Annualized Life Cycle Cost Research Articles

The overhauls technical innovation project optimization method of power grid device based on Life Cycle Asset Management

In order to realize the precise management of investment in equipment overhauls technical innovation project, this paper fully analyzed the cost characteristics of equipment in every section of the life cycle and established the actual available Life Cycle Cost (LCC) model and provided a combination forecasting method to forecast the future costs. Then this paper obtained the full life cycle cost of the equipment for overhauls technical innovation project. By comparison of the two average annual LCC costs of overhaul and technical innovation project, the final optimization project with the best economic benefit could be determined. Case analysis verified the economics of the method, which could provide decision support for precise investment in the power grid.

Design and economic analysis of off-grid solar PV system in Jos-Nigeria

Around the globe, renewable energy sources and their associated technologies are critical to power generation. The solar photovoltaic (PV) system is one of the renewable energy systems supporting electricity consumption in the residential domain. Despite the potential of solar PV as well as an appreciable amount of global solar radiation in the region, no previous study has examined the viability of the PV system for off-grid electricity production in Jos, Nigeria. This paper focuses on examining the feasibility of deploying an off-grid PV system to drive the electricity consumption of a residential building in Jos, Nigeria (9.9ON, 8.9OE, 1204.87 m). The paper adopts a mathematical modelling method for designing and analyzing the entire PV systems to drive the power consumption of the households. By applying mathematical modelling approach, the results demonstrate that 10 MLE275HD2 PV modules each of 275 Wp and five batteries of 100 Ah can satisfy the annual electricity consumption of approximately 3132 kWh. Further, an economic analysis carried out by using the life-cycle cost (LCC) analysis depicts that the LCC, the annualized life-cycle cost (ALCC) and cost of electricity (COE) to be US$ 10,110.85, US$ 593.75 and US$ 0.18/kWh respectively. The results of this modelling demonstrate both the technical and economic viability of the off-grid PV system for power generation, and can serve as a model to the successful development of the system for real application. Further, the model can encourage the stakeholders in the renewable sector to provide the support mechanisms towards the adoption of the PV system in the residential buildings.

Techno-economic assessment of energy storage systems using annualized life cycle cost of storage (LCCOS) and levelized cost of energy (LCOE) metrics

Abstract Energy generation from renewable energy sources (RESs) is rapidly developing across the world to improve the performance of power networks and increase the share of RESs in world energy production. In this regard, energy storage (ES) technologies are the key enablers for reliable use of renewables because they introduce many benefits for modern power systems. However, the choice of a suitable technology depends on several techno-economic metrics, which require the decision-maker to investigate the applicability of the technology and whether it offers promising benefits or not. Hence, this paper presents an ES cost model that considers long-term, medium-term, and short-term ES applications, technologies and technical characteristics in an integrated framework that consider the ES technical and economic characteristics supported by in-market insight, including capital costs of the technologies; operation and maintenance costs; replacement costs during the lifetime of the system; and disposal and recycling costs, based on the current ES costs. Two key metrics, namely the annualized life cycle cost of storage (LCCOS) and the levelized cost of energy (LCOE), are used to make proper ES operational choices while complying with their technical and operational performance limits. Further, a sensitivity analysis of the governing factors that affect the storage cost is presented to introduce a powerful decision tool to empower techno-economic assessment of ES systems using the proposed cost models.

Economic consequences of consumer repair strategies for electrical household devices

PurposeThe purpose of this paper is to investigate to what extent a consumer’s repair strategy impacts the annual costs of ownership of a washing machine and two types of vacuum cleaner.Design/methodology/approachThe annual cost of ownership is determined by calculating the annual life cycle cost (LCC) for the respective devices. The annual LCCs of the different scenarios allow a comparison of the different repair strategy options. A Monte Carlo simulation is run to introduce parameter variability. The device’s failure rate is estimated by a combination of data sets on the devices’ performance.FindingsResults demonstrate that the repair of the devices considered is a more favourable option over replacement. A consumer who aims for the lowest annual LCC should allow for a high number of repairs per device, without putting a maximum on the cost per repair. However, the consumer should become more cautious when a device approaches the end of its expected lifetime. Finally, the purchase of warranty can be interesting when the warranty covers a sufficiently long proportion of the device’s (expected) lifetime and when its cost does not exceed a threshold proportion of the initial purchase price.Research limitations/implicationsThe costs for repair might be overestimated. Future research can focus on the reduction of repair costs following self-repair.Practical implicationsThe results provide strong arguments in favour of repair instead of replacement of broken devices.Originality/valueThis is the first research to quantify the influence of consumer behaviour in the context of repair of devices on the ownership costs of these devices.

