The use of optimisation modelling for energy recovery investment decision making
Abstract
Investment decision making is a common occurrence
for any engineering company. These investments include any
possibility from relative inexpensive to extremely costly
equipment. When power generation turbine procurements are
considered for energy recovery plants, these may typically be
viewed as expensive and long-term investments. Such an
investment cannot merely be discarded and replaced under suboptimal conditions.
If energy recovery takes place under fluctuating process flow
conditions, investment choices for power generation turbines may,
however, prove challenging to determine. Under conditions where
resource availabilities are fluctuating to such an extent that, at
times, supply outside a turbine’s operating limits are present, a
number of factors need to be considered. Such decisions typically
include questions regarding a turbine’s operating limits, efficiency,
allowable trips, procurement cost and quantity thereof.
This paper demonstrates how investment choices are influenced
through the use of an optimisation investment model. A number of
scenario simulations are shown, where results indicate not only
what turbine investment decisions need to be exercised, but also
the power generation that can be expected over time, and therefore,
the true payback period. Results are presented in the form of power
generation and the predicted net present value of possible
investments to be made