Economic Analysis of Distributed Generation Options With Wide Turndown

2009 ◽  
Author(s):  
Winston S. Burbank ◽  
Dennis E. Witmer ◽  
Frank Holcomb
Keyword(s):  
Natural Gas ◽  
Distributed Generation ◽  
Peak Power ◽  
Net Present Value ◽  
Carbon Tax ◽  
Present Value ◽  
Historical Cost ◽  
Capital Costs ◽  
Internally Cooled ◽  
Base Load

Solid oxide fuel cell gas turbine (SOFCGT) hybrid systems have received much attention due to high predicted efficiencies, low emissions and low historical cost of natural gas. For market acceptance three criteria must be met: reliability, commercial availability and a positive net present value. This study deals primarily with the latter, comparing the net present value of the following four engines operating under a distributed or isolated loads: a simple cycle microturbine, a novel internally-cooled and recuperated (ICR) microturbine, a novel SOFCGT hybrid supported by the same ICR microturbine, and a standard diesel engine. Due to the higher value of peak power, a system able to meet fluctuating power demands while retaining high efficiencies is strongly preferable to base load operation. Sensitivity analysis is made for variable prices of natural gas, electric rates, carbon tax, and SOFC capital costs.

scholarly journals Simulation of Self-Consumption Photovoltaic Installations: Profitability Thresholds

2021 ◽  
Vol 11 (14) ◽  
pp. 6517
Author(s):  
Marta Varo-Martínez ◽  
Luis Manuel Fernández-Ahumada ◽  
Rafael López-Luque ◽  
José Ramírez-Faz
Keyword(s):  
Systematic Study ◽  
Peak Power ◽  
Net Present Value ◽  
Energy Model ◽  
Present Value ◽  
Lower Power ◽  
Design Variables ◽  
Sunshine Hours ◽  
Optimal Value ◽  
Renewable Technology

PV self-consumption can contribute positively to the spread of PV and, therefore, to the progress of renewable energies as a key element in a decarbonized energy model. However, the policies of each country regarding the promotion of this type of renewable technology is fundamental for their growth. Despite the high number of sunshine hours registered in Spain, self-consumption in this country has not been authorized until recently. In this new context, this work presents a systematic study of the profitability limits of a self-consumption PV installation under different conditions of installed peak power, orientation and inclination of the PV panels and level of obstruction of the installation. It was proved that, for the case of study (Córdoba, Spain), the maximum profitability was achieved for PV panels oriented to the south and with an inclination of 15° whereas the most unfavourable conditions are those of PV panels with an orientation and inclination of 180° and 90°, respectively. Furthermore, when the level of obstruction increases the maximum of the Net Present Value of self-consumptions PV installations decreases and this optimal value is achieved for installations with lower power. Finally, empirical adjustment equations have been developed to estimate the profitability parameters of self-consumptions PV installations as a function of their design variables.

scholarly journals Gas to Liquids Techno-Economics of Associated Natural Gas, Bio Gas, and Landfill Gas

Processes ◽  
2021 ◽  
Vol 9 (9) ◽  
pp. 1568
Author(s):  
Federico Galli ◽  
Jun-Jie Lai ◽  
Jacopo De Tommaso ◽  
Gianluca Pauletto ◽  
Gregory S. Patience
Keyword(s):  
Natural Gas ◽  
Net Present Value ◽  
Landfill Gas ◽  
Labor Cost ◽  
Variable Cost ◽  
Selling Price ◽  
Present Value ◽  
Fischer Tropsch ◽  
Gas To Liquids ◽  
The Impact

Methane is the second highest contributor to the greenhouse effect. Its global warming potential is 37 times that of CO2. Flaring-associated natural gas from remote oil reservoirs is currently the only economical alternative. Gas-to-liquid (GtL) technologies first convert natural gas into syngas, then it into liquids such as methanol, Fischer–Tropsch fuels or dimethyl ether. However, studies on the influence of feedstock composition are sparse, which also poses technical design challenges. Here, we examine the techno-economic analysis of a micro-refinery unit (MRU) that partially oxidizes methane-rich feedstocks and polymerizes the syngas formed via Fischer–Tropsch reaction. We consider three methane-containing waste gases: natural gas, biogas, and landfill gas. The FT fuel selling price is critical for the economy of the unit. A Monte Carlo simulation assesses the influence of the composition on the final product quantity as well as on the capital and operative expenses. The Aspen Plus simulation and Python calculate the net present value and payback time of the MRU for different price scenarios. The CO2 content in biogas and landfill gas limit the CO/H2 ratio to 1.3 and 0.9, respectively, which increases the olefins content of the final product. Compressors are the main source of capital cost while the labor cost represents 20–25% of the variable cost. An analysis of the impact of the plant dimension demonstrated that the higher number represents a favorable business model for this unit. A minimal production of 7,300,000 kg y−1 is required for MRU to have a positive net present value after 10 years when natural gas is the feedstock.

