Posts Tagged ‘levelized cost of energy’
How to Lower Power Plant Emissions – some suggestions
How to Lower Power Plant Emissions – some suggestions
Here are my simple suggestions on how to lower power plant emissions and address global warming and climate change issues.
—————-
Hi Jeff,
I am not an environmental scientist, but this I can say.
As long as your liquid fuel has lower than 1% Sulfur by weight, you will not exceed SO2 concentration (in volume % or parts per million by volume or as mg/Nm3 or milligram per normal cubic meter) required by the EPA (usually given in ppm and mg/Nm3 for both old and new power plants).
Having sufficient excess air (3-15% or average of 9%) will help eliminate unburnt fuel emission such as CO (carbon monoxide) and THC (total hydro carbon) as well as unburnt carbon (C) particles.
You also need to lower impurities such as ash to reduce total suspended solids (TSP) emissions (ash and unburnt carbon fuel).
To lower NOx emissions, the firing of oil must be done in stages so that the flame is not too hot that it will dissociate nitrogen (N2) in the air into oxides of nitrogen (NOx) that contributes to acid rain together with oxides of sulfur (SOx).
But this days, you have to address global warming and climate change issues by lowering your carbon (C) or as carbon dioxide (CO2) emissions. This means keeping the fuel to electricity conversion efficiency (thermal efficiency) as high as possible, which is typically around 33-36% for oil thermal power plants based on the steam Rankin cycle. To lower the carbon footprint, you need to move away from the simple steam Rankin cycle to combined cycles (CCGT) to raise efficiency to over 54-59%, almost double, thus reducing the carbon footprint by almost half.
Hope I was of help,
Marcial
—————–
For the readers who would want to design a power plant that addresses global warming and climate change issues, energy efficiency considerations, cost of power plant and resulting electricity tariff, please email me your concerns as I may provide you a good feasibility study that addresses all the above issues.
Cheers,
Marcial, your energy technology expert (for conventional, nuclear and renewable energy power generation).
How to make a top-of-the-line project finance model for wind energy
How to make a top-of-the-line project finance model for wind energy
After many years of financial modeling experience, including working for international development agencies, your favorite energy technology selection and business development consultant is providing his audience with a template for making state-of-the-art project finance model for individual wind turbines and wind farms in hybrid with fossil power generation (peak load and base load units in order to allow the massive penetration of wind energy into the grid without undermining the grid’s stability, voltage and frequency).
Here is the sample template model showing the main topics and a few columns of the model. The model is broken down into the following sections: More »
New Simplified Calculation Procedure for Levelized Cost of Energy (LCOE) and Feed-in Tariff
New Simplified Calculation Procedure for Levelized Cost of Energy (LCOE) and Feed-in Tariff
As part of the on-going technical preparations for the proposed mini-conference on the Mindanao Power Crisis this coming late August or early September 2010 and the main conference on “Energy & Climate Change”, the workshop coordinator, Mr. Marcial T. Ocampo, has prepared the simplified calculation procedure for calculating the levelized cost of energy (LCOE) and levelized selling price (tariff) for conventional and renewable energy resources.
The result of the simplified formulas using the US NREL formula for generation cost and the RP MTO formula for selling price were compared with the results from a full-blown project finance model and the variance between the two methods were minimal in most of the power generation technologies analyzed.
