Technoeconomics of power/desalting cogeneration plants in Kuwait — A preliminary study

Abstract

Cogeneration power/desalting plants offer economic advantages over single-purpose plants. These advantages are derived from more efficient utilization of fuel and savings in capital investment costs of common components. The allocation of capital investment and operational costs could become a complex issue and a source of dispute. Two basic cost allocation methods have been established. These are the credit and available energy (exergy) methods. While most previous published studies have adopted the credit method, relatively very few have tackled the available energy method. Although the available energy method will typically predict power and water cost values from totally impartial standpoint, it has the disadvantage of being complex. This paper aims to preliminary examine the technoeconomics of large power/desalting cogeneration plants. Methods for the allocation of capital investment costs of different systems and operational costs will be established. Power generation and water production units costs are determined and related to the mode of operation. Sensitivity analysis with respect to systems lifetime, interest rate and fuel prices is also provided.