Optimal selection and techno-economic analysis of a hybrid power generation system

In this paper, four alternatives used to supply electrical energy were compared economically, a photovoltaic system, wind turbine system, small experimental solar power tower system, and diesel generator. The annualized life cycle cost, life cycle cost, and energy production cost were utilized as dynamic indicators to estimate the economic-effectiveness of these systems. The cost of energy was $2.98/kWh, $1.19/kWh, $1.18/kWh, and $1.06/kWh for the wind turbine system, diesel generator system, solar power tower system, and photovoltaic system, respectively. Different hybrid system combinations were investigated. The impact evaluation of various hybrid system combinations on the cost of energy production and energy index of reliability was carried out by utilizing the technique of multivariable linear regression. The best performing combination was distinguished based on a compromise between the impact on the cost of production and the energy index of reliability for the hybrid combination by implementing the analytical hierarchy process technique. The concept of particle swarm optimization is discussed herein. Particle swarm optimization programming codes in the MATLAB environment were created and solved successfully. The results obtained from the algorithm of particle swarm optimization were used to verify the authenticity of the results obtained from the analytical hierarchy process technique. The results indicate that the combination photovoltaic/diesel has the best fit between the impact on the cost of production and the energy index of reliability of the hybrid alternative; hence, it is the best alternative for supplying the needed electricity to the loads in the compound.

Design and economic analysis of a stand-alone hybrid photovoltaic energy system for remote healthcare centre

ABSTRACT This paper presents design of a stand-alone hybrid photovoltaic (PV) energy system according to the daily electrical load demand of remote healthcare centre located in Madhya Pradesh, India. It employs an optimal design and sizing of hybrid PV energy system (PV generator, battery, inverter and diesel generator) according to load demand. An economic analysis has been presented for selection of an optimum hybrid PV energy system using a hybrid optimisation model for electric renewable (HOMER) software. Paper also presents comparison of environmental aspects of hybrid PV energy system with conventional system. The initial costs of PV–diesel–battery and diesel–battery systems are $2,418 and $879, respectively. Net present cost of PV system is $13,523 and diesel system is $20,515. Results show that hybrid PV–diesel–battery energy system is more economical and environmentally friendly energy system for remote healthcare centre. Hence, it can be concluded that the renewable energy systems is a better option for healthcare centre in remote areas. Abbreviation: PV: Photovoltaic; HOMER: Hybrid optimization model for electric renewable; IEA: International energy agency; RES: Renewable energy system; HES: Hybrid energy systems; BTS: Base transceiver station; NPC: Net present cost; COE: Cost of energy; OC: Operating cost; LCC: Life cycle cost; ALCC: Annualized life cycle cost; GHG: Greenhouse gases; DG: Diesel generator; NOCT: Nominal operating cell temperature; SOC: State of charge; CC: Capital cost; RC: Replacement cost; OM: Operation & management cost; BOS: Balance of system; CGE: Cost of generated electricity; DOD: Depth of discharge

Economic sustainability of food supply chains: Life cycle costs and value added in the confectionary and frozen desserts sectors

The confectionary and frozen desserts sectors are important parts of the food industry but have received relatively little attention from a life cycle cost perspective. Thus, the purpose of the current study is to evaluate the life cycle costs (LCC) and value added (VA) in these sectors in the UK, focusing on four major product categories: biscuits, cakes (ambient and frozen), chocolates and ice cream. In total, 18 products are considered along their life cycles, including the raw materials, manufacturing, packaging, distribution, retail, consumption and waste management stages. The results suggest that cakes have the highest LCC (£1.52–2.64/kg) and the biscuits the lowest (£0.72–0.91/kg). The LCC of chocolates and ice cream fall within a similar range (£1.16–1.46/kg and £1.03–1.30/kg, respectively). Divergent trends are noted between LCC and VA: for instance, ‘premium’ ice creams have only 18% higher costs than their ‘regular’ counterparts, but a four-fold higher VA. For all the products, raw materials contribute most to the costs (43%–95%), followed by packaging (1%–29%) and manufacturing (1%–14%). The annual LCC at the sectoral level are estimated at £3.455 billion, to which biscuits contribute 42%. The share of chocolates and cakes is 24% and 19%, respectively, with ice cream contributing the remaining 15%. By contrast, chocolates contribute more than 50% of the total sectoral VA, which is five-fold higher than that of ice cream. The study also demonstrates how LCC can be used to evaluate the eco-efficiency of products and sectors. With respect to global warming potential, whole cakes are the most eco-efficient and vanilla regular ice cream the least efficient products. Overall, the confectionary sector is nearly 60% more eco-efficient than the frozen desserts sector. These results can be used for benchmarking and to drive innovation towards more economically-sustainable and eco-efficient confectionary and frozen desserts supply chains.

