Condensing generation-Is it economic?

The addition of a condensing turbine offers desirable flexibility in the operation of a pulp and paper mill electric generating plant. However, condensing may be a costly alternative. The authors investigate the economics of condensing turbines and outline a method for assessing cost versus benefits. The use of incremental values is essential to the evaluation. Case studies are provided involving operating the condenser for continuous generation and condensing operation for electric load peak shaving. It is pointed out that, when making an economic evaluation of a condenser, the following are the principal considerations: fuel costs; equipment costs; value of electricity displaced by generation; annual operating hours; discount rate; and project life.<>