Economic Potential for Converting Utility Boilers to Coal Combustion

摘要

The methodology used in this analysis to determine the economics of utility boiler conversions is similar to approaches used in modeling utility decision making. The functions of the three analytic modules are as follows: Environmental module - Calculates historic emissions of SO sub 2 and particulate matter on the basis of plant-specific fuel-use data. Projects emissions after conversion on the basis of size-specific SIP limits at the state level. Cost module - Calculates new boiler costs and environmental control costs at the plant level. Calculates conversion costs for three classes of utility boilers. Passes cost data to the financial module for analysis of the conversion decision. Financial module - Calculates the cost per kilowatt-hour of electricity generated for each scenario. Incorporates a risk premium for coal-fired boilers and FGD units. Evaluates the conversion decision at the plant level, either on the basis of least-cost alternative (deterministic solution) or a distribution of outcomes based on relative cost differential (probabilistic solution). (ERA citation 10:004604)