Cost effectiveness of crack treatment methods: A field study

Abstract In the United States, more than 94% highways are paved with asphalt materials and placing crack sealant materials has been a common pavement maintenance for decades. Crack sealing treatment includes the use of a router to create a reservoir on the intended cracks whereas crack filling is given without doing any modification to the crack wall. Although the initial cost of crack sealing is higher, it is expected to have a longer service period compared to crack filling. There is little research on comparison of short and long term cost effectiveness between these two treatments using the real field cost data analysis. In this study four test sites in Texas were treated with crack filling and sealing using the same sealant material and finishing technique. Cost effectiveness of both treatments was measured in terms of initial, annual average and life cycle cost based on the cost inputs during construction. In general, the results of this study indicated that (1) on an average approximately 45% initial cost increase was estimated with the two routing configurations of crack sealing; (2) material and labor cost is found to have the most significant effect on the higher initial cost of crack sealing compared to other associated costs; (3) annual average and life cycle costs have shown that crack sealing is more cost effective pavement maintenance compared to crack filling over a long period of time; (4) agency cost is observed to be reduced by approximately 24% with crack sealing treatment based on the 35 year analysis period.

Techno-economic comparison of solar power tower system/photovoltaic system/wind turbine/diesel generator in supplying electrical energy to small loads

ABSTRACTThis study presents a techno-economic comparison of four alternatives (experimental prototype of concentrating solar power tower system, photovoltaic (PV) system, collapsible vertical axis wind turbine and diesel generator) to supply electrical energy for a small compound of buildings. Among the services needed in the compound are the provision of an adequate drinking water, health centre for immunization purposes, and learning centre. The result of this study shows that the amount of electrical energy needed to meet the basic power requirements is 7.3 kWh/day. Detailed analysis and design requirements of the four alternatives are presented. Dynamic indicators (life cycle cost, annualized life cycle cost and cost of energy production) were applied to evaluate the economic-effectiveness of these energy supply systems. The cost of energy was $1.06/kWh, $1.18/kWh, $1.19/kWh and $2.98/kWh for the PV system, solar power tower system, diesel generator system and wind turbine system, respectively. Providing electricity to the compound buildings using solar power tower and PV systems is very beneficial and competitive among the other types of energy sources.

Selection of sustainable municipal water reuse applications by multi-stakeholders using game theory

Globally the trend of water reuse has been increasing. The public perception and government regulations are supportive for reclaimed water use in Canada. Reclaimed water can be used in variety of applications that may have different performance in economic, environmental and social dimensions for various stakeholders, indicating decision on water reuse selection is complex. This research proposes a multi-criteria multi-decision-makers framework combining multicriteria decision analysis (MCDA) and game theory for a selection of a sustainable water reuse application. The proposed framework is applied to the City of Penticton, BC, Canada. The evaluation criteria included were environmental: fresh water saving, energy use, and carbon emissions; economic: annualized life cycle cost; and social: government policy, public perception, and human health risk for three stakeholders: municipality, citizens, and farm operators. The game theory is applied to eight water reuse options considering a cooperative game. The result shows that lawn, golf course and public park irrigation and toilet flushing with an equal sharing of municipal benefits between the municipality and citizens is the optimal solution. By using the solution, the municipality can have an additional saving of approximately $35/household/year and the citizens have to spend an additional amount of approximately $100/household/year for dual plumbing of toilet and lawn for reclaimed water use. The additional expenditure for the citizens is within Canada's public willingness to pay an additional charge for reclaimed water use. The scenario analysis shows that the weights of sustainability criteria are important in decision-making. Also, the sensitivity analysis shows that the change in the amount of reclaimed water availability can affect water reuse sustainability performance. The proposed framework can also be used in other applications by changing the number of evaluation criteria and stakeholders as required.

