Page 164 - Sustainable On-Site CHP Systems Design, Construction, and Operations

Fundamental Concepts 137

• Economic analysis including life-cycle analysis
• Financing options
• Preliminary project schedule
• Supporting documents for project execution (proposals, costs, design docu-
ments, etc.)

Level 2 Feasibility Study—Typical Outline
As indicated in Level 1 feasibility study requirements for a typical outline of the feasi-
bility study report, each organization has its own style and format for studies. For a
typical Level 2 feasibility study the report should include the following sections: (Based
US EPA—Combined Heat and Power Partnership Web site http://www.epa.gov/chp/
documents/level_2_studies_september9.pdf):

• Executive summary
• Description of existing site plan and equipment
• Site energy requirement
• CHP equipment selection
• Description of preferred CHP system
• System operation
• Regulatory and permitting requirements overview
• Total CHP systems costs
• Assumptions for cash flow analysis
• Discounted cash flow analysis for preferred system
• Appendices

CHP Feasibility for New Facilities
A CHP system for new installations can be considered during the early stages of the
design (conceptual design phase). As explained previously, the same qualification test
presented in the section “CHP Qualification Screening—Existing Facility” can be
applied for new facilities as well. If a CHP system is found to be favorable, the designer
can propose a CHP system as part of the development of the design alternatives. With
the increased utilization of building energy simulation programs, a preliminary model
of the facility can be developed to assist the designer in analyzing various design alter-
natives, where a CHP system can be one of the alternatives or one of several design
alternatives (involving different CHP system sizes). Since optimal CHP prime mover
sizing is more complex than other mechanical and electrical equipment in buildings,
combining the strength of the building energy simulation program and other tools for
optimal selection of CHP prime mover and absorption chiller (e.g., the ORNL CHP
Capacity Optimizer) can be very beneficial.
The following is a brief description of a procedure that can be applied for evaluating
a CHP system in the conceptual stage of the design. This procedure is based on utilizing