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

Examples of cogeneration projects implemented in Asia 81
The gas turbine consists of a 17-stage compressor, combustion system with 10 individual
combustors, a 3-stage turbine, air systems, lube oil system common to gas turbine and
generator, cooling water, and fuel systems. It is equipped with a steam injection skid for NOx
emission, acoustical enclosure for noise reduction, silencing equipment on inlet and exhaust
ducts, and a CO2 fire protection system.
The HRSG is of simple and proven design. It has a low thermal inertia to allow fast start-up
and rapid load swings, high resistance to thermal shocks, low exhaust gas pressure drop,
high heat recovery, and high reliability and maintainability.
2.6.3 Financing of the project
Most of the difficulties encountered in financing large-scale power projects are avoided as the
project is of a reasonable size. The financeability of the project is enhanced by the
commitment and references of the project sponsors as well as the quality of the customers.
The project sponsors have large experience in energy projects. The industrial clients are
mostly very much capital intensive and are able to take long term off-take commitments.
The electric utility plays an important role by purchasing surplus electricity, thus providing
stable and additional revenue to the project. Also, back-up electricity is provided from the grid,
ensuring that availability targets of the industrial users can be achieved.
The Government has demonstrated a clear policy for privatization of power generation along
with accompanying regulations and incentives.
The equipment suppliers provided necessary confidence and guarantees to the lenders and
guarantors on the following:
- project investment cost control, by accepting the construction of the plant for a fixed and
firm price;
- completion on time, by accepting liquidated damages, for failures to meet targeted
completion date;
- plant performance in terms of availability and reliability, by accepting liquidated damages
for failure to meet targeted figures.
In addition, there was the advantage of reduced interest during construction due to
progressive investment and short gestation time, and the ability to generate income after only
a year of signing the contract when the plant started operating in open cycle.
The debt-equity ratio of the project was 3:1. During the financing arrangement, maximum
flexibility in the choice of currency and the type of interest rates were offered to the
developers. The subsidized loan included a 10-year loan term from the commissioning date of
the project. Local financing could be made available to cover other investment costs.