Project developers, insurers, financiers, and maintenance organizations have an interest in quantifying technical risks and evaluating risk mitigation alternatives for combustion turbine (CT) power plants. By identifying exposure to risk early in the project development process, optimal procurement decisions, and mitigation measures can be adopted for improved financial returns. This paper describes a methodology used to quantify all nonfuel O&M costs, including scheduled and unplanned maintenance, and business interruption costs due to unplanned outages. The paper offers examples that demonstrate the impact of technical risk on project profitability. An overview of activities required for addressing technical risk as part of the equipment selection and procurement process is provided, and areas of technical improvements for reducing life cycle costs are described.

Issue Section:
Gas Turbines: Electric Power
Keywords:
turbines, power plants, risk management, power generation faults, power generation economics, life cycle costing, project engineering, product development, maintenance engineering
Topics:
Combustion, Life cycle costing, Maintenance, Profitability, Risk, Turbines, Risk mitigation, Power stations
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EPRI, 2000, “CT Project Risk Analyzer Workbook Software Version 1.0: User’s Manual and Tutorial,” EPRI, Palo Alto, CA, Report No. 1000338.
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Copyright © 2003
 by ASME
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