The input data came from the IEPR research summary of 2007 and from internationally published data on power generation technology by noted experts such as Paul Breeze and yours truly, Marcial Ocampo. More »
Tags: advanced nuclear, biogas, biomass, biomass cogeneration, biomass direct combustion, biomass gasification, circulating fluidized bed, clean coal, co-firing with coal, combined cycle gas turbine, concentrating solar, fuel cells, gas thermal, geothermal, geothermal binary, geothermal flashed steam, hydro, landfill gas, large hydro, LCOE, levelized cost of energy, levelized generation cost, levelized selling price, micro hydro, mini hydro, municipal solid waste, nuclear, ocean thermal conversion technology, ocean wave, oil diesel, oil thermal, OTEC, power generation technology, pulverized coal, pumped hydro, sewage digestion, simple gas turbine, small hydro, solar photovoltaic, solar PV, solar thermal, tariff, tidal power, utility wind, wave energy, wind, wind farm
Preliminary Feed-in Tariff (FiT) for Renewable Energy Sources in the Philippines – Biomass, Mini-Hydro, Wind and Solar
Preliminary Feed-in Tariff (FiT) for Renewable Energy Sources in the Philippines – Biomass, Mini-Hydro, Wind and Solar
Last January 20-21, 2010, the Philippine Department of Energy (DOE) and the National Renewable Energy Board (NREB) and in consultation with the Renewable Energy (RE) Alliance, conducted a three day seminar at the Subic International Hotel at the Subic Free Port, Province of Zambales, Philippines.
With the recent passage last year (2009) of the Philippine Renewable Energy Law (R.A. 9513) and its Implementing Rules and Regulations (DC 2009-05-0008), a Feed-In Tariff mechanism has to be established in the country within a year (February 2010). In particular, a feed-in tariff scheme which provides an obligation to the power industry to source RE generation at a guaranteed fixed price over a period of time, which should not be less than a period of 12 years (15 years per ERC), to be determined by the Energy Regulatory Commission (ERC). More »
Project Finance Models for Power Plants with Carbon Credits under CDM (download file)
Project Finance Models for Power Plants with Carbon Credits under CDM (download file)
Impact of New Renewable Energy (RE) Law and its IRR on Electricity Price (Feed-In Tariff Calculation Procedure)
Impact of New RE Law and its IRR on Electricity Price
(Feed-In Tariff Calculation Procedure)
Energy Technology Conference & Exhibition 2009
By: Marcial T. Ocampo
Date: December 2, 2009
Venue: New World Hotel, Makati
Outline
- Republic Act No. 9513 (RE Law)
- DOE Circular No. DC2009-05-0008 (IRR)
- DOE Circular No. DC2009-07-0011 (Guidelines)
- Feed-In Tariff System
- Financial Model – before and after RE Law
- Mini Hydro -
- Biomass -
- Wind -
- Solar – More »
Biomass, Coal and Oil Thermal, Diesel and CCGT Levelized Tariff, Levelized Cost and Financial Model
Biomass, Coal and Oil Thermal, Diesel and CCGT Levelized Tariff, Levelized Cost and Financial Model
The following is a snippet of my state-of-the-art project finance model for calculating levelized tariff, levelized cost of energy, and financial model (generation, fuel requirement, income statement, cash flow statement, balance sheet and financial ratios). More »
Gas Turbine and CCGT LevelizedTariff, Levelized Cost and Financial Model
Gas Turbine and CCGT LevelizedTariff, Levelized Cost and Financial Model
The following is a snippet of my state-of-the-art project finance model for calculating levelized tariff, levelized cost of energy, and financial model (generation, fuel requirement, income statement, cash flow statement, balance sheet and financial ratios). To secure a copy of the spreadsheet, click the ENERGY DATA page for arrangements.
Cogeneration Feed-In Tariff, Levelized Cost and Financial Model with CDM Carbon Credits
Cogeneration Feed-In Tariff, Levelized Cost and Financial Model
The following is a snippet of my state-of-the-art project finance model for calculating feed-in tariff, levelized cost of energy, and financial model (generation, fuel requirement, income statement, cash flow statement, balance sheet and financial ratios). To secure a copy of the spreadsheet, click the ENERGY DATA page for arrangements.
Hybrid Diesel Power Plant Feed-In Tariff, Levelized Cost and Financial Model
Hybrid Diesel Power Plant Feed-In Tariff, Levelized Cost and Financial Model
The following is a snippet of my state-of-the-art project finance model for calculating feed-in tariff, levelized cost of energy, and financial model (generation, fuel requirement, income statement, cash flow statement, balance sheet and financial ratios). To secure a copy of the spreadsheet, click the ENERGY DATA page for arrangements.
