
found to be the most suitable cogeneration system. It represents an initial investment of 118
Million Taka and leads to an internal rate of return of 41.9 per cent.
3.3.2 Vegetable oil refinery
This factory operates 24 hours a day and 340 days a year. Natural gas is used in boiler to
generate steam that is required for the process. Energy alone accounts for 35 per cent of the
production cost.
Analysis of the monthly electricity and steam consumption in 1997 led to the following:
• Total Electricity Consumption in 1997: 4,229 MWh
• Maximum Electricity Demand: 650 kW
• Minimum Electricity Demand: 510 kW
• Total Steam Consumption in 1997: 12,260 tons
• Maximum Steam Demand 1.68 ton/hr
Minimum Steam Demand: 1.43 ton/hr
The average power-to-heat ratio was 0.53 in 1997. Typical cogeneration system for this site
would be based on steam turbine, though its size will be quite small. However, reciprocating
engine, gas turbine cogeneration systems were also considered as potential alternatives.
Results of the feasibility study are summarized in Table 3.6.
Obviously, the steam turbine option does not seem feasible: (i) with steam turbine thermal
match (STTM), less than 20 per cent of the power requirement is met; (ii) with steam turbine
power match (STPM), 300 per cent excess heat is generated.
With the reciprocating engine thermal match (RETM) option, 235 per cent excess power is
generated. The project profitability will depend on the buy-back rate. This may not be a good
option as the purpose is not to earn from electricity sale. Reciprocating engine power match
(REPM) option seems feasible as almost all the power needed can be met though an
auxiliary boiler will be necessary to make up for the 30 per cent shortfall in the heat supply.