Sustainability assessment of home-made solar cookers for use in developed countries

The sustainability benefits of using solar cookers in developing countries have been analysed widely in the literature. However, the sustainability potential of solar cookers in developed economies has not been explored yet, which is the topic of this paper. Three types of solar cooker – box, panel and parabolic – were built as part of this research, using mostly (>70%) reused household materials. Their life cycle environmental and economic performance was analysed and compared to conventional microwaves. The results were first considered at the level of individual cookers and then scaled up to the levels of a city, region and country, considering a conservative (10%) uptake of solar cookers in substitution of microwaves. The contribution of home-made solar cookers to a circular economy and their social sustainability were also analysed. Spain was used as an illustrative example to demonstrate the potential sustainability benefits of using solar cookers in developed countries. The results suggest that, in comparison with microwaves, they could reduce annual life cycle costs by up to 40% and environmental impacts by up to 65%, including greenhouse gas emissions. At the national level, 42,600 t of CO2 eq. would be avoided annually while the consumption of primary energy would be reduced by 860 TJ. Furthermore, the electricity consumption would decrease by 67 GWh/yr and 4200 t/yr of household waste would be avoided. If solar cookers were built entirely by reusing household materials, up to €23.2 million could be saved per year. Finally, the development of craft activities to build and repair the cookers can help people to engage socially and reduce stress, thus enhancing their social wellbeing. It can also increase people's awareness of a more sustainable use of resources. Therefore, home-made solar cookers represent a promising opportunity to motivate behavioural changes towards a circular economy and sustainability in developed countries.

Multi-objective optimization of a solar-assisted heat pump for swimming pool heating using genetic algorithm

A proper assessment of heating systems for swimming pools should evaluate the compromise between comfort level and the willingness to pay for it. The present work presents a multi-objective optimization of indirect solar assisted heat pump systems for outdoor swimming pool heating. Four different configurations are reported; (air-to-water heat pump and three solar assisted heat pumps, air-to-water, water-to-water and a dual-source); and evaluated in six different locations (three location in Chile: Antofagasta, Santiago, and Concepción; and three locations in Brazil: Brazilia, São Paulo, and Florianópolis). The methodology approach configures two objectives optimization, the minimization of the Annualized Life Cycle Cost (ALCC) and the maximization of the comfort level offered by the swimming pool. The optimization scheme consists of using a combination of tools: the energy-savings potential of i-SAHP are evaluated using the TRNSYS software in combination with GenOpt; and the economic modeling and optimization are performed in the MATLAB environment, using an approximation model and variant of NSGA-II genetic algorithm for building the Pareto frontiers. The optimization results demonstrate that solar-assisted configurations present significant improvements in performance for almost all locations, reaching the same levels of comfort at lower ALCCs when compared with the ASHP configuration.

Techno-economic analysis of utilizing wind energy for water pumping in some selected communities of Oyo State, Nigeria

This paper presents the technical, economic and environmental benefit of meeting the water requirements of some selected communities in 3 regions of Oyo state, using off-grid wind energy conversion system. The study is conducted using 16 years (2000–2015) daily average wind speed data obtained from Nigeria Meteorological Agency (NIMET), Oshodi, Lagos. The data are observed at anemometer height of 10 m and extrapolated to turbine hub height. The water requirements of the locations are estimated using water consumption data obtained from Nigeria Population Commission (NPC). The wind power analysis of the sites are conducted using 2-parameter Weibull probability distribution to ascertain the wind power potential for water pumping application. The complete system is designed in such a way that the energy requirement of the pumps matches the wind power of the sites. The annualized life cycle cost of the system over 20 years lifetime and the cost per cubic meter of pumped water are evaluated. The results show that the wind power densities of the 3 divisional areas range from 165.75to207.2 W/m2 and it is sufficient to provide for the water requirements between 1987 m3/day to 2333 m3/day) for the areas. It is also revealed that Polaris P50 with rated power of 50 kW, cut-in, rated and cut-out wind speed of 2.7 m/s, 9 m/s and 25 m/s, respectively is the most suitable wind turbine. The water pumps that match the requirement of the sites are identified to be 320 L series Goulds model submersible pumps in the range of 30–50 hp. The annualized life cycle cost of the system ranges from $7,985-$11,594 and the unit cubic cost of pumped water ranges from $0.014–0.025 m3/day. This paper provides first-hand scientific information to the investors, government officials and policy makers at alleviating the water poverty in Nigerian communities. This would impact positively on the well-being of the local residence.

