Abstract
Gas turbine-based combine cycle (GT-CC) economic evaluation is very important to bring together own equipment manufacturing companies (OEM’s) and power plant owners. The fuel cost & cost of electricity play the major role in economic evaluation which drives the decision during the bidding.
The first portion of this paper encompasses the different cost analysis methods like Net Present Value (NPV), Internal Rate of Return (IRR), Levelized Cost of Electricity (LCOE) and Pay Back Period (PBP) for different fuel costs and electricity prices.
The second portion of the paper covers the delta cost benefits due to improvement in the combined cycle degradation GT-CC operators or customers are looking for the opportunities to control and minimize the degradation of the gas turbine power plant which directly impact the profitability. The customer or operator always monitor the plant performance to understand the life cost impact on performance degradation.
This paper will help the customers & GT-CC OEM companies to focus on different area to reduce the unit cost of generating electricity, decide to move forward with the project during the proposal and improve the business at various regions based on fuel cost and global geographical political situations. Also, the reader can digest the benefits of improved degradation curve over the normal curve.
