Co Generation

1. INTRODUCTION
Egypt, like many developing countries, is experiencing a rapid growth in electrical demand and
consumption. As more villages are electrified, and as the standard of living improves, demand
for electricity is increasing at a rate faster than overall economic growth.
In order to sustain economic development, this electrical demand must be met. The classic
way to meet the demand is to build additional electricity generating stations. This is being
done, and several major new power plants are in the planning and design stages. Another way
to help meet the demand is electrical energy conservation, which is also under way throughout
Egypt, especially in the industrial sector. A third solution is cogeneration.
Cogeneration is the simultaneous production of electricity and thermal energy from the same
fuel source. It can be applied to any commercial, industrial, or institutional facility where
there is a simultaneous need for both heat energy and electrical power. It offers several
advantages over central electricity generating stations: 1) fuel use efficiency is much higher,
often twice as high, since the heat normally rejected is utilized in useful process or hot water
heating; 2) because of higher efficiency, cogeneration is also economically and financially more
attractive than central power generating stations; 3) much, if not most, of the cogenerated
electricity is consumed at the generation site, thus saving transmission line capacity and costs;
4) unlike central power generating stations, cogeneration can be cost-effective even in very
small capacities (as low as 50 to 100 kW); and 5) most cogeneration projects have a much
shorter lead time than the large central generating stations.
This chapter gives a short history of the development and use of cogeneration systems, and
discusses the concept of cogeneration, its benefits, and the factors affecting its viability.
1.1 A BRIEF HISTORY OF COGENERATION
The concept of cogeneration is not new. Textile mills in the United States, for example, are
known to have used these combined heat and power systems as early as 1905.
However, as U.S. electric utilities improved their generating technology and created the
interconnected utility grid, most users found that they could purchase power less expensively
and more reliably than they could produce it themselves. In addition, the prices of oil and
natural gas in the U.S. remained low until the early 1970s. Under these circumstances,
investment in cogeneration systems could not be economically justified; the best business
decision for industry was to buy low-cost and reliable electricity and fuel.
The same cost factors that discouraged investment in on-site power generation are now acting
to encourage cogeneration. In the United States, active government support for cogeneration

INTRODUCTION 1.2
through legislation encouraged the installation of these facilities, contributing to phenomenal

growth in cogeneration through the 1980s. Exhibit 1.1 shows that U.S. companies had
requested Qualifying Facility (QF) status from the Federal Energy Regulatory Commission for
only about 1,000 MW of non-utility power generation in 1980. By 1990, the QF filings and
planned new capacity totaled nearly 30,000 MW.
In Egypt, cost factors alone justify the installation of cogeneration systems for many industrial
and commercial facilities. Some paper and petrochemical industries currently include
cogeneration as part of their processes. Rising oil and gas prices will spur the need for greater
energy efficiency in Egypt, and hasten the development of new cogeneration applications.
Government regulation in support of cogeneration can substantially increase the number of
cogeneration installations as well.
1.2 THE CONCEPT OF COGENERATION
In a central-station steam thermal plant, fuel is burned to produce high-temperature, high-

pressure steam, which is then passed through a turbine to generate electricity. But even in the
most efficient of these plants, less than 40 percent of the available energy (heat) contained in
the fuel is converted into electricity; the remainder is lost to the atmosphere. Some of the
energy loss is accounted for by combustion gases that escape to the atmosphere through the
boiler stack. But most of the energy is wasted in the condensation and cooling of steam and
water after they have passed through the turbine.
While the amount of heat that escapes is very large, it is at very low temperatures -- too low
to generate additional electricity or to be of any process use at the generating plant.Most
commercial and industrial applications, however, require process steam and heat at low
temperatures. They can thus combine the production of electricity and process heat, making
this energy, which would otherwise be wasted, available for use.
In a boiler/steam turbine cogeneration application, for example, the high-pressure steam

generated at the boiler can be expanded through a steam turbine rather than through a pressure-
reducing valve to provide low-pressure process steam. While this pressure drop or expansion
may provide only a small amount of electricity, all of the process heat continues to be useful
process heat, significantly increasing the overall efficiency of fuel use.
For example, generating 3,860 kg of steam and 600 kWh of electricity separately requires 3.25
barrels (517 liters of oil). Generating them through cogeneration requires only 2.25 barrels
(358 liters) of oil for an overall savings of 30 percent (Exhibit 1.2) Alternatively, to generate
electricity separately requires 11,077 kJ per kWh When electricity is generated in conjunction
with process steam, the unit consumption, also called the heat rate, is 5,539 kJ/kWh.
Energy Conservation and Efficiency Project (ECEP)

Exhibit 1.1

INTRODUCTION 1.4
Exhibit 1.3 shows the heat requirements for a cogeneration system in which about 45 Watts
of electrical power can be generated for every pound of steam produced, basically without any
extra fuel input.
While these examples illustrate the basic idea of cogeneration, a large number of variations on
this theme are possible. All of them combine the generation of mechanical or electrical power
with the utilization of waste heat.
The term “cogeneration” is widely used and universally accepted to describe both the concept
of the combined production of power and heat as well as the equipment or systems used to
produce power and heat in this way. Another form commonly applied to such systems and
equipment, especially in Europe, is “combined heat and power,” often referred to in the
literature as CHP.
1.3 THE BENEFITS OF COGENERATION
In general terms, the potential benefits of industrial cogeneration are widely recognized and
include:
Industrial Benefits
Reduced energy cost. For example, using waste for power generation can be less
costly than purchasing power from the utility.
More reliable power supply. By generating their own power more reliably, industrial
facilities can either reduce or eliminate the need to purchase power from an electric
utility.
Improved power supply quality. With their own cogeneration plants, industrial
facilities that require high-quality electric power can either control or eliminate
unacceptable voltage transients and frequency shifts that may occur in utility-
generated power.
National Benefits
Fewer electricity shortages. Cogeneration by industrial and large commercial

facilities will reduce demand on the utility and make electricity available for
distribution elsewhere.

[A] Conventional electrical generatingsystem requires the equivalentof 1 barrel (159 liters) of oil to produce
600 kWh electricity
[B] Conventional process-steam system requires the equivalent of 21/4 barrels (358 liters) of oil to produce
3,860 kg of process steam
industrial process
[C] Cogeneration system requires the equivalent of 2% barrels (358 liters) of oil to generate the same amount
of energy as systems A and B
Exhibit 1.2
Industrial process
Energy Savings from Cogeneration
Source: RCG/Hagler, Bailly, Inc.

Typically generated in
water-tube boilers
with efficiency in
excess of 90%.
(Add 293 kJ heat)
1 Typically generated in
L _ _ _ _ _ fire-tube boilers
Turbo-alternator with 85 - 90% average
producing 100 Watts/kg efficiency.
of steam.
(Add.30 kJ heat)
Note: All pressures are
Exhibit 1.3
Energy Requirement for Cogeneration

INTRODUCTION 1.7
Primary fuel savings. Increased cogeneration capacity can help reduce the
consumption of expensive premium fuels for utility power generation.
Reduced or deferred capital expenditures for power plant construction. As a

consequence of reducing or postponing these expenditures, debt financing in
international capital markets will be reduced.
Enhanced efficiency of electric utility service. If properly applied and implemented,

on-site industrial cogeneration facilities can act as dispersed sources of electric power
near major load centers, reducing the distribution costs and transmission losses
associated with central power plants.
Improving the enviromental conditions through maximizing the utilization of the fuel
and in turn reducing the burned fuel.
1.4 FACTORS INFLUENCING THE VIABILITY OF COGENERATION

INSTALLATIONS
In spite of its benefits, cogeneration may not be profitably applied in every commercial and
industrial installation.Several factors need to be evaluated before cogeneration projects can
be started. The factors influencing the feasibility of a cogeneration application are:
minimum size to take advantage of economies of scale

high initial costs
operating and maintenance costs
careful design and optimization of the balance between power generation and process
heat requirements
the possibility of selling surplus power to the Egyptian Electricity Authority.
Owing to these considerations, each cogeneration opportunity must be evaluated individually.

A power evaluation should be a step-by-step procedure beginning with data collection and
analysis of possible cogeneration configurations, leading to preliminary technical and financial
analyses, and resulting in a detailed feasibility study and financial analysis.
1.5 THE PURPOSE AND STRUCTURE OF THIS MANUAL
This manual provides comprehensive information on the fundamentals and applications of

cogeneration. It is intended as a guide to assist managers and engineers in identifying the
potential for cogeneration in their facilities and in evaluating various cogeneration possibilities.

INTRODUCTION 1.8
It also provides information on how to conduct preliminary feasibility studies to support a

decision to install a cogeneration system.
Chapter 2 describes various types of cogeneration systems and the fuels they require. It also
introduces a number of calculations that are performed to help determine the technical and
economic feasibility of cogeneration systems. Chapter 3 describes cogeneration system
equipment and the equipment best suited to industrial and commercial applications, as well as
to a given thermal-to-electric ratio. Chapter 4 describes the site and plant data required for
preparing a cogeneration feasibility evaluation. Chapter 5 discusses factors influencing the
selection of cogeneration systems and equipment under various conditions. Chapter 6
examines economic factors, including the costs and rates of return, that influence the feasibility
of cogeneration installations. Chapter 7 presents the results of two case studies on
cogeneration.

2. THE FUNDAMENTALS OF COCENERATION
This chapter covers the basic concepts needed to understand and evaluate cogeneration systems.
Most important, the types or configurations of cogeneration systems are presented. Because
the type of fuel available constrains the selection of cogeneration equipment, a brief discussion
of fuels is also included. Finally, the basic calculation methods, tools, and commonly used
parameters are discussed. Individual equipment making up the cogeneration systems are
mentioned as necessary; a detailed discussion of equipment is presented in Chapter 3.
A discussion of the concepts and applications of cogeneration requires familiarity with a

number of technical terms. The glossary in Appendix A serves as a quick reference to the
terms used in this report.
2.1 TYPES OF COGENERATION SYSTEMS
There are two fundamental types of cogeneration systems (Exhibit 2.1):
topping cycles
bottoming cycles.
These are differentiated on the basis of whether electrical or thermal energy is produced first.
In a topping-cycle system, electricity is produced first, and the thermal energy exhausted is
captured for further use. In a bottoming-cycle system, thermal energy is first used in a
process, and the remaining energy is extracted from a waste stream to produce power, usually
by driving a turbine to generate electricity. The size and hardware for both system types vary
depending on the specific electrical and thermal needs of an industrial application.
2.1.1 Topping-Cycle Systems
In a topping-cycle system, the thermal energy exhausted in the production of electrical or

mechanical energy is used in industrial processes or commercial installations. This thermal
energy is usually in the form of low-grade (i.e., low-pressure, low-temperature) steam.
Typical applications of this low-grade heat or steam include heating, cooling,
drying,distillation, and concentration. Topping-cycle cogeneration systems are widely used
in the food, paper and pulp, petroleum refining, and textile industries.
Of all the types of industrial topping-cycle systems available today, only three have been
demonstrated to be commercially ready and applicable to the specific requirements of industry:
boiler/steam turbine
combustion turbine/heat recovery boiler (and/or heat exchanger)
reciprocating engine/heat recovery boiler (and/or heat exchanger).

Exhibit 2.1
Basic Types of Cogeneration Systems

THE FUNDAMENTALS OF COGENERATION 2.3
Exhibit 2.2 shows the basic types of technologies suitable for topping-cycle cogeneration.
-
System diagrams for topping-cycle cogeneration are shown in Exhibits 2.3 and 2.4. The
combustion turbine/heat recovery boiler can also be configured as a combined-cycle plant,
where both the combustion turbine and/or steam turbine are used to generate electricity (shown
in diagram b of
- Exhibit 2.4).
2.1.2 Bottoming-Cycle Systems
In a bottoming-cycle system, thermal energy that is exhausted in the industrial process is

recovered for the production of electrical or mechanical energy. Here, fuel is first consumed
by high-temperature processes and energy is extracted from the rejected heat to drive a turbine
that produces mechanical power (or electricity if an electrical generator is used). Thus, power
can be generated without requiring additional fuel. In this type of system, a liquid working
fluid is heated and vaporized by the rejected process heat; the hot vapor passing through a
turbine produces electrical or mechanical power. The turbine exhaust is typically condensed,
but can be used in industrial process applications.
Bottoming-cycle cogeneration systems are used in processes generating large waste heat
streams at temperatures of 250°C and higher. The cement, steel, glass, and chemical
industries are possible candidates for bottoming systems.
There are basically two ategories of bottoming-cycle cogeneration systems used in industrial
applications:
steam bottoming systems

organic fluid bottoming systems.
In a steam bottoming system (diagram a in- Exhibit 2.5) , the exhaust gases are used to produce
steam in a heat recovery boiler. The steam is then expanded in a turbine to generate power.
In an organic (or Rankine) fluid bottoming system, organic fluids with low heats of
vaporization are used in place of the steam (diagram b in Exhibit 2.5)
-
2.2 FUELS FOR COGENERATION SYSTEMS
2.2.1 Fuel Choice
All of the cogeneration prime mover technologies discussed above can operate on a variety of
fuels. The choice of fuel type will depend on the size of the installation, engine speed (in the

Prime Mover Configuration Fuel Options
Steam Turbine High-pressure boiler Coal, fuel oil (residual and

(back pressure or supplying steam to turbine distillate), natural gas,
extraction condensing type) for power generation; wood, and city refuse
back-pressure/extraction
steam is used for thermal
load
Gas Turbine Direct use of gas turbine Fuel oil (distillate and
exhaust stream, or with residual), natural gas,
waste heat recovery boiler synthesis (coal or wood)
to meet thermal load.
Reciprocating Engines Waste heat recovery boiler Fuel oil (residual and
in exhaust stream; for low- distillate), gaseous fuels
temperature load, heat
recovery from engine jacket
cooling water
Combined Cycle Gas turbine with high- Fuel oil (residual and
pressure waste heat distillate), natural gas,
recovery boiler supplying synthesis (coal or wood)
steam to back-pressure or
extraction/condensing
turbine for additional power
generation and further
thermal load, if required.
Exhibit 2.2
Typical Topping Cycle Configurations

STACK L O S S E S
- PROCESS STEAM
a) Boiler-Steam Turbine Cogeneration Configuration
FUEL INPUT STACK

LOSSES
b) Gas Turbine-Waste Heat Recovery Cogeneration Configuration
Exhibit 2.3
System Diagram for Topping Cycles:
Boiler-Steam Turbine and Gas Turbine-Waste Heat Recovery Boiler Configurations

ENGINE
EXHAUST
HEAT RECOVERY
(HIGH TEMP )
HEAT RECOVERY
( LOW TEMP )
a) Reciprocating Engine/Heat Recovery Cogeneration Configuration
FUEL
INPUT
WASTE HEAT
- RECOVERY .
STEAM
TURBlNE
PROCESS STEAM
b) Combined-Cycle Cogeneration Configuration
Exhibit 2.4
Systems Diagram for Topping Cycles:
Reciprocating Engine/Heat Recovery and Combined-Cycle Configurations

CONDENSATE FEED WATER

PUMP PUMP
a) Steam Cycle Configuration
STACK
LOSSES
WASTE
HEAT
REGENERATOR/
CONDENSER
ALTERNATOR
ORGANIC
FLUID
CONDENSING
TURBINE HOT
WELL
a
BOILER FEED
PUMP
b) Organic Rankine Cycle Schematic
Exhibit 2.5
Systems Diagram for Bottoming Cycles

case of diesel engines), fuel conditioning capability, and availability of fuels. High-speed
diesel engines have the least flexibility in this regard, while boilers have the greatest flexibility.
The primary fuels of choice will be fuel oil and natural gas. For some limited applications,
there will be a choice of solid fuels such as coal, bagasse, and refuse-derived fuels.
The type of fuel used in diesel engines depends on engine speed and, to some extent, engine
design. As engine speeds are increased, higher grades of fuel are required to operate them.
Exhibit 2.6 illustrates typical limiting fuel properties that apply to each class of engine.
-
High-speed engines operating on oil will almost always use solar, a distillate fuel oil. Medium-
speed engines may be designed to burn either solar or mazout, a residual fuel oil. Slow-speed
engines almost always use mazout.
Natural gas has proven to be an ideal fuel for gas turbine engines. Solar will also provide
satisfactory service and can be used as an alternative to natural gas if there is a disruption in
natural gas delivery. However, fuels containing sulfur, salt, or in the case of mazout,
vanadium and other metals, will cause serious corrosion and deposit build-up problems unless
properly treated. Only very large gas turbines have the capability to burn mazout.
Depending on their size and design, boilers can burn almost any type of liquid or solid fuel,
as long as their burners are correctly adapted to the fuel burned.
2.2.2 Fuel Heating Values
One of the most important characteristics of a fuel is the quantity of energy that it contains per
unit of measurement. This quantity is known as the heating value, heat of combustion, or
calorific value. It is generally expressed in energy per unit mass or volume. The heat of
combustion of fuels is routinely determined in order to establish the price of the fuel.
There are two common heating values associated with fossil fuels: a higher heating value (or
gross heating value) and lower heating value (net heating value). All fossil fuels produce water
vapor as a by-product of the combustion process. The higher value accounts for the latent heat
of vaporization of the water in the fuel as it condenses back to a liquid state. Because most
combustion processes do not result in condensation of this water vapor, the lower heating value
offers a more accurate measure of the amount of energy in the fuel. Exhibit 2.7 presents some
-
typical data on solar, mazout, and natural gas fuels; more detailed characteristics based on
analyses are presented in Exhibit 2.8 Typically, gas engine or gas turbine manufacturers will
-
specify the fuel consumption of their equipment based on the lower heating value. However,
when fuel is purchased, its price is often based on the higher heating value.

SLOW SPEED
MEDIUM SPEED
HIGH SPEED
SULFUR -VANADIUM
(wt %) CARBON (ppm)
(Wt %)
Exhibit 2.6
Typical Limiting Diesel Fuel Characteristics

Exhibit 2.7
Properties of Fuels

Typical Analysis of Natural Gas
Methane 94.6%
Ethane 1.0%
Propane 0.3%
Butane 0.2%
Nitrogen 3.9%
------------
100.0%
Water: 112.13 mg/m3 at 1 atm.
Sulfur: 114 mg/m3
Specific gravity: 0.59 (related to air as 1.0)
o 3
Density (750 mmHg & 155 C wet): 0.719 kg/m
o 3
Gross calorific value (750 mmHg & 15.5 C wet): 36,141 kJ/m
Specification of Fuel Oil
Mazout Solar
o
Specific gravity at 15.5 C (maximum) 0.960 0.870
o
Flash point, C (minimum) 65.5 54.4
Sulfur percent dry weight (maximum) 3.5 1.0
o
Viscosity redwood #1 at 43.3 C (maximum) 1500 sec
o
Pour point C (minimum) 23.8 1.6
Water percent by volume (maximum) 0.75 0.05
Sediment percent by weight (maximum) 0.15 0.01
Calorific value gross kJ/kg 43,000 44,200
Bagasse Average Composition

Fiber 40%
Sugar 1.5 - 2.5%
Moisture 45 - 55%
Ash 1.5 - 2.5%
Average higher heating value of dry bagasse = 17,700 - 21,200 W/kg
Exhibit 2.8
Specification/Analysis of Common Fuels

Typical Analysis of Solar
Carbon Content (C) Wt% 86.3%
Hydrogen Content (H2) Wt% 12.8%
Sulphet Content (SU) Wt% 0.9%
100%
Typical Analysis of Mazout
Sulphur Content by Wt% 3%
Carbon Content by Wt% 85%
Hydrogen Content by Wt % 11%
Oxygent Content by Wt% 1%
100%
Exhibit 2.8 Continued

The ratio between the higher heating value and the lower heating value is necessary to
determine the fuel cost for operating any type of fuel burning system. The greater the number
of hydrogen atoms relative to carbon atoms, the greater the difference between the higher and
lower heating values. For natural gas, the ratio of the lower to higher heating value is
approximately 0.90. For mazout and solar, this ratio is generally in the range of 0.94.
2.3 BASIC CALCULATIONS FOR DETE RMINING COGENERATION FEASIBILITY
The technical and economic feasibility of a cogeneration system very much depends on the
characteristics of the cogeneration site, including the quantities of thermal energy and electric
energy used, the pattern of usage, the fuel used, and the equipment selected to meet the energy
requirements. This section first demonstrates the efficiency of cogeneration systems over
conventional power generation, and then presents some of the basic calculations used to
determine the feasibility of cogeneration systems.
2.3.1 Cogeneration vs. Conventional Power Generation
The ideal temperature-entropy diagram for power generation is shown in Exhibit 2.9. The
-
diagram shows boiler work in from point 1 to point 2, assuming no losses, and turbine work
out from point 2 to point 3. The heat removed to condense the turbine exhaust steam (points
3 to 4) is wasted in this case. The typical enthalpy values shown in kJ/kg and Btu/lb (figures
in parentheses) for points 2, 3, and 4 are based on inlet conditions of 165 bar and 538°C and
exiting at 50 mm Hg absolute pressure, and result in a calculated theoretical efficiency of 43.5
percent:
useful energy out = (3403 - 1993) kJ/kg = 43.5 %

total energy in (3403 - 160 ) kJ/kg
A typical cogeneration process diagram is shown in Exhibit 2.10 The diagram shows figures
-
for a case when process steam is required at 4 barg. A non-condensing or back-pressure
turbine is used, exhausting steam at 4 barg. The temperature entropy diagram is similar to that
in Exhibit 2.9 except that the bottom line is higher because less energy was removed from the
-
steam in the turbine. The energy removed by the turbines in Exhibit 2.10 is 3403 - 2587 =
816 kJ/kg. The energy supplied to the process is 2,587 - 609 = 1,978kJ/kg. The theoretical
thermal efficiency in this case is much higher:
useful energy out = (3403 - 609) kJ/kg = 86%

total energy in (3403 - 160) kJ/kg

2.3.2 Fuel Chargeable to Power
The use of a cogeneration system on-site will increase the amount of fuel used by the facility
and decrease the amount of electric energy purchased by the facility. The resultant savings
should pay for the cogeneration equipment and its associated operations and maintenance costs.
One way to determine these savings is to calculate the fuel chargeable to power (FCP) as
defined in Exhibit 2.11. The FCP accounts for the difference in fuel use before and after
---------------------
cogeneration, the net power generated, and the cost of the fuel. The result is the fuel use per
kWh to produce the electricity on-site.
For a simple back-pressure turbine where all the steam is used for process heat, the fuel
chargeable to power cost will be very low. For an extraction/condensing steam turbine
application, the fuel chargeable to power cost will be higher per kWh than for the back-
pressure turbine, but there will be a much higher production of electricity.
2.3.3 Thermal-to-Electric Ratio
The relative requirements for electric power and thermal energy vary from facility to facility.
Some industries, institutions, and commercial enterprises need little energy in the form of heat,
while others may require a substantial portion of their energy inputs as thermal energy.
Similarly, different prime movers provide different amounts of electric power relative to the
thermal energy rejected.
In selecting a suitable configuration for a cogeneration system, the thermal-to-electric ratio is

used to select the most appropriate prime mover. This ratio is expressed as a dimensionless
number where the thermal energy and electrical energy for a facility or generation technology
are expressed in the same units. The plant thermal-to-electric ratio (T/E) can be calculated as
follows:
Plant annual thermal energy use (kJ)

T/E =
Annual electricity use (kWh) x 3,600 kJ/kWh
Process steam requirements or other thermal energy requirements in the above equation are
calculated as the total energy utilized during the year, while electricity use is determined from
the electric billings as the total kWh purchased during the year.
Simultaneous electric and thermal requirements of the plant help determine the cogeneration
cycle to be selected. The importance of the thermal-to-electric ratio is discussed further in
Chapters 3 and 4 as it applies to generation technologies and site energy end use.

Simultaneous electric and thermal requirements of the plant help determine the cogeneration
cycle to be selected. The importance of the thermal-to-electric ratio is discussed further in
Chapters 3 and 4 as it applies to generation technologies and site energy end use.
2.3.4 The Mollier Diagram
The Mollier diagram- (Exhibit 2.12) is basically a plot of steam enthalpy vs. entropy, and is
extremely useful in visualizing and calculating heat and power relationships.
Lines of constant absolute pressure in kPa (100 kPa = 1 bar) slope up from left to right.
Below the saturation line, curves of constant moisture content (in percentage) slope down
from left to right. Above the saturation line are lines of constant temperature and lines of
o
constant superheat (both in C).
Available energy, as per the Rankine cycle, is the enthalpy change for an isentropic expansion,
thus following the line of constant entropy on the Mollier diagram. The condition of exhaust
steam can be read from the chart at the intersection of the exhaust pressure and enthalpy lines.
When throttling steam from a high pressure to a lower pressure, its enthalpy remains
unchanged, provided that no heat is lost by radiation. Thus, a line of constant enthalpy
represents the throttling process on the Mollier diagram.

EXHAUST MECHANICAL GENERATOR
WATER
1 BARREL (159 LITERS) PRODUCES: 600 kWh ELECTRICITY
OIL NET HEAT RATE = 10,000 kJ/kWh
T.S (IDEAL)
TEMPE
1. BOILER IN
2 BOILER OUT
TURBINE IN
3. TURBINE OUT
CONDENSER IN
4 CONDENSER OUT
ENTROPY
Note: Figures in parentheses are enthalpies in Btu/lb.
Exhibit 2.9
Temperature-Entropy Diagram for Power Plant Cycle
Source: Butler, C.H., Cogeneration, McGraw Hill, 1984.

Exhibit 2.10
Temperature-entropy Diagram for Cogeneration Cycle
Source: RCG\ Hagler, Bailly, Inc.

Process steam only Process steam plus power
Boiler
Purchase
Heat to process
Power to
Process plant
(Fuel) -(Fuel)
FCP = 2 1
---------------------------------------------
kWGen - (PH Aux.) + (PH Aux.)
2 1
= Total Fuel - Process fuel credit
Gross kW - APH Aux.
Where PH Aux. is the electric power to the boiler and power plant
auxiliaries
Exhibit 2.11
Fuel Chargeable to Power (FCP)

Exhibit 2.12.
Mollier Diagram

3. COGENERATION SYSTEM EQUIPMENT
This chapter begins by describing cogeneration system components. It then discusses the
major equipment required in typical cogeneration systems. The equipment characteristics,
methods of operation, main components, fuels used, and other parameters are discussed for
each type of equipment. Details on equipment design, capacities, service requirements, and
costs can be obtained from equipment manufacturers or suppliers.
3.1 COGENERATION SYSTEM COMPONENTS
The basic components of a cogeneration plant are:
prime mover
electric generator, pump, compressor, etc.
waste heat recovery system
system controls
electrical and thermal transmission and distribution systems
connection to user’s mechanical and electrical services.
The most important component in a cogeneration system is the prime mover, which converts
fuel energy to shaft energy. The conversion devices most frequently used are reciprocating
internal combustion engines, combustion gas turbines, expansion turbines, and boiler-steam
turbine combinations.
Electrical generators are available in a wide range of sizes, speeds, and control options. The
criteria influencing the selection of alternating current (AC) generators for cogeneration
systems are: 1) machine efficiency at various loads, 2) electrical load requirements, 3) phase
balance capabilities, 4) equipment cost, and 5) motor starting current requirements.
A variety of waste heat recovery equipment is available, depending on the quality and type
of waste heat to be utilized. These equipment systems can range from low-pressure steam
distribution systems recovering steam turbine exhaust to sophisticated heat recovery boilers
generating steam from gas turbine exhaust.
Controls for cogeneration systems are necessary for: 1) system output and operating
efficiency, 2) safety, 3) prime mover automation, and 4) waste heat recovery and disposal.
Control system requirements vary from application to application. Generators operating in
parallel with utility system grids, for example, have control requirements that are different
from those operating in isolation from the utility grid.
3.2 PRINCIPAL EQUIPMENT TYPES
The principal types of equipment used in cogeneration systems are:

COGENERATION SYSTEM EQUIPMENT 3-2
Boilers, which generate steam by direct firing.
Turbines, which convert thermal energy to shaft power for electricity or mechanical
drives. These include steam and gas turbines (organic Rankine cycle turbines can
also be used, but their applicability is limited at present because of their high cost).
Reciprocating engines, which convert fuel energy to shaft power for electricity or
mechanical drives. These include spark-ignition and compression-ignition internal
combustion engines.
Generators, which convert mechanical shaft power to electric power. These include
induction and synchronous generators,
Waste heat recovery systems, which convert part of the rejected heat into useful
heat. These include waste heat boilers and heat exchangers.
Heating, refrigerating and air-conditioning equipment, which includes heaters for

building heating and domestic hot water, and refrigeration equipment for process
cooling and air-conditioning .
System controls, which ensure efficient and safe operation.
The remainder of this chapter describes each of these main system components, as well as
some technologies that are not yet cost-effective. Last, the thermal-to-electric ratio is
discussed in light of the types of equipment selected for a given cogeneration system.
Detailed equipment specifications can be found in Appendix B.
3.3 BOILERS
The power boilers in a boiler-steam turbine cogeneration system (shown earlier in Exhibit
2.3) must be capable of producing steam of sufficient pressure and temperature to drive a
steam turbine: usually, superheated steam at pressures from 38 barg to 83 barg1. Because
this pressure range is beyond the reach of conventional fire-tube boilers, the boilers used for
cogeneration are generally of the water-tube type.
In water-tube boilers, water circulates inside the tubes and the flue gas flows outside the
tubes. A typical water-tube boiler with drums and a tube arrangement is shown in Exhibit
3.1 Water circulation is facilitated by the density variation between the cooler feedwater and
the hot water/steam mixture. This natural circulation is adequate for most boilers in
cogeneration systems; only systems operating in the supercritical pressure range (pressures
greater than 221 bar) require forced circulation.
Water-tube boilers can be classified as high-pressure boilers.Their pressure limit can be as

high as 83 barg, with steam generation ranging from 1 to 225 tonnes of steam Per hour.
1
Throughout this manual,“bar” is used to denote absolute pressure;"barg" is used to denote relative, or gauge, pressure.

