Page 159 - Handbook of Energy Engineering Calculations

economy by switching to the lowest-cost fuel whenever necessary. Further
developments along these lines is expected in the future.
The data in the last three paragraphs and the two illustrations are from
Power magazine.

INDUSTRIAL GAS TURBINE LIFE-CYCLE COST-MODEL
BEST RELATIVE-VALUE DETERMINATION

An industrial application requires a 21-MW continuous electrical output year-
round. Five different gas turbines are under consideration. Determine which
of these five turbines is the best choice, using a suitable life-cycle cost
analysis.

Calculation Procedure:

1. Assemble the cost data for each gas turbine being considered
Assemble the cost data as shown below for each of the five gas turbines
identified by the letters A through E. Contact the gas-turbine manufacturers
for the initial cost, $/kW, thermal efficiency, availability, fuel consumption,

generator efficiency, and maintenance cost, $/kWh. List these data as shown
below.
The loan period, years, will be the same for all the gas turbines being
considered, and is based on an equipment life expectancy of 20 years. Interest

rate on the capital investment for each turbine will vary, depending on the
amount invested and the way in which the loan must be repaid and will be
provided by the accounting department of the firm considering gas-turbine
purchase.

Equipment Attributes for Typical Candidates *