|
|
Market Value of Fuel Savings of Cogeneration EBM Power Plants
MARKET VALUE OF FUEL (NATURAL GAS)SAVED DURING THE LIFE CYCLE OF THE POWER PLANT, FOR 40 YEARS, DISCOUNTED AT, SAY, 10 % P.A., AT LOAD FACTOR = 95 % / YEAR.
(No escalation in the price of natural gas!)
- A. If cost of gas is, say, 8 USD Cents/kWh:
- (a) Cost for 1 year = 1 kWe *8760 [hours/year] * 0.95 [LF] *0.08 [USD] = 665.76/yr/1 kWh � 666 USD/year/1kWh
- (b) Present Market Value (�PMV�) of the natural gas fuel for 40 years for 1 kWh capacity if natural gas price is
8 USD Cents/kWh and not escalating, discounted at 10 % p.a.: PMV = 666/0.1 @ 6,660 / 1 kWhe / 40 years
(The �0.1� is the discounting factor for 40 years!)
- B. Thus:
- (1) For 3 MWe: PMV = 6,660 USD * 3,000 kWe = 19,980,000.- USD / 40 years
- (2) For 10 MWe: PMV=6,660 USD*10,000 kWe = 66,600,000 USD / 40 years
- (3) For 150 MWe:PMV=6,660 USD*150,000kWe= 999,000,000 USD /40 years
- C. Conclusion: It is highly advantageous to install �green� EBM Power Plants, as follows:
- D. The total installed costs are except land and power house, in USD:
- (1) 3 MWe: 8 Million USD
- (2) 10 MWe: 20 Million USD
- (3) 150 MWe: 245 Million USD
- E. Thus, the savings are, expressed in today�s cash:
- (1) 3 MWe: 19,980,000 - 8,000,000 = 11,980,000.- USD
- (2) 10 MWe: 66,600,000 - 20,000,000 = 46,600,000.- USD
- (3) 150 MWe: 999,000,000 - 245,000,000 = 754,000,000.- USD
- F. The savings are about the same for 20 years life cycle.
|