Cogeneration Project - Benefits (Part 3)

TRANSFERABILITY
Cogeneration is a mature, well established and proven technology especially in the Europe. The viability of the cogeneration primarily depends on the following key factors:
•Fuel Gas Tariff
•Electricity Tariff
•Market Barriers i.e. grid access, power export pricing, standby price
•Suitable Power Heat Ratio
•Stable Demand for Power and Steam

With a relatively low fuel gas tariff and high electricity tariff, it is worthwhile to investigate further the option of having cogeneration in lieu of the conventional electricity supply from the national grid. The viability of the cogeneration is also to certain extent been a consequence of a more liberalized government policy with regards to generation own power. In the Malaysian Ninth Plan (2006-2010), on the sustainable energy development, it is clearly stated that one of the strategies of the energy sectors is to ensure efficiency, sufficiency, security, reliability, quality and cost effectiveness of the energy supply. The Ninth Plan also focuses in developing new sources of growth in the energy sector including participation of local companies in energy related industries.

If the initial assessment suggests that it is worth proceeding further then a more detailed investigatory work will have to be undertaken. This includes the assessment on the heat power ratio of the site. The ratio of heat to power required by a particular site may vary during different times of the day and seasons of the year depending on the operating requirements of the plant. In the case of the PSR-1 and PSR-2, it is fortunate that the ratio is quite stable and suitable for the application of the cogeneration technology.

In short, the application of the cogeneration technology can be applied or transferred elsewhere depending on the above factors.