Multi-objective optimization for reducing the auxiliary electric energy peak in low cost solar domestic hot-water heating systems in Brazil

Domestic water heating in Brazil is commonly done by electric showerheads, characterized by a large installed capacity and a low load factor. In that regard, consumers and utility companies present opposite interests, the first aim to reduce their electricity bill, while companies are interested on shaving on-peak consumption. Solar technologies offer significant potential for domestic applications, but the implementation is commonly hindered by economic issues. The present work shows a methodology for addressing the impact of promotion policies in terms of the benefits for consumers and utility companies. It is proposed a weighting procedure that allows to examine both interests in a single objective function. It enables determining a trade-off curve and optimizing the design parameters of the solar system (collector area, storage volume and set point temperature). Two policy scenarios were analyzed: a rebate program and the implementation of a time-of-use tariff (TOU) scheme. The results derived from the first policy scenario show the existence of a trade-off curve between the initial investment and the yearly electricity consumption, which is useful for addressing the impact of the monetary incentive considered for rebating the initial cost of the solar system. The second policy scenario shows a trade-off curve between the annualized life cycle cost of the system and the yearly on-peak electricity consumption. That curve can be used for assessing the influence of the TOU tariff on the on-peak electricity utilization, allowing to measure the impacts of the tariff scheme, and providing the basic parameters for negotiation strategies between company planners and relevant consumers.

Estimation of the life cycle cost of the upper railway track structure

The length of tracks with excess tonnage was 14% in the territory of the Russian Federation in 2007, and it reached 20% by 2017. Removal of these restrictions is possible due to modernization of the upper railway track structure (URTS) with increasing its durability and lowering of the life cycle cost (LCC). The purpose of the study is building the LCC estimation model. This model includes the structure of the URTS, the categories and elements of the costs for its maintenance, identification (estimation) of costs, algorithms for their calculation. The average annual LCC of 1 km of the URTS includes the cost of reconstruction, maintenance, intermediate repairs, elimination of consequences of road failures and disposal in the form of the return value of old URS elements. The developed methodology was tested on the actual data of one of the sections of the West Siberian Infrastructure Directorate. The analysis of the obtained data made it possible to conclude that the adopted model of calculating the LCC of URTS adequately displays the categories and elements of the costs for maintenance of the railway track, their specific share in the LCC.

Integrated microalgae biorefinery: Impact of product demand profile and prospect of carbon capture

AbstractAn integrated microalgae biorefinery producing fuels and value‐added products needs to be optimally synthesized for realizing its potential. A large‐scale optimization model considering biorefinery co‐producing biodiesel, polar lipid, protein, and reduced sugar from microalgae has been previously developed, and biodiesel production without any co‐products manufactured was found to be non‐profitable. This work uses the model to study the impact of demands and selling prices of value‐added co‐products on the optimal biorefinery synthesis and the net annualized life cycle cost (ALCC) of biodiesel production. The simulation results showed that production of reduced sugar to the maximum extent resulted in an annualized profit of US$27.23/L of biodiesel production. Individual scenarios for mandatory production of protein and polar lipid resulted in an ALCC of US$15.11/L and US$13.20/L, respectively. The case of fluctuations in demand and selling prices of the end‐products was also analyzed. Additionally, the potential of a biorefinery to sequester atmospheric carbon dioxide from a coal‐fired 500 MW power plant, without any preferential product, is also modeled. Emission of carbon dioxide is considered to attract a penalty. For this study, with a low‐value biodiesel selling price (US$0.48/L), the biorefinery captured 2.77% of the available carbon dioxide and recorded a net annual deficit of US$9.71 million. On the other hand, for a high price of biodiesel (US$8.74/L), 99.89% of the carbon dioxide was captured to have biodiesel and reduced sugar co‐produced, yielding a net annual revenue of US$303.27 million. © 2017 Society of Chemical Industry and John Wiley & Sons, Ltd

Optimization of integrated microalgal biorefinery producing fuel and value‐added products