Wind Energy Feed-In Tariff, Levelized Cost and Financial Model with CDM Carbon Credits
Wind Energy Feed-In Tariff, Levelized Cost and Financial Model with CDM Carbon Credits
The following is a snippet of my state-of-the-art project finance model for calculating feed-in tariff, levelized cost of energy, and financial model (generation, fuel requirement, income statement, cash flow statement, balance sheet and financial ratios). To secure a copy of the spreadsheet, click the ENERGY DATA page for arrangements.
Solar PV Power Feed-In Tariff, Levelized Generation Cost and Financial Model with CDM Carbon Credit
Solar PV Power Feed-In Tariff, Levelized Generation Cost and Financial Model with CDM Carbon Credits
The following is a snippet of my state-of-the-art project finance model for calculating feed-in tariff, levelized cost of energy, and financial model (generation, fuel requirement, income statement, cash flow statement, balance sheet and financial ratios). To secure a copy of the spreadsheet, click the ENERGY DATA page for arrangements.
Mini-Hydro Power Feed-In Tariff, Levelized Generation Cost and Financial Model with CDM Carbon Credits
Mini-Hydro Power Feed-In Tariff, Levelized Generation Cost and Financial Model with CDM Carbon Credits
The following is a snippet of my state-of-the-art project finance model for calculating feed-in tariff, levelized cost of energy, and financial model (generation, fuel requirement, income statement, cash flow statement, balance sheet and financial ratios). To secure a copy of the spreadsheet, click the ENERGY DATA page for arrangements.
Biomass Energy Feed-In Tariff, Levelized Cost and Financial Model with CDM Carbon Credits
Biomass Energy Feed-In Tariff, Levelized Cost and Financial Model
The following is a snippet of my state-of-the-art project finance model for calculating feed-in tariff, levelized cost of energy, and financial model (generation, fuel requirement, income statement, cash flow statement, balance sheet and financial ratios). To secure a copy of the spreadsheet, click the ENERGY DATA page for arrangements.
Levelized Cost of Energy – sample calculation results
Levelized Cost of Energy – sample calculation results
Please refer to the first article for the calculation formulas (US NREL and RP MTO) and the second article for the sample input data used in the calculation of levelized cost of energy and electricity (rated capacity, overnight cost, fixed and variable O&M cost, fuel cost, efficiency, capacity factor, station use, taxes, economic life, etc.).
Levelized Cost by Technology Group (using RP MTO Formula)
The levelized cost for each technology of given rated capacity is given for the RP MTO formula (with taxes and depreciation).
Please revisit this link for the US NREL and RP MTO formulas for levelized cost of energy:
http://energytechnologyexpert.com/cost-of-power-generation/how-to-calculate-the-levelized-cost-of-power-or-energy/ More »
Sample data for calculating the levelized cost of energy and electricity
SAMPLE DATA FOR CALCULATING THE LEVELIZED COST OF ENERGY AND ELECTRICITY
Your favorite energy technology expert presents sample data for calculating the levelized cost of energy and electricity which could be applied on the NREL formula or implemented in a detailed project finance model.
The input data are summarized below. More »
Tags: cost, cost of power generation, cost of power per kw, cost of power per kwh, levelized cost of energy, power generation, power generation technologies, power generation technology, power plant, power plant design, renewable and non-renewable electricity, renewable and non-renewable energies, renewable and non-renewable fuels, renewable and non-renewable resources, renewable and non-renewable sources
How to calculate the levelized cost of energy – some updates
How to Calculate the Levelized Cost of Energy and Electricity – some updates and developments
The author is re-issuing this article in view of the tremendous interest worldwide on this article. A number of readers have in fact ordered my technology articles, specifically on the cost of power generation technology (a spreadsheet containing the technology, rated capacity, overnight cost $/kW, capacity factor % of rated capacity, fixed O&M $/kW/year, variable O&M $/kWh, energy conversion efficiency % of fuel energy, fuel cost $/GJ, economic life years, construction lead time years, reliability % of operating hours, availability % of calendar days, and levelized cost $/kWh).
