Spemann PG-ROI Examples

 

 

 

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PG-ROI EXAMPLE 5
Investment for peak price periods
Base Case Assumptions
 
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A new power plant shall be built, and the investor has the option to include an existing old gas turbine which he would use only during peak price hours and sell this electricity on the spot market.
 
This additional turbine has a low efficiency, so it will be only worth using it when the electricity price is high.
 
How much would be the minimum peak price to start the turbine?
And how much investment is justified to install the existing turbine and connect it to the new plant?
These questions will be answered by Spemann PG-ROI.
 
 
The plant is designed to operate medium load, i. e. 5000 hrs per year, and of these there are 1000 hrs considered peak price.