Superheaters and economizers are usually incorporated within their structure to increase their
efficiency.
Boilers can use gaseous, liquid, or solid fuels, but require burners that can operate on the
basis of specific fuel compositions and characteristics. - Exhibit 2.8 showed the composition
of various fuels. In large boilers, overall fuel efficiencies of 90 percent or even higher (based
on lower heating values) are possible.
For a high-pressure boiler, strict limits are placed on feedwater quality, and a water treatment
plant and its operating costs must be considered as part of a boiler-steam turbine cogeneration
system. The method of treatment required for preparing boiler feedwater depends on the
nature of impurities in the available water. Techniques such as filtration, flocculation,
precipitation, softening, ion-exchange, dealkalization, demineralization, and deaeration are
used for treating boiler feedwater.
A number of system controls are needed to ensure efficient and safe boiler operation. For
large boilers such as those used in cogeneration systems, fuel efficiency concerns often justify
sophisticated controls such as pressure-ratio control of the fuel and air, direct air and fuel
metering, and excess air correction systems using flue gas oxygen monitoring.
The thermal-to-electric ratio for boiler-steam turbine cogeneration systems is basically

dependent on the boiler steam pressure and temperature and the turbine exhaust (process)
steam pressure. The greater the steam enthalpy drop across the turbine, the more power can
be produced.
The boiler-steam turbine cogeneration system is the most flexible cogeneration system from
the design point of view because almost any combination of turbine inlet (within practical and
economical metallurgical limits) and exhaust steam conditions can be utilized. However,
proper boiler and turbine selection is necessary to achieve the most economical combination.
Another advantage of steam-cycle cogeneration is fuel flexibility. Standard high-efficiency

boilers are available that are designed to operate on practically any fuel -- from oil and gas,
to poor-quality coal and wood, or any other industrial waste, including city municipal refuse.
3.4 STEAM TURBINES
In a steam turbine, the thermal energy of steam is converted into kinetic energy by expanding
the steam in a supply nozzle. The nozzle then discharges steam as a jet onto curved rotating
blades at the appropriate angle. A portion of the kinetic energy is thus converted into
mechanical energy; further mechanical energy is available by the reaction of the steam jet as
it leaves the curved blades. The pressure on these curved blades, causing the generation of
shaft power, is due solely to the change of momentum of the steam jet as it travels through
the blades.
The following parameters influence the selection of a suitable steam turbine for a particular
application:

Exhibit 3.1
Typical Water-Tube Boiler

horsepower and speed of the driven equipment

steam conditions required for process or boiler feed water heating
supply steam pressure and temperature available from the boiler
turbine efficiency and price range desired.
3.4.1 Types of Steam Turbines
There are three basic types of steam turbines:
Condensing turbines, in which all the steam that enters the throttle expands to the
high-vacuum condensing pressure.
Back-pressure turbines, which operate with anexhauststeampressure equal to, or

greater than, atmospheric pressure to meet the process steam requirements.
Extraction turbines, in which steam is extracted at one or more intermediate stages,

often at comparatively high pressures, either to meet process load or to heat boiler
feed water. Extraction can be applied to condensing or back-pressure turbines.
Any of these types of steam turbines may involve the production of shaft power by utilizing
the velocity or pressure energy of the steam, or both.
To achieve the desired relationship between steam velocity and blade velocity without using
a large wheel diameter or high turbine wheel speeds, most turbines include a series of
impulse or reaction stages, or both, thus dividing the total steam pressure drop into smaller
increments.
In an impulse turbine, a row of fixed nozzles, which increase steam velocity, precedes the
blades (usually crescent in shape). The nozzles cause the wheels to rotate with little or no
steam pressure drop across the blades. After the steam has passed through the first row of
moving blades, it flows through a set of stationary curved passages that direct it against the
second row; the form results in the well-known Curtis (velocity-compounded) stage.
In all velocity-compounded turbine designs, part of the kinetic energy is absorbed each time
the steam passes through a revolving blade. Thus, more work per pound of steam is obtained
than in a simple impulse turbine of the same blade speed. Small steam turbines are usually
of this design, and even for very large units, the two-row Curtis wheel is frequently used as
the first stage.
A reaction turbine uses alternate rows of fixed and moving blades, generally of an airfoil
shape, with steam velocity increasing in the fixed passage and dropping through both the
fixed and movable blades.
The power capabilities of the reaction turbine are at a maximum when the moving blades are
traveling at about the velocity of the steam passing through them. In the impulse turbine,

maximum power is produced with a blade velocity of about 50 percent of steam velocity.
Steam velocity is related directly to the pressure drop.
3.4.2 Steam Turbine Sizing: Theoretical and Actual Steam Rates
The theoretical steam rate is the quantity of steam per unit of energy required by an ideal
Rankine cycle heat engine:
W theoretical = C / (h1 - h2)
where
W theoretical = theoretical steam rate (kg/kWh)
h1 = enthalpy of steam at its initial temperature and pressure (kJ/kg)
h2 = enthalpy of steam at exhaust steam pressure and initial entropy (kJ/kg)
C = 3600 kJ/kWh (heat equivalent of 1 kWhr)
The steam rate is important in sizing a turbine or determining desired steam conditions for
a given output. The theoretical steam rate is calculated from an enthalpy change at constant
entropy. Enthalpy can be obtained from the Mollier diagram (Exhibit 2.11) or from steam
tables. Thus, for example, if the turbine inlet conditions are 40 bar (4000 kPa) and 400°C
with an enthalpy of 3220 kJ/kg, and the turbine back pressure is 3 bar (300 kPa), then with
isentropic expansion, the leaving enthalpy is 2640 kJ/kg and the enthalpy difference is 580
o
kJ/kg, at a constant entropy of 6.8 kJ/kg K.
The theoretical steam rate, therefore, is
(3600 kJ/kWh) / (580 kJ/kg) = 6.21 kg/kWh
Because there are no rigid standards for the turbine inlet steam pressure and temperature, it
is often helpful to work with the standards proposed by the American Society of Mechanical
Engineers and Institute of Electrical and Electronic Engineers to initially size the steam
o
system. These values are 27.6 barg at 400°C (400 psig at 750 F), 41.3 barg at 440°C (600
o o
psig at 825 F), 58.8 barg at 482°C (850 psig at 900 F), and 86.2 barg at 510 or 538°C
(1250 psig at 950 or 1000°F). Exhibit 3.2 shows theoretical steam rates for steam turbines
-
at some common conditions.
The actual steam rate of a steam turbine is calculated by dividing the theoretical steam rate
by the turbine efficiency. Typical efficiencies for mechanical steam turbines range from 45
to 80 percent; the higher efficiency is applicable to multi-stage designs. Thus, the actual
steam flow required to generate a given amount of power can be as much as 1,25 to 2,2 times
the theoretical amount.

The actual steam rate (Wactual in kg/kWh) is given by:
Wactual = C / {(h - h ) x E} = W
1 2 theoretical /
where C, h1, and h2 are as above, and E represents the isentropic efficiency of the turbine,
often referred to simply as the turbine efficiency.
Steam rates for multi-stage turbines depend on many variables and require extensive
computation. Manufacturers provide simple tables and graphs for estimating performance,
and these data are good guides for the preliminary sizing of turbines and associated auxiliaries
for the complete system.
Exhibit 3.3 shows separate performance curves on the basic efficiency of multi-stage
-
condensing and non-condensing turbines of up to 7460 kW (10,000 hp). To use these curves,
start at the abscissa, enter the turbine rating, cross over to the relevant curve of the
appropriate inlet pressure, and note the ordinate for the basic efficiency.
The theoretical heat rate is used to work out the actual heat rate by dividing it by the basic
efficiency and further by a speed correction factor, a superheat correction factor, and a pres-
sure-ratio correction factor (for non-condensing turbines). For part-load steam rate, the
full-load heat rate obtained as above is multiplied by the part-load or steam consumption
factor.
Exhibit 3.4 shows these four correction factors. First, the full-load actual heat rate is
-
calculated (by using all the factors as above) and then the part-load heat rate can be
computed. Theoretical steam rates are then multiplied by the efficiency of the turbine to
determine actual steam rates.

Inlet Condition
150 psig 200 psig 250 psig 400 psig 600psig 600 psig 850 psig 850 psig
10 barg 14 barg 17barg 276 obarg 41 barg 41 barg 59 barg 59 barg
o o o o o o
336 F, 338 F, 500 F, 750 F, 825oF, 825 F, 825 F, 900 F,
o
169°C 170°C 260°C 399 °C 441°C 441°C 441°C 482 C
o o o o o
Saturated Saturated (94 oF, (302 F, (261 F, (336 F, (298 F, (373 F
Exhaust 52°C 168 °C 145°C 187°C 166°C 207°C’
Pressure Superheat) Superheat) Superheat) Superheat) Superheat) Superheat)
2 in Hg (50 mm Hg) 4.78 4.54 4.11 3.34 3.22 3.07 2.98 2.85
4 in Hg (100 mm Hg) 5.33 5.04 4.54 3.62 3.47 3.30 3.20 3.05
0 psig (1 barg) 8.79 7.94 6.88 5.08 4.72 4.45 4.22 4.00
10 psig (0.7 barg) 10.37 9.57 8.12 5.77 5.28 4.97 4.67 4.40
30 psig (2 barg) 15.24 12.72 10.94 6.91 6.18 5.78 5.35 5.02
50 psig (3.4 barg) 20.87 16.33 12.79 7.97 6.97 6.49 5.93 5.54
60 psig (4.2 barg) 24.45 18.33 14.11 8.50 7.34 6.83 6.20 5.78
70 psig (4.8 barg) 28.80 20.68 15.47 9.05 7.71 7.16 6.45 6.01
75 psig (5.2 barg) 31.43 22.00 16.24 9.34 7.87 7.33 6.58 6.13
Exhibit 3.2
Theoretical Steam Rates for Steam Turbines at Some Common Conditions, kg/kWh
Source: Adapted from Perry’s Chemical Engineer’s Handbook, 6th edition.

Exhibit 3.3

1.02
101
100
1.01
098
097
0 96
0 95
0 94
0 93
097
091
0.90
0.89
0.88
0.87
4 5 6 7 8 9 10
RATED SPEED 1000 RPM
P ERCENT LOAD
1.05
1.04
1.03
0
1.02
1.01
0
1.00
0.99 ONDENSING TURBINES
0.98
0.97
0 400 03 04
100 200 300
(38) (93) (149) (204) EXHAUST PRESSURE PSIG (k
INITIAL SUPER HEAT F (C) INLET PRESSURE PSlG (k
Exhibit 3.4
Steam Turbine Correction Factors

Exhibit 3.5 presents some typical steam rates for multi-stage steam turbines for a range
of inlet conditions and turbine back pressures.
Exhaust Pressure (barg) 0.3 1.7 3.4 7 10.3
Inlet Conditions
o
P (barg) T( C)
10.3 185 10 14 20.4

24.1 260 7.3 10 12.7 20.4 35
27.6 343 5.9 7.3 8.6 12.3 15.9
58.6 440 4.5 5 15.9 7.3 8.6
86.2 482 4 4.5 5 15.9 6.8
Exhibit 3.5
Multi-Stage Steam Turbine Performance:
Typical Actual Steam Rates
(kg steam/kWh)
3.4.3 Maximizing Steam Turbine Power Output
As discussed above, turbine heat rate depends on a number of parameters. Maximizing

the power output of a steam turbine may mean the utilization of higher temperatures and
pressures, and possibly desuperheaters, to optimize electrical output of the turbine and
process heat requirements.
Based on the heat rate formulii of the previous subsection, and adding other turbine
inefficiencies, the energy output (E) of a turbine (in kWhr/kg of steam) can be represented
as:
P = (h2 - h1) x Eturb x Egear x Egen / 3600
h2 - h1 = enthalpy drop, based on inlet and outlet enthalpies at constant entropy

(kJ/kg)
Eturb = turbine (isentropic) efficiency
Egear = transmission efficiency of the turbine/generator drive
Egen = efficiency of the electrical generator
Exhibit 3.6 presents series of cases showing the effects of increased pressure and
---------------------------
superheat temperature on the turbine enthalpy drop, and hence turbine power output. In

the base case, the boiler is producing saturated steam at 46 barg (650 psig) which enters
the turbine and exhausts at 11 barg (150 psig): the change in enthalpy, or enthalpy drop,
o
is 163 kJ/kg. If the boiler is able to produce steam at the same pressure, but at 400 C,
i.e., with 56°C superheat, the enthalpy drop is 270 kJ/kg. This represents an increase of
66 percent in power output, with only a 15 percent increase in inlet enthalpy. Several
additional cases and their improvements relative to the base case are tabulated and shown
on a Mollier diagram in Exhibit 3.6.
3.4.4 Expansion Turbines
A particular application of steam turbines is as expansion turbines or turbine expanders.

These are equally applicable to steam or any other vapor, such as process gas, that must
be expanded from high to low pressure. Expansion turbines convert the pressure energy
of gas or a vapor stream into mechanical shaft power as the gas or vapor expands through
the turbine.
A potential application of turbo-expanders for power recovery exists whenever a large flow
of gas and a large pressure drop exist. The speed of turbo-expander operating power
generator is usually controlled by the system frequency, with various protective
instruments providing a shut-down signal. These turbo-expanders are used widely because
they are reliable, highly efficient, and comparatively inexpensive. Sometimes, turbo-
expanders are used to chill the process gas because any work developed by the tur-
bo-expanders is at the expense of the enthalpy of the process gas and the latter is thus
cooled.
3.4.5 Turbine Shaft Power Utilization
Steam turbine shaft power can be used to operate electrical generators, as well as
equipment such as cane crushers, centrifugal compressors, pumps, and fans. The
mechanical drive can either be connected directly to the turbine or connected with an
intermediate speed-changer gear.
Higher equipment speeds (for example, with centrifugal compressors) cannot always be
handled by directly connected steam turbines. Also, in the larger turbines used for driving
slower-speed auxiliaries, gear drives are quite common. The speed-changer gear may be

Exhibit 3.6

either a separate component, connected by flexible couplings, or built integrally with the
steam turbine. The gear drive should normally be 97-98 percent efficient.
3.5 COMBUSTION GAS TURBINES
The gas turbine is a widely used prime mover, ranging in size from 500 kW continuous
rating to very large machines of 50 MW.It has the following advantages over internal
combustion engine drives:
small size and low to medium thermal-to-electric ratio

ability to bum a variety of fuels
clean dry exhaust and hence ability to meet stringent pollution standards
high reliability and easy maintenance
immediate power availability, no warm-up period required
no cooling water requirement
lubrication oil not contaminated by products of combustion.
Natural gas has proved to be an ideal fuel for these turbines. Light distillate oils also
provide satisfactory service.However, fuels containing sulfur, salt, or as in the case of
heavy oils, vanadium and other metals, will cause serious corrosion and deposition
problems unless properly treated.
3.5.l Simple Cycle Gas Turbine
The simple-cycle gas turbine is a continuous combustor engine, comprising a power

section, gearbox/coupling, and accessories, including the starter, fuel control, combustion
air filtration system, and lubrication system. The power section includes the air
compressor --normally an axial flow type of 8 to 12 stages followed by a centrifugal or
radial flow type of 2 stages-- fuel combustor, and multi-stage axial flow turbine.
The combustion air entering the turbine is first adiabatically compressed to about 10 to 11
atmospheres. The hot, compressed air passes through a constant pressure combustion
section where liquid or gaseous fuel is burned, heating the air, which then expands through
the turbine wheels to provide shaft power.
The simple-cycle gas turbine is the Braytonncycle (open cycle), as represented by the
temperature entropy diagram in Exhibit 3.7. The ideal cycle consists of an adiabatic

- ENTROPY
Exhibit 3-7
Temperature Entropy Diagram for Gas Turbine Brayton Cycle

compression, constant-pressure heating, and adiabatic expansion, as shown by the dotted

line in this exhibit.
In an actual cycle, the thermal efficiency of a gas turbine falls below that of the ideal cycle
because of inefficiencies in the compressor and turbine and because of duct losses.
Considerable power is absorbed in driving the compressor, but because the expanding
gases are hot, the work obtained in the expansion process is greater than the work of
compression. The net work of the cycle, which is the difference between the two, is used
to drive a shaft. Nearly two-thirds of the gas turbine shaft power is used to drive the air
compressor, and less than one-third is available to drive an external device such as a
generator. An analysis of a typical gas turbine engine indicates the following outputs:
Gas turbine engine output 1,796 kW (100%)

Output absorbed by compressor 1,226 kW ( 68%)
Gearbox losses 21 kW ( 1%)
-------------------- --------------
Net useful shaft power 549 kW (31%)
Gas turbine efficiency can be increased by adding a regenerator, which recovers turbine
exhaust heat to increase the temperature of the compressed air entering the combustion
chamber. The gas turbine output can be further improved by the addition of intercooling
in the compressor and reheating the working fluid during expansion.
The performance of a gas turbine is directly proportional to the mass flow of the air going
through it. Because the gas turbine is a volume flow machine, the mass flow changes
directly as a function of the density of the air. Thus, as the altitude increases, the pressure
drops and the turbine’s performance decreases. The power loss is about 3.6 percent per
300 m of increase in elevation. Similarly, gas turbines lose power with increasing ambient
temperatures. A 22°C rise in ambient temperature can result in a 20 percent loss in
power.
The answer to the derating described above is inlet cooling of the combustion air. In most
installations, where an absorption chiller is part of the thermal load from the waste heat
recovery boiler, some chilled water is used to cool the inlet air. If inlet cooling is not
used, the exhaust gas heat content drops, primarily because of the reduced mass flow.
Cooling the inlet air not only increases the shaft power of the gas turbine but also
increases the thermal output.
The heat content of the gas turbine exhaust stream can be recovered in a waste heat
recovery boiler (WHRB). A typical combustion gas turbine and waste heat recovery boiler
configuration was shown in Exhibit 2.3 Exhaust gases at about 460-482°C (in smaller
gas turbine sizes) are cooled to about 150°C to extract useful heat. This is the minimum
recommended temperature on the leaving side of WHRB to avoid moisture condensation.

Through the WHRB, the exhaust gases can produce direct sources of heat, high-pressure
steam, low-pressure steam, or hot water.
3.5.2 Gas Turbine Operation
A gas turbine must be brought up to speed by an auxiliary starter, which can be electric
(low-voltage DC start for natural gas fuel), pneumatic, or natural gas operated on supply
pressure. Reciprocating engines or steam turbines can also be used for this purpose.
Because gas turbines are nominally rated at sea level at 16°C ambient temperature and
without inlet and outlet duct losses, the actual ambient conditions and installation
configurations are important in determining the capacity available for the application. Gas
turbine efficiency and power output are directly dependent on the mass of air flowing
through the engine. Because the air compressor is a constant-volume machine, the density
of the air and therefore, the barometric pressure and temperature, have a direct effect on
gas turbine performance. Thus, lower pressure and/or increased temperature result in
decreased turbine power.
The rating of a gas turbine is also affected by both inlet pressure to the air compressor and
exhaust pressure from the turbine. In most applications, filters and duct silencers must be
installed at the air inlet. Silencers and waste heat recovery boilers are normally used on
the exhaust, and hence, the pressure drop of these accessories and duct losses must be
considered when determining the power output of the unit.
The approximate effects of these factors on a gas turbine’s power output are as follows:
each 10°C rise in inlet temperature decreases the power output by 9 percent
an increase of 300 m in altitude decreases the power output by approximately 3.6

percent
inlet pressure loss in the filter, silencer, cooling coil (if any), and ducting
decreases power output by 0.02 percent for each millimeter of water column
pressure loss
l> discharge pressure loss in the silencer, in the waste heat recovery boiler, and
ducting decreases power output by 0.012 percent for each millimeter of water
column pressure loss.
To increase the power output of a gas turbine, it is essential both to reduce pressure losses
in the inlet and outlet ducts and accessories, and to control the temperature or density of
combustion inlet air. In hot and dry climates, it is possible to cool the hot and dry

incoming air by evaporation using water injection. In some cases, it may be possible to
cool the hot (and humid) air by refrigeration, especially in those installations in which
cogeneration systems use gas turbine waste heat recovery for the operation of absorption
chillers.
3.5.3 Gas Turbine Efficiency
The thermal efficiency of a gas turbine depends mainly on the pressure ratio, the turbine
inlet temperature, and the parasitic losses. Variations with both temperature and pressure
ratios are depicted graphically in ---------------------------
Exhibit 3.8 based on a thermodynamic analysis of the
Brayton cycle.
The simple-cycle gas turbine is relatively inefficient, and almost all of its losses are in the
exhaust flue, which has temperatures typically in the range of 455 to 540°C. This heat,
if recovered in a waste heat recovery boiler, can significantly improve the turbine’s overall
efficiency. A typical heat balance for gas turbines with standard small- and medium-sized
units is shown in --------------------------
Exhibit 3.9
Output Small Units Medium Size Units
Electricity 21% 29%

o
Exhaust heat (theoretically recoverable to 150 C) 53% 46%
Exhaust heat (not recoverable) 21% 20%
Generator, oil cooler, and radiation losses 5% 5%
Total 100% 100%
Exhibit 3.9
Gas Turbine Heat Balances

SIMPLE CYCLE
0.140 0.150 0.160 0.170 0.180

(.064) (.068) (.073) (.077) (.082)
SPECIFIC OUTPUT MW PPS (MW / kg / s)
HIGHER TEMPERATURE MEANS MORE POWER
COMBINED CYCLE
EXHAUST
ELECTRIC
POWER
SPECIFIC OUTPUT MW / Ib / S (MW / kg / S
HIGHER TEMPERATURE SAVES FUEL GT 17983
Exhibit 3.8
Effects of Temperature and Pressure Ratio on Gas Turbine Efficiency and Output

The efficiency of large modern gas turbines continues to increase as new technology allows
higher turbine inlet temperatures and pressure ratios. Heavy-duty gas turbines are
operated with firing temperatures as high as 1110°C at base load, with pressure ratios of
up to 12, and with thermal efficiencies of up to 36 percent. Newer units derived from
aircraft technology can operate at pressure ratios as high as 30: 1 and reach efficiencies of
as high as 40 percent.
3.5.4 Combined-Cycle Gas Turbine
In those industrial plants where there is a considerable demand for electrical energy and
a very small demand for heat, conventional thermal power plants with boilers and
condensing steam turbines are not the only alternative available. Where it is possible to
use gas turbines to generate electrical power in a topping cogeneration cycle, the high-
temperature exhaust stream’s thermal energy can be recovered in a waste heat recovery
boiler to produce high-pressure steam. This steam can operate a steam turbine to increase
the electrical power generation in a combination of gas turbine/steam turbine operation,
commonly known as a combined cycle.
Exhibit 2.4 showed a typical combined-cycle configuration with a back-pressure steam

---------------------------
turbine to meet industrial low-pressure steam requirements for higher thermal efficiency.
Normally, large gas turbines (above 10 MW capacity) have thermal efficiencies of about
30 percent. With waste heat recovery and the utilization of a condensing turbine, as
shown in Exhibit 3.8, thermal efficiencies of 50 percent can be achieved. In a back-
pressure application, where the heat is used in the process rather than being rejected to a
condenser, efficiencies of 80 percent can be achieved.
Because of its high efficiency in electricity generation, the combined cycle is becoming
increasingly popular, and this trend is expected to continue through the 1990s. Aircraft
derivative technology continues to improve efficiencies. Natural gas is becoming more
widely available worldwide, and at reasonable prices. The environmental effects of gas
are already much less than those of other fuels, but new developments in low NOx burners
will enhance the status of gas turbines and combined cycle applications even more.
3.5.5 Steam Injection
Another method of increasing power output is by injecting high-pressure steam in the

compressor exhaust in what is known as the Cheng cycle, named after its developer, Dr.
Dah Yu Cheng, a professor of physics.
In a Cheng cogeneration cycle, gas turbine exhaust heat is used to produce high-pressure
steam in a waste heat recovery boiler. This steam can either be injected into the gas
turbine to greatly increase power output, or it can be used as process thermal energy. The

controlled injection of high-pressure steam provides up to 15 percent greater mass flow,

which because of little additional compressor work, boosts power considerably, and
electrical outputs of up to 40 percent can be obtained.
3.5.6 Supplementary Firing
Due to high excess air in the combustor for cooling purposes, the gas turbine exhaust
stream has 16 -17 percent oxygen. Hence, supplemental firing in the exhaust stream can
be used to meet higher thermal loads.
3.6 RECIPROCATING ENGINES
Reciprocating engines are the most common type of prime mover used for the production
of shaft power. They are used extensively in industrial and commercial applications to
provide shaft power either to operate an alternator for the production of electricity, or to
operate rotating equipment such as centrifugal compressors, pumps, and blowers. These
engines use all types of gaseous and liquid fuels.
Reciprocating engines are of two basic designs: the four-cycle or four-stroke engine and
the two-cycle or two-stroke engine.
The two-cycle engine requires only two strokes for each cycle: expansion and
compression. Exhaust ports are opened near the end of the expansion stroke. Soon after,
the intake ports open, allowing the precompressed fuel-air charge into the cylinder. The
charge expels the exhaust products, scavenging the cylinder. Some of the charge
inevitably escapes with the exhaust. The advantages of the two-cycle design include 60
to 80 percent greater power output per unit of piston displacement at a given speed, twice
as many power impulses per cylinder per revolution, lower cost (for some designs), and
lighter weight.
In the four-cycle engine, the four strokes are suction, compression, expansion, and
exhaust. The advantages of four-cycle engines include wider variation in speed and load,
cooler pistons, lower specific fuel consumption, less exhaust dilution, and no fuel loss
during the exhaust stroke.
Reciprocating engines may be either naturally aspirated or turbo-charged. Turbo- chargers

(combustion air compressors driven by an exhaust gas turbine) increase the amount of air
delivered to the combustion chamber and hence, allow higher output from a given engine,
increasing efficiency.
Reciprocating engines include the following types:

Spark ignition Otto-cycle engines, which can use natural gas, liquified petroleum
gas (LPG), and other gaseous or volatile liquid fuels. For industrial and
commercial use, only the natural gas engine will be considered here for economic
reasons.
Compression ignition diesel-cycle engines, which can be fueled by a wide range

of petroleum products, including residual oil (mazout). Diesel-cycle engines can
also be fired with gaseous fuels in combination with liquid fuel. For industrial
and commercial use, only heavy mazout engines will be considered here owing
to economic reasons.
3.6.1 Otto-Cycle Gas Engine
The gas engine is a very popular prime mover and is available in all sizes from 8 BHP (6
kW) up to 18,000 BHP (about 13.5 MW). However, the range of smaller sizes up to
about 1,000 BHP is economically very attractive, especially because of low maintenance
costs and simple installation. In this smaller-sized equipment, no other prime mover is
available that can match the gas engine’s continuous operation power output costs.
Although very reliable diesel engines are available in the smaller range, the cost of the fuel
is prohibitive, and gas engines are the preferred base-load machines wherever gas is
available.
Gas engines are generally rated between 900 and 1200 rpm for continuous operation,
although slower speeds are used on large engines. The specific operating speed for a
particular engine depends on the size, characteristics of design (set by the manufacturer),
the driven equipment (for example, the specifications of alternators for power generation),
and the desired length of time between complete engine overhauls (standard engines are
currently available that provide a minimum of 20,000 to 30,000 hours of operation
between even minor overhauls).
Exhibit 3.10 shows typical fuel consumption curves for a gas-tired Otto cycle internal
------------------------
combustion engine. The approximate consumption curves for a 10: 1 compression ratio
show that at 1200 rpm for 600 BHP (approximately 450 kW), the fuel consumption will
amount to about 11,400 kJ/kWh, or about 0.322 m3/kWh natural gas.
Small gas engines are air-cooled units, while all medium and large engines are
water-cooled. Heat can be reclaimed from the engine jacket cooling system, lubricating
system, and the exhaust. These engines require extensive cooling to remove the excessive
heat conducted into the power train during combustion and the heat resulting from
friction. Coolant fluids and lubricating oil are circulated to remove this engine heat. Some
larger engines are also available with ebullient cooling to make low-pressure steam
available for process loads.

COGENERATION SYSTEM EQUlPMENT 3-23
Actual heat recovery from engine exhaust is limited by the final exit temperature, which
o
must be high enough to avoid condensation (generally around 150 C). Thus, only
percent of the exhaust heat can be recovered.
While exact figures vary with engine design and load, the approximate distribution of input
gas fuel energy for an engine operating at optimum design rating is as follows:
Shaft power 33%

Rejected in cooling water 30%
Rejected in exhaust 30%
Convection and radiation loss 7%
Total 100%
-Exhibit 3.11 shows details of a heat balance for a typical gas engine as a function of part-
---------------------
load operation.
Turbo-chargers on natural gas engines require medium fuel gas pressure (0.8 to 1.4 barg)
and low after-cooler water temperature (32°C or less) for high compression ratios and
highest fuel economy. The turbo-charger increases engine capacity and extends the
optimum fuel consumption curve. Turbo-charging is especially attractive for larger
engines because their usual limitation is the volume of the combustion air and fuel that can
be delivered to the available combustion chamber.

