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    Initial Feasibility Report: Combined Heat and Power Plant: Methodology

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    audrey
    This report analyzes the feasibility of installing a combined heat and power plant at a sample facility in Massachusetts. Five cogeneration design options were evaluated based on annual energy savings, installation costs, simple payback periods, and internal rates of return both with and without gas company rebates. The analysis found that all options had payback periods under 10 years and two had rates of return over 10%, indicating the site is well-suited for a cost-effective cogeneration plant. Methods of investment capital analysis were used to determine technical and economic viability. The report recommends implementing a combined heat and power system.

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    Initial Feasibility Report: Combined Heat and Power Plant: Methodology

    Uploaded by

    audrey
    20 views2 pages
    This report analyzes the feasibility of installing a combined heat and power plant at a sample facility in Massachusetts. Five cogeneration design options were evaluated based on annual energy savings, installation costs, simple payback periods, and internal rates of return both with and without gas company rebates. The analysis found that all options had payback periods under 10 years and two had rates of return over 10%, indicating the site is well-suited for a cost-effective cogeneration plant. Methods of investment capital analysis were used to determine technical and economic viability. The report recommends implementing a combined heat and power system.

    Original Description:

    engineering economy

    Original Title

    ECON Feasib

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    This report analyzes the feasibility of installing a combined heat and power plant at a sample facility in Massachusetts. Five cogeneration design options were evaluated based on annual energy savings, installation costs, simple payback periods, and internal rates of return both with and without gas company rebates. The analysis found that all options had payback periods under 10 years and two had rates of return over 10%, indicating the site is well-suited for a cost-effective cogeneration plant. Methods of investment capital analysis were used to determine technical and economic viability. The report recommends implementing a combined heat and power system.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    20 views2 pages

    Initial Feasibility Report: Combined Heat and Power Plant: Methodology

    Uploaded by

    audrey
    This report analyzes the feasibility of installing a combined heat and power plant at a sample facility in Massachusetts. Five cogeneration design options were evaluated based on annual energy savings, installation costs, simple payback periods, and internal rates of return both with and without gas company rebates. The analysis found that all options had payback periods under 10 years and two had rates of return over 10%, indicating the site is well-suited for a cost-effective cogeneration plant. Methods of investment capital analysis were used to determine technical and economic viability. The report recommends implementing a combined heat and power system.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Initial Feasibility Report:

    Combined Heat and Power Plant

    I. Introduction

    The Northeast CHP Application Center operating within the Center for Energy Efficiency
    and Renewable Energy (CEERE) at the University of Massachusetts, Amherst, investigated a
    feasibility of utilizing cogeneration at sample facility in Massachusetts. The objectives of the
    feasibility are to perform engineering analyses to determine the technical viability of utilizing
    cogeneration, To select and perform savings and cost analyses on a variety of cogeneration
    configurations based on the energy consumption and thermal load profiles, To evaluate previous analyses
    provided to sample facility by a cogeneration system developer, To Provide supplemental information on
    combined heat and power in general, inclusive of the various prime mover and heat recovery technologies
    involved along with a general description of the benefits and risks associated with implementing
    cogeneration and To recommend next steps for the facility to pursue.

    II. Objective

    To evaluate the financial analysis of the feasibility report: Combined Heat and Power Plant.

    III. Methodology

    Data gathered are shown in tables, Annual Energy Savings, Estimated Installation Cost and Simple
    Payback and Internal Rate of Return were tabulated.

    IV. Results and Discussion

    From the tables shown in the financial analysis, the economic summary of cogeneration
    design options that were analyzed for sample facility is presented. The annual electric generating
    efficiency and annual average combined heat and power system efficiency values are also
    provided. The values provide an indication of how efficiently the various systems perform as
    well as how part- load operation and availability of a thermal load affects engine and system
    performance.

    In the analysis, the discount rate is assumed to be 5.5%, Inflation rate is 1.5%, Project life
    time is said to be 20 years and tax implications are not accounted in the project. There were five
    different options tested where Annual Energy Savings was given and the Estimated Installed
    Cost, Simple Payback and Internal Rate of Return were obtained. There were two cases
    considered: First one is without Gas Company Rebate and second is with Gas Company Rebate.
    The Investment Capital Method of Internal Rate of Return and Payout Period Method are then
    used.

    The four alternatives presented in the table cover a wide range of installation costs to
    provide various first cost options. All have a simple payback under 10 years with two of the
    options have rates of return over 10%. Overall, the analysis indicates that this site has a well
    above average potential for implementing a cost effective and successful cogeneration plant.

    V. Conclusion

    Methods of Investment Capital were used in this feasibility to determine whether the site
    is potential for the implementation of a cost and cogeneration plant. These were also used to
    select and perform savings and cost analyses on a variety of cogeneration configurations based on the
    energy consumption and thermal load profiles. Therefore the Economic Analysis is important and useful
    in determining the technical viability of utilizing cogeneration at the facility and also in performing
    savings and cost study on a variety of cogeneration configurations based on the energy consumption and
    thermal load profiles.

    VI. Recommendation

    The combined heat and power system is the best cogeneration configuration for it saves
    money, improves power reliability, reduces environmental impact, and conserves the limited
    resources of fossil fuels.

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