Investor Presentaiton
CHP Cost to Generate Power
Operating Assumptions
Economic Analysis
⚫ The economic benefits of any CHP project are
dependent on efficient design, fuel and offset
electricity costs, and capital costs.
The value of these benefits will depend on the
needs and goals of the investor.
A feasibility analysis to determine the technical
and economic viability of a project is typically
performed in stages in order to minimize costs
and expenses from nonviable projects.
• Economic analyses have led to substantial new
CHP deployment in areas with electricity prices
exceeding $0.07/kWh. However, many other fuel
types, system configurations, and deal structures
can overcome seemingly marginal economics if
there is a strong technical fit and high efficiency.
CHP Power to Heat Ratio
CHP Electric Efficiency (%)
32.0%
0.7
Displaced Thermal Efficiency
80.0%
95.0%
Incremental CHP O&M Costs ($/kWh)
CHP Fuel Cost ($/MMBtu)
Displaced Thermal Fuel Cost ($/kWh)
$0.0100
$8.30
$8.30
Thermal Utilization (%)
Operating Cost to Generate
CHP Fuel Costs ($/kWh)
Thermal Credit ($/kWh)
Incremental O&M ($/kWh)
$0.0885
($0.0480)
$0.0100
Operating Costs to Generate Power (kWh) $0.0505
Capital Cost
Installed CHP System Cost ($/kW)
$1,200
Annualized Cost Factor (%)
8%
Operating Hours
8,500
Capital Charge ($/kwh)
$0.0113
Total Costs to Generate Power (*/kWh)
$0.0618
http://www.epa.gov/chp/basic/economics.htmlView entire presentation