Exhibit 3.10

Exhibit 3.11

3.6.2 Mazout-Fired Diesel Engine
The diesel engine is a high-compression machine that uses the heat of compression to
ignite the fuel/air charge. These engines can use solar or mazout, or operate on a mixture
of natural gas and mazout or solar, where the oil provides the means of igniting the
charge. Due to the high cost of solar and the still-limited availability of natural gas in
Egypt, the discussion in this section will focus on mazout-fired diesel engines.
Diesel cycle engines using mazout provide economical shaft power and are available in
sizes from about 750 BHP up to 50,000 BHP (560 kW to 37,300 kW) Due to mazout’s
lower costs and the high efficiency of mazout engines, these engines, which are specially
designed for heavy oil, have a great potential for use in industrial installations in Egypt.
Mazout engines are generally rated between 120 to 900 rpm for continuous operation;
slower speeds are preferred for low-quality residual fuels (viscosity above 180 Centistokes
o
at 50 C, sulfur content above 3 percent by weight, vanadium above 200 mg/kg).
The satisfactory operation of mazout engines will depend primarily on the following:
engine design, which should offer long maintenance-free periods, easy

maintenance, and low fuel consumption over the entire load range.
special ancillary systems covering fuel, cooling water, and lube oil.
The fuel system should also be able to handle fuel with high viscosity and impurities. The
heating and circulation of fuel controls the viscosity problem, while the impurities are
handled by the use of settling tanks, centrifugal separators, and fine filtration in automatic
filters.
The cooling water system must be accurately controlled to operate the engine within safe
temperature limits, and the controls must ensure heating at low loads and cooling at high
loads. The parts exposed to combustion must not be cooled to a temperature at which
sulfuric acid can condense (cold corrosion), and the material temperature should not be
allowed to rise above the melting points of vanadium and sodium (hot corrosion).
The lube oil system should include an oil centrifuge so that separation is possible while the
engine is operating. This will extend the life of the lubricating oil and the lube oil filters.
The approximate specific consumption of mazout is 0.19 kg/kWh. This figure is

guaranteed by all major manufacturers.
All mazout engines provide some potential of heat recovery in engine cooling systems,
lubricating systems, and the exhaust.

Although exact figures vary with different makes and models, the approximate distribution
of fuel input for a mazout engine operating at optimum design rating is as follows:
Shaft power 42%

Rejected in cooling water 24 % (recoverable)
Rejected in exhaust 20 % (recoverable)
Rejected in exhaust 9% (not recoverable)
Radiation loss 5%
100%
Exhibit 3.12 shows a Sankey diagram for the heat balance of a typical mazout-fired diesel
engine. A cogeneration system utilizing most of the engine cooling water and recoverable
engine exhaust should normally give an overall thermal efficiency in excess of 80 percent.
3.7 ELECTRIC POWER GENERATORS
Two types of generators, induction and synchronous, are used in engine-driven

cogeneration systems. The main difference between the two is the method of excitation
used to develop the generated voltage. Induction generators depend on the utility to
provide the reactive current required for excitation, while synchronous generators provide
their own field excitation from a direct current field.
3.7.1 Induction Generator
The induction generator, whose characteristics are summarized in Exhibit 3.13 is simply
-----------------------------
an induction motor that is driven above synchronous speed. Synchronous speed is
proportional to the frequency of the power source and the number of poles for which the
generator is wound.

100 % FUEL INPUT
& OTHER LOSSES 9%
. Worstila Nohab 25
Source: Worstila Nohab.
Exhibit 3.12
Heat Balance for Mazout-Fueled Engine*

Sync
Speed
Efficiency Efficiency
Power Power
Factor Factor
KW Out kW Out
(hp)
Full Load- -Full Load
Current Current
2960 rpm 3000 rpm 3040 rpm

Below Sync Speed Above Sync Speed
Motor Operation Generator Operation
Exhibit 3-13
Typical Induction Machine Performance Curves
(3000 rpm Synchronous Speed, 50 Hz)

Induction generators use a stationary armature with coils wound on a core in a manner to
produce magnetic poles when AC current is connected to the armature. The armature
surrounds a rotor, generally a squirrel cage, which consists of a series of conducting bars
inserted in the slots of the rotor and connected at the ends of the rotor by a solid
conducting ring. The stator produces a rotating magnetic field, with flux cutting the rotor
bars, and inducing a voltage in the bars. The voltage produces current in the bars. This
results in a magnetic field that interacts with the field of the armature. This interaction
results in available torque on the rotor shaft to drive loads up to synchronous speed. More
torque is available at lower speeds because of the relative motion of the rotor and the
rotating armature magnetic field, acting as a motor.
If the machine is operated at synchronous speed, there is no induced voltage on the rotor
and no torque. If, however, the rotor of the induction machine is driven above
synchronous speed, the magnetic interaction is reversed and the rotor’s magnetic field
induces voltage in the armature. This causes real power to flow from the machine, which
is now a generator. Because the source of the excitation current (and therefore the
synchronous speed) is established at the grid, there is no requirement for synchronizing
equipment. However, the generator can not stand alone. When the grid is down, so is
the cogeneration system.
3.7.2 Synchronous Generator
There are several types of synchronous generators. The most common is the revolving
field generator, which consists of a field (rotor) with magnetic field poles and a magnetic
core that rotates inside a stationary armature consisting of a core and coils (stator). The
rotating field usually has windings on the pole pieces and is excited by DC power to
produce the desired magnetic field that links the coils of the armature, resulting in an
alternating voltage in the armature. The frequency of the generated voltage is proportional
to the number of field poles and the rotational speed. The voltage magnitude is a fraction
of the level of the DC field current and the rotational speed. There are also several ways
to develop the DC field current, but the most commonly used synchronous generators
employ brushless exciters.
The synchronous generator produces its own frequency and voltage level and, therefore,
is able to stand alone and provide power when the grid is down. It is usually desirable
to operate the cogeneration system in parallel with the gird. As a result, it is necessary
to provide means of frequency control, synchronizing equipment when paralleling with the
grid, and voltage control.

3.8 WASTE HEAT RECOVERY SYSTEMS
Waste heat recovery utilization, either in the topping cycle to generate thermal energy for
process requirements or in the bottoming cycle to generate power, will result in
significantly improved efficiency levels.
Waste heat recovery boilers (WHRBs) are similar in design to fuel-fired boilers, and may
be of either the fire-tube or water-tube type. WHRBs of water-tube design are also
available with steam generator heat exchange coils mounted in the hot exhaust stream with
a separate steam separation and storage vessel. This design is possible without a boiler
water circulation pump if the steam storage vessel can be mounted directly on top of the
steam generator coil for compactness. When this is not possible due to site limitations,
or if higher water-tube velocity is required for optimum heat transfer, a boiler circulation
pump is added. WHRBs can also be fitted with additional burners for supplemental firing
in case additional thermal capacity is required for the generation of hot water or steam.
3.9 CENTRAL COOLING EQUIPMENT FOR COGENERATION APPLICATIONS
Central heating requirements are met by the utilization of low-pressure steam or hot water
in heating coils. For central refrigeration or cooling using thermal energy, absorption
systems are utilized. Absorption chillers may be of either a single-effect (standard
absorption cycle) or double-effect type, in which the direct utilization of both hot gases and
medium-pressure steam (9.5 barg) are possible.
3.9.1 Single-Effect Absorption Cycle
Exhibit 3.14 shows a standard absorption cycle in which low-pressure steam (1 barg) or
----------------------------
hot water is used to produce refrigeration in the evaporator. The evaporator, in turn,
chills water using lithium bromide solution as the absorbent and water as the refrigerant.
The concentrated solution of lithium bromide, forming a spray in the absorber section, has
a strong affinity for water; thus, with the very low (nearly absolute zero) pressure in the
evaporator section, water evaporates and a refrigeration effect is created. Water is thus
used as a refrigerant to chill circulating water and provide cooling. The dilute lithium
bromide solution is then pumped up to the concentrator (generator) section where steam
or hot water is utilized to remove water vapor, which then condenses in the condenser
section to complete the cycle. Cooling water is pumped first to the absorber section to

STEAM OR HOT WATER

,
Exhibit 3-14
Single-Effect Absorption Cycle

remove the heat of the exothermic reaction and then to condense water vapor in the
condenser section, before being sent to cooling towers for recirculation.
A refrigeration effect can also be obtained by employing the refrigerant’s affinity to special
absorbents. Since the absorbents require thermal energy to release the refrigerant for
reutilization in the cycle, these machines are operated by steam or hot water. In
cogeneration systems, the heat is obtained either through direct hot exhaust (as in gas
turbines) or through steam or hot water.
In the absorption refrigeration system, heat (direct or steam/hot water) is applied in the
generator/concentrator section where the absorbent solution (lithium bromide, for example)
is concentrated by giving off refrigerant (water, with the use of lithium bromide) vapor.
This vapor is then condensed in the condenser section by cold water circulation, normally
supplied from the cooling tower circuit. The concentrated solution is then sprayed in the
absorber section where it attracts refrigerant vapor from the evaporator section. This
process of water vapor absorption is an exothermic reaction and cooling water must be
supplied (from the same cooling tower circuit) to extract this heat. The evaporation of
water vapor in the evaporator section produces a refrigeration effect, which is used to cool
the fluid in the chiller circuit.
The absorption refrigeration cycle basically covers two refrigerant-absorbent combinations.

The most popular absorption system has lithium bromide solution as the absorbent and
water as the refrigerant. The majority of large air-conditioning and industrial chilled water
systems are based on this design.
A second system design uses ammonia as a refrigerant, with a weak solution of ammonia
in water as the absorbent. This system was very popular a few years ago in household
refrigerators, operating on kerosene with open-flame and electrically-heated generator
sections. However, ammonia-water systems were limited to small sizes, and because of
problems of ammonia toxicity and high-pressures, very few equipment manufacturers
currently offer this alternative.
Exhibit 3.15(b) shows a cogeneration system generating electrical power in steam-turbine

operated alternators with back-pressure steam from the turbine supplying low-pressure
o
steam to the absorption chiller, producing chilled water (5.5-6.6 C normal range) for
industrial cooling or central air-conditioning. To ensure the thermal efficiency of the
cycle, the use of excess steam is also possible for winter heating, domestic hot water
supply, and other systems needing heat.

COGEN SYSTEM WITH STEAM

TURBINE DRIVEN CENTRIFUGAL CHILLER H.P. STEAM
FUEL
G. T. EXHAUST
. CENTRIFUGAL CONDENSING
CHILLER STEAM TURBINE
TO CONDENSER
COGEN S Y S T E M W I T H B A C K - P R E S S U R E
STEAM TURBINE AND ABSORPTION CHILLER
TE TANK
Exhibit 3-15
Cogeneration System for Air-Conditioning Equipment

3.9.2 Double-Effect Absorption Cycle
Exhibit 3.16 shows a double-effect absorption cycle. The high-temperature generator is

used to create more refrigeration effect per energy input and also simultaneously to provide
hot water for heating, if required. The double-effect absorption cycle uses only 60 percent
of the energy required by a standard single-effect system.
Cooling is obtained in the evaporator section, where the refrigerant (water) is sprayed as
in the single-effect cycle. The absorber is also similar and the refrigerant vapor is
absorbed, thereby diluting the strong lithium bromide solution. The dilute solution from
the absorber is pumped to the high-temperature generator via heat exchangers, where the
water vapor is boiled out of the lithium bromide solution. The refrigerant (water) vapor
passes into the low-temperature generator to give off heat to the intermediate lithium
bromide solution before condensing and completing the cycle.
3.9.3 Mechanically Driven Chillers
In engine-driven chillers, the shaft horsepower from an engine is used to drive the
compressor of an air conditioning system, and the recoverable heat is used to provide
service hot water. Exhibit 3.17 shows a Tecochill natural gas-fired unit with a rated
capacity of 1.9 GJ/hr (150 tons) of cooling; it can supply 0.74 GJ/hr recoverable heat
from the engines.
Natural gas-fueled engines driving a centrifugal compressor can provide load modulation
from 20 to 100 percent of capacity. A gas-engine-driven chiller can significantly reduce
cooling costs for commercial buildings by substituting natural gas for expensive peak
electricity. In addition, this chiller concept has more efficient part-load performance than
electrically driver chillers, provides the option to recover engine heat, and has the potential
to operate above rated loads for short periods of time.
The vapor compression cycle consists of a mechanical compressor operated by shaft power
(electric, turbine or reciprocating engine drivers, which compresses the refrigerant vapor
(normally refrigerant R-l1, R-22 or ammonia) to high pressure. The vapor is then
condensed at the condensing temperature by the transfer of heat through water, in a
water-cooled condenser, or through air, in an air-cooled condenser. The liquified
refrigerant at high pressure is then throttled or expanded to a lower pressure. In the
evaporators, the refrigerant evaporates, transferring its refrigeration effect to air or water.
Energy Conservation and Efficieny Project (ECEP)

High temperature
generator
heat exchanger
Exhibit 3.16
Double-Effect Absorption Cycle

Specifications
o
Output: 150 tons (ARI) Chilled Water @ 44 F
o
700,000 BTU/HR Hot Water @ 240 F (With Optional Heat
Recovery)
Input: 1,260 SCFH Natural Gas
4 kW Electric, 208/230 VAC, 1 PHASE, 60 HZ
Efficiency:* Mechanical Cooling (Without Heat Recovery)
COP = 1.4 at Full Load
COP = 1.7 at IPLV Rating (Integrated Part Load Value per AR1 550)
Mechanical Cooling With Optional Heat Recovery
COP = 1.9 at Full Load
COP = 2.2 at JPLV Rating
Acoustic Level: 82 dBA at 20-feet Full Load (With Optional Enclosure)
Controls: Microprocessor based. Fully automatic start-up, monitoring, load fol-
lowing and shutdown. Programmable setpoints. 2 level diagnostics.
Digital display. Remote monitoring (optional).
Dimensions: 13.5' long x 4' wide x 6' high
Weight: 10,250 Ibs dry
Refrigerant: R22
*COP ratings are based upon fuel higher heating value (HHV).
Specifications subject to change without notice.
Exhibit 3.17
TM
TECOCHILL CH-150 Gas Engine-Driven Water Chiller

Steam utilization for a vapor compression refrigeration cycle is carried out by having a
steam turbine operate a rotary compressor (either centrifugal or screw-type) to produce the
required refrigeration. Exhibit 3.15(a) shows a cogeneration system generating electrical
power in a gas-turbine operated plant, with a waste heat recovery boiler producing
high-pressure steam to run a turbine for the centrifugal refrigeration compressor of the
chiller package. The exhibit shows a condensing turbine. A back-pressure or extraction
turbine, with the utilization of steam for winter heating requirements, domestic hot water
supply, food service facilities, laundries, hospital sterilization, etc., would result in a
higher thermal efficiency for the cogeneration system.
3.10 SYSTEM CONTROLS
Cogenerators tying in their power lines to the utility grid are required to provide
interconnection equipment to satisfy the utility’s concern for system safety and reliability,
and to minimize the impact of the cogenerator on the quality of power the utility provides
to its customers. In addition, interconnection equipment protects the cogeneration system
from loss of power at the grid and from large variations in power quality on the grid side
of the interconnection point. Currently, there are no universally accepted standards or
guidelines for interconnection.
3.10.1 Grid Interconnection
The utility’s primary concern is the safety of their system. Utility distribution systems
were designed to be radial electric supply systems that transfer power from a central
generation point to the end-user. However, when a cogeneration system operates in
parallel with the grid, the utility is faced with a point source of generation that is designed
for a one-way flow of electricity. When faults are detected within the grid and a portion
of the grid is shut down, the utility must be assured that there is no supply of electricity
from the cogenerator to the grid. For induction generators, this is not a problem because
the generator will not function without excitation current from the grid. For a
synchronous generator, however, a master breaker must be installed that will trip when
there is a loss of voltage on the grid.
The utility is also concerned that the quality of power it provides is not affected by the
cogenerator. To accomplish this, the utility may require that the cogenerator pay for an
isolation transformer. The utility uses power isolation transformers on distribution circuits
for a variety of reasons including:
voltage transformation
harmonic isolation
ground fault isolation

impedance limiting of fault currents

voltage transient reduction and isolation
creation of grounds
reduction of voltage flicker.
3.10.2 System Protection
To protect cogeneration equipment from the grid, several sensors and relays are necessary
so that the cogenerator will not backfeed power during grid maintenance or try to drive
the grid when the quality of power is outside the limits of operation for the cogenerator.
This is accomplished by opening the visible disconnect breaker required by the utility for
safety purposes. Typical equipment that may be needed to provide protection include:
.. dedicated isolation transformer
.. visible disconnect switch

circuit interrupter with thermal-magnetic trip
.. under/over voltage relay

under/over frequency relay
.. automatic synchronizer and VAR controller for synchronous applications

power factor correction capacitors for induction applications
. negative sequence current balance

voltage phase sequence
. .. instantaneous and time over current - three phase

instantaneous and time over current - ground
reverse power or directional current relay.
3.11 OTHER COGENERATION TECHNOLOGIES
A variety of other cogeneration technologies are currently on the market, but find very
limited application because of their high cost. These technologies include organic Rankine
cycle turbines, closed-cycle gas turbines, and fuel cells.
3.11.1 Organic Rankine Cycle Turbines
Organic Rankine cycles (ORCs) operate on the same principle as the standard Rankine
cycle, except that an organic fluid is used instead of steam as the working fluid. These
systems provide a means of economically recovering waste heat from process exhaust
streams, especially for lower temperature ranges 60-230°C. ORCs also provide more
shaft power than can be supplied using conventional steam systems. Further, using the

correct organic fluid can enhance energy conversion efficiency by matching the ORC heat
recovery cycle to the thermodynamic characteristics of the waste heat stream.
The efficiency and cost of ORC heat recovery systems depend to a large extent on three
major factors:
selection of the working fluid (refrigerants R-l1, R-12, R-22, R-l13 and R-l14
have been used for low-temperature applications, while fluids such as toluene
have been used for higher temperatures)
design of the turbine (fluid-specific turbine design is required)
design of the vaporizer/super heater (organic fluid allows higher heat recovery
efficiency).
Exhibit 2.5 (b) showed an organic Rankine cycle system based on low-temperature heat
recovery. In this system, the organic working fluid is vaporized and superheated in an
exhaust stream heat recovery section. The superheated fluid is expanded through a turbine
for power generation, condensed in a water-cooled condenser, and returned to the
vaporizer via feed pumps. ORCs normally use a regenerator to recover sensible heat from
the organic vapor leaving the turbine.
3.11.2 Closed-Cycle Gas Turbines
In the closed-cycle gas turbine, the working fluid is continuously recycled. The heat from
an external source is transferred to the working fluid through special heat exchangers. The
closed cycle can use working fluids other than air, such as helium.
3.11.3 Fuel Cells
Fuel cells have long been a source of power generation in the space program because of
their high efficiency. As an outgrowth of research and demonstration testing began in the
1970s by United Technologies Corporation, various gas utilities, and the Gas Research
Institute, a natural gas-tired fuel cell is now commercially available. ONSI Corporation,
a subsidiary of International Fuel Cells Corporation (a joint venture company with United
Technologies) now produces a 200 kW fuel cell.
Fuel cells use an electrochemical process to generate electricity and heat from natural gas.
In concept, the fuel cell operates as a continuously operating battery. Two chemical
reactions occur in the fuel cell. At the anode, fuel is oxidized, releasing electrons to an
electrical circuit. Hydrogen ions from the anode travel through an electrolyte to the

cathode, where they recombine with oxygen to produce water. As long as fuel (natural
gas reformed into hydrogen) and air are supplied, the conversion to electrical power
continues without interruption.
There are two basic types of fuel cells that are reaching commercialization. Each has a
different quality of thermal output and electrical efficiency, and therefore, a different
market. One technology, based on the use of phosphoric acid as an electrolyte, operates
at 200°C and basically has a thermal output in the form of high-temperature hot water.
Its electric conversion efficiency is about 40 percent.
The second technology uses a molten mixture of alkaline carbonates as the electrolyte.
o
This type of unit operates at 650 C, producing steam as the thermal output and having an
electric conversion efficiency of about 55 percent. These fuel cells are being
commercialized for two different markets. A 250 kW model is being developed for the
industrial cogeneration market, where there is a need for process steam and a high
electrical conversion efficiency. A 2 MW module is being developed for utilities and
independent power producers, capitalizing on the high electric conversion efficiency for
the production of electric power in a distributed power generation market.
3.12 EFFECT OF THE THERMAL-TO-ELECTRIC RATIO ON EQUIPMENT

SELECTION
The more closely a cogeneration system matches the average thermal-to-electric ratio (see
Section 2.3.3) of an application, the more financially attractive that system will be. In
sizing the system, one must select either a power or a heat match as the base for operating
the system, and a technology that will closely follow the thermal-to-electric ratio at the
facility or process.
Ideally, the thermal and electric requirements should be at the same match point for a
particular system, but this is never the case. For this reason, planners must decide
whether to use an auxiliary boiler and sell electricity, or sell excess heat and buy
electricity. Based on discussions with the Egyptian Electricity Authority (EEA), selling
heat, or occasionally electricity, appears to be possible; this must be determined by the
EEA on a case-by-case basis.
3.12.1 Low Thermal-to-Electric Ratio
For a low thermal-to-electric ratio, the topping cycle should have greater emphasis on shaft
power conversion efficiency. Hence, a reciprocating engine or a large gas turbine engine
would be indicated as a prime mover. With this configuration, the general range of the

thermal-to-electric ratio is expected to be around 1 to 1.7.
The low thermal-to-electric ratio is applicable in installations where waste heat recovery
is fully utilized for maximum steam generation, with supplemental firing for the balance
of the steam requirements.
Large mazout diesel-cycle engines (ranging from 700 to 50,000 HP or 522 to 37,300 kW)
have recently become popular for power generation in various industries (notably the
textile, cement, and chemical industries), and present attractive opportunities for
cogeneration through the use of low-pressure steam for processes.Gas engines, available
also in smaller sizes, can generally optimize energy conversion in commercial applications
to service either a heat load for a kitchen and laundry or a cooling load with absorption
chillers for air-conditioning.Advantage can also be taken of the lower thermal-to-electric
ratio of the reciprocating engine by utilizing shaft power to operate centrifugal chillers and
using the waste heat for absorption chillers in order to attain a very high energy
conversion efficiency for large central air-conditioning requirements.
3.12.2 Medium Thermal-to-Electric Ratio
For medium thermal-to-electric ratios, small gas turbines and supplementally fired gas
turbines are used as prime movers with waste heat recovery boilers for the production of
steam. Since small gas turbines are inherently low-efficiency engines (smaller turbines are
normally only 18 to 25 percent efficient), considerable waste heat is available in the
exhaust stream. With the topping cycle configurations described earlier, a general range
of thermal output is 8.4 to 12.6 GJ of process heat per megawatt hour of electrical output
(a T/E ratio of 2 to 4 can be expected).
Gas turbines, with direct heat or with waste heat recovery boiler configurations, meet heat
requirements in adequate quantities for many processes in the industrial sector. In warmer
climates, they may provide the correct heat balance for medium and large central
air-conditioning systems, especially for hospitals, hotels, and airport terminals, where
services are required on a 24-hour basis throughout the year.
3.12.3 High Thermal-to-Electric Ratio
For very large thermal loads in relation to power requirements, or a high thermal-to-
electric ratio, a steam turbine supplied with low-, medium-, or high-pressure steam from
the boilers and the use of back-pressure, extraction, or extraction/condensing turbines
provides the most flexible ratios. This is because both the inlet steam conditions and
turbine efficiency can be varied to obtain the most economical combination for the desired
steam load.

With a low-pressure back-pressure steam turbine with a steam rate of 45 kg/kWh, 45,500
kg of steam per hour (approximately 105 GJ/hr process heat) would be required to produce
1 megawatt of electricity.In the case of a high-pressure extraction/condensing turbine
with a steam rate of 3.6 kg/kWh, 3,600 kg/hr of steam would be required to generate 1
megawatt of electricity.However, only the part of the steam taken at the extraction port
would be applicable to meet process heat requirements. Thermal-to-electric ratios for
steam turbines, therefore, have a very wide range, from possibly as low as 2 to as high
as 40.
Steam turbines afford much flexibility in their design approach to suit varied requirements
for cogeneration. Examples include petroleum refineries with steam requirements at
different pressures and commercial applications with large thermal loads in hot or very
cold weather for building air-conditioning or heating requirements. Other services like
sterilization requirements in hospitals, food service systems in hotels and commercial
kitchens, laundries, etc., can also utilize this system.
Exhibit 3.18 summarizes the characteristics of generally available prime movers for
cogeneration systems.

Available Thermal-to-
Type Process Heat Electric Ratio Fuels
Steam 120°C to 2:l to residual

Turbine 400°C 30: 1 distillate
gaseous
wood waste
Gas 120°C to 1.2:1 to residual

Turbine 500°C 4:l distillate
gaseous
Reciprocating
Engine 80°C to 0.8:1 to residual
120°C distillate
gaseous
Exhibit 3.18
Prime Mover Considerations

4. SITE DATA ACQUISITION AND ANALYSIS
Understanding what type of energy is used and how it is used at a prospective cogeneration
installation is just as important as knowing the characteristics of the technologies that can be
utilized in the cogeneration system’s design. Site energy use characteristics directly interact
with the performance characteristics of cogeneration equipment, and are critical in selecting
generation technologies, in sizing generators and heat recovery equipment, and in determining
operating protocol.
Particular information on the energy characteristics of the site to be served by the

cogeneration plant includes data on steam or hot water use (both consumption and demand),
electricity use (both consumption and demand), and future demand patterns. Because a
cogeneration plant is a relatively expensive energy conservation opportunity, the existing
efficiency of overall energy use at the prospective site, and its possible low-cost improvement,
should be assessed. This should be accomplished by at least a “walk through” energy audit.
If half of the thermal energy is lost through steam leaks, poor steam pipe insulation, or lack
of condensate return, then these problems should be corrected before the steam load is
developed for a cogeneration system.
The objectives of a "walk through" energy audit or initial site inspection are to determine
whether the site is technically compatible with cogeneration technologies, whether low-cost
energy savings are available even before the cogeneration system is sized, and whether a
cogeneration system has the potential for economic viability.
Technical feasibility is based on technical compatibility between the cogeneration system and
the site’s mechanical/electrical systems, a determination of the availability of space for a
cogeneration system, and an analysis of whether the existing systems are adequate. The data
required to make this determination for a preliminary feasibility study will include completing
an electrical and thermal energy balance so that there is a sure knowledge of how the energy
is being used (an accounting of 70 to 85 percent of the energy should be expected). To
accomplish this, energy consumption data from monthly energy bills should be obtained as
well as a characterization of daily and seasonal variations in energy end-use load profiles.
A cogeneration system’s economic viability will typically be proportional to the number of

full-load operating hours per year. The number of operating hours can only be determined
from historical data that are then modified according to projected changes in production
schedules or plant expansion. Finally, an overall inspection should be made to determine if
no-cost or low-cost energy conservation opportunities can be implemented to alter the energy
use profiles that will be determined from the data collected.
4.1 SINGLE-LINE DIAGRAMS
During the initial site visit, it is necessary to develop an overall understanding of how
electrical and thermal energy are used. This can be accomplished using single-line diagrams
and assuring that there is a balance between the energy purchased or produced and where it
is used. Such a balance should be obtained for both electric and thermal energy. In this

SITE DATA ACQUISTION AND ANALYSIS 4-2
process, major loads are defined, and inefficiencies and losses can be identified, and losses
quantified. During this initial visit, it should be possible to account for at least 85 percent
of the energy usage.
4.1.1 Electric Balance
Constructing a plant-wide electric energy balance begins at the service entry to the plant. It
is necessary to have utility billing data, and it is useful to have data from any sub-metering
that may be done within the plant. The intent is to account for the use of the purchased
electrical energy and to characterize peak loads.
For plants operating at a high annual load factor, it is possible to use annual average data.
In plants that do not have a high load factor, it will be necessary to work with the plant
engineer to estimate duty cycles for various processes within the plant. The data of interest
are the annual average demand in kW along with the peak demand for the year and the
minimum demand for the year.
It will then be necessary to move through the plant to estimate loads to specific areas,
processes, and units within the plant. Name plate data should be recorded for the major
electric loads. However, it is more important to estimate the nominal energy demand for
these loads, either by calculating the output of the unit or by spot measurements of current
to the unit. During this process, it is useful to note lightly loaded equipment because it could
be affecting the power factor of the plant. A power factor correction project may also be a
cost-effective way of lowering the energy bill at the plant.
With the end-use data, construct a block diagram electric flow balance in kW by voltage level
to all major loads. An example of an electric balance for a large synthetic fibers plant is
shown in --------------------
Exhibit 4.1

Exhibit 4.1

SlTE DATA ACQUISITION AND ANALYSIS 4-4
4.1.2 Heat Balance
Constructing a plant-wide thermal energy balance is accomplished in the same manner as the
electric balance, but begins at the boiler house instead of the electric service entry to the
plant. Billing data for steam will not be available. However, data on fuel purchases will be
available, and it will also be necessary to have data on boiler efficiency. Some plants have
steam flow meters at the boiler house and will have a record of steam production. More
often, steam production must be estimated from the fuel consumption. The intent is to
account for the use of the steam produced and to characterize peak loads.
For plants operating at a high annual load factor, it is possible to use annual average data.
In plants that do not have a high load factor, it will be necessary to work with the plant
engineer to estimate duty cycles for various processes within the plant. The data of interest
are the annual average steam demand in tonnes/hr along with the peak demand for the year
and the minimum demand for the year; corresponding fuel consumption data are also of
interest.
It will then be necessary to make a second walk through the plant to estimate steam loads to
specific areas, processes, and units within the plant. Name plate data should be recorded for
the major electric loads. However, it is more important to estimate the nominal energy
demand for these loads, either by calculating the output of the unit or by spot measurements
of current to the unit. During this process, it is useful to note steam leaks, adequacy of steam
pipe insulation, and condensate return. It may be a cost-effective energy conservation
opportunity to improve the steam distribution system prior to sizing the cogeneration plant
if there are major losses within the steam system.
With the end-use data, construct a block diagram steam flow balance in lbs/hr by steam level
to all major loads. An example of a steam balance for a large synthetic fibers plant is shown
in Exhibit 4.2
-------------------------
4.2 MONTHLY ENERGY USE PROFILES
Selecting and sizing cogeneration equipment for a facility depends on a good knowledge of
the quantity of energy consumed and of the quality of thermal energy (i.e., steam temperature
and pressure, or hot water temperature). It is also necessary to have rate data to determine
the effect on electric costs due to demand and energy costs. Expansion plans and any
expected major changes in production schedules should be discussed with the plant manager,
as they should be accounted for in developing final load profiles for sizing equipment.

