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In: Economics

You have been asked to evaluate the economic implications of various methods for cooling condenser effluents...

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.

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