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

Framework for the country studies 99
The response from the questionnaires sent and preliminary discussions with interested
parties help to identify suitable sites where a limited number of pre-feasibility studies can be
undertaken.
1.2.3 Pre-feasibility study of sites with good cogeneration potential
Pre-feasibility study involves gathering of additional technical data from the site, including the
actual demand pattern as a function of time, minimum, maximum and average energy
demands, annual operating hours, type of fuel in use, space constraint, etc.
The above data allow to complete a technical evaluation of cogeneration and identification of
cogeneration alternatives in order to proceed with the phase, economic and financial
evaluation. Several country-specific economic and financial parameters need to be first
gathered before the pre-feasibility study. If some data are unknown or not available, it is
important to make realistic assumption based on discussion with the personnel of the site
and competent authorities in the country.
Once, preliminary financial results are obtained, it is important to conduct a sensitivity
analysis to identify the most important parameters that are decisive to the financial viability of
the project.
1.2.4 Conclusion and recommendations for follow-up actions
The results of sensitivity analysis help to first define the context and conditions where
cogeneration should be recommended from the energy and environmental perspectives. One
can also assess the impacts of any distortion of energy pricing and other forces that can
adversely affect the penetration of cogeneration into the market. These can serve as
justifications for outlining appropriate policies and strategies that may be required to assure
the large-scale adoption of cogeneration projects in the country.
In order to illustrate the procedure for assessing the pre-feasibility of identified sites and to
assure consistency and uniformity of all the cases considered, a sample case study was
developed by the lead consultant and presented to the study teams in both the countries.
This case study was accompanied by spreadsheet-based software that can help to cut down
the analysis time drastically.
The sample case study consisting of pre-feasibility of cogeneration in a pulp and paper mill in
the Philippines is elaborated in Chapter 2.