BOILER BOILER BOILER BOILER BOILER BOILER BOILER BOILER

TOTAL
NO. 1 NO. 2 NO. 3 NO. 4 NO. 5 NO. 6 NO.8 NO. 9 LOSSES 535.7
22.4 58.3 56.3 50.8 63.2 62.2 124.8 97.7 28 bar
3.0 31.2 501.5
POWERHOUSE 65.60
CONDENSATE
10 bar
1.4 bar
Exhibit 4.2
Steam Balance
(stones/hr)

SITE DATA ACQUISITION AND ANALYSIS 4-6
4.2.1 Electric Consumption and Demand
The data on electricity use required for the feasibility assessment include monthly energy use,
peak demand, characterization of typical daily use profiles, and cost. For large energy users,
some of these data may be available from the utility.
The following data are needed on the use of electricity:
. Electricity consumed in kWh on a monthly basis for a period of one year, and
maximum demand for each month in kW.
. Electricity consumed in kWh in a 24-hour period on an hourly basis, and maximum

demand in kW during the 24-hour period. This information is needed for typical
days in the periods when the demand is maximum and minimum.
. Cost of electricity.
The forms shown in Exhibit 4.3 and 4.4 can be used to collect data on monthly and hourly
bases. The best source of information for monthly data are the bills received from the
Egyptian Electric Authority (EEA) or the local distribution company. In addition to the
power purchased from the utilities, data on power generated in the plant or the building
should be included. The total demand for electricity can then be calculated by adding up the
purchased and self-generated electricity. The data from electric meters can be used for
recording hourly data by hand.
The relationship between dernand and energy charges for electricity is very important in the
economic feasibility analysis. With a straight demand charge (as opposed to a tariff structure
that provides some time(s) during the day and week during off-peak hours where there is no
demand charge), it is not possible to displace the demand charge component on the bill. This
is because it will be necessary to have the cogeneration system down for preventive
maintenance during every billing period. If the demand portion of the overall electric energy
cost is small, the impact of down time may be small. If it is small, this also reduces the
financial risk of unscheduled down time.
For new industries or buildings, a detailed analysis of demand will be required to develop
seasonal and daily load profiles. Expected operating schedules and loads for individual load
items such as motors, lighting, and electric furnaces will have to be considered.
Representative load profiles for other similar industries or buildings can also serve as a basis
for developing load profiles for a new facility.

Tariff classification: . Connected Load:
Annual Demand Charge:
Demand Forecast
Increase%
Reduction from
Energy Conservation
Net Increase %
Exhibit 4.3
Monthly Demand for Electricity

Date
02
05
08
10
11
12
13
14
15
16
18
19
20
21
22
23
24
Total
Exhibit 4.4
Hourly Demand for Electricity

Expansion plans should be taken into account to develop a forecast for increases in the use
of electricity. This information should be indicated in Exhibit 4.3 as the expected annual
------------------------
percentage increase in demand for each year for a period of five years. A detailed review
of the expansion plans may be necessary. This can include an estimation of the demand for
new items of machinery and equipment, and of increases in demand due to increases in
production from the existing machinery.
4.2.2 Thermal Energy Requirements
Steam and/or hot water use is a central determinant of cogeneration feasibility, because it is
not possible to purchase or sell thermal energy as is the case for electricity. The information
necessary here includes monthly steam use, hourly steam load profiles for representative
periods, and peak demands.
Forms for collecting data on steam on monthly and hourly bases are presented in Exhibits 4.5
-------------------------
------ respectively. Data are needed for each type of steam, defined by pressure and
and 4-6,
temperature, to allow matching with the capabilities of cogeneration technologies. The total
steam used, average steam load, and peak steam load should be recorded. The average
percentage of condensate return is also of interest. The hourly data for steam should be for
the same time period as the hourly data for electricity. Steam used for power generation is
not included in these data.
To collect the data specified in these exhibits, separate meters are needed for each type of
steam. If meters are not available, data on fuel use in the boilers and boiler efficiency can
be used to estimate steam production. This approach is subject to errors, and can be used
for a preliminary screening of options only. To develop a basis for engineering design, it is
recommended that separate steam meters be installed on the main steam lines to record the
data for each type of steam used.
Forecast steam loads must also be developed in the same manner as was discussed for electric
loads.
The cost of steam from the existing boilers should be estimated. The cost of steam will cover
the fuel, operating, and maintenance costs of the existing boilers. Figures on the cost of
steam are usually available from the accounting departments of companies (see also Section
4.5.2).

August
September
October
November
December
Total
Load 1 Load 2 Load 3
Pressure Bar
o
Temp C
Cond. Return %
Demand Forecast
Expected Increase %
Reduction from
Energy Conservation
Net Increase %
Exhibit 4.5
Monthly Demand for Steam

Exhibit 4.6
Hourly Demand for Load

Hot water is normally produced through the use of steam. Steam can be saved by using low-
temperature heat from a cogeneration system to produce hot water. The quantity of hot water
and the temperature at which it is required should be recorded.
4.2.3 Load Profile Analysis
Data on electrical and thermal loads should be plotted on a monthly and hourly basis.
Examples of such plots are presented in Exhibits 4.7, ------ 4.8, and 4.9.
------- These data give a
preliminary estimate of the average loads that the cogeneration plant must meet. They also
identify when peaks occur so that planners can determine how these peaks can be met while
still maintaining the high operating capacity factors necessary for the cogeneration system to
be cost-effective. In addition, it is important to note the coincidence of the thermal and
electric load profiles, both seasonally and hourly. Because cogeneration systems produce a
simultaneous electrical and thermal output, additional design concerns (to be discussed in
Section 4.4) arise if the loads are not simultaneous.
4.3 LOAD DURATION CURVES
Load profile data, such as those shown in Exhibits 4.7 and 4.8, are extremely useful in sizing
---------------------- ----------
the cogeneration system for the feasibility evaluation. These data are most useful when they
are in the form of a load duration curve, as is shown in ----------------------------
Exhibit 4.10 for
electricity and in ---------------------------
Exhibit 4.11 for steam. These data can also be used in determining how
much purchased power can be displaced by a base load cogeneration system, how much
supplemental power must be purchased, and how much excess power is available to be sold
to the utility. Average demand data from -----------------------
Exhibits 4.7 and 4.8 ------- are used to derive the load
duration curves and to provide the initial basis for size selection as well as an initial estimate
of the thermal-to-electric ratio of the facility or process being considered for the cogeneration
application (hourly variations should also be considered; see Section 4.3.2).
4.3.1 Annual Load Duration Curve
The load duration curve indicates the number of hours during the year in which a given
electric or steam demand exceeds a specified value (see Exhibits 4.10 and ------------- 4.11). In practice,
----------------------------
the curve is developed using demand increments or bins, the size of which may range from
a few hours to, in this example, one month. By using the average demand data from Exhibits
4.7
------- and 4.8
------ (kW and tonnes/hr) for a given time interval (the number of hours in the month)
and arranging the demand data in declining order, a load duration curve can be developed
(see also Section 4.3.3).

3500
3000
2500
2000
1500
1000
0
Jan Mar May July Sept Nov
Feb Apr June Aug Oct Dec
Month
Exhibit 4.7
Monthly Average and Peak Electric Demand

12
Average
10
Peak
8
0
Month
Exhibit 4.8
Monthly Average and Peak Steam Demand

Exhibit 4.9
Graphical Representation of Electrical and Thermal Load
(24 hour loads for three different days at a given facility)

Exhibit 4.10

0 2 4 6 8
1 3 5 7 9
Hours (thousnands)
Exhibit 4.11
Steam Load Duration Curve

4.3.2 DaiIy and Hourly Load Considerations
When developing load duration curves, it is also necessary to review daily and hourly load
profile data (Exhibit 4.9). In fact, the most correct load duration curve ---------- must be based on
------------------------------
hourly variables, not monthly averages. Average monthly data can be misleading if there are
large swings in daily load usage. Peak demand, for example, could occur over several
daytime hours, while nighttime load could be significantly reduced. This could result in an
over-estimate of the base load capacity of the cogeneration system. Nevertheless, in this
example, a review of the data in- ------------------------
Exhibit 4.9 also shows a fairly flat load profile, as is he
case in the load duration curves. This confirms that the use of these average data will give
a good estimate of the system sizing for the feasibility study. When the more detailed
engineering study is conducted, it will be necessary to utilize more detailed data such as
annual hourly demand data.
As an example, assume that a 2,000 kW gas turbine engine is used for the initial feasibility
evaluation. From the load duration curve, it can be seen that the engine could be operated
at full load for approximately 2,000 hours during the year. During the remainder of the year,
there is some excess power available to sell back to the utility, or it may be necessary to
operate the cogenerator at part load. The electric energy that the gas turbine is able to
displace is the area under the curve (kW x hours = kWh) bounded by the 2,000 kW line to
the intersection of the load duration curve at approximately 2,000 hours and following the
load duration curve to 8,760 hours. Approximately 15,768,000 kWh of purchased electricity
is displaced during the year. The total capacity of the gas turbine is 2,000 kW times 8,760
hours: 17,520,000 kWh. The excess capacity available to sell to the utility is the difference
between the cogenerator capacity and the energy used on-site, or 1,752,000 kWh For this
size selection, approximately 90 percent of the electrical output capacity of the gas turbine
can be used on-site. An allowance must be made to schedule downtime for system
maintenance. This affects the amount of excess energy that is available for sale, the amount
of displaced purchased energy, and the supplemental power that is purchased.
For 2,000 hours during the year, supplemental power must be purchased from the utility to
meet facility electric demand that is greater than the capacity of the cogenerator. The
amount of energy to be purchased is estimated from the area bounded by the line 2,000 kW
to the intersection of the load duration curve and then bounded by the portion of the load
duration curve above 2,000 kW. This area is estimated to be 830,000 kWh and must be
purchased from the utility if the cogeneration system is sized at 2,000 kW.
Similar considerations are made in evaluating the sizing of the steam system to meet steam
requirements. However, there is less flexibility in the steam system because it is not possible
to buy and sell steam as is the case with electricity. If there are multiple boilers on-site, some
flexibility is available: one or more boilers can be shut down and one or more boilers can
be kept hot to meet peak steam demands. Under load conditions where there is excess heat,
it is always necessary to design into the system the capability to dump excess heat from a gas
turbine or reciprocating engine.

Using the 2,000 kW gas turbine engine as the prime mover and assuming that a unit of this
size would have a thermal-to-electric ratio of 1.5 to 1, approximately 3.75 tonnes per hour
of 10 barg saturated steam could be produced. This would only meet about half of the plant’s
steam requirements. With a gas turbine, there is a high level of oxygen remaining in the
exhaust gas. By adding supplemental fuel to the already hot exhaust gasses, as with the
afterburner in a jet aircraft, it is possible to approximately double the steam output from the
cogeneration system. This would meet the base load steam requirements of the plant. It
would still be necessary to maintain a small package boiler on line to meet peak requirements.
4.4 MATCHING ELECTRIC AND THERMAL PROFILES
The data presented in Exhibits 4.7 and 4.8 show a very good coincidence between the electric
and thermal load profiles. If this is not the case for a specific site, it may be necessary to try
to adjust the load profiles to obtain a better load coincidence. For steam process heat
requirements, there are two gas turbine options that allow flexibility in both thermal and
electric load following: steam injection and supplemental firing of the exhaust. Both options
allow a decoupling of the rates at which thermal and electric energy are produced by a gas
turbine.
If part of the electric load is to supply air conditioning, another option is to substitute an
absorption chiller for an electrically driven chiller. This allows for an increase in the steam
load while decreasing the electric load. This option may allow both better coincidence of the
load profiles and a better match of the facility thermal-to-electric ratio. In all cases, the
inability to match the coincidence of thermal and electric load profiles and/or thermal-to-
electric ratios results in the waste of recoverable heat and therefore, a reduction in system
cost-effectiveness.
4.5 ENERGY COSTS
The basis of cogeneration feasibility analysis is economic and financial; as a result, a

thorough understanding of existing energy costs in the plant must be obtained during the on-
site data acquisition period. In a sense, the cogeneration feasibility analysis can be reduced
to the two basic energy costs: electricity costs and steam costs.
4.5.1 Electricity Costs
The cost of electricity per unit consumed will depend on the tariff classification and the extent
to which the connected load is utilized. Electricity tariffs are designed to recover the cost to
the utility of both providing the equipment to generate the electricity, and the cost of
operating the equipment.
Both the fixed and variable components of the cost should be calculated. The fixed
component reflects the charges for the connected load and is applied on an LE/kW basis. The

variable component covers electricity charges on an LE/kWh basis and includes a basic
charge plus a fuel adjustment surcharge.
The fixed charges levied by the utility to recover the costs of their installed generating
capacity are generally built into the charges for peak demand and power factor. Demand
charges are generally based on either an actual measured peak demand or a contracted peak
demand. The utility must provide the generating, transmission, and distribution equipment
capacity to provide a user’s peak electric demand, even if that maximum electric demand
occurs for only a short period of time. Hence, the consumer can incur substantial costs for
a short duration of high electricity demand. In addition, because the demand charges are
based on whichever demand is higher (the contract peak demand or actual measured peak
demand), the consumer who contracts for a significantly higher peak demand than actually
required will also incur significantly higher electricity costs.
Variable charges help the utility recover the costs of operating the equipment (e.g., labor,
fuel, taxes, and other costs of operation). The cost of operation depends on the amount of
electricity generated. These costs are recovered in the kilowatt-hour charges.
Often, the kWh charge decreases as the amount of kWh consumption increases. The kWh
cost of interest is the cost of the last kWh consumed (or the first kWh saved). This is the
kWh at the margin; hence, the term “marginal cost” is often used.
Details on tariffs and procedures for calculating the fixed and variable costs of electricity are
included in Appendix C.
4.5.2 Steam Costs
The current steam cost of the plant is also an important basis for the later financial analysis.
Steam generation cost can include the cost of water, water treatment, fuel, boiler room
auxiliaries, and labor. For the initial analysis, the primary interest is in the fuel cost of steam
production (in most cases, the other costs will not change much -- if they do, they should be
the subject of a more detailed analysis at a later stage). Steam costs depend, then, on fuel
cost, boiler efficiency, steam conditions, and inlet water conditions (including condensate
return). Steam cost can be calculated from:
C steam (h2 - h1) x Cfuel

= ----------------------
1000 x E
where C steam = steam cost due to fuel (LE/tonne)

h1 = feedwater enthalpy at boiler inlet (kJ/kg)
h2 = steam enthalpy at boiler outlet (kJ/kg)
C fuel = fuel cost, lower heating value (LE/GJ)
E = boiler efficiency, lower heating value

5. COGENERATION PROJECT EVALUATION
The selection of a cogeneration system depends on the thermal and electrical loads of the site,
end-user operational needs, equipment and fuel availability, and economics. A preliminary
project evaluation requires a systematic assessment of these factors. This chapter describes a
general method for cogeneration project evaluation.
5.1 STEPS IN EVALUATING COGENERATION PROJECTS
The methodological approach to the evaluation of cogeneration projects requires a step-wise

analysis of the options available.
5.1.1 Data Collection and Analysis
Data on electrical and thermal loads are collected first (see Chapter 4), and then daily and
seasonal variations in these loads are assessed. Forecasts of loads are then developed, keeping
in mind the facility’s plans for expansion and the implementation of energy conservation
measures.
5.1.2 Identification of Options or System Configurations for Evaluation
Prime mover equipment options that can possibly match the site’s electrical and thermal energy
requirements are selected on the basis of the ratio of thermal-to-electric output, the potential
to export power and steam, and the quality of thermal load (e.g., low- or high- pressure
steam).
5.1.3 Preliminary Technical Feasibility Assessment
For each of the options selected, a preliminary technical feasibility study is conducted to
determine the configuration, size of the equipment, and fuel requirements of the cogeneration
system. Critical factors such as the availability of fuels and potential environmental impacts
may also be considered at this stage in order to screen the options. Assistance can be sought
from cogeneration equipment suppliers in order to optimize the designs.
5.1.4 Preliminary Financial Feasibility Assessment
Savings from the operation of a cogeneration system are estimated by comparing operating
costs for a cogeneration system with base case operating costs (the costs if cogeneration is not
undertaken). Capital costs are estimated, and a simple payback period for cogeneration
investment is calculated. If desired, the internal rate of return can also be calculated at this
stage. Options that are relatively uneconomical or clearly unacceptable are dropped. An
approach to the preliminary financial feasibility assessment is presented in Chapter 6.

ENERATION PROJECT EVALUATION 5-2
5.1.5 Detailed Feasibility Study and Financial Analysis
Proposals for the selected option or options are obtained from the suppliers of cogeneration
equipment. Operating and maintenance costs are calculated, and assumptions for the financial
analysis (such as debt equity ratio, financing package, and terms of loans) are listed. The
financial analysis is conducted to calculate rates of return and to prepare cash flows.
5.1.6 Final Decision
In addition to the financial analysis, a company will consider a number of other factors before
proceeding with implementation. These factors can include long-term corporate plans, the
importance of uninterrupted power supply and independence from EEA or the local distribution
company, the availability of skilled personnel to operate the cogeneration equipment, and
alternative opportunities for utilizing capital and managerial resources.
5.2 COGENERATION OPTIONS IDENTIFICATION
5.2.1 Types of Cycles Available
The types of cycles available to cogenerators were described in detail in Chapter 3. This
section provides a summary of the options that can be considered.
Topping cycles. These cycles generate electricity first (on the top of the cycle), while
using the exhaust steam or waste heat from electricity generation for process thermal
energy use. Examples are the gas turbine, diesel engine, and steam turbine topping
cycles.
Bottoming cycles. These cycles take waste heat from the process and use it to
generate electricity. Examples are waste heat boilers that generate steam for a steam
turbine cycle, and the organic Rankine cycle. This latter cycle is analogous to the
steam cycle, but with an organic fluid that boils at lower temperatures/pressures.
Topping cycles can be designed anywhere there is a simultaneous need for electricity and
process heat, while bottoming cycles are limited to applications where process heat is available
and electricity is required. The application of topping cycles is certainly more widespread, and
is discussed in this section. Nevertheless, much of the discussion, especially on the steam
cycle, is applicable to bottoming cycles as well. There are four major topping cycles: the gas
turbine, the reciprocating engine, the steam cycle, and the combined cycle.
5.2.2 Cycle Selection Considerations
The following are the most important factors that will affect the selection of the cycles for the
preliminary cogeneration evaluation.

COGENERATION PROJECT EVALUATION 5-3
Ratios of thermal-to-electric generation (T/E ratio). There is a large difference

among systems as well as a wide range within some systems. The steam turbine
system has the highest ratio (see Exhibit 5.1). For gas turbines, however, the ratio
---------------------------
can be much less and still provide the same quality thermal output. For reciprocating
engines, the ratio is far less than for a back-pressure turbine; that is, reciprocating
engines can provide 25 times as much electric power per unit of steam as some steam-
cycle options.
Quality of heat. The quality of heat (i.e., steam temperature and pressure) available
from the different equipment types must match their loads.
Costs. In general, there is not a large variation in the installed cost among the
different equipment types when doing this preliminary economic feasibility
assessment . To be consistent with the average load data that are utilized in the
preliminary technical feasibility assessment, budgetary cost data in the range of
+25
--- % are satisfactory. Cost data in ------------------------
Exhibit 5.2 are given in a dollars per kW for
very general comparisons. Relative costs among the systems may vary depending on
system size and application.
Available Thermal-to
Type Process Heat Electric Ratio Fuels
Steam 120°C to 2:l to residual
Turbine 400°C 30: 1 distillate
gaseous
wood waste
Gas 120°C to 1.2:1 to residual

Turbine 500°C 4:l distillate
gaseous
Reciprocating 80°C to 0.8:1 to residual

Engine 120°C distillate
gaseous
Exhibit 5.1
Prime Mover Considerations
Installed costs are also dependent on the complexity of the site. Costs should
eventually be evaluated on a life-cycle basis with a fairly detailed conceptual design
for costing purposes.

Fuel Type. Availability and costs of fuels may have an effect on cycle selection.
Steam turbine systems are the most versatile, while both gas turbines and
reciprocating engines may be limited in the types of feeds they can accept.
System Size. Reciprocating systems are available in significantly smaller sizes than
the other two systems. It should be noted that although steam turbine generator sets
themselves are available in sizes as low as 75 to 100 kW, it would not be economical
to set up a system that small with a dedicated boiler. Steam turbine systems do not
become cost competitive until a size of several MW is reached.

Exhibit 5.2

Exhibit 5.1 may not always be

The selection of a topping cycle using the information in ------------------------
straightforward. The cycle that offers the closest match in terms of thermal-to-electric ratio
may have to be dropped if:
. essential fuel (e.g., natural gas) is not available
. electrical load falls below the size range feasible for the cycle.
Two cycles may also be considered if the thermal-to-electric ratio falls within the ranges
indicated for them.
Example 5.1. Example of the Selection of a Type of Cycle
A factory has a peak steam demand of 20 tonnes/hr saturated steam.

Of this, 12 tonnes/hr are used at 3.5 barg and 8 tonnes/hr are used at
13.8 barg. The average load is 10 tonnes/hr. The peak electric
demand is 4,500 kW, with an average demand of 3,300 kW. The
average thermal-to-electric ratio is calculated to be 2.3. From Exhibit
5-1, it can be seen that this thermal-to-electric ratio is closest to the gas
--------
turbine cycle. The T/E is also close to the steam turbine cycle, and
since mazout is a low-cost and readily.available fuel, this cycle should
also be considered.
5.3 PRELIMINARY TECHNICAL FEASIBILITY ASSESSMENT
After the type of cycle has been identified, the size of the system and system outputs such as
power, steam, and hot water need to be determined. Fuel requirements for the selected cycle
also must be calculated. This information is required for estimating capital and operating
costs, which are the basis for the financial analysis. The procedures for a preliminary
engineering design for various topping cycles are described below.
5.3.1 Steam Turbines
Cogeneration with steam turbines can be considered if the average steam load is above 10
tonnes/hour, and where the potential for power generation is above 200 kW. Below this level,
the additional capital investment required for the high-pressure boiler and the turbines will not
be justified. An exception can be made in the case where a high-pressure boiler is already
installed.

Two basic configurations can be considered with steam turbines:
back-pressure and extraction back-pressure turbines

extraction condensing turbines.
A discussion on the design features of steam turbines was included in Chapter 3. The selection
of the type of steam turbine best suited for a given set of electrical and thermal loads is
discussed below.
Back-Pressure and Extraction Back-Pressure Turbines
In back-pressure turbines, steam leaves the turbine at a pressure at which it can be used in the
process. If steam is required to be used at more than a certain pressure, an extraction back-
pressure turbine can be used to draw steam at that required pressure from the extraction stages.
Cogeneration systems based on back-pressure turbines are typically designed to meet specified
process steam requirements. The production of power varies, depending on the demand for
steam. If the capacity for generating electricity exceeds the demand, either the turbines are
bypassed and steam is sent directly to the distribution system through a pressure reducing and
de-superheating station, or the possibility exists to sell excess electricity to EEA. On the other
hand, if the demand for steam drops and the turbine is operated at part load, the balance of
the demand is made up through importing power from the utility. Cogeneration systems in the
sugar industry in Egypt are an example of this type of operation.
It is possible to size the back-pressure turbine to meet the peak power demand. The last stage
in a back-pressure turbine can be sized to meet the electrical load that is not met by the pre-
ceding stages. Excess steam must be vented if the steam demand falls below the steam leaving
the turbine. Venting steam at pressure is highly wasteful, and can be justified only when
venting is expected for a very short period, or where fuel costs are exceedingly low. This
alternative is thus rarely feasible with commercial fuels.
Extraction Condensing Turbines
A condensing section can be added to the turbine to meet the electric load that is not met by
the extraction stages. Additional steam, over and above the process requirement, is produced
to operate the turbo-generator in the match electrical mode.
The following factors must be considered when evaluating the extraction condensing turbines:
. Higher cost of electricity produced. The marginal cost of generating electricity using
condensing sections may be more than that in a utility. The size of the turbines used
for cogeneration is comparatively smaller, and the boiler pressures are lower
compared to those in utilities. The capital cost of boilers and turbines per unit of
electricity produced is thus higher. The fuel costs for cogeneration are also higher
Energy Conservation and Efficiecy Project (ECEP)

because the smaller turbines used in cogeneration are not as efficient as the larger
utility turbines.
. Independence from the utility. Where the supply of electricity from the utility is
subject to frequent and costly interruptions, a premium can be placed on the power
produced in-house. In addition, fixed charges associated with a utility connection,
including monthly demand charges and capital investment required for connection
with the grid, can be saved. It should be noted, however, that complete independence
from the utility will also require investment in installing standby boilers and turbines
or emergency generators to provide electricity when the cogeneration system is shut
down for scheduled or unscheduled maintenance.
In general, the use of extraction condensing turbines to operate in the match electrical mode
should not be considered if the power to be produced by the condensing stage is more than 20
percent of the total power produced. With an increasing size of the condensing stage, the
average cost of power produced will increase, and a connection with the utility to make up for
the power not available from the turbo-generators will be more advantageous.
Part-Load Operation
The efficiency of the turbine decreases at part-load operation, and the power produced per unit
of steam passed through the turbine drops. However, the inefficiency remains in the steam as
heat, reducing the effect on the economics of the operation.
Selection of Boiler Pressure
The pressure at the turbine inlet is determined by the pressure of the boiler. The higher the
pressure of the boiler, the greater the potential for electricity generation. However, the capital
and operating costs of the boiler, as well as of the turbines, increase with boiler pressure, and
an economic operating pressure must be established. The following steam conditions can be
used for calculations in a preliminary analysis:
. Where the average steam load is 10 to 30tonnes/hour, select a boiler pressure at 40

bar and a steam temperature at 400°C.
. Where the average steam load is greater than 30 tonnes/hour, select a boiler pressure
at 60 bar and a steam temperature at 450°C.

Turbine Sizing
Some calculation procedures for sizing turbines were discussed in Section 3.4.2. Appendix
---- describes a quick procedure for estimating the power output of a turbine generator system
D
for given input conditions of steam.
Example 5.2. Example of Turbine Sizing

Using the Quick Procedure
Based on the data in Exhibit 5-1, estimate the turbine size needed.
Steam Inlet Pressure: 41 barg (600 psig)
Steam Flow Rate: (a) 8 tonnes/hr (17,600 lbs/hr) at 14 barg

(200 psig)
(b) 12 tonnes/hr (26,400 lbs/hr) at 3.5
barg (50 psig)
From the curves in Appendix D:

steam flow (a) yields 25 kW per 1000 lb/hr
steam flow (b) yields 50 kW per 1000 lb/hr
The power output is therefore:

25 x 17.6 + 50 x 26.4 = 1,760 kW
Selection of Fuel
The operation of a cogeneration boiler can be quite flexible in terms of fuel type. Dual-fuel
burners can be used to fire natural gas or mazout. The operation can be switched to mazout
in the winter months when gas is in short supply. Agricultural byproducts such as bagasse can
also be used without a significant increase in capital costs. However, the use of local coals,
which have a high sulfur and ash content, will require the use of different technologies such
as fluidized bed combustion. The capital costs for fluidized beds are significantly higher, and
should be carefully investigated when considering coal as an alternative fuel.
5.3.2 Gas Turbines
Gas turbines with waste heat boilers can be considered when thermal-to-electric ratios are in
the range of 1.2: 1 to as high as 4: 1 if supplemental firing is used. Gas turbine exhaust gases
o
are typically on the order of 450 to 510 C, providing significant recoverable heat. In the
typical output heat balance for a gas turbine at full load shown in Exhibit 3.9 only 20 to 35
--------------------
percent of the fuel input is converted to electrical power, while most of the rest is exhausted

as heat. As a result, gas turbine installations find their best match with significant steam loads
at medium to high pressure.
Part-Load Operation
When a gas turbine is operated at part load, less fuel is consumed, but the turbine’s efficiency
drops. As a result, a smaller proportion of the input fuel energy is converted to electrical
energy, and a greater proportion is exhausted as waste heat. Even if all the waste heat could
be used to meet thermal load, the cost of electrical generation goes up, since the cost of electri-
cal energy is significantly higher than that of thermal energy. Part-load electrical operation is
not commonly encountered for this reason.
Operation in the match thermal mode will result in part-load operation of the turbine and waste
heat boiler as process steam loads vary. Because of the operating characteristics of the gas
turbine described above, to unload the turbine to match a less than full thermal load would
cause a drop in electrical generating efficiency. The low load, plus the low efficiency, would
result in a severe drop in the amount of electricity generated. From a cost-effectiveness
standpoint, it is more efficient to generate more electricity and bypass exhaust up the stack.
If the electric demand is not big or steady enough, again the operation is inefficient. For this
reason, the option to export power to the grid is very important, and can have a significant
effect on both the sizing and the economics of a gas turbine installation.
The conclusion is that for high operating efficiencies, the gas turbine must see not only large
steam loads but also steady steam loads. As a result, cogeneration gas turbines are more
applicable to steady process loads.
Sizing of the System
Because operating the gas turbine at part load is not economical, the system should be sized
to meet the maximum demand for steam that can be sustained at a steady level (base steam
load).
Selection of Fuel
Cogeneration with gas turbines can be considered only if the supply of gas is steady and
guaranteed. While expanding the natural gas distribution system is a priority for the Egyptian
Government, the country’s gas distribution system is generally limited at present. Thus,
investment in gas turbines can be quite limited. Cogeneration with gas turbines therefore needs
careful consideration in Egypt. Exceptions can be made where a company has special access
to a gas field, such as some of the country’s fertilizer companies.