Using the NREL formula and a detailed project finance model, I was able to demonstrate that the results would be the same in calculating the levelized cost of energy or electricity. The reader is adviced to email me if they would like to get a copy of the spreadsheet showing the two calculations.
With the passage of the Philippine Renewable Energy Act of 2009 (RE Law) and its implementing rules and regulations (IRR), it is imperative that financial models for renewable energy projects be revised accordingly. This author and our group of experts would assist project proponents and investors in the Philippines develop an updated financial model for evaluating their RE project proposals for endorsement by the Department of Energy (DOE) and for the approval of their feed-in tariffs with the Energy Regulatory Commission (ERC). More »
Tags: cost, cost of power generation, cost of power per kw, cost of power per kwh, levelized cost of energy, power generation, power generation technologies, power generation technology, power plant, power plant design, renewable and non-renewable electricity, renewable and non-renewable energies, renewable and non-renewable fuels, renewable and non-renewable resources, renewable and non-renewable sources
How to Calculate the Levelized Cost of Energy – a simplified approach
How to Calculate the Levelized Cost of Energy – a simplified approach
Calculating the levelized cost of energy is a fundamental principle in the energy and power industry. It basically allows the comparison of various technologies of unequal life times and capacities without resorting to developing a full-blown project finance model.
This simplified approach is particularly appropriate when doing a rough estimate on the cost of electricity given the various technologies in a country. By applying the formula on each power plant, as if it is continuously replaced to provide incremental power to meet new incremental demand, it provides a good estimate on the cost of electricity had a new plant been constructed to replace the old plant that became obsolete.
The weighted average levelized cost for the country is then estimated by using the electricity generation of each technology as weighing factor. For instance, the effect of injecting a nuclear power plant into the generation mix will be estimated quickly so that the country’s average levelized cost of energy could be compared with its neighboring competitor countries having nuclear power. Applying the same set of formulas and cost factors for each technology will yield a good index on our country’s competitiveness with respect to power costs.
Various Power Generation Technologies
I am sharing with you my own list and classification of the various power generation technologies, both existing and future technologies, that taken as a whole, would supply the ever growing needs of the peoples of our mother earth.
Levelized Cost of Each Power Generation Technology
The only way power generation technologies could be compared with respect to cost is to calculate the levelized cost of energy over its economic life. This involves obtaining data on rated capacity kW, overnigh costs $/kW, fixed Operating & Maintenance cost $/kW/year, variable O&M cost $/kWh, efficiency % or plant heat rate kJ/kWh, economic life years, availability %, load factor % or capacity factor %, fuel cost $/GJ or $/kg or $/L, fuel Gross Heating Value kJ/kg or kJ/L, fuel density kg/L, and construction lead time years.
The levelized cost allows comparison of different power generation technologies of unequal economic life, capital cost, risk and returns, capacity factor, efficiencies or plant heat rate, fuel costs and construction lead times.
The basic formula used is based on the US NREL formula for the levelized cost of energy (net):
Net COE = ICC * CRF / AEPnet + (LLC + O&M + LRC + MOE) – PTC, in US $/kWh
where ICC = Initial Capital Cost (total debt), $
CRF = capital recovery factor, 1/yr = int / (1 – (1 + int)^-Life)
AEPnet = Net Annual Energy Production, kWh/yr (net of plant own use)
= (kW capacity) * (capacity factor) * (hours/year)
LLC = Land Lease Cost, $/kWh
O&M = Levelized Operating & Maintenance Expense, $/kWh
LRC = Levelized Replacement/Overhaul Cost, $/kWh
MOE = Miscellaneous Operating Expense, $/kWh
PTC = US Production Tax Credit, $/kWh
In the case of the Philippines where the effect of income tax and depreciation needs to be considered, the RP MTO formula developed by Engr. Marcial T. Ocampo is shown:
