Small-Scale Project Finance Models

Small-Scale Project Finance Models:

  1. Diesel Genset Power Plant – 600 US$

  2. Biomass Power Plant – 800 US$

  3. Cogen Power Plant – 1,000 US$

  4. Hydro (Micro, Mini) Power Plant – 1,200 US$

  5. Solar PV Power Plant – 1,800 US$

  6. Wind Power Plant – 2,400 US$

  7. Biomass Gassifaction Power Plant / Anaerobic Digestion – 3,000 US$

  8. Hybrid Power Plant (Diesel, Biomass, Solar, Wind, Micro-Hydro) – 1,000 US$

Wind Energy

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  • An indirect form of solar energy stored in kinetic form
  • Induced chiefly by the uneven heating of the earth’s crust by the sun.

Uses of Wind Energy

  1. Home owners may generate electricity, charge batteries, sell excess power to utility
  2. Large, modern turbines in wind farms can produce electricity for utilities
  3. Remote villages can generate power, pump water, grind grain, meet their basic energy needs.

Topics – Wind Energy

  • Wind Energy, Its Uses and History
  • Global Wind Resource Potential
  • Basic Principles of Operation & Components
  • Power Output and Maximum Efficiency
  • Types of Wind Mills and Examples
  • Cost of Wind Power (Capital, O&M, Levelized)
  • Applicability, Advantages, Disadvantages
  • Environmental Impact & Risks

History of Wind Turbines

  • Hero of Alexandria described a wind machine in the 1st century AD
  • Arabic texts of the 9th century talked of 7th century windmill.
  • Windmills spread to Europe from the Middle East for grinding grain, drainage, pumping, saw-milling, etc.
  • Post mills (rotated into the wind), were known in France and England in the 12th century. Tower mills (sails on top rotated), were introduced in France around the 14th century.
  • The first windmill to drive an electric generator was built by P. Lacour of Denmark in the late 19th century.
  • In 1931, a propeller-type windmill was built in Crimea for low-voltage electricity that fed into the local grid.
  • Experiments in 1940 led to a large Smith-Putnam machine, a twin-blade 55m diameter propeller-type rotor on a 34m tower rated at 1.25 MW ac power at 28 rpm.

Global Wind Resource

  • Wind is the movement of air in response to pressure differences within the atmosphere, caused primarily by uneven heating by the sun on the surface of the earth, exerting a force which causes air masses to move from a region of high pressure to a low one.
  • About 1.7 million TWh of energy each year is generated in the form of wind over the earth’s land masses, much more over the globe as a whole. Only a small fraction can be harnessed to generate useful energy because of competing land use.
  • A 1991 estimate puts the realizable global wind power potential at 53,000 TWh per year.
  • US, UK and China have vast wind resource potential. With only 6% of total land area available for wind, US could generate about 500,000 MW. Present US capacity is 2,500 MW.

Basic Principles and Components of a Modern Wind Turbine

  • Turbine rotor captures the wind energy and converts it into mechanical energy fed via a gearbox to a generator
  • Gearbox / generator housed in an enclosed nacelle with the turbine rotor is attached to its front
  • Combined rotor and nacelle mounted on a tower fitted with a yawing system keeps the turbine rotor facing into the wind always

Types of Modern Wind Turbines

  • Vertical-Axis Windmills – early machines known as Persian windmills; evolved from ship sails made of canvas or wood attached to a large horizontal wheel; when used to grind grain into flour, they were called windmills.
  • Horizontal-Axis Windmills –first designs had sails built on a post that could face into any wind direction, and were called post mills; evolved throughout the Middle Ages and was used for grinding grain, drainage, pumping, saw-milling.

Price: 56 USD

Solar Energy

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Solar energy has potential of supplying all our energy needs for: electric, thermal, process, chemical and even transportation; however, it is very diffuse, cyclic and often undependable because of varying weather conditions.

  • Sun – largest object in our solar system; outer visible layer called photosphere has temperature of 6,000 C
  • Sunlight or solar energy – main source of energy for wind, hydro, ocean and biomass.

Price: 34USD

Piston Engines

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Piston or Reciprocating Engines

4-Stroke medium speed diesel engines are mainly used for power generation on small islands, in remote areas and for industrial purposes. Medium speed technology is competitive for intermediate and base load power plants up to 200 MW: high levels of reliability and availability, rapid construction and installation, competitive capital cost and delivery times, and total efficiency approaching 90% for CHP plants.

Topics – Piston Engine

  • Piston Engine, Its Uses, Fuels
  • Types of Diesel Engines and Applications
  • Compression Ratio and Efficiency of Engines
  • Turbo-Charging of Engines
  • Engine Heat Balance
  • Basic Engine Construction & Support Systems
  • Cost of Diesel Power
  • Environmental Impact & Risks

Price: 30 USD

Hydrogen Energy

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Hydrogen – 3rd most abundant element on earth’s surface; found primarily in water [H2O] and organic compounds and generally produced from hydrocarbons thru reforming and water thru electrolysis.

When burned as fuel or converted to electricity, it joins with oxygen [O2] again to form water.

Price: 20 USD

Fuel Cells

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Fuel Cell: an electrochemical device, closely related to the battery, that can generate electricity from hydrogen, which in turn can be extracted from natural gas or other hydrocarbon gases through a chemical process called reforming.

Topics – Fuel Cells

  • Fuel Cells, Its Uses and History
  • Fuel Cell Principle, Characteristics, Operating Conditions
  • Fuel Cell Concept for Power, Heat & Water
  • Balance of Plant Equipment
  • Fuel Cell Process Diagram, Hydrogen Gas Reformation
  • Types of Fuel Cells (AFC, PAFC, PEM, MCFC, SOFC)
  • Advanced Fuel Cell Technologies (CHP, Hybrid FC-GT-IGCC)
  • Cost of Fuel Cells
  • Fuel Cell Applications, Advantages
  • Environmental Impact & Risks

History of Fuel Cel

  • Hydrolysis – if an electrical voltage is applied to water by placing two electrodes into the liquid and attaching a battery to them, the voltage induces a chemical reaction: hydrogen is produced at one electrode and oxygen at the other
  • 1839 – Sir William Grove observed that the process known as “hydrolysis” can also go backwards – hydrogen will react at one electrode and oxygen at the other producing water and an electrical voltage between the electrodes. It was only a century later that Francis Bacon began to develop practical fuel cells.
  • 1950s – Pratt and Whitney (now United Technologies) licensed Bacon’s technology and developed it for the US space program. The Gemini, Apollo and space shuttle program all used fuel cells to generate electricity and produce drinking water on-board by just bringing hydrogen fuel and oxygen with them.

Fuel Cell Principle

  • If an electrical voltage is applied on water, by placing two electrodes into the liquid and attaching a DC battery to them, the voltage induces a chemical reaction; hydrogen and oxygen is produced at each electrode:

H2O + DC voltage è H2 + O2

  • In 1839, Sir William Grove observed this process, known as hydrolysis, can also go backwards – reversible. Hydrogen will react at one electrode and oxygen at the other, producing water and DC electrical voltage between the electrodes.
  • During reverse hydrolysis, hydrogen would act at one electrode and oxygen at the other, producing water, heat and electrical voltage (DC) between the electrodes.

Fuel (H2) + O2 + platinum catalyst è H20 + DC voltage

Fuel Cell Characteristics

  • Operates as a continuous battery – continuous fueling
  • Never needs recharging
  • Based on reverse hydrolysis – converts hydrogen and oxygen into water and electricity
  • Current depends on electrode area
  • Voltage depends on materials of construction, typically less than 1 volt.

Balance of Plant Equipment

  • Power-conditioning equipment needed are expensive
  • Fuel processing comprises a large part of cost and project development.
  • The front-end processing and fuel cell technology is affected by the fuel and application: Hydrogen, Natural gas, Methanol, Gasoline, Biomass, Coal

Price: 30 USD

Combined Heat & Power (Cogeneration)

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Combined Heat & Power (Cogeneration)

Combined Heat and Power (CHP) is the simultaneous generation of electricity and steam (or heat) in a single power plant. It has been long used by industries and municipalities that need process steam or heat as well as electricity. CHP or cogeneration is not usually used by large utilities which tend to produce electricity only. It is advisable only for industries and municipalities if they can produce electricity cheaper or more conveniently; otherwise, buy from the utility instead.

In theory, CHP provides the most efficient use of energy resources, often utilizing up to 90% of the heat energy of the fossil fuel. In practice, while the efficiency of entire process is recognized, its application has been limited.

Topics – Combined Heat & Power

  • Combined Heat & Power, Its Uses and History
  • Basic Principle of Combined Heat & Power (CHP)
  • CHP or Cogeneration Plant Efficiency
  • Efficiency of Separate Generation
  • Types of Cogeneration Cycles
  • Other CHP Technologies
  • Opportunities for CHP
  • Cost of CHP (Capital, O&M, Levelized)
  • Applicability, Advantages, Disadvantages
  • Environmental Impact & Risks

Price: 6 USD