5.3.3 Reciprocating Engines
The electric efficiency of reciprocating engines ranges from about 20 to 35 percent, depending
on engine size and configuration. A sample of heat balances for this engine type is given in
Exhibit 5.3.
The overall thermal efficiency (electricity plus useful heat output) of reciprocating engines can
vary significantly, depending on the heat recovery schemes selected. Exhaust temperatures
normally range from 300°C to 600°C. The optimum way to utilize recoverable heat is to heat
water. By producing hot water, overall fuel utilization efficiencies of up to 80 percent can be
attained. In generating steam at 1 barg, less than one half of the exhaust heat is used. This
implies an efficiency of less than 75 percent, assuming that all of the engine cooling water heat
is used. In general; average efficiencies of between 60 and 75 percent can be expected.
High Speed Medium Speed Low speed

Size 1200 rpm and higher 350- 1200 rpm 50-300 rpm
Electric Output 26% 34% 38%
Cooling Water 29% 27% 25%
Exhaust 40% 32% 30%
Losses 5% 7% 7%
Total 100% 100% 100%
Exhibit 5.3
Heat Balances for Reciprocating Engines
Steam can also be generated in the engine cooling loop, using what is called ebullient cooling.
However, ebullient cooling will require that the engine run hotter, thus increasing emissions.
It will also require design modifications to the engine, which may not be available from all
manufacturers.
Part-Load Operation
The reciprocating engine has a relatively flat specific fuel consumption curve when plotted
against electrical load, down to about 40 percent of full rated load. Unlike the gas turbine, and
to a lesser degree the steam electric plant, the per-unit fuel consumption of a reciprocating
engine does not increase at lower loads, making it more desirable for electric load

COGENEXATION PROJECT EVALUATION 5-12
operation. However, this is not a significant advantage in a cogeneration application

part-load operation is economically undesirable (i.e., it lengthens payback).
At part-thermal load, exhaust gas must be bypassed, or engine cooling water must be circulated
through a cooling tower. The former is obviously the preferable arrangement. At part-thermal
load, the only advantage of the reciprocating engine is that its efficiency of conversion to
electric output has not suffered.
Example 5.3. Calculation of Steam Output of

Reciprocating Engine
(sized to meet the electricity demand in Example 5.1)
Total Capacity of the Generators: 4,550 kW (7 units x 650 kW)
Generator Efficiency: 30%
Hourly Fuel Requirements: 4,550 kWh x 3,600 GJ/kWh x

100/30 = 54.6 GJ/hr
Exhaust Heat: 30% of fuel input
Heat Recoverable as 3.5 bar Steam: 50% of exhaust heat

54.6 x 0.3 x 0.5 = 8.2 GJ/hr
Energy Required/per kg Steam: 2,442 kJ/kg
Steam Produced: 8.2 GJ/hr/2,442 W/kg = 3,357 kg/hr
Sizing of the System
The system is sized to meet the electrical load. The general practice is to use a train of
identical generating sets. At least one generator is installed as standby, and the sets are
switched on or off to match the demand and to maintain an optimum loading on the operating
units. The steam or hot water available from the system can be estimated on the basis of heat
balance data given in Exhibit 5.3
-------------------
Selection of Fuel
Three fuel options can be considered for reciprocating engines: mazout, solar, and natural gas.
A general discussion on the fuel options and the corresponding operating characteristics was
included in Section 2.4.

The type of fuel is determined by the design of the engine, and it is not possible to switch
engine fuels. Some diesel engines are designed as dual-fuel machines where natural gas and
mazout or solar are used. The fuel oil is used to ignite the charge and the engines are designed
to operate on a minimum of 5 percent oil with 95 percent natural gas. They can also be
operated on 100 percent oil. The selection of gas or mazout or solar as a fuel will depend on:
certainty in the supply of gas

ability of the company to manage specialized maintenance of mazout engines
high cost of solar relative to mazout.
When selecting natural gas engines, the prevailing limited distribution of natural gas (as
mentioned in the case of gas turbines) should be considered. The reliability of fuel supply will
be much better with mazout. However, mazout engines require skilled personnel for
maintenance, and the cost of spares and lubricating oils is higher.
5.4 CALCULATION OF SIMPLE PAYBACK PERIOD
Information developed on electrical and thermal loads, base case costs, capital and operating
costs for a cogeneration system can be used to calculate and compare simple payback periods.
The base case is defined as the configuration or alternative that will be adopted if cogeneration
is not undertaken. In most cases, the base case will consist of power purchased from EEA or
the local distribution company, and the generation of steam from low-pressure boilers. For
new facilities, the capital cost for new low-pressure boilers and the cost of connection with
EEA or the local distribution company should also be estimated.
With the installation of a cogeneration system, the total cost of supplying power and steam to
a facility is expected to drop. The net savings due to cogeneration can be calculated as:
(cost of power and steam in base case) - (cost of power and steam with cogeneration).
The incremental capital costs for a cogeneration system are defined as:
(capital cost of cogeneration system) - (capital cost for base case).
The capital costs for cogeneration systems can be estimated from the data provided in Chapter
6.
The simple payback period can be defined as:
incremental investment for cogeneration

net annual savings from cogeneration
The preliminary financial analysis can be reviewed in order to make a decision on the future
course of action. The decision can be either to drop plans for cogeneration, or to select one
or more options for a detailed feasibility study and financial analysis.

6. DETERMINING ECONOMIC FEASIBILITY
The decision to proceed with a cogeneration project is basically an investment decision. Like
any other investment, cogeneration plants involve the expenditure of capital to gain additional
assets. These assets are expected to provide a predetermined minimum attractive rate of
return. Investment decisions are influenced by both present and future costs. To enable sound
decisions to be made, economic analyses use current information as well as appraisals of future
conditions.
Because the economic viability of cogeneration is very site-specific, a complete economic

analysis requires detailed engineering studies. Only after the results of such studies are
available can present and future costs be estimated with sufficient confidence to decide on
whether or not to proceed with the project. Detailed engineering studies are a part of value
engineering, which examines the value of a product or system in relation to its cost so that the
required objectives can be achieved at the lowest overall cost.
The following factors relating to engineering studies, which are an essential part of value
engineering, must be considered:
Preliminary planning andscreening. It is essential that adequate preliminary planning

be carried out, taking into consideration all viable alternatives. The alternatives
should be properly screened before detailed economic studies are undertaken.
Use of acceptable economic study methods. Although simple payback-period

calculations are very good and often quick guides to the possible attractiveness of an
investment, a detailed financial analysis using discounted cash flow techniques should
be completed to determine the internal rate of return on the investment.
Preparation of estimates. The most critical requirement of economic studies is the

estimation of variables such as capital costs, operating costs, duty life, and
revenues/savings. The general principles of estimating are governed by:
-- How much information is potentially obtainable from additional estimating

efforts?
-- What resources are available for making estimates?
-- What is the degree of urgency for completing the estimates?
The following details of estimates are typically needed in the economic analysis of‘cogeneration
plants:
first (investment or capital) costs
fuel costs and their future trends

DETERMINING ECONOMIC FEASIBLITY 6-2
operation and maintenance costs
revenue from sales and/or savings from in-house utilization of electrical energy
excess thermal energy
economic life (this is crucial to the analysis results)
salvage values (these are a function of the economic life and are relatively
unimportant to the analysis in the case of long economic life).
Because detailed cost estimates are very difficult to obtain without entering into detailed
designs, quantitative techniques are used instead, which involve the skill and experience of an
engineer. Unit techniques are used for such items as first cost (capital cost of power plant per
kW capacity), operation and maintenance costs (per kW power plant capacity), standard
economic lives, and zero salvage values. These estimates usually tend to be slightly, but not
unduly, conservative.
6.1 CAPITAL FINANCING
Cogeneration plants are basically capital-intensive projects. Thus, their sources of capital
financing can be an important consideration in an investment analysis, where several alternative
sources of financing may be considered. It is important, therefore, to know the rate of return
for each alternative.
The source of capital financing could be equity, depreciation funds, retained profits,
borrowing, or leasing. A short description of each alternative source of financing follows.
6.1.1 Equity
Equity refers to shares issued by a company to investors willing to provide at-risk capital. The
proportion of ownership of these shares represents the investors’ entitlement to share in the
company’s profits or losses.
Equity capital is supplied and used by its owners in the expectation that a profit, of a minimum
acceptable level, will be earned. However, in equity financing, the owners have no assurance
that a profit will actually be made, or indeed, that even the equity capital invested by them will
be recovered.

DETERMINING ECONOMIC FEASIBILITY 6-3
6.1.2 Depreciation Funds
When the funds that are set aside out of revenue as the cost of depreciation are a part of the
net cash flow, they can be retained and used for capital financing for expansion projects like
cogeneration .
Normally, much equipment may continue to be used after its original value has been recovered
through normal depreciation procedures. Hence, the accumulated funds may be available for
use until the original equipment must be replaced. Also, if the depreciation procedures used
in accounting are such that they provide large recoveries of the first costs during the first few
years of equipment life, there will usually be funds available before the equipment must be
replaced. Thus, the depreciation funds may provide a revolving investment fund that will
become a source of capital for new ventures. Obviously, the management of these funds must
ensure the availability of required capital when the time does come for replacing essential
equipment.
6.1.3 Retained Profits
Existing enterprises have an important source of capital financing through retained profits.
Normally, a part of the profit earned by an enterprise is retained after adequate dividends are
paid to the shareholders; this capital is then re-invested for a further increase in profits.
6.1.4 Borrowing
With borrowed financing, a fixed rate of profit (interest), or value of money, must be paid to
the suppliers of the capital, and the borrowed funds must be repaid at a specified time.
However, the suppliers of this debt capital do not share in the profits resulting from the use of
their capital.
Normally, the terms of the borrowed financing (loan) may place some restrictions on the uses
to which the funds may be put, especially concerning the sources from which equipment may
be procured, or in some cases, even the type of shipment.
6.1.5 Leasing
The leasing of equipment is another way of obtaining working capital. A decision to lease,
rather than purchase, should be based upon the cost of capital financing through other possible
methods, some of which have been described earlier in this section. In many cases, leasing
turns out to be cheaper than owning, but the actual comparative costs and all other factors must
be considered before a decision is made to lease.

Leasing usually simplifies maintenance problems, although there may or may not be savings
in maintenance costs. Also, many indirect costs, which are difficult to determine in most
cases, are associated with ownership; these may not apply to equipment under lease.
Most leases cannot be canceled, or not canceled without incurring costly penalties. Borrowed
financing, on the other hand, works on some fixed obligations and may provide better terms.
6.2 ESTIMATING COSTS
The basic steps in the economic analysis normally include the following:
estimating the equipment costs

estimating equipment operating costs
estimating the incremental cost of the cogeneration system
calculating the simple payback period
calculating the rate of return on net investment.
The estimation procedures are discussed below, while the economic calculations and analyses
are described in Section 6.3.
6.2.1 Estimating Equipment Costs
Capital costs can vary quite a bit with the complexity of the system. They will also vary
considerably with the source of supply, with the basic rates in a particular country and with
the constantly changing currency conversion rates caused by, for instance, a sharp lowering
of the value of the Egyptian pound against the currencies of countries that would normally
supply most of the required equipment.
However, if the import is not restricted by any loan conditions and the most economical
purchasing is ensured, Egyptian pound rates per kW of installed equipment and accessories are
estimated below for three typical cogeneration configurations, with the following assumptions:
. allowance for import, including surcharges, duty and sales tax =

1.20 x CIF price (CIF = cost, insurance, and freight)
. local equipment included in above pricing:
-- water-tube boilers
-- auxiliary condensers
-- deaerators/feedwater tanks
-- condensate tanks
-- centrifugal water pumps up to 200 mm diameter connections
-- electrical switchgear.

. currency conversion rate of LE 3.00/S$.
Boiler - Steam Turbine - Alternator Configuration
boiler, high-pressure (maximum 40 barg, 400°C) water-tube type, one duty and one
standby type
multi-stage high-efficiency back-pressure steam turbine for full load, and single-stage
low-efficiency back-pressure steam turbine of about 60 percent capacity for standby
low-voltage alternators
piping for compact layout
auxiliary condenser, with two circuits, each circuit rated at 75 percent of full load
condensate tank, condensate pumps, deaerator, feedwater tanks, feedwater pumps,

and chemical water treatment for boilers
electrical switchgear, cables, and back-start generator
instrumentation and controls.
The total installed costs (1st quarter 1991) for the above are:
. LE2, 600/kW for a capacity range of about 3,000 to 4,500 kW, including standby
capacity
LE2, 850/kW for a capacity range of about 2,000-3,000 kW, including standby
capacity.

Gas Turbine - Alternator - Waste Heat Recovery Boiler Configuration
gas turbine, suitable for natural gas and diesel oil
waste heat recovery boilers
gas turbine exhaust flue duct for compact layout
condensate tanks, steam storage vessels, feedwater pumps, and chemical water
treatment for boilers
> electrical switchgear, cables and back-start diesel generator
LE 3,150/kW for a nominal capacity range of about 3,000 to 4,500 kW, including
standby capacity
standby capacity
standby capacity.

Mazout-Fueled Engine - Alternator - Waste Heat Recovery Boiler Configuration
mazout-fueled reciprocating engines
condensate tanks, feedwater pumps, and chemical water treatment for boilers
electrical switchgear and cables
LE 2,300/kW for a nominal capacity of about 3,500 to 4,500 kW, including stan
capacity
LE 2,600/kW for a nominal capacity of about 2,500 to 3,500 kW, including stan
canacity.
6.2.2 Estimating Equipment Operating Costs
Based on the configuration of the particular cogeneration cycle selected, the main equipment
operating costs should be estimated first. The major operating costs of all cogeneration
systems relate to fuel costs. The concept of incremental fuel costing should be followed to
estimate the fuel costs (the discussion of fuel chargeable to power in Section 2.3.2 applies
here).
In addition to fuel costs, operating costs include:
manpower costs, covering operators and supervisors

service and maintenance costs, covering cost of spares and consumables
service contracts for main equipment.
Non-fuel operating costs, on average, range from LE 0.02 per kWh electrical energy produced
for large cogeneration power plants (above 2 MW) to LE 0.03 per kWh for power plants
smaller than 1 MW. This rate is higher for locations where specialized service personnel are
not available on a permanent basis, as would be the case for industries located away from
major towns in the country. Reciprocating engines tend to have higher operating costs, while
steam boilers/turbines tend to have lower operating costs.

6.2.3 Estimating the Incremental Cost of Cogeneration
The total installed cost estimates for the configurations given in Section 6.2.1 are for complete
systems. In evaluating the economics of cogeneration, one must recognize that if a
cogeneration system were not to be installed, the facility will still require steam and electricity.
Thus, the analysis must be based on the incremental investment required for cogeneration; the
cost of the plant as estimated above, minus the cost of supplying steam and electricity
separately, as shown in the following example:
The cost of the system for the production of thermal energy in the absence of
a cogeneration system would include boilers, condensate system, feedwater
system, piping, pumps, insulation, instrumentation, plant room construction,
and the associated civil and electrical works, etc.
If a cogeneration system can eliminate the need to purchase electric power from
the utility, then the capital investment related to the purchase of electricity (e.g.,
high-tension cables, transformer substation, electric substation room for separate
purchase of electricity) should also be taken into account.
Similarly, one must also look at the incremental costs of having various levels of cogeneration
capacity and producing additional steam and purchasing the remaining electricity necessary.
Each increment of cogeneration capacity must justify itself on the criteria selected for
investment.
6.3 MEASURING FINANCIAL ATTRACTIVENESS
Regardless of whether the cogeneration facility is part of a totally new facility or is a retrofit
to an existing operation, the key business decision criterion is return on investment. Both
profit making and non-profit making organizations generally strive to maximize the benefits
they derive from an economic comparison among alternative applications of funds.
For determining the basic feasibility of the project, simple calculations such as payback period
and the internal rate of return are normally considered sufficient. Further study and detailing
can be undertaken when the project has been given the go ahead signal for detailed
engineering, and project financing has been arranged.
6.3.1 Simple Payback Period
The easiest and most basic measure of the financial attractiveness of a project is the simple
payback period. It reflects the length of time required for a project to return its investment
through net savings (gross annual savings and other benefits less any additional annual
operating and maintenance expenses due to the project). Savings generated after that time are
considered to be “unburdened” savings: these savings do not have to be used to repay the cost

o f the project. In cases where the annual savings are constant, the simple payback period can
be computed from the following formula:
Simple Payback Period (years) = Total Capital Cost

Net Annual Savings
A more attractive investment is one with a shorter simple payback period. In order to express
the simple payback period in terms of months instead of years, the expression above is simply
multiplied by 12. The simple payback period can be expressed in terms of before-tax or after-
tax savings by substituting the appropriate figure in the denominator of the expression above.
A similar measure of financial profitability is known as percent rate of return, or return on

investment (ROI). This is simply the reciprocal of simple payback, multiplied by 100 percent:
Percent Rate of Return = Net Annual Sayings x 100

Total Capital Cost
The higher the percent rate of return, the more attractive the investment opportunity.
In cases where the net annual savings are not constant from year to year (e.g., a project that
has different maintenance requirements from year to year), the simple payback period can be
determined graphically. An example of this technique is shown in -------------------------
Exhibit 6.1

Exhibit 6.1

As can be seen in Exhibit 6.1, the simple payback period begins at the time after project
implementation when the cumulative net savings are equal to the total capital cost, or where
the cumulative cash flow is zero.This is also known as the breakeven point.
The use of the simple payback period as a measure of financial attractiveness is widespread in
Egypt. There are, however, some problems with the technique, which may lead to incorrect
comparisons of project alternatives.For instance, the simple payback period does not take into
account the net profits or net savings achieved after the breakeven point has been achieved.
As an example, consider the two projects shown in Exhibit 6.2. Both have an initial
investment of LE 15,000.On the basis of payback period, Project A reaches its breakeven
point after five years, while Project B’s breakeven point is reached after three years.
However, a comparison of the cumulative cash flows of the two projects indicates that Project
A yields a cumulative cash flow of LE 16,500, while Project B yields a cumulative cash flow
of only LE 1,250. Project A is obviously much more profitable than Project B. Hence, the
simple payback period on its own can lead to erroneous decision making.
Project A Project A Project B Project B

Annual Cash Cumulative Annual Cash Cumulative
Year Flow (LE) Cash Flow (LE) Flow (LE) Cash Flow (LE)
0 (15,000) (15,000) (15,000) (15,000)

1 0 15,000 7,500 7,500
2 1,500 13,500 5,000 2,500
3 3,000 10,500 2,500 0
4 4,500 6,000 1,250 1,250
5 6,000 0 0 1,250
6 7,500 7,500 0 1,250
7 9,000 16,500 0 1,250
Total 16,500 1,250

Simple 5 years 3 years
Payback
Exhibit 6.2
Comparison of Cash Flows for Two Projects
6.3.2 Discounted Cash Flow
The discounted cash flow approach takes into account the time value of money, the fact that
a given amount of money in the future is worth less than that amount today. The annual
reduction in the value of-money is equal to the best interest rate that one could obtain upon

investing money. This interest may be equal to the best savings interest rate, or the lowest loan
interest rate. The result of applying this interest or “discount” rate to future earnings causes
their present value to be reduced. This is shown in Exhibit 6.1 where in the second curve,
-------------------------
the annual savings are discounted at a rate of approximately 20 percent. Thus, the discounted
payback is longer than the simple payback.
The discounting of cash flows on an annual basis is not only more realistic, but also allows one
to incorporate depreciation, income tax implications, and any other cash flows that may vary
from year to year.
The net present value method is an application of the discounted cash flow method, taking a
stream of cash flows over a period of time and “discounting” the cash flows to yield their
cumulative present value. This cumulative present value may be thought of as the amount of
money that needs to be invested today at an interest rate equal to the discount rate (time value
of money) in order to generate the amount of revenue equal to the cash flow in each of the
years of the project.
For a more detailed discussion of net present value, the ECEP Manual, Energy Management
for Companies (February 1991) or an engineering economics text should be consulted. An
application of the net present value method using discounted cash flows is presented in the
following section.
6.3.3 Spreadsheet Model for Discounted Cash Flow
An approach to developing the cash flow projections and completing a discounted cash flow
TM
analysis is to develop a spreadsheet using a personal computer program such as Lotus 1-2-3
TM
or Quattro . The cash flow analysis example shown in ------------------------
Exhibit 6.3 uses such a spreadsheet
format to compute a ten-year cash flow, simple payback, and internal rate of return (discount
rate to provide a lo-year zero net present value). The model can consider financing options,
initial cost, fuel and electricity pricing, power sales to the utility, and system operation costs.
Several input terms requiring definition are defined as follows:

SITE: 2,000 kW Gas Turbine - Heat Recovery Boiler
ASSUMPTIONS:
Total Installed Cost 7200.0 LE (1000) Prime Mover Gas Turbine/Natural Gas Initial Elct. Pur. Price 0.18 LE/kW
Loan Amount 0.0 LE (1000) Size 2000.0 kW Initial Fuel Cost 9.5 LE/GJ
Down Payment 7200.0 LE (1000) Gross Heat Rate 15,125 kJ/kWh Old Boiler Efficiency 75.0
Loan Terms Recoverable Heat 8440 kJ/kWh Elect. Used on Site 100.0
Interest Elec. Cap. Fact. 87.0 percent Initial Elect. Sale Price 0.15 LE/GJ
Term Therm. Cap. Fact. 97.0 percent Standby Demand 90.0 LE/kW/y
Charge
O&M Charge 0.033 LE/kWh
Old Fuel Cost 9.5 LE/GJ
Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Revenue
Displaced Electricity 2743.6 2743. 6 2743. 4 2743.6 2743.6 2880.0 3024.9 3176.1 3334.9 3501.6
Electricity Sold 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Thermal Use 1631.5 1631.5 1631.5 1631.5 1631.5 1696.7 1764.6 1835.2 1908.6 1984.9
Tot. Revenues (LElOOO) 4375.1 4375.1 4375.1 4375.1 4375.1 4577.5 4789.4 5011.3 5243.5 5486.6
Expenses
Fuel 2057.7 2057. 7 2057. 7 2057.7 2057.7 2140.0 2225.6 23 14.7 2407.2 2503.5
O&M 503.1 523.1 544.0 565.8 588.4 612.0 636.5 661.9 688.4 715.9
P&I 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Insurance 57.6 59.9 62.3 64.8 67.4 70.1 72.9 75.8 78.8 82.0
Standby 180.0 180.0 180.0 180.0 180.0 180.0 180.0 180.0 180.0 180.0
Tot. Expenses (LElOOO) 2798.3 2820.7 2844.1 2868.3 2893.5 3002.1 3115.0 3232.4 3354.5 3481.4
Profit (LElOOO) 1576.8 1554.3 1531.0 1506.8 1481.5 1575.4 1674.5 1778.9 1889.0 2005.1
Cum. Cashflow -7200.0 -5623.2 -4068.9 -2537.9 -1031.1 450.5 2025.9 3700.4 5479.3 7368.3 9373.4
(LE0000)
Simple Payback, Years Internal Rate of Return
Based on 5-year Average: 4.71 Based on 10 Years: 18.00%
.
Source: RCG/Hagler, Bailly, Inc. Note: Does not include depreciation or taxes
Exhibit 6.3
Cogeneration Cash How Analysis: Public Sector Business

Capacity Factor. Electric Capacity Factor - Using the load duration curve, the
ratio of the kilowatt hours produced for a given size prime mover to the total
kilowatt hours that the prime mover could produce operating at 8,760 hours at
full capacity.
Thermal Capacity Factor - Using the load duration curve, the ratio of the steam
pound hours produced for a given size heat recovery system to the total pound
hours of steam that the prime mover could produce operating at 8,760 hours at
full capacity.
Gross Heat Rate. Total fuel consumption in kJe/kWh based on the higher
heating value.
Recoverable Heat Rate. Total heat recovered and usefully utilized in the
process in kJ/hr at rated maximum load divided by the electrical output; units
are kJ/kWh.
Internal Rate of Return (IRR). The discount rate necessary to result in a

discounted cash flow analysis having a zero net present value over a period of
ten years.
Standby Demand Charge. A charge made by the electric utility to have electric
generation capacity available to the cogenerator when the cogeneration system
is off line. This charge is made even if no utility capacity is used.
O&M Costs. Operations and maintenance (O&M) costs are the costs for
regular service and maintenance as wells as funds set aside for major overhaul
requirements.
The gross heat rate and recoverable heat rate are required input values for the cogeneration
cash flow model. These values are determined from the energy required by the boiler in
Btu/hr to supply the required steam divided by the generator output. The recoverable heat rate
is the energy of the steam supplied for process heat divided by the generator output.
The example presented in Exhibits 6.3 and 6.4 ------ is based on the site data presented in Exhibits
4.7 through ---------
------ 4.11 . From that discussion, it was determined that a 2,000 kW gas turbine could
be used to meet the baseload electrical demand and all the steam output could be utilized to
meet the site steam requirements. An additional boiler would have to be kept on line to meet

Exhibit 6.4

peak steam requirements. The generator would have a capacity factor of 90 percent if no
excess electricity is sold to the utility.
However, scheduled maintenance on the unit is estimated at 260 hours per year, resulting in
an 87 percent annual capacity factor. All the steam produced by the cogenerator heat recovery
boiler can be used on-site so the thermal capacity factor will reflect only downtime, which is
calculated at 97 percent.
Using gas turbine engine supplier literature that gives performance data on gas turbines, a
2,000 kW turbine is selected. The gross heat rate for the gas turbine is specified at 14,400
kJ/kWh based on the lower heating value. Assuming that the natural gas used has a lower-to-
higher heating value ratio of 0.91, a 15,825 kJ/kWh gross heat rate is calculated based on the
higher heating value. Because of its relatively small size, this is a fairly high heat rate (a
relatively inefficient engine). However, this site has a baseload thermal-to-electric ratio of 2.2
and can therefore use all of the heat from a simple-cycle gas turbine engine. It is estimated that
8,440 kJ/kWh of useful thermal energy can be recovered from the exhaust gases; this is
referred to as the recoverable heat rate.
The energy costs to be used in conducting the financial analysis in Egypt pose a problem.
Although the cost of electricity has increased significantly recently, at a typical cost of 0.063
LE/kWh for a large user, there is not sufficient revenue produced to pay for the cogeneration
system, even with relatively low-cost fuel. Therefore, typical world prices for electricity and
natural gas are used in this example: LE 0.l8/kWh (US $0.06/kWh) for electricity and LE
9.50/GJ (US $3.17/GJ) for natural gas. A standby demand charge is also included, even
though there is none specified by EEA at present. The demand charge used is typical of that
charged by utilities in the United States for the capacity that they must maintain for the
cogenerator to use when the cogeneration system is down.
The capital cost is estimated using the data presented in the discussion of the gas turbine-
alternator-waste heat recovery boiler configuration in Section 6.2.1. The operating and
maintenance costs are from Section 6.2.2. From the results of this analysis, a 4.7 year
payback period is calculated and an internal rate of return of 18 percent is projected.
A graphical description of this result is given in Exhibit 6.4. Typical minimum internal rates
of return for companies are between 15 and 20 percent. For a company with a 15 percent rate
of return criterion, this project would be considered marginal; for a company with a 20 percent
rate of return criterion, this project is of no interest (unless special conditions are present, such
as the need for reliable power supply). The same spreadsheet presentation is used in the case
studies described in Chapter 7.
6.3.4 Sensitivity Analysis
Since the internal rate of return is calculated based on quite a few estimates and/or
assumptions, its final value may not be considered to be very reliable. But the reliability or
credibility of the analysis is much improved if it can be shown that even with certain variations

in the estimates or assumptions, the internal rate of return remains above the minimum limit.
It is for this purpose that a sensitivity analysis is performed.
The rates of return of cogeneration projects are sensitive to the first cost (dependent normally
on foreign exchange conversion rates, government duties and taxes on imported equipment,
specialty accessories, etc.), changes in fuel costs, changes in revenues by the possible sale of
power. To determine the sensitivity of the rate of return to any one parameter, all the other
variables are held constant while the one parameter is varied. The amount of variation is based
on the uncertainty in that parameter or its expected real variation over time. The internal rate
of return is recalculated for each variation of each parameter, so that its sensitivity to all the
different possible variations can be evaluated.