AbstractAn integrated microalgal biorefinery is desirable from an economic standpoint but challenging to synthesize, due to diversity of options. This work uses a model‐based optimization approach to address this challenge in a systematic manner. A superstructure of the integrated biorefinery is developed where biodiesel is considered as the main product, while polar lipid, protein, and carbohydrate are also processed to various value‐added compounds. Mass balances, equipment capacity limitations, and cost functions corresponding to these processes constitute the constraints of the optimization problem. The decision variables include the process synthesis as well as process scheduling and operations‐related decisions. A Mixed Integer Linear Programming (MILP) model was developed to minimize the net annualized life cycle cost (ALCC) of the biorefinery. For a scenario of 30 Mg/d production target of biodiesel, with no intermediate storage between the stages, the superstructure yielded an optimal biodiesel production cost of US$8.53/L and reduced sugar was selected as a co‐product. Several cases were analyzed in terms of the decision making of the process on the upstream and downstream levels, as well as variations in scheduling strategies. Co‐cultivation of the phototrophic and heterotrophic strains resulted in net ALCC of US$7.66/L, which was 10.2% less than the base case. Batch scheduling with various strategies were also investigated and the case with infinite intermediate storage coupled with debottlenecking reduced the net ALCC by 25% to US$6.4/L. © 2017 Society of Chemical Industry and John Wiley & Sons, Ltd

Fit-for-purpose wastewater treatment: Conceptualization to development of decision support tool (I)

This article is the first in a series of two papers. Paper I focuses on model conceptualization and development, and Paper II in the series focuses on model validation and implementation. The amount of water reuse has been increasing across the globe. Wastewater can be treated based on the intended end use of reclaimed water. Fit-for-purpose wastewater treatment (WWT) simultaneously considers intended end use, economic viability, and environmental sustainability. WWT technologies differ mainly in terms of treatment efficiency, cost, energy use, and associated carbon emissions. The planning and evaluation of water reuse projects requires a decision support tool (DST) to evaluate alternative WWT trains and water reuse applications. However, such a DST is not available in the publically accessible literature. A DST, FitWater, has been developed for the evaluation of WWT for various urban reuses. The evaluation is based on the following criteria: amount of reclaimed water production, health risk of water reuse, cost, energy use, and carbon emissions. The cost is estimated as annualized life cycle cost and health risk is estimated using quantitative microbial risk assessment. The uncertainty analysis has been performed using probabilistic and fuzzy-based methods. A multi-criteria decision analysis, using fuzzy weighted average, is employed to aggregate different criteria and generate a final score. FitWater ranks alternative WWT trains based on the resulting final score. The proposed FitWater DST is user-friendly, and its application is demonstrated using an example. The DST can be enhanced to include additional treatment technologies and carbon emissions of different treatment processes.

Feasibility Analysis of CCHP System with Thermal Energy Storage Driven by Micro Turbine

The combined cooling, heating and power (CCHP) system with thermal energy storage (TES) driven by micro turbine is studied in this paper, which are used in the restaurant and commercial building. The impact of the introduction of TES on the energy and economic performance of CCHP system has been analyzed. The result shows that the CCHP systems with TES had higher capital cost and less energy consumption and operation cost, compared with that without TES. And the annualized life cycle cost of CCHP system with TES was slightly lower than that without TES. Additionally, the economic benefit of CCHP system with TES is worse than the conventional separate production (SP) system, although the primary energy consumption of it is significantly lower than the SP system.

Carbon Emissions Reduction Potentials in Pulp and Paper Mills by Applying Cogeneration Technologies

Pulp and paper production is a highly energy intensive process and improvement of energy efficiency in this process is considered as promising measures for reducing industrial greenhouse gases emissions (GHG). This study focuses the Pakistan's pulp and paper industry which consumes around 7% of the country's industrial energy and contributes to over 317,269 tonnes of CO2 emissions. With rising demands for fuels and consequently as harp increase in CO2 emissions due to the growth of the paper sector in Pakistan, this article aims to analyse the energy efficiency and carbon dioxide emissions reductions potential through the incorporation of cogeneration technologies. The cogeneration technologies studied are agas turbine, steam turbine and combined cycle and are evaluated from the energetic and economic point of view to propose a best suitable technology for each paper mill. The proposed cogeneration technologies are selected on the basis of high energy utilisation factor, as implepayback period of five years or less with least Annualised life cycle cost. The result shows that a theoretical energy saving potential equivalent to 16.9% of the actual thermal energy requirement of mills can be achieved through cogeneration which will lead to 14.3% reduction of the present carbon emissions levels in Pakistan's paper sector.