Economic evaluation of total-energy guidelines
A major factor inhibiting the greater application of total-energy systems is the technical complexity of evaluating total-energy systems as an alternative to conventional utility services. The proposed guidelines constitute a screening tool that can be used to determine the economic feasibility of residential total-energy systems, which would provide onsite power generation with waste-heat recovery. The evaluation procedure is based on the view that total-energy economic feasibility involves long-range economics (capital plus operating costs) rather than initial (capital) costs alone. The internal rate of return is computed from incremental capital cost, economic life, and annual operating cost savings. The information required for the evaluation is (1) geographic region, (2) project size (number of dwelling units), (3) gas cost, (4) oil cost, and (5) purchased electricity cost. The basic evaluation procedure consists of the following five steps: (1) identifying the climatic region, (2) determining the purchased electricity cost, (3) determining the total-energy fuel costs, (4) calculating total-energy annual operating cost savings, and (5) calculating the internal rate of return on incremental investment. The presentation uses the basic evaluation procedure in some sample calculations, and additional considerations are discussed. These considerations are factors influencing economic feasibility, hour-by-hour analysis by means of computer simulation, air-quality considerations, legal and code considerations, and financing considerations. Appendices discuss the obtaining of regionalized electricity, gas, and fuel oil costs as well as the relationship between internal and apparent rate of return.
- Research Organization:
- Decision Sciences Corp., Jenkintown, PA (USA)
- OSTI ID:
- 6178304
- Report Number(s):
- PB-85-126506/XAB
- Country of Publication:
- United States
- Language:
- English
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ECONOMIC ANALYSIS
ECONOMICS
ENERGY SYSTEMS
EVALUATION
RESIDENTIAL SECTOR
TOTAL ENERGY SYSTEMS
WASTE HEAT UTILIZATION
WASTE PRODUCT UTILIZATION