7. CASE STUDIES
This chapter presents two case studies that illustrate the determination of the technical and
financial feasibility of cogeneration systems. It is important to emphasize that the basic
decision to implement or not to implement cogeneration is an economic one. Many variables,
including process, equipment type, energy costs, and legal and financial assistance, change
with time. What is uneconomical today may become highly profitable in the future as the
result of a change in one or more of these variables. Any change in these circumstances
justifies a re-evaluation of cogeneration possibilities, which may have been shelved under
conditions prevailing earlier.
7.1 CASE STUDY 1 - SIMO PAPER COMPANY
7.1.1 Plant Background and Project Description
A study of the technical and economic feasibility of using existing steam production capacity
for a cogeneration system was conducted at The Middle East Paper Company (SIMO Paper),
which is located in the Mostorod region of Egypt. The plant produces paperboard for carton
production, manila paper, and egg flats. Waste paper and imported pulp are used as feedstock
for paper production. The plant operates approximately 330 days per year; it is shut down for
two weeks each year for scheduled maintenance. Occasionally, unscheduled shut downs occur
due to operational problems and power outages or voltage fluctuations.
SIMO Paper has two water-tube boilers rated at 28 bar, 20 tonnes/hour and one fire-tube boiler
rated at 16 bar, 12 t/hr Only one 20 t/hr boiler at a time, at less than full load, is used to meet
the plant’s steam requirements. Boiler-specific fuel consumption is monitored, and is in the
range of 70 kg mazout per ton of steam.
This plant exhibited a good potential for a cogeneration project since it generated steam at high
pressure (28 bar) and used most of it at significantly lower pressures. By expanding the steam
through a turbine instead of through pressure reduction stations, free shaft power could be
provided while still maintaining low pressure-steam conditions.
Plant operating data were obtained during several ECEP staff visits to the plant’s various
production areas and powerhouse area, and during discussions with plant operating personnel.
Process operating temperature data, and data on the steam mass flow rates for each production
area of the plant were obtained. These data, which are required for the preliminary evaluation
of a steam turbine cogeneration system, are summarized in --------------------
Exhibit 7.1

CASE STUDIES 7-2
Temp. Press Mass Flow

o
Location ( C) (Bar) (t/hr)
Boiler 230 28 16
Duplex Machine
Large Drum 199 14
Dryer Drums 145 3
Carton Plant 145 3
Egg Flats 145 3
Boiler Auxiliaries
Exhibit 7.1
Available Steam at SIMO Paper Company
7.1.2 Demand for Cogeneration
Detailed steam production data were obtained over an eight-day period to determine a
representative average value to use in sizing the steam turbine cogeneration system. Exhibit
7.2 presents hourly averages of those data for 24 hours, which result in an average steam
---------
production value of 14.8 tonnes per hour. This value was then used to size the steam turbine
options.
Two steam turbine cogeneration configurations were evaluated:
(a) a back-pressure turbine utilizing the design operating pressure of the boiler at 28 bar,
expanding the average 14.8 t/hr process steam flow through the turbine to 14 bar

I I I I I I I I I I I I I I I I I I I I I I I I
1 3 5 7 9 11 13 15 17 19 21 23
2 4 6 8 10 12 14 16 18 20 22 24
Exhibit 7.2
Average Hourly Steam Demand: SIMO Paper Company

CASE STUDIES 7-4
(b) an extraction/condensing turbine using the full production capacity of 20 t/hr at 28

bar, and extracting the required process steam flow at 14 bar with the remaining
steam flow going to the condenser.
For configuration (b), a superheater would be added to the boiler to add 150°C of superheat
to the steam, in order to meet the conditions required by such turbines (and also improving the
power output). The addition of the superheater will also require the addition of a de-
superheater on the extraction steam to match the existing steam process heat requirements.
7.1.3 System Sizing
The integration of these steam sources with a steam turbine that operates in parallel with the
pressure-reducing valve is used to provide the energy source for a topping-cycle steam turbine
cogeneration system. Estimates of the power production capacity of each of these
cogeneration system options are presented in Exhibits 7.3 and 7.4.
------------------------------- --------- The data presented in these
TM
exhibits were determined using the steam turbine performance module of the Energy Analyst
software package. The results show a turbine of 287 kW and 1,626 kW for the
extraction/condensing case (Exhibit 7.4)
--------------------
7.1.4 Cogeneration Cash Flow Model and Economic Analysis
The economic feasibility of the two cogeneration system options was estimated using a
cogeneration cash flow model. The cash flow analysis uses a spreadsheet format to compute
a ten-year cash flow, simple payback, and internal rate of return (discount rate to provide a ten-
year zero net present value). The model considers financing options, initial cost, fuel and
electricity pricing, power sales to the utility, and system operation costs (see Section 6.3.3).
The gross heat rate and recoverable heat rate are required input values for the cogeneration
cash flow model. These values are determined from the energy required by the boiler in
Btu/hr to supply the required steam divided by the generator output. The recoverable heat rate
is the energy of the steam supplied for process heat divided by the generator output. These
values are calculated as follows:
Gross Heat Rate (HHV) = steam flow x (inlet enthalpy - condensate enthalpy)
generator output x boiler efficiency
a) back-pressure turbine (data from Exhibit 7.3):

---------------------
14.800 kg/hr x (2803 - 421) kJ/kg = 141,190 kJ/kWh
287 kW x 0.87

CASE STUDIES 7-5
Turbine Section No. 1

1. Project SIMO BACKP
2. Section
3. Run or ID No. 1
4. Inlet Pressure 27.6 bar
5. Inlet Temperature 230°C
6. Exit Pressure 13.8 bar
7. Thermal (Internal) Efficiency 55%
8. External Efficiency 95%
9. Steam Flow 14,800 kg/hr
Results
1. Turbine Sect. No. 1
2. Shaft Power 287.11 kW
o
3. Exit Temperature 19.5 C
4. Inlet Enthalpy 2803 kJ/kg
5. Exit Enthalpy 2730 kJ/kg
6. Inlet Superheat 1°C
7. Exit Superheat 0°C
8. Exit Moisture 2.9605 %
o
9. Exit Entropy 6.341 kJ/kg K
10. Steam Rate 26.98 kg/kWh
11. Actual Steam Rate 49.05
Exhibit 7.3
Estimated Back-Pressure Turbine Electric Generation Capacity

Exhibit 7.4

CASE STUDIES 7-7
b) extraction condensing turbine (data from ---------------------------

Exhibit 7.4):
20.000 kg/hr x (3119 - 421 kJ/kg) = 38,144 kJ/kWh

0.87 x 1626
Recoverable Heat Rate = steam flow x (exit enthalpy - condensate enthalpy)

generator output
back-pressure turbine:
14.800 kg/hr x (2730 - 42 1 kJ/kg) = 119,070 kJ/kWh

287 kW
extraction condensing turbine:
The same useful thermal energy is required by the process as that for the back-pressure
turbine case, but the computer model will calculate that total energy based on the increased
power production of the extraction/condensing turbine. Therefore, the recoverable heat
rate is:
14.800 kg/hr x (2730 - 421 kJ/kg) = 21,017 kJ/kWh

1626 kW
In order to estimate the economic feasibility of the cogeneration system, it was necessary to
estimate the cogenerator’s electric capacity factor using plant monthly electric energy
consumption data and steam production data. The plant capacity factor was estimated using
the available monthly steam and electric demand data shown in Exhibits 7.5 and ------
---------------------- 7.6, which
were then used to develop the steam and electric load duration curves shown in Exhibits 7.7
----------------------
and 7.8.
-------
Using the steam load duration curves, it was estimated that the electric and thermal capacity
factor was 77 percent for the back-pressure turbine application. Because thermal and electric
energy production are directly tied together in a back-pressure turbine application, the thermal
and electric capacity factors are equivalent. In this economic analysis, the economic value of
electricity is assumed to be $0.0615/kWh and the price of fuel oil is assumed to be $114/tonne.

Nov 88 Jan Mar May Jul Sep

Dec 88 Feb Apr Jun Aug Oct
Exhibit 7.5
Average Steam Demand: SIMO Paper Company

3000
Exhibit 7.6
Average Electric Demand: SJMO Paper Company

0 I I I I I
2 4 6 8
1 3 5 7 9
Hours (Thousands)
Exhibit 7.7
Steam Load Duration: SIMO Paper Company

3500
3000
2500
2000
1500
l000
500
0 I I I I I I I I
0 2 4 6 8
1 3 5 7
Hours (Thousands)
Exhibit 7.8
Electric Load Duration: SIMO Paper Company

CASE STUDIES 7-12
The estimated installed cost of the back-pressure turbine cogeneration system, based on the 290
kW system size defined in Exhibit 7.3, is $165,000 using a budgetary cost estimate of $60,000
for the turbine and the associated installation costs shown in Exhibit 7.9. Exhibit 7.10 presents
the results of the ten-year discounted cash flow analysis of the back-pressure cogeneration
system. As can be seen from this exhibit, the system has a predicted payback period of almost
2.5 years.
Material Labor
Turbine $60,000 $2,000
Power House 10,000 5,000
Piping (Gas, Steam, Water) 20,000 4,000
Electric & Controls 15,000 4,000
Spare Parts 10,000
Total $115,000 $15,000
General Construction
(Indirect & Fee) 17,000
Project Engineering 13,000
G&A 5,000
Total Capital Cost $165,000
Exhibit 7.9
Estimated Back-Pressure Turbine Cogeneration System Cost
An evaluation of the economic feasibiiity of the extraction/condensing turbine case was

completed in the same manner. In this case, the electrical and thermal outputs can be
controlled by varying the split between the extraction and condensing steam flow rates. Thus,
it is possible to have different thermal and electric capacity factors. However, since the
electric load duration curve is still relatively flat at the 1626 kW turbine size defined in Exhibit
7.4, the electric capacity factor is estimated to be 75 percent, while the thermal capacity factor
remains at 77 percent, as was the case for the back-pressure turbine application. The estimated
installed cost is based on budgetary estimates of $400,000 for the turbine, $100,000 for the
cooling tower, and $50,000 for the superheater and the associated installation costs, as shown
in Exhibit 7.11
--------------------------

ASSUMPTIONS:
Total Installed Cost 165.0 $ (1000) Prime Mover BP Turbine, PRV Bypass Initial Elect. Pur. Price 6.2c/kWh
Loan Amount 0.0 $ (1000) Size 290.0 kW Initial Fuel Cost 2.11$/GJ
Equity 165.0 $ (1000) Gross Heat Rate 141190 kJ/kWh Old Boiler Efficiency 87.0%
Loan Terms Recoverable Heat 119070 kJ/kWh Elect. Used on Site 100.0%
Interest Elec. Cap. Fact. 77.0 percent Initial Elect. Sale Price 6.0c/kWh
Term Therm. Cap. Fact. 77.0 percent Standby Demand Charge 30.0$/kW/y
O&M Charge 0.5c/kWh
Old Fuel Cost 2.11$/GJ
Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Revenue
Displaced Electricity 120.3 126.3 132.6 139.3 146.2 153.5 161.2 169.3 177.7 186.6
Thermal Use 501.6 526.7 553.1 580.7 609.7 640.2 672.2 705.9 741.2 778.2
Total Revenues ($1000) 621.9 653.0 685.7 720.0 756.0 793.8 833.5 875.1 918.9 964.8
Expenses
Fuel 517.8 543.7 570.9 599.4 629.4 660.9 693.9 728.6 765.1 803.3
O&M 9.8 10.3 10.8 11.3 11.9 12.5 13.1 13.8 14.5 15.2
P&I 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Insurance 1.3 1.4 1.5 1.5 1.8 1.7 1.8 1.9 2.0 2.0
Standby 8.7 8.7 8.7 8.7 8.7 8.7 8.7 8.7 8.7 8.7
Total Expenses ($1000) 537.6 564.1 591.8 621.0 651.6 638.8 715.5 753 .o 790.2 829.2
Profit (pre-tax) ($1000) 84.3 89.0 93.8 99.0 104.4 110.0 116.0 122.2 128.7 135.6
(Depreciation) 13.2 13.2 13.2 13.2 13.2 13.2 13.2 13.2 13.2 13.2
Taxes: 35.0% -4.6 24.9 26.5 28.2 30.0 31.9 33.9 36.0 38.1 40.0 47.5
Profit (after-tax) ($1000) 4.6 59.4 62.4 65.6 69.0 72.5 76.1 80.0 84.0 88.3 88.1
Cum. Cashflow ($1000) -160.4 -101.0 -38.5 27.1 96.1 168.5 244.7 324.6 408.7 497.0 585.1
Exhibit 7.10
Cogeneration Cash flow Analysis: Back-Pressure Turbine System, SIMO Paper

CASE STUDIES 7-14
This results in a total cost of $1,200,000 for the extraction/condensing steam turbine
cogeneration option. The cogeneration cash flow model was used to estimate the economic
feasibility of the system. The results are presented in ----------------------------
Exhibit 7.12 which shows a 4.5 year
payback period.
Material Labor
Turbine $400,000 $8,000
Cooling Tower 100,000 10,000
Superheater 50,000 5,000
Power House 20,000 5,000
Piping (Gas, Steam, Water) 70,000 12,000
Electric & Controls 150,000 30,000
Spare Parts 80,000
Total $870,000 $70,000
General Construction
(Indirect & Fee) 120,000
Project Engineering 94,000
G&A 46,000
Total Capital Cost
Exhibit 7.11
Estimated Extraction/Condensing Steam Turbine Cogeneration System Cost
The installation of a back-pressure steam turbine cogeneration system is both a technically and
economically feasible opportunity to utilize the energy available from the process steam used
at SIMO Paper Company. The shorter payback period of the back-pressure turbine option
makes it a better choice over the extraction/condensing turbine. It is a simpler installation with
a less complex control system, and all of its electrical output can be used to displace purchased
power.

Total Installed Cost 1200.0 $ (1000) Prime Mover E/C Turbine, PRV Bypass Initial Elect. Pur. Price 6.2c/kWh
Loan Amount 0.0 $ (1000) Size 1626.0 kW Initial Fuel Cost 2.11$/GJ
Equity 1200.0 $ (1000) Gross Heat Rate 38144 kJ/kWh Old Boiler Efficiency 87.0%
Loan Terms Recoverable Heat 21017 kJ/kWh Elect. Used on Site 100.0%
Interest Elec. Cap. Fact. 75 .O percent Initial Elect. Sale Price 6.0c/kWh
Term Therm. Cap. Fact. 77.0 percent Standby Demand Charge 30.0$/kW/y
O&M Charge 0.5c/kWh
Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Revenue
Thermal Use 501.6 526.7 553.1 580.7 609.7 640.2 672.2 765.9 741.2 778.2
Total Revenues ($1000) 1158.6 1216.6 1277.4 1341.3 1408.3 1478.7 1552.7 1630.3 1711.8 1797.4
Expenses
Fuel 733.0 769.7 808.1 848.5 891 935.5 982.3 1031.4 1083.0 1137.1
O&M 53.4 56.1 58.9 61.8 64.9 68.2 71.6 75.2 78.9 82.9
P&I 0.0 0.0 0.0 0.0 0.0 0.0
Insurance 9.6 10.1 10.6 11.1 11.7 12.3 12.9 13.5 14.2 14.9
Standby 48.8 48.8 48.8 48.8 48.8 48.8 48.8 48.8 48.8 48.8
Total Expenses ($1000) 844.8 884.6 926.4 970.3 1016.3 1064.7 1115.5 1168.8 1224.2 1283.6
Profit (pre-tax) ($1000) 332.8 332.0 351 .o 371.0 392.0 414.0 437.2 461.5 487.0 513.8
(Depreciation) 96.0 96.0 96.0 96.0 96.0 96.0 96.0 96.0 96.0 96.0
Taxes: 35.0% -33.6 76.2 82.6 89.3 96.3 103.6 111.3 119.4 127.9 136.8 179.8
Profit (after-tax) ($1000) 33.6 237.6 249.4 261.8 274.8 288.4 302.7 317.8 333.6 350.1 334.0
Cum. Cashflow ($1000) -1166.4 -928.8 -679.4 -417.7 -142.9 145.51 448.2 766.0 1099.5 1449.7 1783.6

Based on Average: 4.45 Based on 10 Years: 19.86%
Exhibit 7.12
Cogeneration Cash Flow Analysis: Energy Conservation and Efficiency Project

7-16
The 1,626 kW output of the extraction/condensing turbine is above the average demand for
more than one-third of the year. This will require a more detailed load analysis to determine
its electrical capacity factor as well as a more complex controls system because it is not
possible at present to sell power back to the grid through the local distribution system. The
sale of power to the grid may be possible, however, since the Egyptian Electricity Authority
does purchase power from at least one of its large customers.
7.1.5 System Specifications
The technical and economic evaluation of the cogeneration options for SIMO Paper Company
shows that the back-pressure turbine system has the shortest payback period. The estimated
cost is based on a Coppus/Murray single-stage turbine.
There are several possible suppliers of cogeneration systems in a capacity appropriate to this
site. The specifications below are intended to generally describe the requirements for the
turbine/generator system, the single major piece of equipment. In their quotes, vendors should
indicate whether their standard equipment equals or exceeds these minimum requirements. It
is not intended that SIMO Paper should have to purchase special equipment.
Specifications
Output
Electrical Steam Requirements
300 kW Inlet pressure: 28 bar abs, saturated
50 Hz Back pressure: 14 bar abs
380 volts Steam flow: 16,000 kg/hr maximum
9,000 kg/hr minimum
Controls Completely automatic, allowing unattended operation in parallel with

the utility-supplied power
Power Generation Induction generator with switchgear for parallel operation

o
Service Conditions Ambient temperature 5 0 C , continuous duty operation
Standards The turbine, induction generator, and associated controls shall meet all
applicable codes, such as American Society of Mechanical Engineers,
National Electrical Manufacturers Association, etc.

CASE STUDIES 7-17
7.2 CASE STUDY 2 - EGYPTIAN ALUMINIUM COMPANY (ALUMISR)
7.2.1 Plant Background and Summary
The Egyptian Aluminium Products Company (Alumisr) is a manufacturer of extruded

aluminum products that are made using scrap aluminum and purchased aluminum billets as
feedstock. Their production rate is 6,000 tons per year, and their products include refrigerator
and stove handles, aluminum chairs, stands, racks, and TV antennas. Overall, they have
produced more than 1,500 specific types of extruded products.
Alumisr’s production facility is divided into four major areas: the forge, including the melting
furnace, casting area, and homogenizing furnace; the billet reheat furnace and press; the heat
treating furnace; and the anodizing baths with heat supplied by two boilers.
Alumisr is making plans to expand its manufacturing facility to include a second press line.
This will increase the average electrical demand by approximately 500 kW, and potentially in-
crease the anodizing facility’s capacity utilization.
The proposed cogeneration installation for Alumisr is a TECOGEN CM-600 packaged

cogeneration system resulting in an electrical output of 600 kW at 1200 rpm, 60Hg, or 500 kW
at 1000 rpm, 50 Hz. To meet the steam pressure and flow rate requirements, heat is available
from the engine at 3.1 GJ/hr, resulting in a 1200 kg/hr steam flow rate at 1 barg.
From the electric and steam load duration data, it is estimated that all of the electric power
output will be used on site and 89 percent of the thermal energy will be used in the form of
steam. The estimated installed cost of the TECOGEN system is $540,000, with a payback
period of approximately 3.8 years.
7.2.2 Demand for Cogeneration
To select the best cogeneration system to meet Alumisr’s energy needs and economic criteria,
a series of steps was followed to systematically analyze thermal and electrical load data. The
final selection criteria for the cogeneration system was a combination of financial concerns
(initial capitalization, payback period, return on investment, etc.) and operational concerns
(overall power supply reliability, steam supply requirements, etc.).
The first step was to develop steam and power balances. These balances are a schematic
accounting of the actual annual average supply and distribution of energy by steam pressure
or electric voltage level, and end-use to all major loads. Alumisr provided monthly energy
data on the purchase of electrical energy and natural gas. Data on purchased natural gas and
assumed boiler efficiency were used to calculate average monthly steam production. Monthly
average steam demand was calculated based on the monthly billing for natural gas and that
portion of the natural gas allocated to the anodizing facility. The basis for the allocation of fuel
Energy Conservation and efficiency Project (ECEP)

CASE STUDIES 7-18
was developed by measuring natural gas consumption with individual sections of the facility
in operation and all other sections shut down.
The second step was to evaluate the coincidence of the existing thermal and electrical loads as
a function of monthly average values. This was done by computing average values of steam
and electric energy consumption for each month and graphing the results. The monthly load
profiles are presented in ------------------------------
Exhibits 7.13 and ----------- 7.14. These exhibits show that the electric and
steam load profiles are relatively flat.
The third step was to develop load duration curves for steam and electric power. These curves
are used to determine the optimum-sized electric generation unit and heat recovery unit based
on hours of use at a particular load. The curve for steam ranks each of the twelve monthly
average values from the load profile and then orders them from the highest to the lowest, left
to right, in a plot showing average demand versus hours of use. This curve is presented in
Exhibit 7. 15; a similar load duration curve for electric power is presented in -----------------------
Exhibit 7.16
------------------------
7.2.3 System Sizing
In order to be economically feasible, cogeneration systems require the high utilization of both
the electrical and thermal system output. The thermal demand at Alumisr comes only from the
anodizing section of the plant, while the electrical demand is from the full facility. The
resulting low thermal-to-electric demand ratio and ability to utilize low-pressure steam suggest
that a reciprocating engine will meet the thermal demand and provide a baseload electric
output.
Utilizing the steam and electric load duration curves (Exhibits 7.15 and 7.16) an available
-------------------------- ---------
engine size of 500 kW, 1000 rpm, 50 Hz (based on a TECOGEN CM-600 packaged
cogeneration system) would provide the high capacity factor, long hours of operation at full
capacity, that is typically needed to provide a high return on investment. The use of low-
pressure steam should not cause a problem with the anodizing system because it currently
consumes steam at between 1.5 and 3 bar. The maximum temperature of the anodizing bath
is 95°C (203°F).

1361
500
0
Month
Exhibit 7.13
Average Steam Demand: Alumisr

0
Feb Apr June Aug Dec
Month
Exhibit 7.14
Average Electric Demand: Alumisr

Exhibit 7.15

0 I I I I I I I I I
0 2 4 6 8
1 3 5 7 9
Hours (Thousands)
Source: RCG/Hagler, Bailly Inc.
Exhibit 7.16
Electric Load Duration: Alumisr

CASE STUDIES 7-23
There is a potential problem with condensate return at the lower pressure, but it could be easily
solved with a condensate return pump.
7.2.4 Computer Cogeneration Model and Economic Analysis
The economic feasibility of the cogeneration system for Alumisr was evaluated using a
cogeneration computer economic model and the cogeneration economic performance module
TM
of the Energy Analyst software. The computer model uses a spreadsheet format to compute
a ten-year cash flow, simple payback, and internal rate of return (discount rate to provide a ten-
year zero net present value). The model considers financing options, initial cost, fuel and
electricity pricing, power sales to the utility, and system operation costs.
The economic evaluation of the cogeneration option at the Alumisr facility was conducted using
1
the performance data and cost estimates for the TECOGEN CM-600 The CM-600 was
selected because it most closely matches the site’s maximum thermal energy requirements.
The gross heat rate and recoverable heat rate were calculated based on the performance
specifications of the natural gas-fired TECOGEN CM-600 as follows:
engine rating: 600 kW

3
rated fuel consumption: 185 m /hr natural gas
useful heat recovered at rated power: 3.10 GJ/hr
Gross Heat Rate (HHV) = input fuel rate x heat value

generator output
185 m3/h x 38.000 kJ/m3 = 11,717 kJ/kWh

600
1
the CM-600 is a packaged cogeneration system consisting of a reciprocating engine, synchronous generator, and controls.

CASE STUDIES 7-24
Recoverable Heat Rate = specified recoverable heat for the CM-600/600 kW

6
3 . 1 GJ/hr x l0 kJ/GJ = 5,167 kJ/kW
600 kW
The CM-600 is designed to be operated at 1,200 rpm to supply 600 kW of power at 60 Hz.
This cogeneration system can be modified to operate at 1,000 rpm, 50 Hz, with the same
performance. The performance of the CM-600 cogeneration system operating at 1,000 rpm,
50 Hz system was estimated based on the part-load performance of the engine operating at
1,200 rpm, 60 Hz output. Since there is no basic change in equipment by operating the unit
at 1,000 rpm, the estimated cost of the CM-600 was used for the 500 kW output system,
resulting in an equipment cost of $420,000. The installation cost estimate is based on
TECOGEN experience of $200/kW for a nominal installation. Since it is expected that labor
cost will be less in Egypt than in the U.S., the costs for transportation are assumed to be
included in that installation cost, resulting in a total installed cost of $540,000. Operations and
maintenance costs are estimated to be $O.Ol/kWh. A nominal standby charge of
$2.50/monthlkW was used because it is representative of what a utility in the U.S. would
charge.
Exhibit 7.17 presents the assumptions and results of the cogeneration cash flow analysis. The
after-tax savings are about $116,000 per year, resulting in a simple payback period of 4.1
years.
7.2.5 System Specifications
The technical and economic evaluation of the cogeneration option for the Alumisr plant is
based on the performance capabilities represented by the TECOGEN CM-600. There are
several possible suppliers of cogeneration systems in a capacity appropriate to this site.
These specifications are intended to generally describe the requirements for the packaged
system. In their quotes, vendors should indicate whether their standard equipment equals or
exceeds the minimum requirements. It is not intended that Alumisr should have to purchase
special equipment.

CASE STUDIES 7-25
Specifications
Output
Electrical Thermal
500 kW 3.1 GJ/hr
50 Hz 1,200 kg/hr steam
380 volts
Dimensions To be determined after specific location access is evaluated.
Acoustic Level 70 dBa at 6 m
Controls Completely automatic, allowing unattended operation in parallel

with the utility-supplied power
Service Conditions
o
Ambient temperature maximum 50 C
Continuous duty operation
Power Generation Induction generator with switchgear for parallel operation

ASSUMPTIONS:
Total Installed Cost 540.0 $ (1000) Prime Mover TECO CM-600 Initial Elect. Pur. Price 6.2c/kWh
Loan Amount 0.0 $ (1000) L o Prs 50 Hz Initial Fuel Cost 2.11$/kJ
Equity 540.0 $ (1000) Size 500.0 kW Old Boiler Efficiency 70.0%
Loan Terms Gross Heat Rate 11717kJ/kWh Elect. Used on Site 100.0%
Interest Recoverable Heat 5167 kJ/kWh Initial Elect. Sale Price 4.8c/kWh
Term Elec. Cap. Fact. 95.0 percent Standby Demand Charge 30.0$/kW/y
Therm. Cap. Fact. 85.0 percent O&M Charge 1
Year 1990 199 1 1992 1993 1994 1995 1996 1997 1998 1999 2000
Revenue
Thermal Use 52.2 54.8 57.5 60.4 63.4 66.6 69.9 73.4 77.1 80.9
Total Revenues ($1000) 308.1 323.5 339.6 336.6 374.4 393.2 412.8 433.5 455.1 477.9
Expenses
Fuel 92.4 97.0 101.9 107.0 112.3 118.0 123.9 130.1 136.6 143.4
O&M 41.6 43.7 45.9 48.2 50.6 153.1 55.8 58.5 61.5 64.6
P&I 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Insurance 4.3 4.5 4.8 5.0 5.3 5.5 5.8 6.1 6.4 6.7
Standby 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0
Total Expenses ($1000) 153.4 160.3 167.5 175.2 183.2 191.6 200.4 209.7 219.4 229.6
Profit (pre-tax) ($1000) 154.7 163.2 172.1 181.5 191.3 201.6 212.4 223.8 235.7 248.3
(Depreciation) 43.2 43.2 43.2 43.2 43.2 43.2 43.2 43.2 43.2 43.2
Taxes: 35.0% -15.1 39.0 42.0 45.1 48.4 51.8 55.4 59.2 63.2 67.4 86.9
Profit (after-tax) ($1000) 15.1 115.7 121.2 127.0 133.1 139.4 146.2 153.2 160.6 168.3 161.4
Cum. Cashflow ($l000) -524.9 -409.2 -288.0 -161.0 -28.0 111.5 257.6 410.8 571.4 739.7 901.1
Exhibit 7.17
Cogeneration Cash Flow analysis: TECOGEN CM-600, Alumisr

APPENDIX A. GLOSSARY
Adiabatic Expansion The expansion of a gas from higher to lower pressure

with no heat transfer across the system boundaries.
Affordability A term that conveys the situation where a project’s

financial justification (payback, IRR, etc.,) is such that
a high first cost is affordable.
As-Available Energy or Capacity Electricity provided by a company generating electricity,

to a utility as it becomes available, rather than at
pre-arranged times and in pre-arranged quantities.
Auxiliary Power Source Electricity-generating facilities designed to be used in the

event of an outage at the local utility grid.
Average Cost Pricing The pricing of electric service designed to recover the
total costs of a system in order to make total revenues
(including rate of return) equal to total costs. Total costs
are based on costs recorded in books of account and
forecasted to be recorded in such accounts.
Avoided Costs The decremental cost for the electric utility to generate
or purchase electricity that is avoided through the
purchase of power from a cogeneration facility.
Back-Pressure Steam Turbine A steam turbine designed to operate with an exhaust

steam pressure equal to, or greater than, atmospheric
pressure, also known as non-condensing.
Backup Power Electric energy available from or to an electric utility

during an unscheduled outage to replace energy
ordinarily generated by the facility or the utility.
Frequently referred to as standby power. Also see
"Standby Service".
Bagasse consists of the fibrous residue of the juice

extraction process in the sugar cane industry. Bagasse
typically accounts for 25 to 30 percent of the cane
weight.
Baseload The minimum electric or thermal load generated or

supplied continuously over a period of time.
Biomass Any organic material not derived from fossil fuels.

GLOSSARY A-2
Boiler, Fire-Tube A boiler with straight tubes, which are surrounded by

water and steam, and through which the combusted
products pass.
Boiler, Heat Recovery A boiler whose primary heat source is heat rejected from
a process such as exhaust from a furnace or gas turbine.
Boiler, Water-Tube A boiler in which the tubes contain water and steam, the
heat being applied to the outside surface.
Bottoming Cycle A cogeneration facility in which the energy input to the

system is first applied to another thermal energy process;
the rejected heat that emerges from the process is then
used for power production.
Btu British thermal unit, which is the approximate heat

required to raise the temperature of a pound of water
from 59°F to 60°F.
Capacity The load for which a generating unit, generating station,

or other electrical apparatus is rated.
Capacity Costs Costs associated with capital investments in electricity

production and delivery.
Capacity Credits The value included in the utility’s rate for purchasing
energy, based on the savings accrued through the
reduction or postponement of new generation capacity
that results from purchasing power from cogenerators.
Capacity Factor The ratio of the actual annual plant electricity output to
the rated plant output.
Central Cooling The same as central heating except that cooling (heat
removal) is supplied instead of heating; usually a chilled
water distribution system and return system for air
conditioning.
Central Heating Supply of thermal energy from a central plant to multiple

points of end-use, usually by steam or hot water, for
space and/or service water heating. Central heating may
be large-scale as in plants serving university campuses,
medical centers, and military installations, or in central
buildings systems serving multiple zones; also direct
heating.

GLOSSARY A-3
Central Power Generation A utility generating electricity at a large plant, the

primary purpose of which is to generate electricity.
Cheng Cycle Use of high-pressure steam injection in a gas turbine to

increase air mass and thus the capacity of the gas
turbine.
CHP Combined heat and power; a term often used to describe

cogeneration systems or equipment.
Cogeneration The sequential production of electrical or mechanical

energy and useful thermal energy from a single energy
stream.
Cogeneration Facility Equipment used to cogenerate.
Combined Cycle The use of waste heat from a gas turbine topping cycle
for the generation of electricity in a steam turbine
generator system, thereby increasing the efficiency of
heat utilization.
Condensing Steam Turbine A steam turbine designed to operate with an exhaust

steam pressure below atmospheric pressure, fully
condensing.
Coproduction The conversion of energy from a fuel (possibly including

solid or other wastes) into shaft power (which may be
used to generate electricity) and a second or additional
useful form. The process generally entails a series
topping and bottoming arrangement of conversion to
shaft power and either process or space heating.
Cogeneration is a form of coproduction.
Curtailment A period during which a utility declines to purchase

available electricity from a company generating
electricity, generally because of low demand or system
maintenance requirements.
Debt Service Periodic payments due on loans made to a company

generating electricity.
Demand The rate at which electric energy is delivered at a given

instant or averaged over any designated time period.
Annual Demand The greatest of all demands that occurred during a

prescribed demand interval in a calendar year.