scholarly journals A New Look at the Economic Evaluation of Wind Energy as an Alternative to Electric and Natural Gas-Powered Irrigation

2013 ◽  
Vol 45 (4) ◽  
pp. 739-751 ◽  
Author(s):  
Dmitry Lima ◽  
Gregory Colson ◽  
Berna Karali ◽  
Bridget Guerrero ◽  
Stephen Amosson ◽  
...  
Keyword(s):  
Economic Evaluation ◽  
Natural Gas ◽  
Wind Energy ◽  
Real Options ◽  
Net Present Value ◽  
Present Value ◽  
Irrigation Systems ◽  
Investment Timing ◽  
Stochastic Nature ◽  
Replacement Decisions

An extension of the Guerrero et al. (2010) net present value (NPV) analysis using real options analysis (ROA) is offered to improve machinery replacement decisions. Specifically, the feasibilities of replacing natural gas irrigation systems with either electric or hybrid (electric/wind) systems are evaluated. Results indicate NPV and ROA criteria can yield opposite decisions depending on the stochastic nature of the parameters, reversibility of the investment, and flexibility of investment timing. For policy, NPV results indicate that replacing natural gas with a hybrid is on the cusp of being optimal. However, ROA indicates this NPV implication may not hold.

scholarly journals An Economic Analysis of Rewind, Premium, and Standard Efficiency Vertical Hollow Shaft Motors for Irrigation

2020 ◽  
Vol 36 (2) ◽  
pp. 115-123
Author(s):  
Christopher G. Henry ◽  
Kenton B. Watkins ◽  
Ranjitsinh U. Mane ◽  
Gregory L. Stark
Keyword(s):  
Energy Efficiency ◽  
Economic Analysis ◽  
Energy Efficient ◽  
Net Present Value ◽  
Cost Effective ◽  
Payback Period ◽  
Department Of Energy ◽  
Present Value ◽  
Hollow Shaft ◽  
Capital Costs

Abstract. Vertical hollow shaft motors are commonly used for vertical turbine pumps for irrigation. They are a specialty motor which has been exempt from the Department of Energy (DOE) requirement for improved energy efficiency. We evaluated the payback and net present value (NPV) of standard efficiency, energy efficient, and premium efficiency motors for motor sizes used in irrigation. For motor sizes between 22 and 56 kW (30 and 75 hp), the NPV and payback analysis indicated that premium efficient motors are more advantageous than standard efficiency. In motor sizes greater than 75 kW (100 hp) standard efficient motors are more cost effective than replacing a motor with a premium efficiency motor. When considering a repair or rewind of a motor, the result is highly dependent on the quality, and the resulting efficiency expected after the repair. If a repaired motor nameplate efficiency could be attained after rewinding and repair, then rewinding is most cost effective. However, if original nameplate efficiency is not attained, then it may be more cost effective to purchase a premium efficiency motor over rewinding. New DOE requirements may be advantageous for irrigators even though capital costs will be higher for new motors. Keywords: Motor rewind, Net present value (NPV), Payback period, Premium efficiency motor.

scholarly journals Valuing a natural gas pipeline expansion project: A copula-TGARCH application in Mexico

2018 ◽  
Vol 64 (2) ◽  
pp. 95
Author(s):  
Ricardo Massa Roldan ◽  
Montserrat Reyna Miranda
Keyword(s):  
Natural Gas ◽  
Real Options ◽  
Net Present Value ◽  
Joint Effect ◽  
Gas Pipeline ◽  
Energy Prices ◽  
Present Value ◽  
The Real ◽  
Investment Projects ◽  
The Individual

