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

More documents

Recommendations

Info

30 Part I: Overview of cogeneration and its status in Asia Table 3.1 Cost breakdown (US$) of a 20 MWe gas turbine cogeneration plant 1 Gas turbine plant equipment - Gas turbine gen-set package (FOB) - Auxiliary systems - Fuel gas compressor/ skid - Back-up distillate storage Steam equipment - Heat recovery boiler with auxiliary firing - W ater treatment system - Condenser, feedwater pumps Electrical equipment - Substation transformers - Switch gear and controls - Utility interconnections Services and Installation - Engineering design - Civil works - Control and maintenance building - Electrical field work - Mechanical field work - Freight and handling Total plant cost - Equipment, design and installation - Contingency (approximately 10% ) If cogeneration is being adopted as a retrofit at an existing site, the cost items will depend greatly on the existing facilities, some of which may be retained while others are discarded, replaced or upgraded. The cost of land may be a crucial factor at some sites where cogeneration facility is commissioned, particularly in the case of urban buildings or when additional space is required for storage and handling of fuel. Integration of the cogeneration plant into the existing set-up may lead to some economic losses to the cogenerator (e.g. production downtime). Costs associated with such losses should be included in the total project cost. The operating and maintenance (O&M) cost should include all direct and indirect costs of operating the new cogeneration facility, such as servicing, equipment overhauls, replacement of parts, etc. The cost of employing additional personnel as well as their training needed for operating the new facility must also be taken into account. Present technology allows complete automation of small pre-packaged and pre-engineered units, helping to reduce the O&M costs considerably. 1 Gas Turbine World, The 1990 Handbook, Pequot Publishing. 8,100,000 370,000 420,000 110,000 1,840,000 320,000 420,000 320,000 110,000 420,000 1,100,000 630,000 320,000 840,000 1,470,000 320,000 17,110,000 1,700,000 9,000,000 2,580,000 850,000 4,680,000 18,810,000
Economic and financial aspects of cogeneration 31 Annual costs incurred due to the cogeneration plant, such as the insurance fees and property taxes should be included in the analysis. These are often calculated as a fixed percentage of the initial investment. Fuel costs may form the largest component of the operating expenditures. If cogeneration is added to an existing plant, only the fuel cost in excess of that used earlier for heat and power generation may be considered. Since the cogeneration plant is expected to operate for a long time period, escalation of the fuel price over time should be included in a realistic manner. The price of energy purchased and sold is a decisive parameter. This includes the net value of electricity or thermal energy that is displaced as well as any excess electricity or thermal energy sold to the grid or a third party. A good understanding of the electric utility’s tariff structure is important, which may include energy charge and capacity charge, time-of-use tariff, stand-by charges, electricity buy-back rates, etc. As for the fuel, there should be provision to account for electricity price escalation with time. This is particularly true where power utilities depend heavily on fuel in their power generation-mix. 3.4 Source of Financing of Cogeneration Projects Cogeneration systems are capital intensive projects and the sources of capital financing can be an important consideration in the investment analysis in which different sources may be used. It is important, therefore, to know the rate of return for each alternative. The sources of capital financing could be one of the following: 1. self financing: capital generated from cogenerator’s own activities; 2. borrowing: requiring certain equity and guarantee; 3. leasing: ownership maintained by the leasing company; 4. third-party financing: undertaken by an energy service company; and 5. facility management: reduction of energy bill for user with zero capital risk. Self-financing can be in various forms, such as equity capital, depreciation fund and retained profit. Equity capital is supplied and used by its owner in the expectation that a profit, of a minimum acceptable level, will be earned. In equity financing, however, the owner has no assurance that a profit will actually be made or that even the equity capital invested will be recovered. When the funds that are set aside out of the revenue as the cost of depreciation are a part of the net cash flow, these can be retained and used for capital financing of expansion projects like cogeneration. The equipment may continue to be used after its original value has been recovered through normal depreciation procedures. Hence the accumulated funds may be available for use until the original equipment is actually replaced. Also, if the depreciation procedures used in accounting are such that they provide large recoveries of the first costs during the first few years of equipment life, there will usually be funds available before the equipment must be replaced. Thus, the depreciation funds may provide a revolving investment fund that will become a source of capital for new ventures like cogeneration. Obviously, the management of these funds must ensure the availability of required capital when the time does come for replacement of essential equipment. Existing enterprises have an important source of capital financing for expansion of activities, like setting up cogeneration power plants, through retained profits. Normally a part of the profit earned by an enterprise is retained after payment of adequate dividend to the shareholders, and this capital is then re-invested for a further increase in profits.
Page 1: PART 1: OVERVIEW OF COGENERATION AN
Page 4 and 5: 4 Part I: Overview of cogeneration
Page 12 and 13: State of art review of cogeneration
Page 36 and 37: Policy framework for promoting coge
Page 46 and 47: Cogeneration in Asia today 49 1.1 I
Page 48 and 49: Cogeneration in Asia today 51 4,000
Page 50 and 51: Cogeneration in Asia today 53 1.3 T
Page 52 and 53: Cogeneration in Asia today 55 1.3.3
Page 58 and 59: Cogeneration in Asia today 61 1.7 R
Page 60 and 61: Cogeneration in Asia today 63 Every
Page 62 and 63: Cogeneration in Asia today 65 Cogen
Page 64 and 65: 68 Part II: Cogeneration experience
Page 78 and 79: Cogeneration experiences around the
Page 80 and 81:
Cogeneration experiences around the
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90:
PART 3: SUMMARY OF COUNTRY STUDIES
Page 93 and 94:
98 Part3: Summary of country studie
Page 95 and 96:
100 Part3: Summary of country studi
Page 97 and 98:
Sample case study in a pulp and pap
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Summary of country study - Banglade
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Summary of country study - Viet Nam
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177:
show all

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

Create successful ePaper yourself

Delete template?

Save as template?