GLOSSARY A-4
Billing Demand The demand upon which customer billing is based, as

specified in a rate schedule or contract. It can be based
on the contract year, a contract minimum, or a previous
maximum, and does not necessarily coincide with the
actual measured demand of the billing period.
Coincident Demand The sum of two or more demands occurring in the same
demand interval.
Instantaneous Peak Demand The maximum demand at the instant of greatest load.
Demand Charge The specified charge for electrical capacity on the basis
of the billing demand.
Dispatchability A condition of the electricity generating company

whereby, through engineering design, installed
equipment, operating conditions, and producers, the
electrical utility has the ability to dispatch the facility for
operation at any time in a manner agreed upon by the
parties concerned.
Economic Dispatch The priority set by the utility to use their most-efficient
generating stations first and their least-efficient
generating stations last.
Energy Charge That portion of the billed charge for electric service
based on the electric energy (kilowatt-hours) supplied, as
contrasted with the demand charge.
Enthalpy A thermodynamic property of a substance, formerly

called "heat content." The enthalpy of steam (total heat)
is the combined enthalpy of liquid and vapor, and
represents the total heat above 32°F in the steam.
Escalated Payments A payment commitment for future years determined from

forecast rates of avoided costs.
Expansion Turbine A device for converting the pressure energy of a gas or

a vapor stream into mechanical work as the gas or vapor
expands through the turbine.
Extraction Steam Turbine A steam turbine with openings in the turbine casing to
allow the extraction of steam at different pressure(s)
from intermediate stage(s) of the turbine.

GLOSSARY A-5
Firm Capacity Payments Payments for electricity provided in predetermined

quantities and at predetermined times, which may be
based on avoided costs at the time of delivery or at the
time the obligation is incurred.
Firm Power Power available at all times during the period covered by
thecommitment, except for forced outages and scheduled
maintenance. Firm power is provided with sufficient
legally enforceable guarantees of deliverability to permit
the purchasing electricity utility to avoid the need to
construct a generating unit, to build a smaller and less
expensive plant, or to purchase less firm power from
another facility.
Forecast Figure values determined by a mathematical model.
Fuel Adjustment Charges Periodic adjustments of utility rates to reflect fuel and
related costs.
Fuel Heating Value The quantity of heat recovered when the products of the
complete combustion of a quantity of fuel are cooled to
the initial temperature of the air and fuel.
Fuel-Use Efficiency The ratio of electric output plus heat recovered in Btu to
the fuel input in Btu. This measure gives credit to the
useful thermal output of the system.
Full-L.oad Heat Rate The heat of a machine running at its rated load.
Gas Turbine A rotary prime mover that converts the energy of a fuel
into work by using the Brayton cycle, consisting of
adiabatic compression (in an air compressor), constant
pressure heating (in a fuel combustor), and adiabatic
expansion (in a turbine).
Grid The system of interconnected transmission lines,

substations, and generating plants of one or more
utilities.
Grid Interconnection The intertie of a cogeneration plant to an electric utility’s

system to allow electricity flow in either direction.
Gross Heat Rate The heat rate of the prime mover before deducting the
energy transferred for plant functions.
Energ Conservation and Efficiency Project (ECEP)

GLOSSARY A-6
Harmonics Waveforms whose frequencies are multiples of the

fundamental (50 or 60 Hz) wave. The combination of
harmonics and fundamental wave causes a nonsinusoidal,
periodic wave. Harmonics in power systems are the
result of non-linear effects. Typically, harmonics are
associated with rectifiers and inverters, arc furnaces, arc
welders, and transformers magnetizing current. There
are voltage and current harmonics.
Heat Flow The amount of heat transferred in a unit of time.
Heat Rate A measure of generating station thermal efficiency (the

ratio of the heat energy used to the electric power
produced), generally expressed in Btu, kJ or kcal per net
kilowatt-hour generated.
Heating Value The energy content in a fuel that is available as useful

heat.
Higher Heating Value The heating value including the latent heat of water
vapor in the combustion products.
Hydrocarbon Usually used in reference to air pollutant emissions.
Incremental Heat Rate The ratio of the fuel consumed by a prime mover minus
the heat supplied by the prime mover, to its net power
output. This represents the additional amount of fuel
needed to generate each increment of power.
Induction Generator An induction motor, when connected to a source of

power and is driven above synchronous speed, becomes
an induction or asynchronous generator.
Industrial Plant The facility requiring process heat and electric and/or
shaft power. It can be a process plant, manufacturing
facility, shopping center, and so on.
Internal Rate of Return The discount rate that equates the present value of
expected future receipts to the cost of the investment
outlay.
Interruptible Power Electric energy supplied by an electric utility subject to

interruption by the electric utility under specified
conditions.
Kilowatt (kW) An electrical unit of power equal to 1000 watts.

GLOSSARY A-7
Kilowatt hour (kWh) A basic unit of electric energy equal to the use of 1
kilowatt for a period of 1 hour.
Levelization A financial arrangement whereby payments are constant

over a specified period and are based on forecasted
values and the value of money over time.
Line Losses Losses in electricity that occur during its transmission

and distribution.
The amount of electric power delivered to a given point

on a system, or the total amount of demand on the
system.
Load Factor The ratio of the average load supplied or required during
a designated period to the peak or maximum load
occurring in that period.
Lower Heating Value When the heating value excludes the latent heat of water
vapor in the combustion process.
LPG Liquified petroleum gas.
Maintenance Power Electric energy or capacity supplied by an electric utility

during scheduled outages of the electricity generating
company (cogenerator).
Marginal Cost The change in total cost caused by a change in output.

Marginal cost can also be understood as the additional
cost to produce an additional unit of output, or the
savings from producing one unit less of output (i.e.,
avoided cost).
Marginal Cost Pricing The pricing of electrical service designed to equate the
rates for electrical service with the marginal costs of that
service.
Megawatt One million watts.
Mollier Diagram A plot of enthalpy versus entropy for a substance in the

gas and liquid states. The Mollier diagram for steam is
especially useful in solving problems that involve the
behavior of steam in turbines.
Natural Gas Unmixed natural gas or any mixture of natural gas and
artificial gas.

GLOSSARY A-8
Net Heat to Process The difference between the thermal energy supplied to
the industrial plant and the energy returned to the
cogeneration system. For systems supplying thermal
energy as steam, the product of the steam flow and its
enthalpy is the thermal energy supplied to the industrial
plant. The energy returned is the sum of the flow times
the enthalpy for process condensate returns and any
makeup water that is required.
Net Present Value A capital-budgeting method that accounts for the time
value of money through discounted-cash flow analysis.
The method determines the present value of the expected
net revenue from an investment minus the cost outlay,
discounted at the cost of capital.
Non-Firm Power Electric power available as surplus only, which is

supplied by the power producer at the producer’s option
and can be interrupted by the power producer at will.
Off-Peak Time periods when power demands are below average;

for electric utilities, generally nights and weekends, for
gas utilities, summer months.
Oil Crude oil, residual fuel oil, liquified natural gas, or any
refined petroleum product.
Organic Rankine Cycle Rankine cycle using an organic compound as the

working fluid.
Parallel Generation Industrial power generation facilities whose AC phase

and frequencies are exactly equal to and are
synchronized with the utility service grid.
Payback Period The number of years required for a firm to recover its
original investment from net cash inflows.
Peak Load The maximum load demand occurring during a specified

period of time.
Peak Load Management An attempt to reduce the system peak load by levelling
the load curve.
Power Factor The ratio of real power (kW) to apparent power (kVA)
for any given load and time; generally expressed as a
decimal.

GLOSSARY A-9
Power to Heat Ratio The ratio refers to the relative amounts of electricity and
heat produced by the cogeneration system.
Present Value The amount of money, which, if invested today at a

certain rate of return, would be equivalent to a fixed
amount to be received at a specified future time.
Prime Mover Equipment that transforms pressure or thermal energy to

useful mechanical energy.
Process Heat Heat used for an industrial process in a plant, and not for
space heating.
Process Steam Load Number of pounds of steam per hour required for a
specified industrial process.
psi Pounds per square inch, a measure of pressure. Psia is

measured in absolute terms, relative to zero pressure or
complete vacuum. Psig is gauge pressure, read by a
guage, relative to atmospheric pressure. 14.7 psi = 1
bar.
Purchase The buying of electric energy or capacity or both from

an electricity generating company by an electric utility.
QF - Qualifying Facility Cogenerator meeting the efficiency levels required under

law to enable special privileges like power fuel rates,
right to interconnect with utility, etc. (used in USA).
Cycle A reversible thermodynamic cycle that describes the

heat-to-work conversion process in a steam power plant.
Rate Any price, charge, or classification made, demanded,

observed, or received with respect to the sale or purchase
of electrical energy or capacity, or any rule, regulation,
or practice respecting any such rate, charge or
classification, and any contract pertaining to the sale or
purchase of electrical energy.
Rate Base The value of assets, established by a regulatory

authority, on which a utility is permitted to earn a
specified rate of return. Generally, this represents the
amount of property used in public service.

GLOSSARY A-10
Reliability Conformity of an electricity generating company to a

specified set of standards of the electric utility and the
system.
Reserve Margins Extra capacity available to (1) meet anticipated demands

for power or (2) serve load in the event of a loss of
generation resulting from an unscheduled outage. The
reserve margin is the ratio of excess capacity to
anticipated peak load expressed as a percentage.
rpm Revolutions per minute.
Sale The sale of electrical energy or capacity or both by an

electric utility to a qualifying facility.
Shaft Power Mechanical energy in the form of a rotating shaft.
Significant Emission Level An emission rate (tonnes/year) for a specific number of

pollutants above which the pollution level is considered
significant for regulatory purposes.
Simultaneous Purchase and Sale A regulatory convention that allows a qualified

facility/industry to simultaneously sell its own generation
to the utility while purchasing its requirements from the
utility; an exchange of electrical flow does not
necessarily occur; the difference is cash flow.
Small Power Production Any unregulated electricity production facility including

hydroelectric, geothermal, biomass, refuse-derived fuel,
and wind facilities.
Social Costs Tangible but hard-to-quantify costs to society of an

economic or technological activity.
Solar A distillate fuel oil approximately equivalent to No. 2

fuel oil in the U.S.
Spinning Reserve Generating capacity that is on-line and ready to take

load, but in excess of the current load on the system.
Standby Service Also standby power or standby reserve service that is not
normally used, but that is available through a permanent
connection in lieu of, or as a supplement to, the usual
source of supply.

GLOSSARY A-11
Steam Turbine A rotary prime power that converts the heat energy of
steam, generated in a boiler, to mechanical energy.
Sulfur Dioxide (SO2) A major pollutant formed by the combustion of oil or

coal having sulfur content.
Supplementary Firing The injection of fuel into the recovered heat stream to
raise its energy content (heat). Used only in the thermal
process or a topping-cycle cogeneration facility.
Supplemental Thermal The heat required when recovered engine heat is

insufficient to meet thermal demands.
Supplementary Power Electric energy or capacity supplied by an electric

utility, regularly used by a qualifying facility in addition
to that which the facility generates itself.
Supply/Demand Interface Refers to the relationship between the timing and amount
of thermal and electric energy supplied by the
cogeneration system and the timing and amount of
thermal and electrical energy demanded (or required) by
the energy user.
Surplus Electricity Electricity generated beyond the immediate needs of the

producing system, frequently obtained from spinning
reserve and sold on an interruptible basis.
Synchronous Generator An AC generator where the rotating member is the field.

The armature or stator is the stationary member.
System Emergency A condition of a utility’s system likely to result in

imminent significant disruption of service to customers
or immediately linked to endanger life or property.
Thermal Capacity The maximum amount of heat that a system can produce.
Thermal Storage Temporary storage of high- or low-temperature energy

for later use, bridging the time gap between energy
availability and energy use. While the output of thermal
storage is always thermal energy, the input energy may
be thermal or electrical.
Thermal-to-Electric Ratio A uni tless ratio of thermal energy to electric energy used
by a facility over a period of time, usually calculated on
an annual basis.

GLOSSARY A-12
Time-Differentiated Payments Payments made according to time-of-day or time-of-year

delivery periods.
Topping Cycle A cogeneration facility in which the energy input to the

facility is first used to produce useful power, with the
rejected heat from power production then used for other
purposes.
Total Energy Input The total energy in all forms supplied by external
sources other than supplementary firing to the facility.
Total Energy System A form of cogeneration in which all electrical and

thermal energy needs are met by on-site systems; a total
energy system can be completely isolated or switched
over to a normally disconnected electrical utility system
for back-up.

APPENDIX B. EQUIPMENT SELECTION AND GUIDE SPECIFICATIONS
The historic plant energy requirements usually serve as the basis for equipment selection.
However, if the facility’s energy requirements are predicted to increase in the future because
of capacity increases or other reasons, then the estimated maximum future requirements for
a reasonable period (say, five years) should form the basis of system selection. Normally, a
20-year period is considered to be long enough for forecasting costs and rates of return on the
additional investment required for cogeneration. Within this period, all the equipment is
depreciated and the “useful life” of the equipment also expires.
B.1. EQUIPMENT SPECIFICATIONS
Although design, application, and manufacturing details vary for the equipment available on
the market, general technical equipment specifications should be prepared in such a way that
all manufacturers/packagers supply equipment, accessories, services, parts and consumables
to meet the basic intent of the system design. This also allows a reasonably accurate
comparison of the bids received against a set of tender documents, which the engineer can use
to make technical recommendations.
The following main equipment is used in various types of cogeneration systems. The required
equipment should be covered adequately in the specification requirements:
boilers
steam turbines
steam piping
gas turbines
gas turbine exhaust ductwork
reciprocating engines
alternators
switchgear.
B.2 BOILERS
Water-tube boilers are normally offered in a package design, and are of high efficiency with
external economizer and superheater sections. Boiler efficiency should not be allowed to be
lowered by even a small margin because the effect of lower efficiency will continue for the full
life of the equipment.
The economizer could be designed on the basis of finned tubes to reduce the size or plain tubes
to help in the cleaning of the surfaces if furnace oil No. 6 is used as a boiler fuel. However,
with plain tubes, the size and weight of the economizer could increase considerably.
Superheater sections are designed either with control of the boiler flue gas flow or with mixing
of the cooler steam with superheated steam to control the temperature. Whereas the former
flow control could cause problems with dampers and actuators at high temperatures, the latter

EQUIPMENT SELECTION AND GUIDE SPECIFICATIONS B-2
design normally involves high-pressure drops in the superheater tubes. As a result, the
operating pressure of the boiler must be raised to ensure the correct pressure of steam at the
turbine inlet.
B.2.1 General Guide Specifications for Boilers and Auxiliaries
The boiler shall be a package water-tube type.

The furnace construction of the boiler must be gas tight.Tightness is to be
tested at 1.5 times the maximum operating pressure.
The external insulation is to be of mineral wool or glass wool. The insulation
should be sufficient to ensure that the surface temperature of the metal jacket
o
covering the insulation does not exceed -1 C above ambient temperature with
natural ventilation around the boilers.
All steam drum internals should be of nut/bolt construction and should be
removable from the manholes.
Each end of the drums must be designed with manhole openings.
The soot blowers (for oil-fired boilers) should be of the manual gear type.
All boiler refractories are to be as per heat insulation requirements, with a
minimum 60 percent alumina content.
Inspection during construction and testing shall be witnessed and certified by
relevant authorities.
B.2.2 Boiler Specifications
Design Data
Nominal rating in kg per hour of steam.

Maximum continuous rating in kg per hour.
Operating superheated steam pressure in bar.
o
Operating superheated steam temperature C.
o
Feed water temperature in C (separate feed water temperatures for gas and oil
fuels are to be specified to avoid condensation and thereby corrosion).
Boiler efficiency curves at 30°C.
Maximum fuel consumption (separate figures for natural gas in m3/hr and for
fuel oil in kg or liters per hour).
Pressure Parts
Two-drum water-tube boiler with water-cooled furnace.

Steam drum internals for separating steam, including:
. baffle plates for collecting the boiler water and steam from all the tubes
device for separating steam from the circulating boiler water
internal feed water distribution pipe

. pipe for continuous blow-down and taking out water samples

Superheater with modulating control valve to mix exit hot steam with cooler
steam entering the superheater for temperature control.
Economizer to recover flue gas heat without condensation.
Pre-heater coil in water drum (for use with fuel oil tiring).
De-superheater, to ensure control of final steam temperature at turbine inlet.
Pressure relief valves as per Egypt Boiler Code requirements.
B.2.3 Burner and Ancillary Equipment Specifications
. Burner, of combined gas/fuel oil type, including windbox, air register, flame
stabilizer, and multi-speed type gas burner with distribution manifold and
gas/diesel oil electric ignition.
Burner piping, including gas and air piping, fuel oil and atomizing steam piping
(if required), valves, indicators and sensors, ignition premix unit and flame
monitor.
B.2.4 Burner Management System Specifications
..
. Sequential control for the start-up of the burner as per controller program.
. . Safety shut-down and alarm system as per program requirements.

The following control loops are to be included:
.. combustion control loop

drum-level (or feed water) control loop
outlet steam temperature control loop
B.2.5 Boiler Control Panel Specifications
. Panel to house all boiler control and supervision instruments

Panel to be fully pre-wired and of design suitable for indoor installation
(dust-proof, vermin-proof requirements may be essential in some cases).
B.2.6 Instrumentation Specifications
All control and safety requirements shall be included, including double water-column
requirements as per the Egypt Boiler Code and instrument requirements to record data for
calculating the capacity and efficiency of the boiler.

B.2.7 Air and Flue Gas System Specifications
A forced-draft fan suitable for correct pressure drop with ducts shall include the following:
. Inlet guide vanes, flexible connectors, suction air filter, electric motor, and
. silencers for the fan, if required.

Flue gas ducts normally of 6 mm steel plate with mineral wool or fiberglass
insulation (minimum thickness 75 mm) and of density to suit the heat insulation
requirements so that final metal jacket temperature does not exceed 18°C above
ambient temperature.
B.3 STEAM TURBINES
The specific consumption of steam for the turbines should be closely matched with the heat
balance requirements to ensure performance compatibility. Turbine efficiency should not be
allowed to be lowered, and an efficient turbine with as many stages as are practical and
economical should be selected.
Turbineoutlet (back-pressure) control valves should have an adjustable setting so that the steam
back-pressure can be set to the desired value and even adjusted seasonally to make full use of
steam enthalpy as per turbine efficiency. This is especially applicable in commercial building
applications where higher back-pressure steam (1 to 1.5 barg) is required for summer
air-conditioning. Lower pressure steam (down to 0.4 barg) may be adequate for intermediate
weather or for winter heating.
Special care should be taken in selecting the speed governor; an electric/electronic type with
mechanical back-up should be selected. Loss of speed control accuracy normally means
tripping of the turbine. Thus, for reliable operation, a backup governor should be requested.
The lubrication system, with a main lube oil pump and an electric driven auxiliary oil pump
for start-up and shut-off, should be selected. No compromise should be made on this essential
requirement. The oil cooler should be water-cooled using the central cooling water supply.
Care must be taken to allow for the higher pressure drop normally associated with this cooling
water circuit.
Hoists should be provided above the steam turbine, travelling along the shaft axis, to enable
inspection of the turbine blades and shaft bearings at specified intervals. Temporary tripod
supports for hoists are not recommended.
The acoustic enclosure design for the turbo-alternator should include ventilation fans and air
silencers to ensure heat removal from the enclosure space without seriously compromising the
noise rating of the equipment and the plant room.

B.3.1 General Guide Specifications for Steam Turbines and Accessories
Steam turbine shall be a multi-stage impulse-reaction/reaction back-pressure or

extraction turbine.
Steam turbine, including its alternator and accessories, shall be in an acoustic
enclosure.
Turbo-alternator assembly shall be mounted on a rigid structural steel frame
with helical spring vibration isolators.
Steam turbine shall drive the alternator through speed reducing gears.
B.3.2 Steam Turbine Specifications
Design Data
Maximum output rating in kW.

Steam pressure at turbine inlet in bar.
o
Steam temperature at turbine in C.
Steam flow rate in kg per hour.
Steam turbine speed minimum in rpm.
Maximum steam consumption values for part loads.
Steam pressure at turbine outlet (back pressure) in bar gage or kPa.
Turbine Specifications
Thermo-elastic guide blade carrier.

One-piece forged rotor.
Horizontally split casing.
B.3.3 Accessory Specifications
Speed governor to be hydraulic with adjustable proportional band, response

sensitivity 0.01-0.10 percent nominal speed, with maximum speed variation at
constant load 0.50 percent and with sudden loading and unloading by up to 25
percent of rated load, maximum speed deviation to be 2 percent.
Oil supply unit for control and lubrication system with oil tank constructed as
base frame with electric motor-driven oil vapor extraction system. Main oil
pump, screw type, to be driven via an auxiliary shaft of the gear box with full
duty auxiliary oil pump, driven by an electric motor, with automatic
changeover. Two oil coolers, for 100 percent standby with changeover valve,
with two oil filters, also for 100 percent standby with changeover valve.

B.3.4 Control and Safety Specifications
Live steam control valves to be supplied with servo-motors for automatic

adjustment.
Live steam emergency trip valve, steam operated, to be released at the
..
following conditions:
over-speed of turbine
.. lube oil pressures too low

axial displacement of the rotor beyond maximum allowable
.. turbine back pressure too high

manual trip at the turbine
remote trip (electric via solenoid valve)
Instrumentation covering pressure, temperature, level and position for main
turbine, oil supply and steam supply, both local and remote as per operation
philosophy.
B.4 STEAM PIPING
An all-welded piping installation is recommended for high-temperature steam to avoid leaking

flanges and gaskets, except where flange joints are unavoidable, as for equipment connections
and expansion joints.
Anchors and supports should be properly engineered so that movements due to the expansion
and contraction of piping can be guided as per engineering requirements. The spring isolation
of piping at supports should be selected properly so that with the movement of piping, the
spring can continue to provide vibration isolation.
Elbows and bends should be used judiciously to a void mechanical expansion joints wherever
possible.
B.4.1 Guide Specifications for Steam Piping
Piping Engineering
All engineering designs shall be in accordance with the latest code and shall include the
following:
Establishment of design conditions including pressure, temperature, fluid shock,

thermal gradients, and cycles.
Selection of material based on corrosion, hydrogen embrittlement, and strength.
Selection of valves and other piping components.
Calculation of minimum pipe wall thicknesses.
Establishment of an acceptable layout between terminal points for the pipe with
selections of piping supports and anchor points.

Performance of thermal flexibility, fatigue, and dead weight stress analysis for
both normal and abnormal conditions.
Performance of analyses for excessive thrusts and movements at connected
equipment such as boilers, steam turbines, condensers, pumps, etc.
Performance of vibration analysis.
Materials
o
For a temperature limitation of 400 C, carbon steel pipes are used.
For higher temperatures, special steel piping materials are used.
B.5 GAS TURBINES
Gas turbines are low-efficiency engines, especially in the lower sizes, and all efforts should be
made to ensure the selection of equipment with acceptable efficiency for power production.
Gas turbine power output is reduced considerably as a result of higher ambient temperatures
or larger pressure drops in the compressor suction and gas turbine discharge. Wherever
possible, attempts should be made to cool the combustion air entering the compressor for the
gas turbine or to inject medium-pressure steam in the combustor directly to increase the mass
flow and hence raise the turbine power output.
The gas turbine oil cooler circuit should be air-cooled. For this purpose, an over-sized oil
cooler for high ambient application should be provided. Where possible, the oil cooler can
also use a heat exchanger to heat the water, possibly for domestic hot water use, but this
facility should be in addition to the air-cooled oil cooler.
Site planning for the installation of gas turbines should ensure minimum pressure losses on the
suction side of the compressor and the discharge side of the gas turbine. Both ductwork and
accessories need to be as short as possible and with proper duct sizing and construction to
ensure minimum pressure losses.
The filtration of combustion air for the gas turbine is essential as per the manufacturer’s
specifications. Good practice includes less-efficient primary filters and highly-efficient
secondary filters. The use of primary filters enhances the life of the more expensive secondary
filters, especially with the use of cleanable primary filters.
Gas turbine package enclosure ventilation for the removal of alternator and gas turbine engine
heat is provided by a package-mounted fan with an explosion-proof motor. Because this
ventilation air picks up considerable heat, this air should not be used to further cool the oil, and
the oil cooler should be placed outside this hot air stream.

Gas turbine enclosure safety should be ensured by providing gas detection and ultra-violet fire
detection alarms and shut-downs. Also, a fire-fighting system, with halon bottles installed
outside the package, should be provided.
B.5.1 General Guide Specifications for Gas Turbines and Accessories
Gas turbines shall be of the industrial type suitable for continuous operation.
The gas turbine package, including its alternator, gear box, oil cooler, and
accessories, shall be housed in an acoustic enclosure package.
The entire gas turbine package, as above, shall be mounted on a single-piece
rigid structural steel skid.
Oil cooler and acoustic enclosure ventilation shall be maintained by induced
draft fan.
B.5.2 Design Data Specifications
Maximum output rating in kW.

Fuel heating capacity in kJ/hr.
Natural gas pressure in bar.
Natural gas flow rate in m3/hr.
o
Ambient dry bulb temperature in C.
Location altitude in meters.
Gas turbine compressor external suction pressure in mm Hg or kPa.
Gas turbine compressor external discharge pressure in mm Hg or kPa.
B.5.3 Gas Turbine Engine Specifications
Simple cycle, single shaft, continuous operation design.

b Multi-stage gas turbine compressor.
Combustion assembly of annular type.
Multi-stage turbine section of high-temperature alloys.
B.5.4 Accessory Specifications
Reduction gear box of rugged industrial design, close coupled, specially

designed for gas turbine application with service factor of 1.10 for alternator
drives, and up to 10.0 for short-circuit conditions.
Start system, either with DC electric motor or pneumatic pressure supply from
air storage vessels.
Fuel system for natural gas with standby diesel oil requirements, complete with
metering and controls and duplex filters.

Lube oil system with oil tank, duplex filters, lube oil temperature control (oil
cooler to be designed for correct ambient temperature plus temperature rise in
enclosures due to alternator and gas turbine heat), lube oil heater, oil vent
separator, and oil pumps. Auxiliary oil pump for start-up and shut-down
sequence to be DC driven with main oil pump operated through turbine gear
drive.
Acoustic enclosure to accommodate inlet and exhaust air ductwork, oil cooler
piping and ventilation requirements, and should be complete with
explosion-proof motor-driven ventilation fan, sound alternators, enclosure
lights, fire protection, high-temperature alarm, gas detection, and water wash
cart for cleaning turbine blades while in operation.
Combustion air inlet system, including primary and secondary filters and air
cooling (if required as per design).
Gas turbine exhaust system including expansion bellows, silencer, ductwork and
insulation.
Gas compressor package for installations with supply gas pressure below 150
psig.
Speed control of the gas turbine through an electric load sensing governor with
mechanical back-up.
Redundant and independent back-up over-speed device to protect the turbine
from governor failure.
Load sharing capability for two gas turbines operating in parallel to be within
5 percent while maintaining isochronous speed.
Complete control system to accomplish the starting, running and stopping
sequence of the gas turbine package and all instrumentation and control logic
required for control and protection of the package in all phases of operation.
B.6 GAS TURBINE EXHAUST DUCTWORK
Because the ductwork is heated from a low ambient temperature in winter to a very high
temperature (above 450°C) in a short span of only a few minutes, the movement of ducting due
to expansion and subsequent contraction at shut-down must be calculated and accounted for in
the design of anchors, supports and expansion joints.
The vertical flue duct should be allowed to expand upwards, with guides if it is inside a
masonry/concrete shaft/chimney, with the bottom of the duct rigidly supported.
Insulation of the flue duct, with further metal jacketing to protect the thick insulation (150 to
200 mm), is carried out with welded pins to ensure the stability of the installed insulation.

To allow for duct movement, roller supports are added. Although not all rollers provide
reduced-friction movement, they help to at least contain the forces acting on the supports.
Special anchors and expansion joints should be provided to ensure that the forces acting on
equipment connections are within the limits imposed by the manufacturers.
B.6.1 Guide Specifications for Exhaust Flue Ductwork
Ductwork engineering shall include analyses for the following, as per design
..
temperature and flow:
thermal expansion and contraction
.. vibration
supports and anchors
location of expansion joints.
Duct sizing and layout to meet site requirements and maximum allowable
pressure drop.
Ductwork to be of welded construction, except flanges for expansion joints or
requirement connection.
B.6.2 Materials Specifications

o
For normal exhaust flue temperatures around 450-5l0 C, special alloy steel
shall be used. Normally, Cor-Ten, a steel with an allowable service
o
temperature of about 530 C, is used for this service. However, higher exhaust
flue temperatures will need special material for ductwork.
Normal thickness of alloy steel used for exhaust flue ductwork shall be 6 mm.
Material for expansion points shall be special heat-resisting fabric designed for
use at high temperatures, with special installation requirements.
b All surfaces exposed to high temperatures shall be insulated with either mineral
wool or fiberglass insulation, suitable for service temperature with additional
metal jacketing. Normal thickness of insulation shall vary between 150-200
mm, and the density of insulation shall be suitable to provide adequate heat
insulation.
B.7
Since waste heat recovery boilers are custom-designed for a particular application, the
proposed manufacturer must be given all the critical data, especially the space restrictions, to
ensure that the WHKB is designed accordingly.
Due to pressure drop restrictions of the gas turbine discharge, efficient heat transfer
finned-tube construction with low resistance is recommended.
-------------------

A water carrying tube is normally connected to headers to ensure the equal distribution of
water flow. With the formation of vapors in the discharge header, the size of the tube is
adequately enlarged until the vapor separates in the steam vessel above the heat exchanger
tubes. For compact layout, gravity and convection currents are enough to create vapor flow
to the steam header. Where either the space does not permit compact layout or where more
heat transfer is required, the forced flow of boiler water is provided with boiler circulation
pumps. It is customary to install one duty and one standby pump, with auto-changeover, in
case of a failure of the operating pump.
Flue exhaust duct connections to and from the WHRB should be properly stream-lined to
ensure the correct distribution of flue exhaust for optimum heat transfer.
WHRB casing should be air-tight to ensure safe operation. The casing should be tested at 1%
times the operating pressure before commissioning.
B.7.1 General Guide Specifications for Waste Heat Recovery Boilers
The WHRB shall consist of a finned watertube heat exchanger with separate
steam separation and a storage vessel.
External flue bypass arrangements with modulating flue control damper.
Two steam pressure relief valves for each steam vessel as per Egypt Boiler
Code requirements.
All surfaces exposed to exhaust flue temperature shall be of suitable material,
normally, alloy steel.
B.7.2 Design Data
Maximum continuous rating in kg or tonnes per hour steam.

