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PhD Thesis - Energy Systems Research Unit - University of Strathclyde

PhD Thesis - Energy Systems Research Unit - University of Strathclyde

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the present 1.088 kgCO 2 per kWh delivered and a future 0.5 kgCO 2 per kWhdelivered, reflecting the possible changes occurring in the near future in the Malteseelectricity grid network. This was done at intervals <strong>of</strong> 0.1.4.2.3 Economic performance metricsBiezma and San Cristóbal in [20] explain by giving various examples present inliterature that the economic analysis <strong>of</strong> a cogeneration system unit is usually doneusing investment criteria. Their research also discusses that although various criteriaare available, the investment criteria typically used to accept or reject a cogenerationproject are the Net Present Value (NPV), the Internal Rate <strong>of</strong> Return (IRR) and thePayback Period (PP). In this section an overview is given <strong>of</strong> the methods andequations utilised to financially assess the different scenarios.4.2.3.1 Financial parameters used in modellingIn order to provide the input data required to define the investment criteria, two sets<strong>of</strong> data are required: the capital investment cost and the cash flow <strong>of</strong> the project (inthis case <strong>of</strong> an individual scenario).The former is a function <strong>of</strong> the initial cost to buy the equipment and can be simplyconsidered as an investment cost related to the aggregated cost <strong>of</strong> procuring thedifferent plant components. Table 4.3 show the Investment Cost (I) assumed for eachscenario.Table 4.3 - Investment costs for the different scenariosScenarioDescriptionApproximateinvestment cost,I (Euros, €)1 CHP unit, absorption chiller and 0.3m 3 hot water storage tank 40,2672 CHP unit, absorption chiller and 0.5m 3 hot water storage tank 40,4573CHP unit, absorption chiller, 0.5m 3 hot water storage tank and0.3m 3 chilled water storage tank41,0574CHP unit, absorption chiller, 0.5m 3 hot water storage tank and2.5m 2 flat plate SWH40,8575 CHP unit, absorption chiller and 0.5m 3 hot water storage tank 40,457154

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