Measuring Efficiency Gains of Fuel Substitution in Thermal Power Generation

As the global population and affluence increase, electricity demand will increase accordingly. Although pressure from the international community due to increased environmental awareness has led to a surge in the use of clean and renewable sources for electricity generation over the past decade (especially in developed countries), over half of the world’s electrical energy used today is from steam turbine generators burning fossil fuels, with large scale fossil-fueled plants providing most of the world’s baseload generating capacity. Meanwhile, many thermal power plants worldwide- mostly in undeveloped countries - are inefficient and can be optimized financially and economically and minimize their environmental impact. Fuel flexibility and choosing the correct type of thermal plant appropriate to the forecast load can be considered in maintaining power generation efficiency. This study aims to undertake a Cost-Effectiveness analysis (CEA) of two different power generating technologies - Internal Combustion (Diesel) and combined cycle gas turbines – in the Turkish Republic of North Cyprus (TRNC) by analyzing the appropriateness of using heavy fuel oil (HFO) and liquefied natural gas (LNG) to ascertain an economically optimum combination, nonetheless, could be extended to any other place with the appropriateness of these types of plants.