Energy Price Analysis of a Biomass Gasification-Solid Oxide Fuel Cell-Gas Turbine Power Plant

Abstract

In this study, effect of energy price on the development of a biomass gasification-solid oxide fuel cell-gas turbine hybrid power plant has been considered. Although, these hybrid systems have been studied based on sustainable approaches, economic aspects, specifically conventional energy prices, which are the principal bottleneck for the development of these new power generators, have attracted little attention by researchers. In the present study, a novel energy system has been considered, a comprehensive economic model has been implemented for the proposed system, and finally effect of energy price on the main economic factors has been investigated. The economic effects of varying energy prices in three different locations (European Union, US and Iran) were evaluated during the cycle life time the proposed system. Estimation of the Internal Rate of Return (IRR) for the three locations, based on current energy prices and economic conditions, indicated that European Union is the most economically justifiable with an IRR value of 18.15% and a payback period value of 5.8 years. In addition, the economic viability of these modern systems will be further enhanced by slight increase of electricity prices in the US; and it might have the best economic gains by reasonable changes in Iran's electricity prices.