Life-cycle Cost Analysis and Optimization of Gas-turbine-based Power Plants by Sequential Quadratic Programming Method for Distributed Generation Satriya Sulistiyo Aji 1 , Young Duk Lee 1,2+ and Kook Young Ahn 1,2 1 University of Science & Technology (UST), Department of Environmental and Energy Mechanical Engineering, 156 Gajeongbuk-ro, Yuseong-gu, Daejon South Korea 2 Korea Institute of Machinery & Materials (KIMM), 156 Gajeongbuk-ro, Yuseong-gu, Daejon South Korea Abstract. The purposes of this study are to analyze and to find the way to reduce life-cycle cost of electricity of gas-turbine power plants for wide spread of distributed power generation by employing mathematical optimization. Three kinds of power cycle, which are based on gas-turbine, have been thermodynamically simulated and optimized from cost viewpoint. To understand the effects of economic key parameters, such as natural gas price, return on investment rate, and escalation rate, on the optimum operating condition and the total cost, case study has been carried out by taking four different countries' economic situations into account: Indonesia, India, China, and South Korea. A commercial software ASPEN Plus ® and Sequential Quadratic Programming (SQP) method are used to complete the energy balance and to minimize the total cost rate, respectively. Results reveal that 4-10% life-cycle cost reduction can be achieved when the new design conditions are applied to the gas-turbine power plants; the conditions are suggested by the SQP method targeting minimizing cost. Through the results we can concluded that the efficiency enhancement has significant effect on cost reduction for Chinese and Korean cases mainly due to their high fuel price, while initial investment cost is of importance for Indonesian and Indian cases; the new design condition, a cost effective one, can be derived and employed for the cases. Keywords: distributed generation, life-cycle cost, gas-turbine, optimization, sequential quadratic programming (SQP) 1. Introduction Interests on the distributed power generations have been increasing during the past few years, not only because of the economic and technical beneficiary, but also their possibility of reducing environmental footprint of the existing power plants [1]. Medium-size gas-turbines are considered as the most technologically and economically matured among the dispatchable and non-dispatchable technologies for distributed generation [2]. However, small- or medium-size gas-turbine power plants suffer from high investment cost comparing to the large centralized power plants; moreover, relatively low electrical efficiency is inevitable; thus resulting in a high fuel cost. Therefore, the cost minimization is essential for the wide spread of the decentralized power generation. Regarding the mentioned issue, this study has analyzed the life-cycle cost of electricity of gas-turbine power plants by means of mathematical optimization, particularly focusing on the distributed power generation. To carry out the thermodynamic and economic analysis, commercial software ASPEN Plus® [3] is used to complete the mass and energy balance of gas-turbine power cycles. Commercials gas-turbine models SGT-700 and SCC-700, manufactured by Siemens, are used for the base-case simulation [4]; these gas-turbines show high electrical efficiency of 52.3% for the combined-cycle (SCC-700) at 45.2MW of electricity production. After fulfilling the mass and energy balance, a mathematical optimization has been + Corresponding author. Tel.: + 82 42 868 7945; fax.: +82 42 868 7284. E-mail address: [email protected]International Proceedings of Chemical, Biological and Environmental Engineering, V0l. 100 (2017) DOI: 10.7763/IPCBEE. 2017. V100. 11 64
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Life-cycle Cost Analysis and Optimization of Gas-turbine-based
Power Plants by Sequential Quadratic Programming Method for
Distributed Generation
Satriya Sulistiyo Aji 1
, Young Duk Lee 1,2+
and Kook Young Ahn 1,2
1 University of Science & Technology (UST), Department of Environmental and Energy Mechanical
Engineering, 156 Gajeongbuk-ro, Yuseong-gu, Daejon South Korea 2 Korea Institute of Machinery & Materials (KIMM), 156 Gajeongbuk-ro, Yuseong-gu, Daejon South Korea
Abstract. The purposes of this study are to analyze and to find the way to reduce life-cycle cost of
electricity of gas-turbine power plants for wide spread of distributed power generation by employing
mathematical optimization. Three kinds of power cycle, which are based on gas-turbine, have been
thermodynamically simulated and optimized from cost viewpoint. To understand the effects of economic key
parameters, such as natural gas price, return on investment rate, and escalation rate, on the optimum
operating condition and the total cost, case study has been carried out by taking four different countries'
economic situations into account: Indonesia, India, China, and South Korea. A commercial software ASPEN
Plus® and Sequential Quadratic Programming (SQP) method are used to complete the energy balance and to
minimize the total cost rate, respectively. Results reveal that 4-10% life-cycle cost reduction can be achieved
when the new design conditions are applied to the gas-turbine power plants; the conditions are suggested by
the SQP method targeting minimizing cost. Through the results we can concluded that the efficiency
enhancement has significant effect on cost reduction for Chinese and Korean cases mainly due to their high
fuel price, while initial investment cost is of importance for Indonesian and Indian cases; the new design
condition, a cost effective one, can be derived and employed for the cases.