In: Economics
You have been asked to evaluate the economic implications of various methods for cooling condenser effluents from a 200-MW steamelectric plant. There are two basic types of cooling towers: wet and dry. Furthermore, heat may be removed from condenser water by (1) forcing (mechanically) air through the tower or (2) allowing heat transfer to occur by making use of natural draft. Consequently, there are four basic cooling tower designs that could be considered. Assuming that the cost of capital to the utility company is 10% per year, your job is to recommend the best alternative (i.e., the least expensive during the service life). Further, assume that each alternative is capable of satisfactorily removing waste heat from the condensers of a 200-MW power plant. What noneconomic factors can you identify that might also play a role in the decision-making process?
Alternative |
||||
---|---|---|---|---|
Wet Tower |
Wet Tower |
Dry Tower |
Dry Tower |
|
Mech. Draft |
Natural Draft |
Mech. Draft |
Natural Draft |
|
Initial cost |
$2.7 million |
$8.8 million |
$5.2 million |
$8.8 million |
Power for I.D. fans |
40 200-hp I.D. fans |
None |
20 200-hp I.D. fans |
None |
Power for pumps |
20 150-hp pumps |
20 150-hp pumps |
40 100-hp pumps |
40 100-hp pumps |
Mechanical maintenance/year |
$0.12 million |
$0.12 million |
$0.15 million |
$0.11 million |
Service life |
30 years |
30 years |
30 years |
30 years |
Market value |
0 |
0 |
0 |
0 |
100
hp=74.6
kW; cost of power to plant is 2.2 cents per kWh or kilowatt-hour; induced-draft fans and pumps operate
around the clock for 365 days/year (continuously). Assume that electric motors for pumps and fans are 90% efficient.