A thermal design and thermoeconomic analysis of a combined heat and power (CHP)
production plant for Tsetserleg town, Mongolia, has been completed. The energy and
exergy analysis of the plant was studied based on the first and second laws of
thermodynamics.
The exergy analysis identifies the plant components with the highest thermodynamic
inefficiencies and the processes that cause them. Exergy destruction in the plant
represents not only thermodynamic inefficiency but also the opportunity to optimize
investment costs associated with the plant being analyzed. It is the objective of
thermoeconomic optimization to maximize the exergetic efficiencies of the plant
components and to minimize the levelized costs of the heat and electricity generated by
the CHP plant.
The main advantage of using the structural method of thermoeconomic optimization is
that the various components of the plant can be optimized on their own. The effect of the
interaction between a given component and the whole plant is taken into account by the
local unit costs of exergy fluxes or those exergy destructions.
Geothermal power plant projects are characterized by high initial capital costs including a
lifetime supply of fuel. The total capital investment (TCI) of the new CHP plant in
Tsetserleg has been evaluated to be 8.66 M US$ with a 5 km long transmission pipeline,
or 12.41 M US$ with a 20 km long transmission pipeline.
It is often difficult to allocate the costs of heat and electricity produced by a CHP plant. In
this case, exergy can be used as a basis. With the estimated direct cost of the Kalina PP,
the levelized unit cost of heat and electricity show that the CHP plant is economically
viable for development for a medium-temperature geothermal resource in Tsetserleg,
Mongolia.
Economic analysis shows that CO2 offset can affect the feasibility of the project.
Geothermal energy will benefit all of Tsetserleg. With its introduction, Tsetserleg will be
the first clean and environmentally friendly town in Mongolia. It would serve 18,136
people who would live without GHG, breathing clean air, and living and enjoying
comfortable working conditions.