Abstract
The low capital cost, low lead times, and flexible operation of natural gas combustion turbines are qualitatively different from other power generation technologies and have the potential for faster investment payback. We explore this hypothesis with a retrospective analysis of natural gas combustion turbine economics in six locations, with revenue from energy, frequency regulation, reserve, and capacity markets. Using historical data, we find payback periods from 8.5 to 15 years. Gas turbines can be financially justified with a single profitable decade of service and are thus more economically compatible with a decarbonizing grid than other types of fossil fuel infrastructure. • Gas turbines have the potential for faster investment payback than most generators. • In a retrospective analysis, we find gas turbine payback periods of 9–17 years. • Low natural gas prices and profitable ancillary services support turbine economics. • Energy storage can compete with gas turbines in the future, though imperfectly.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
