Feasibility study of a cogeneration plant for University of Calgary

The paper presents the initial results of a research project on the technical and economic feasibility and logistics of installing a cogeneration plant on the University of Calgary Campus in the light of the upcoming electricity deregulation at the retail level, mandated by the provincial government starting 1 January, 2001. Part of the electric power generated will be used to supply the campus needs and the excess sold to ENMAX at the prevailing competitive price. The steam byproduct will be used to satisfy campus hot water needs. A range of sizes for the cogeneration plant will then be determined so as to maximize return on invested capital under the retail post-deregulation scenario, using a range of dollar figures per kWhr above and below the estimated mean value. The following collateral issues are also addressed: (1) siting of the cogeneration plant; comparative merits will be evaluated along with the appropriate recommendation; (2) gas-fired turbine? Contractual arrangements with a natural gas supplier for protection from gas price fluctuations are analyzed; logistics of standby diesel fuel in case of gas supply interruption are explored; (3) relative merits of the university undertaking this endeavor alone or in collaboration with an operator such as ENMAX are investigated on a cost and profit-sharing basis; and (4) contractual arrangements with ENMAX to supply emergency power, in case of cogeneration unit failure, are also addressed. KWhr dollar figure estimates are done for the retail post-deregulation scenario and their impact on cogeneration assessed