<p>With the liberalization of energy prices and the opening of the energy sector to competitors in Mexico, an opportunity for new investment projects is now open. Due to the current conditions of international energy markets, such as volatility and low prices with no prospect of reversion, a need for valuation tools to better capture the risk and benefits of a project presents itself. We propose a methodology based on the volatility treatment of numerous underlying assets in a Real Options Analysis: using a TGARCH for the individual volatilities and copulas for the joint effect. The methodology is applied to a natural gas distribution project of Mexico’s State oil company Petróleos Mexicanos (PEMEX). An estimated net present value of the gas pipeline is provided, considering the real options perspective. The result of our empirical application validates the real option’s theory of a higher net present value estimation for the project when incorporating the effect of different sources of uncertainty and non-linear interdependence.</p>

Nuclear Air-Brayton Combined Cycle (NACC) With Natural Gas Peak Power

2013 ◽  
Author(s):  
Charles Forsberg ◽  
Daniel Curtis
Keyword(s):  
High Temperature ◽  
Natural Gas ◽  
Heat Recovery ◽  
Peak Power ◽  
Combined Cycle ◽  
Operating Conditions ◽  
Heat Recovery Boiler ◽  
Coated Particle ◽  
Recovery Boiler ◽  
Base Load

The Fluoride-Salt-Cooled High-Temperature Reactor (FHR) is a new reactor concept that uses the graphite-matrix coated-particle fuel from gas-cooled reactors and a high-temperature liquid salt coolant. The reactor exit temperatures exceed 700°C with reactor inlet temperatures of ∼600°C. Because of these high temperatures the FHR can be coupled to a nuclear air-Brayton combined-cycle (NACC) plant with one or more air-Brayton turbines with hot exhaust directed to a steam recovery boiler. Under normal base-load operating conditions, air is compressed, heated using salt-air heat exchangers, passed through a turbine, and exhausted to a heat recovery boiler, and added electricity is made from the steam that is generated. The NACC can have one or more salt-to-air reheat stages. After air compression and nuclear heating, the hot compressed air is above the auto-ignition temperature of natural gas (NG). Natural gas can be injected to increase gas temperatures and produce peak power. Because the plant operates continuously as a base-load system connected to the grid and there is no need to control the fuel-to-air ratio, the peak power can be varied and increased rapidly. At times of low electricity prices, steam from the heat recovery boiler can be sold to industrial users at lower prices than they can generate it from NG but above its value for electricity generation. The incremental capital cost for peaking capabilities is less than the cost of stand-alone NG plants. There is the potential for the NG-to-electricity efficiencies exceeding those of stand-alone NG plants. These capabilities imply plant revenue 20 to 50% greater than from an equivalent base-load nuclear plant. The market requirements are being assessed to determine the requirements for the FHR and NACC power cycle. As a new-type of plant, much additional work is required to understand the design options and limitations.

scholarly journals The hydro-seeding and concrete anchors as a method for preventing damage to district heating network by local landslides

2019 ◽  
Vol 140 ◽  
pp. 05014
Author(s):  
Stanislav Chicherin ◽  
Lyazzat Junussova ◽  
Timur Junussov
Keyword(s):  
Life Span ◽  
Cash Flow ◽  
Discount Rate ◽  
Net Present Value ◽  
District Heating ◽  
First Year ◽  
Present Value ◽  
Capital Costs ◽  
Model Combining ◽  
Project Life

To prevent rain from eroding the sides of the trench we have developed a method of spraying them with hydro-seed. The homemade solution contains water, soil, mulch and a special blend of local grass seed. The mixture containing the blend of seeds enhances the soil to give it some strength and minimize the erosion. Another option is using concrete anchors instead of steel ones, which are supposed to increase the rigidity of a district heating (DH) network. The paper further visualizes the process with the materials required for each step. We constructed the equation in order to estimate net present value depending on the capital costs of the construction, the time of the cash flow, and the discount rate. In case of concrete anchors, the NPV of the project is negative. However, in case of hydro-seeding, the income provided by avoiding penalties becomes bigger than initial costs in the very first year of the project life span. From the comparison of two NPV profiles, the model combining the concrete anchors and the hydro-seeding can save up to 20% of investments compared to the conventional DH line. Results show that although then capital costs are increased by up to 24%, investment payback for DH network can be reduced to 12 years while life span can be increased by up to 30 years.

