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

Examples of cogeneration projects implemented in Asia 67
CHAPTER 2: EXAMPLES OF COGENERATION PROJECTS IMPLEMENTED IN
2.1 Introduction
ASIA
A vast majority of the Asian countries has yet to tap the existing cogeneration potential to the
maximum. Considering the rapid industrial growth in many parts of the region, one would
expect many more new process industries and commercial buildings to be added to the
existing stock within a short span of time. These investments can be even better managed if
the concept of cogeneration is well understood by the developers and investors. The endusers
will have greater choices and more alternatives, in addition to having enhanced scope
for decision making and professionalism. At the same time, the power utilities can have
access to low cost and reliable excess energy produced in some areas faced with chronic
deficit of power supply in the past.
There is also a potential for cogeneration development based on privately funded projects in
close cooperation with potential end-users/customers and power companies. Owners of
existing as well as new industries and commercial buildings will benefit from these schemes
by having access to low-cost and more reliable energy supplies. Moreover, it will help them to
conserve their capital that would otherwise have been required for on-site energy facilities; the
saved resources and capital can be ploughed into their core business for improving their profit
margin and competitiveness.
It is encouraging to note that there are already a large number of cogeneration plants which
have been commissioned in some Asian countries in the last decade or so. The following
sections are aimed at providing sample examples of initiatives already undertaken in the
directions highlighted above. Each of the examples briefly covers the situation that led the
decision-makers to opt for cogeneration and the various benefits accrued from the project.
2.2 Cogeneration in Petrochemical Industry
Reliable power is essential for commercial viability of petrochemical industries. A small power
interruption does not only result in substantial production loss but can also jeopardize the
safety aspects of the plant. Thus, factories located in areas that are exposed to unreliable
power supply are obliged to have their captive power plants to ensure reliability of operation.
Faced with the situation of deficient power supply, one such gas cracking complex in India
decided to install a cogeneration plant to obtain reliable power at a reduced cost. 1
2.2.1 Assessing the economic benefits of cogeneration
A preliminary study was conducted to establish the economic merits of the cogeneration
system in comparison with the existing situation where the conventional boilers supplied
process steam and power was purchased from the utility grid.
The power demand of the plant was of the order of 50 MW, and the total process steam
requirement was found to be 93 tons/hour. For analyzing the cogeneration option, the power
requirement was hiked to 65 MW, to include the provision for future expansion. The cost of
having a contract demand of 17.6 MVA with the utility had to be considered for assuring
continuous operation in case of the stoppage of the cogeneration plant. This would assure
1
A.K. Sood, “Commercial role of cogeneration in petrochemical industry”, Paper presented at the
Cogeneration Asia ’97 Conference, AIC Conferences, Singapore, 25-26 November 1997.