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

166 Part3: Summary of country studies – Bangladesh and Viet Nam
4.3 Pre-feasibility Studies at Selected Industrial and Commercial Sites
For the purpose of economic analysis, the total installed costs of the cogeneration plants
were assumed as follows: steam turbines - US$ 1,200/kWe; gas turbines - US$ 1,000/kWe;
and reciprocating engines - US$ 900/kWe. Some common financial data gathered or
assumed before conducting the pre-feasibility studies are summarized in Table 4.2.
Table 4.2 Financial data used for the pre-feasibility study
Parameters Unit Value
Exchange rate VND/US$ 14,000
Tax rate Per cent/year 5
Discount rate Per cent/year 15
Hurdle rate per cent/year 17
Cogeneration plant service life Year 15
Electricity purchase price VND/kWh EVN tariff
Electricity buy-back rate per cent of purchase price Up to 70
Fuel price escalation rate per cent/year 5
Electricity price escalation rate per cent/year 5
Fuel purchase price
- natural gas
- heavy fuel oil
- diesel
- coal
VND/m 3
VND/kg
VND/litre
VND/ton
1,430
1,800
3,580
280,000
The fuel prices used are those based on the prices prevailing in the domestic market at
present. Coal and natural gas prices are taken from EVN’s bidding documents. The purchase
price of electricity is the tariff applied to Vietnamese industries. Based on information from
Power Company 2, the buy-back rate is generally taken as 450 VND/kWh. The purchase
price has to be negotiated between the cogenerators and Power Companies; in any case,
buy-back rate will not be higher than 70 per cent of the selling price.
The actual working period for the pre-feasibility study is considered as 306 days/year. Except
for the case of the paper mill “E”, the boiler pressure of 40 Bar is chosen for steam turbine
alternatives. In paper mill “E”, the existing boiler pressure is 74 Bar, which is used to assess
the viability of the steam turbine alternative.
4.3.1 Textile mill “A”
This is one of the largest textile mills in Viet Nam. It was put into operation in 1959. The
company has an average production of 12 million meters of fabric per annum. With 3,350
employees, the company is contributing effectively to the unemployed reduction of the city.
Electricity is used for machines, lighting and air conditioning. The company has a centrifugal
chiller of 200 kW, which has been out of order. In the analysis, it is assumed that the
company has a process cooling demand equivalent of 200 kWe. So far, the factory does not
have any record of steam consumption due to lack of measuring equipment. The steam
consumption is estimated from the fuel oil consumption in the boiler.