scholarly journals Economic and Technological Analysis of Commercial LNG Production in the EU

Energies ◽  
2019 ◽  
Vol 12 (8) ◽  
pp. 1565 ◽  
Author(s):  
Vladimír Hönig ◽  
Petr Prochazka ◽  
Michal Obergruber ◽  
Luboš Smutka ◽  
Viera Kučerová
Keyword(s):  
Natural Gas ◽  
Energy Security ◽  
Net Present Value ◽  
Gas Production ◽  
Liquefied Natural Gas ◽  
Small Scale ◽  
Present Value ◽  
Alternative Sources ◽  
Technological Analysis ◽  
The Eu

There is a global need to increase the production of alternative sources of energy due to many issues related to conventional sources, such as environmental degradation or energy security. In this paper, decentralized liquefied natural gas production is analyzed. Liquefied natural gas, according to the analysis, can be considered a viable alternative even for decentralized applications Design and economic analysis of a small-scale biogas LNG plan together with the necessary technology and economic evaluation are presented in the paper. The results show that a project of the proposed size (EUR 3 million) offers a relatively good profitability level. Specifically, the net present value of the project is mostly positive (around EUR 0.1 million up to EUR 0.8 million). Therefore, based on the research, small LNG plants operating across the continent can be recommended for the processing of local sources of biogas.

scholarly journals COST – BENEFIT ANALYSIS FOR NIGERIAN NATURAL GAS PIPELINE INVESTMENT

2020 ◽  
Vol 7 (9) ◽  
pp. 52-65
Author(s):  
Gift Nwabueze ◽  
Joel Ogbonna ◽  
Chijioke Nwaozuzu
Keyword(s):  
Natural Gas ◽  
Net Present Value ◽  
Oil And Gas ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Gas Pipeline ◽  
Transport Cost ◽  
Benefit Analysis ◽  
Present Value ◽  
Natural Gas Pipeline

This paper performs cost-benefit analysis of a pipeline infrastructure project based on a given natural gas demand in order to estimate the net present value and payback time for natural gas pipeline investment in Nigeria. The result of the cost-benefit analysis indicates a positive net revenue and net present value (NPV) at the current regulated transport cost and availability factor for gas pipelines in Nigeria. However, with a payback period of 14 years, a natural gas pipeline project in Nigeria is likely to lose-out investment capital to other competing investments within the oil and gas sector. Scenario analysis indicates that by doubling the regulated transport cost with a 50% tax reduction, the pipeline investment results in a much higher NPV and a payback of 4 years, which is more acceptable to investors.

scholarly journals Economic Analysis of the Application of the Technological System for Removing Suspended Solids from Mine Drainage Waters

Energies ◽  
2021 ◽  
Vol 14 (24) ◽  
pp. 8232
Author(s):  
Jolanta Gumińska ◽  
Franciszek Plewa ◽  
Aneta Grodzicka ◽  
Adam Gumiński ◽  
Magdalena Rozmus ◽  
...  
Keyword(s):  
Water Treatment ◽  
Economic Analysis ◽  
Mine Water ◽  
Suspended Solids ◽  
Net Present Value ◽  
Mine Drainage ◽  
Capital Expenditure ◽  
Treatment System ◽  
Present Value ◽  
Capital Costs

This paper presents the results of the technological and economic analysis of mine water treatment systems before their discharge into the environment. The following analysis enabled us to determine the profitability of the investment, taking into account the TSS (total suspended solids) concentration in mine water. The simulation results showed that it is economically profitable to apply a water treatment system if natural sedimentation carried out in underground mine water passages, or in sedimentation tanks located on the ground, is ineffective for TSS removal. Economic and financial parameters allow us to conclude that all analyzed variants of the application of a pre-treatment system are characterized by high economic effectiveness. This mainly results from the high profitability of an analyzed investment, comparatively low capital expenditure, and present low market percentage rates. The most profitable variant (TSS concentration is 1000 mg/dm3) brings significant economic indicators, i.e., high NPV–Net Present Value (100 319 270.28 PLN), a high NPVR–Net Present Value Ratio (8.96 PLN/PLN), and a short discount payback period (1 year 236.6 days). A high internal rate of return (157.8%) for this variant reduces the risk of losing profitability in a situation of growing capital costs in the monetary market.

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