Page 160 - Handbook of Energy Engineering Calculations

2. Select a life-cycle cost model for the gas turbines being considered
A popular and widely used life-cycle cost model for gas turbines has three

parts: (1) the annual investment cost, C ; (2) annual fuel cost, C ; (3) annual
f
p
maintenance cost, C . Summing these three annual costs, all of which are
m
expressed in mils/kWh, gives C , the life-cycle cost model. The equations for
T
each of the three components are given below, along with the life-cycle
working model, C :
T
The life-cycle cost model (C ) consists of annual investment cost (C ) +
T
p
annual fuel cost (C ) + annual maintenance cost (C ). Equations for these
f
m
values are:

where
l = initial capital cost of equipment, dollars

i = interest rate
n = number of payment periods
A = availability (expressed as decimal)
kW = kilowatts of electricity produced

8760 = total hours in year
G = efficiency of electric generator
C = E(293)
f
where
E = thermal efficiency of gas turbine