Energy cost optimization through the implementation of cogeneration and grid interconnection

Abstract

As a summary, we first introduced the cogeneration concept leading to improved energy utilization by burning less fuel and reducing unfriendly emissions. Then, we gave an overview of power generation statistics in the Arab World, underlining the fact that more that 92% of its generation is obtained by burning the equivalent of close to one billion barrels of crude oil annually with poor thermal efficiencies. As an example to improve this situation, we presented a case study involving Saudi Arabia and its leading role into cogeneration implementation. We covered its existing facilities that already make 24% of its total generation, and shed some light on the future plans. Finally, we introduced the power system interconnection between Arab countries as a must and basic contribution to reach the objectives regarding energy conservation and the tighter environmental regulation from national and international standards. A coordinated action can lower the reserve capacity to 12%, and save 11 billion dollars on capital cost, in addition to the fuel, operating and maintenance, and other expenses.