Amount of condensate return 95 percent (minimum).
Amount of continuous blow-down 5 percent (maximum).
Temperature of condensate return in oC.
Maximum exhaust flue pressure drop in mm Hg or kPa.
Mass flow rate of exhaust flue in kg/hour.
o
Temperature of exhaust flue in C.
Exhaust flue control damper DC motor actuator-driven diverter, shall modulate

to control supply steam pressure as per requirements. Manual over-ride shall
also be provided.
All operating gears of the damper/diverter shall be external to the connecting
ductwork and be capable of inspection and maintenance while the plant is in
operation.

Steam separator/storage vessel shall be designed for efficient separation of

steam, water storage vessel for water-level controls and mounting of safety
levels, level alarm switches, pressure relief valves, instruments, etc.
Control and instrumentation requirements as per operational restrictions and
requirements of the control logic shall be included.
B.8 RECIPROCATING ENGINES
As discussed with power-to-heat ratios in Chapter 3, reciprocating engines can only be used
for cogeneration applications where very high power-to-heat ratios are required. Thus, the
normal range of reciprocating engine-heat recovery usage would mean production of only a
million Btu equivalent of low-pressure steam for 500-600 kW of electrical energy.
To increase the level of heat, reciprocating gas engines can be provided with ebullient cooling
systems to produce saturated steam at 1 bar gage with a temperature limitation of up to 120°C
maximum, measured at the engine water outlet flange. However, an ebullient-cooled engine
must be equipped with shut-down devices that operate automatically when system temperature
or pressure reaches a critical point that could be harmful to the engine and system components.
Heavy fuel oil engines must be specified with adequate oil storage tanks, the size depending
on the location and ease of service from the oil supply company. Thus, a minimum storage
capacity of only one week may be too little for supply to a remote industrial area in the
country.
Heavy fuel oil engines can only handle the fuel after adequate heating to reduce viscosity.
Thus, heating the oil right from the storage tank to the final temperature for injection is to be
included with the system specifications. Heating requirements for fuel are more severe for
winter conditions, and engine heat recovery should be utilized for this purpose in addition to
meeting the process thermal energy requirements.
B.8.1 General Guide Specifications for Reciprocating Engines
Engine set and the auxiliaries shall be mounted on a single-piece rigid structural
steel skid with vibration isolation either in the skid or in the heavy concrete
foundation.
Engine shall be water-cooled with heavy-duty pressurized radiator and complete
thermostatic control of the engine cooling water circuit. A water jacket oil
cooler shall be incorporated in the engine cooling system.
Engine lubrication system shall be of the enclosed forced-feed type with gear
oil pump and suction strainer.
Full-flow fuel and lubricating oil filters with replacement elements and pressure
bypass system in the filter head shall be provided.
Air intake filter unit installed at the air intake manifold and with replaceable
filter elements shall be provided.

Engine shall be fitted with a water-cooled exhaust manifold, together with a

silencer of required rating.
Engine shall have heavy flywheel to minimize cycle irregularity.
Engine-mounted instrument panel on anti-vibration mountings shall be supplied
complete with oil pressure gauge, oil temperature gauge, water temperature
gauge, tachometer, service hours recorder, number of starts recorder, and push
button start-stop switch.
Governor shall control engine speed under no-load to full-load conditions.
Engine shall have overload capacity of 10 percent for one hour in every 12
hours.
B.8.2 Design Data
Maximum continuous output rating in kW.

Fuel heating capacity in kJ/hr.
Ambient maximum dry bulb temperature in oC.
Ambient minimum dry bulb temperature in oC.
Location altitude in meters.
Maximum exhaust back pressure in mm Hg or kPa.
B.8.3 Specific Engine Requirements
Gas Engine
Engine shall be industrial four-stroke spark-ignition type, with turbo-charging

where required.
Starting system shall be either 24 volts DC electric motor or 10 bar gage air-
driven starting motor.
Maximum compression ratio of the engine shall be 11:1.
Diesel Oil Engine
Engine shall be industrial, four-stroke, compression-ignition type, with turbo-

charging and inter-cooling where required.
Starting system shall be either 24 volt DC electric motor or 10 bar gage air-
driven starting motor.
Maximum compression ratio of the engine shall be 14:1.
Engine shall have direct fuel injection system.
Heavy Fuel Gil Engine

Engine shall be industrial, four-stroke, compression-ignition type, with turbo-

charging and inter-cooling where required.
Fuel system for the engine shall include heating and circulation to avoid
clogging of the system.
Load-dependent engine cooling water system shall be supplied so that in standby
mode and during start-up, a pre-heating module heats the cooling water while
the cooling water system ensures sufficient cooling of all parts during operation.
Separate injection nozzle temperature control system shall be included in the
engine to ensure heating in standby and low-load conditions and cooling in
high-load operation.
Lubrication system shall include lube oil centrifuge so that separation of fouled
lubricating oil is possible while the engine is in operation.
Temperature of the charge air (inlet air) of the engine shall be regulated at low
loads by including heating arrangements.
B.9 ALTERNATORS
Alternators should be specified with details in relation to the duty. The following items need
special consideration:
Alternator type: whether it should be synchronous or induction, especially if

alternators are to be paralleled. Synchronous generators operating in parallel
are held in synchronism with each other by electrical “coupling,” which, acting
through the common bus, tends to hold the rotors of the various machines
together in their rotation. The engine manufacturer should include a flywheel
with adequate inertia to avoid the engine frequency coming close to system
natural frequency.
Speed: the synchronous speed of alternator will depend on the number of poles
in the alternator field. For four-pole machines, the alternator speed shall be
1,500 rpm. This speed should be attained through speed-reducing gears with
a steam turbine or gas turbine. However, with medium-speed reciprocating
engines, lower direct-driven synchronous speeds (600 and 750 rpm) can be
used with a larger number of poles in the alternator field.
Winding Pitch: to minimize third-order harmonics in alternators operating in

parallel with the utility, 2/3 pitch should be specified.
Number of Bearings: two-bearing alternators should be specified, except for

small direct-driven designs in which single-bearing alternators are acceptable.
Special Features: like cross-current compensation to control reactive load and

especially required for parallel operation, voltage regulators with radio
frequency filters should be included.

B.9.1 General Guide Specifications for Alternators
Alternator shall be four-pole rotating field, two-bearing self-ventilated (with

water-cooled air cooler, if required), open drip-proof type.
Alternator shall have self-lubricated, anti-friction bearings.
Rotor fan shall be provided for air movement through the alternator and around
the rotor for cooling. The rotor shall be electrically and mechanically balanced
at all speeds up to 125 percent of rated speed.
Stator temperature detector shall be provided to monitor the internal heating of
the alternator.
Alternator shaft diameter shall be sufficient to provide the stiffness necessary
to preclude torsional or lateral vibrating problems. The alternator shaft end
shall be compatible with the engine drive.
Main power connections of the alternator shall be brought out to terminals
suitably insulated with respect to ground and between phases. Suitable spacing
shall be provided between all terminals to ensure ease of connection and to
maintain proper creepage distances.
Alternator terminal box shall contain sufficient room for the mounting of three
differential current transformers and a ground fault transformer.
Alternator insulation shall conform to NEMA (National Electrical
Manufacturers Association, U.S.A.) class F requirements. This shall allow a
o
temperature rise of 82.7 C in accordance with NEMA continuous duty
temperature rise requirements, as measured by resistance with a maximum
ambient temperature 40°C.
B.9.2 Associated Equipment Specifications
The exciter unit shall consist of two separate assemblies: a three phase, rotating
armature-type alternating current alternator and a three-phase full-bridge
rectifier, both electrically interconnected with each other and with the main
alternator field wiring.
Voltage regulator shall be equipped with cross-current compensation provisions
and adjustable drop range from 0 to 5 percent for parallel operation. It shall
have ---
+l0 percent voltage adjustment range.
B.9.3 Design Data
Rated output in MVA.

Rated power factor (cos ).
Rated active power at alternator terminal in MW.
.
Alternator over-load capacity:
50 percent overload current with the field set for normal rated load
excitation for one minute.

. 10 percent overload for two hours at rated power factor.

Rated voltage in V.
Voltage control range ---
+ 5 percent.
Rated frequency 50 Hz.
o
Maximum ambient temperature in C.
Location altitude in meters (above sea level).
B.10 SWITCH GEAR
The guide specifications for a low voltage switch board are:
. Materials for construction shall be at least 2 millimeter-thick sheet metal with

full interlock between cubical doors and withdrawable circuit breakers,
. switches, and conductors.

Switch board shall be fully gasketted to prevent ingress of moisture, dust and
. dirt.
Liberal spacing shall be arranged between circuit breakers and also between all
. live terminals.
Adequate space within the cubicle shall be provided for termination, glanding,
. and bending of incoming and outgoing cables.

All wiring and busbars within the board shall be liberally rated so that current
.. density does not exceed 1.55 amps per square millimeter.

All necessary metering, protective devices, and alarms shall be included.
.. Neat and clean designations inside and outside shall be provided.

Switch board shall be suitable for free floor standing.
Grounding connections as per electrical code shall be provided.

APPENDIX C. INDUSTRIAL ELECTRICITY TARIFF STRUCTURES IN EGYPT
Electricity tariff stuctures in Egypt are fairly complex, especially for large industrial
users. This appendix examines and explains the features of the rate structures for Egypt’s
small and large industrial customers as of January 1991.
Electricity tariffs are designed to recover the cost to the utility of both providing the
equipment to generate the electricity, and the cost of operating the equipment. The first
category of charges is sometimes called “fixed charges,” because these charges help the
utility to recover the costs associated with providing the installed generating equipment.
The charges levied by the utility to recover these costs are generally built into the charges
for peak demand and power factor. (The power factor charge is discussed in Section C.2.)
Demand is a measure of the rate of energy consumption. The higher the demand, the
greater the electricity generating capacity required to supply that demand. Demand is
measured in unit of watts. Consumption is measured in kilowatt-hours and can be
considered to be the integral of the instantaneous demand over time. In other words, if
the instantaneous demand over a period of time is plotted against the time that the demand
occurred, the kilowatt-hour consumption would be the area under the load curve.
A useful analogy is a trip in an automobile. Demand is analogous to the rate of travel or

speed, in kilometers per hour. The faster the automobile travels, the higher the speed.
Consumption is analogous to the total distance covered during the trip. A car travelling a
a high rate of speed (a consumer with a high electricity demand) will cover a given
distance (consume a given number of kilowatt-hours of electricity) in a shorter period of
time than a car travelling at a lower rate of speed (a consumer with a lower electricity
demand).
Demand charges are generally based on either an actual measured peak demand or a
contracted peak demand. The utility must provide the generating, transmission, and
distribution equipment capacity to meet a user’s peak electric demand, even if that
maximum electric demand occurs for only a short period of time. Hence, the consumer
can incur substantial costs for a short duration of high electricity demand.
In addition, because the demand charges are based on the higher of contract peak demand
or actual measured peak demand, the consumer who contracts for a significantly higher
peak demand than actually required will also incur significantly higher electricity costs.
This will be explained further in the paragraphs below.
The second category of charges is sometimes called “variable charges” because these
charges help the utility recover their costs of operating the equipment (e.g. labor, fuel,
taxes, and other costs of operation). The cost of operation depends on the amount of
electricity generated. These costs are recovered in the kilowatt-hour charges.

INDUSTRIAL ELECTRICITY TARIFF STRUCTURES IN EGYPT C-2
C. 1 SMALL INDUSTRIAL TARIFF STRUCTURES
Small industrial tariff structures are applied to consumers with less than 500 kW connected
load. There are two separate tariff structures for consumers falling into this category (for
small industries operating in the Free Zone areas, a different tariff is applied; see Section
C.3). The small industrial tariff includes private sector industrial, agricultural, land
reclamation, and other customers. The structure is shown Exhibits C.l and C.2.
This tariff schedule is similar to the residential tariff structure. As with the residential
tariff, the small industrial tariffs are based only on electricity (kWh) consumption, and
there is no explicit charge for peak demand. This tariff is also broken down into a
number of discrete rate blocks.
There are a number of notable differences between this tariff and the residential tariff.
First, the number of rate blocks in the small industrial tariff is much reduced, compared to
the residential tariff. Second, the small industrial tariff is not a progressive tariff
structure: as the amount of consumption increases, the average cost for a kilowatt-hour of
electricity will decrease. Finally, the small industrial tariff structure is based on annual
consumption, not monthly consumption as is the residential rate.
The example on page C-4 illustrates the use of the small industrial tariffs.
Annual Electricity Consumption Cost per Kwh
First 70,000 kWh LE 0.0737

(0 to 70,000 kWh)
Next 100,000 kWh LE 0.0602

(70,001 to 170,000 kWh)
Additional kWh LE 0.0573

(over 170,000 kWh)
Exhibit C. 1
Small Industrial Electricity Tariff (Less Than 500 kw):
private Sector Industrial, Agricultural, and Land Reclamation Customers

INDUSTRIAL ELECTRICITY TARIFF STRUCTURESIN EGYPT C-3
Annual Electricity Consumption Cost per KWh
First 70,000 kWh LE 0.1694

(0 to 70,000 kWh)
Next 100,000 kWh LE 0.1385

(70,001 to 170,000 kWh)

(over 170,000 kWh)
Exhibit C.2
Small Industrial Electricity Tariff (Less Than 500 kw):
All Other Customers

INDUSTRIAL ELECTRICITY TARTFF STRUCTURES IN EGYPT C-4
Example
Consider two small private sector industrial consumers.

One consumer uses 275,000 kWh in a year and the other
uses only 125,000. What are the total electricity charges
and what is the average cost per kilowatt-hour of
electricity consumed for each?
The total cost for the 275,000 kWh consumer is:
70,000 kWh x LE 0.0737 = LE 5,159

100,000 kWh x LE 0.0602 = LE 6,020
105,000 kWh x LE 0.0573 = LE 6,017
----------------- --------------
275,000 kWh LE 17,196
The total cost for the 125,000 kWh consumer is:
70,000 kWh x LE 0.0737 = LE 5,159

55,000 kWh x LE 0.0602 = LE 3,311
--------------- ------------------
125,000 kWh LE 8.470
The average cost per kWh for the 275,000 kWh consumer
is 17196/27500 = LE 0.0625/kWh.
The average cost per kWh for the 125,000 kWh consumer
is 8470/125000 = LE 0.0678/kWh.
C.2 LARGE INDUSTRIAL TARIFF STRUCTURES
The tariff applied to large industrial customers (demand equal to or larger than 500 kW) is
the most complex of Egypt’s utility rate structures. Actually, two separate rate structures
are applied to this class of customers: a rate for lighting service and a rate for motive
power.
C.2.1 Industrial Lighting Service
The rate for industrial lighting service is similar to those for small industrial use: charges
are based on kilowatt-hour consumption only, with no explicit demand charge. However,

unlike the small industrial rate, which is regressive (the greater the consumption the lower
the rate), the lighting tariff is progressive (the greater the consumption, the higher the
rate). The rate is split into a number of rate blocks, which are illustrated in Exhibit C.3.
This rate structure is used to compute annual lighting service charges in exact1 y the same
way as the small industrial rate structure is used.
C.2.2 Industrial Motive Power Tariff
The large industrial motive power tariff applies to three major classes of customers:
public sector industries

national private sector industries
investment sector companies.
Annual Electricity Consumption Cost per kWh
First 100 kWh (0 to 100 kWh) LE 0.034

Next 100 kWh (101 to 200 kWh) LE 0.054
Next 150 kWh (201 to 350 kWh) LE 0.088
Next 150 kWh (351 to 500 kWh) LE 0.110
Next 500 kWh (501 to 1000 kWh) LE 0.130
Next 1000 kWh (1001 to 2000 kWh) LE 0.155
Next 2000 kWh (2001 to 4000 kWh) LE 0.165
Additional kWh (over 4000 kWh) LE 0.180
Exhibit C-3
Large Industrial Customer (500 kW or more):
Lighting Service Tariff
The tariff is based on three elements: a demand charge, a consumption charge, and a
power factor charge. In addition, for private and investment sector companies, a fuel
adjustment charge may be added. Each of these charges is discussed below.
Annual Demand Charge
The electric demand charge is based on the highest of one of three demands:
the contracted power in kW

the contracted power in kVA times 0.9

the actual recorded power in kW.
The annual cost per kW of demand is currently LE 82.1 Hence, the highest of the three
demands times LE 82.1 yields the annual demand charge. An example of the computation
of the demand charge is given below.
Example
An industrial user has a contract demand of 8333 kVA and a maximum

recorded peak demand of 5200 kW What is the annual demand charge for
the consumer?
The contract demand times 0.9 is 7500 kW. This is higher than the
maximum recorded demand of 5200 kW. Hence, the annual demand charge
is based on 7500 kW. The actual charge is LE 82.l/kW/yr x 7500 kW =
LE
Annual Consumption Charge
The consumption charge is based on annual kilowatt-hours of electricity used, but the
tariff is set up into a "floating" rate block structure. The number of kilowatt-hours in
each rate block depends on the contract demand of the consumer. The consumption tariff
schedule is illustrated in Exhibit C.4.

Annual Electricity Consumption Cost per KWh
First 1000 hours times demand LE 0.1471
Next 500 hours times demand LE 0.1384
Exhibit C.4
Industrial Customer (500kW or more):
Motive Power Electricity Consumption Tariff
In the tariff structure above, the demand used is again the highest of the contracted power in kW, the
contracted power in kVA times 0.9, or the actual recorded power in kW. This is shown in the example
below.

Impact of Contract Demand on Annual Consumption and Demand Charges
Both the demand charge and the consumption charge are heavily dependent on the billing
demand. If the billing demand is very much in excess of the actual measured peak
demand, it is possible that the demand and consumption charges are excessively high.
This is often the case in Egypt, where the contract demand is negotiated with a mind
towards future facility expansion. A renegotiation of contract demand to a level closer to
actual maximum demand can result in substantial savings. The example below illustrates
this.

Annual Power Factor Penalty
The final element of the industriai tariff is the cost of the power factor penalty. This
penalty is applied when the measured power factor is less than 0.9, and is based on the
kilowatt-hour consumption and average cost per kilowatt-hour. A poor power factor can
be easily increased to 0.90 or above, thereby eliminating the annual power factor penalty
charge.
The power factor penalty depends on how much the measured power factor is below 0.9.
When the power factor is less than 0.9 but higher than 0.6, the penalty is computed

according to the following formula:
Penalty = [(0.9 - P.F.)/2] x yearly kWh x avg LE/kWh
When the power factor is equal to or less than 0.6 but greater than 0.4, the penalty is
effectively doubled and computed according to the following formula:
Penalty = [0.9 - P.F.] x yearly kWh x avg LE/kWh
When the power factoris 0.4 or less, the electricity distribution company can refuse to
provide electric serviceto the consumer.
The example below illustrates how the power factor penalty is computed.

Fuel Adjustment Charge
For private and investment sector companies, a fuel adjustment charge is added monthly to
the bill. This charge is a fixed rate per kWh of consumption. Its primary purpose is to
compensate for differences in the quantities and the prices of petroleum fuels that are used
for electricity generation. Unfortunately, the fuel adjustment charge cannot be known in
advance, and therefore cannot be used accurately in budgeting energy costs or calculating
paybacks of energy-savings measures. It can vary from month to month, and has been quite
significant in the past. During the early part of 1990, for example, the fuel adjustment charge
was as high as LE 0. l0/kWh, that is, nearly double the actual tariff charges for consumption.
This means that nearly two-thirds of the cost of electricity was the fuel adjustment charge.
In several months of late 1990, however, the fuel adjustment charge was nil. The fuel
adjustment charge is not applied to public-sector companies.

C.3 PROJECTS IN THE FREE ZONE AREAS
Tariffs for industries in the Free Zone areas are quite simple; they are made up of a demand
charge and a flat rate consumption charge. The demand charge is as defined in Section
C.2.2: it is an annual charge based on the maximum of the contracted kW (or 0.9 times
contracted kVA) and the actual recorded kW. Charges and rates are based primarily on
supply voltage; note that they increase significantly for lower-voltage supply. The tariffs are
summarized in Exhibit C.5.

Ultrahigh Voltage (500 kV; 220 kv); 500 kW or more
Demand Charge: LE 107.90/kW/yr

Consumption Charge: LE 0.0575/kWh
High Voltage (132 kV; 66 kv); 500 kW or more

Consumption Charge: LE 0.0669/kWh
Medium Voltage (11 kv); 500 kW or more

Consumption Charge: LE 0.l026/kWh
Medium Voltage (11 kv); less than 500 kW

Low Voltage (380 V); less than 500 kW

Exhibit C.5
Demand and Consumption Tariff
for Projects in the Free Zone Areas

APPENDIX D: QUICK PROCEDURE FOR CALCULATION OF ELECTRICAL
OUTPUT OF STEAM TURBINES
The curves shown here will enable you to make a quick estimate of the electrical output of a
steam turbine cogeneration system. You can use the curves for any combination of inlet
pressure, extraction pressures and rates, and backpressure or vacuum.
To use the curves, first find the inlet pressure on the abscissa and draw a vertical line to
intersect with the curve for the exhaust pressure or for the first extraction pressure. Find the
ordinate value and multiply this by the steam flow through the turbine or through the first
extraction valve. If the turbine is an extraction machine, repeat the process for each extraction
point, multiplying the value found on the ordinate by the extraction flow at the point and
adding the results. A double-extraction turbine is shown below as an example:
Total kilowatt output is found from the curves as: kW = X 200) + (66 X 150) + (122 X 50) = 24,800

QUICK PROCEDURE FOR ELECTRICAL OUTPUT CALCULATION D.2
o 400
(2756)
Process-steam pressure, psig(kPa)

APPENDIX E: CONVERSION TABLES FOR ENERGY UNITS
The table of conversion factors in Exhibit E.2 serves primarily to convert from the English
(engineering) system of units to the metric system (or SI, for Systeme International), and vice
versa. These and more detailed and less common conversion units can be found in standard
engineering handbooks. Some of the more commonly used conversion factors are presented
in Exhibit E.2. The exhibit is divided into four major sections: conversion factors for mass,
volume, energy and pressure. In each section of the exhibit, one obtains the desired units
(represented in the columns) by multiplying the existing units (represented in the rows) by the
number in the table that intersects the “desired” column and “existing” row. Examples of the
use of the table are given in Exhibit E.1.
Convert 1200 pounds to kilograms.
From the top portion of the table (mass conversion factors), find the row
corresponding to pounds. Read across the row to the column headed by
kilograms. The conversion factor is 0.454. 1200 x 0.454 = 544.8 kg.
Convert 1800 cubic feet to cubic meters.
From the middle portion of the table (volume conversion factors), find the row
corresponding to cubic feet. Read across the row to the column headed by cubic
meters. The conversion factor is 0.0283. 1800 x 0.0283 = 50.94 m3.
Covert 3000 kilowatt-hours to Joules.
From the bottom portion of the table (energy conversion factors), find the row
corresponding to kilowatt-hours. Read across the row to the column headed by
Joules. The conversion factor is 3.6E6, or 3,600,000. 3000 x 3,600,000 is
10,800,000,000 Joules. Because 1 Joule is a very small unit of energy, Joules
are not generally used as a unit of energy. The units kilojoules (one thousand or
lo3 Joules) or gigajoules (one thousand million or l09 Joules) are more commonly
used. These units are obtained by dividing the number of Joules by either l0 3
(kilojoules, kJ) or l09 (gigajoules, GJ).
Exhibit E.1
Examples of the Use of Unit Conversion Tables

CONVERSION TABLES FOR ENERGY UNITS E-2
Exhibit E.2
Commonly Used Conversion Factors: Mass, Volume, Energy, Pressure
Mass To Obtain:
tonne tonne
[metric] (short)
pound by 1 0.454 4.54E-4 5.0E-4

kilogram by 2.2046 1 1.0E-3 l.l02E-3
tonne (metric) by 2204.6 1000 1 1.1023
tonne (short) by 2000 907.2 0.9072 1
Volume To Obtain:
cubic cubic gallonbarrel

Multiply feet
-------- meter (U.S.)(petr)
cubic foot by 1 0.0283 28.312 7.48050.1781

cubic meter by 35.314 1 1000 264.1736.29
liter by 0.0353 0.001 1 0.26426.3E-3
gallon (U.S.) by 0.13368 3.79E-3 3.785 10.0238
barrel (petroleum) by 5.6146 0.15897 159.0 421
Energy To Obtain:
Multiply BTU Joule kcal kWh

------------- ------------ -----------
BTU by 1 1054.8 0.252 2.93E-4

Joule by 9.480E-4 1 2.391E-3 2.78E-7
kcal by 3.9685 4187 1 l.l6E-3
kWh by 3412 860 1

CONVERSION TABLES FOR ENERGY UNITS E-3
Exhibit E.2, continued
Pressure To Obtain:
inch mm kio-
Multiply water mercury pascalbar
psi by 1 28.160 52.707 6.89460.068946

inch water by 0.0355 1 1.8717 0.248842.4884E-3
mm mercury by 0.01897 0.53427 1 0.13291.329E-3
kilopascal (kPa) by 0.14504 4.0187 7.5218 10.01
bar by 14.504 401.87 752.18 1001
Note 1: All the pressure units except kilopascals are relative, and should be identified as to whether they are
based on absolute or gauge measurements. Kilopascals are always an absolute measurement, with 0
kPa corresponding to a perfect vacuum. In this manual, “bar” is used to denote absolute pressure;
“barg” is used to denote relative, or gauge, pressure.
Note 2: In this exhibit, the suffix E designates that the number is to be multiplied by the power of ten
indicated. For instance, the number 3.53E-3 is 3.53 x 10-3 or 0.00353.
Exhibit E.3
Metric System Multipliers
deca (d) 10 giga (G) 109
hecto (h) l02 tera (T) l012
mega (M) 106 peta (P) 1015

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1.1 A BRIEF HISTORY OF COGENERATION

through legislation encouraged the installation of these facilities, contributing to phenomenal

1.2 THE CONCEPT OF COGENERATION

In a central-station steam thermal plant, fuel is burned to produce high-temperature, high-

In a boiler/steam turbine cogeneration application, for example, the high-pressure steam

Energy Conservation and Efficiency Project (ECEP)

1.3 THE BENEFITS OF COGENERATION

Fewer electricity shortages. Cogeneration by industrial and large commercial

Energy Conservation and Efficiency Project (ECEP)

Source: RCG/Hagler, Bailly, Inc.

(Add 293 kJ heat)

Note: All pressures are

Source: RCG/Hagler, Bailly, Inc.

Reduced or deferred capital expenditures for power plant construction. As a

Enhanced efficiency of electric utility service. If properly applied and implemented,

1.4 FACTORS INFLUENCING THE VIABILITY OF COGENERATION

minimum size to take advantage of economies of scale

Owing to these considerations, each cogeneration opportunity must be evaluated individually.

1.5 THE PURPOSE AND STRUCTURE OF THIS MANUAL

This manual provides comprehensive information on the fundamentals and applications of

Energy Conservation and Efficiency Project (ECEP)

It also provides information on how to conduct preliminary feasibility studies to support a

Energy Conservation and Efficiency Project (ECEP)

A discussion of the concepts and applications of cogeneration requires familiarity with a

2.1 TYPES OF COGENERATION SYSTEMS

There are two fundamental types of cogeneration systems (Exhibit 2.1):

2.1.1 Topping-Cycle Systems

In a topping-cycle system, the thermal energy exhausted in the production of electrical or

Energy Conservation and Efficiency Project (ECEP)

Source: RCG/Hagler, Bailly, Inc.

2.1.2 Bottoming-Cycle Systems

In a bottoming-cycle system, thermal energy that is exhausted in the industrial process is

steam bottoming systems

2.2 FUELS FOR COGENERATION SYSTEMS

2.2.1 Fuel Choice

Energy Conservation and Efficiency Project (ECEP)

Prime Mover Configuration Fuel Options

Steam Turbine High-pressure boiler Coal, fuel oil (residual and

a) Boiler-Steam Turbine Cogeneration Configuration

FUEL INPUT STACK

b) Gas Turbine-Waste Heat Recovery Cogeneration Configuration

Source: RCG/Hagler, Bailly, Inc.

a) Reciprocating Engine/Heat Recovery Cogeneration Configuration

b) Combined-Cycle Cogeneration Configuration

Source: RCG/Hagler, Bailly, Inc.

CONDENSATE FEED WATER

a) Steam Cycle Configuration

b) Organic Rankine Cycle Schematic

Source: RCG/Hagler, Bailly, Inc.

2.2.2 Fuel Heating Values

Energy Conservation and Efficiency Project (ECEP)

Source: RCG/Hagler, Bailly, Inc.

Source: RCG/Hagler, Bailly, Inc.

Typical Analysis of Natural Gas

Specification of Fuel Oil

Bagasse Average Composition

Average higher heating value of dry bagasse = 17,700 - 21,200 W/kg