Page 163 - Sustainable On-Site CHP Systems Design, Construction, and Operations

136 T h e Fe a s i b i l i t y S t u d y

Level 2 Feasibility Study—Existing Facility
Once a Level 1 feasibility study has been found to be economically and technically fea-
sible, the Level 2 feasibility study is initiated. Many of the preliminary assumptions
used in the Level 1 feasibility study will be replaced with more accurate data. Addi-
tional data such as operational goals, controls, monitoring, and off-grid capabilities will
also be incorporated in this study, so as to revise and optimize the preliminary sizing
presented in the Level 1 feasibility study. The results of Level 2 feasibility study should
include all the information needed to make a decision on whether to proceed with the
project, and typically includes
1. More accurate estimated construction, operation, and maintenance pricing
2. Estimates of the final project economics with a simple payback schedule and a
life-cycle cost analysis of the total investment
The economic analysis will be based on final system sizing and proposed operation
and will be based on more accurate thermal and electrical load profiles. Accurate data
in this regard is measured data obtained from trending (utilizing the existing control
system or installing new instrumentation) or from electric utility interval data. Planned
site expansion or new construction has to be considered and coordinated with various
entities in this facility; for example, engineering, planning, and construction. In cases
where the CHP is part of a new construction, substantial cost savings can be achieved,
and these avoided costs have to be incorporated in the total implementation cost resulting
in improved return on investment of the system.
Several site visits and a comprehensive review of the existing conditions will be
required as part of this study, thereby allowing the decision maker to make a well-
supported decision.
Typically a Level 2 feasibility analysis report should include the following:

• Site load profiles
• System operational schedule
• Mechanical and electrical system components
• Heat recovery
• Systems efficiency
• Sound levels
• System vibration
• Space considerations
• System availability during utility outage
• Utility interconnection
• Emissions and permitting
• Capital cost
• Fuel costs
• Maintenance costs
• Availability of incentives