Methodological approaches to efficiency estimation of diesel electric power station switch to alternative fuel types

Abstract

The purpose of the article is to consider the estimation methods of the efficiency of diesel power stations switch to alternative kinds of fuel. To provide isolated remote areas of the Far North of Russia with electric energy, diesel power stations are used, which require expensive imported diesel fuel. The cost of the produced electric energy ranges from 10 to 20 rubl/kWh. Development of mineral resources such as natural gas, oil in these areas allows to transfer local diesel power stations to other kinds of fuel. This switch requires a significant investment in the modernization of existing diesel power stations substantiated by a feasibility study of the switch to other fuels. The study uses official data, methods of comparative analysis and author’s calculation results. The calculations are made on the basis of the production and financial model. The world practice of investment project economic efficiency assessment is briefly characterized. A method to estimate the efficiency of existing diesel power stations switch to alternative types of fuel (natural gas) is presented. The representatives of the energy-saving policy propose a gradual transition of existing diesel power plants to alternative types of fuel that are economically and technically more advantageous in certain conditions of remote areas of the Far North. On example of existing diesel power plant switch to natural gas an opportunity has been received to evaluate the high efficiency of the project.