The Economics of Cogeneration Selection

The design and choice of a specific cogeneration system is a process of selecting and deciding from numerous alternatives, including the option not to cogenerate. The final system specification is in reality the result of an extensive tradeoff analysis. The reason for performing a thorough tradeoff analysis is to design a cogeneration system that will meet or surpass stated technical, operational and economic criteria. This paper outlines the steps necessary to select the preferred cogeneration system through the use of standard economic evaluation techniques