In Gas turbine-based combined cycle power plant market, the customer conducts an economic evaluation of competitive products to decide their buying option. There are different methods to calculate the economics of a power plant like Levelized cost of electricity (LCOE), Net present value (NPV) and payback period.
LCOE methodology is commonly used for lifecycle cost analyses for combine cycle power plant that covers cost details of the plant and plant performance over the complete lifetime of a power plant from construction to retiring. Typically, it includes a combine cycle power plant ownership costs (Total plant cost and operating & maintenance cost) and combine cycle power output and efficiency. This LCOE method is helpful to compare power generation system that use similar technologies.
This paper encompasses the LCOE calculation method, assumptions & approach to analyze the impact of key parameters of the electrical generation cost. They key parameters includes combine cycle output, combine cycle efficiency, fuel cost, annual operating hours, capital charge factor, annual operating hours, power plant life, discount rate, nominal escalation rate, operating & maintenance cost. This paper analyses result will provide insights to the customer & Gas turbine-based OEM (Own Equipment Manufacturing) companies to focus on different area/parameters to reduce the unit cost of generating electricity.