Technical and Economic Evaluation and Development Policy Suggestions of LNG Power Plants: Evaluation and Development Policy

Abstract

The return on investment (RIO) of a liquefied natural gas (LNG) power plant is lower than that of conventional power plants with high pollution due to the "take or pay" supply mode of natural gas and the two-shift peak shaving operation mode in the LNG power plants. In this chapter, firstly, based on the characteristics of the gas turbine combined cycle (GTCC) unit for peak shaving and standby application, it is proposed to calculate the generation cost of LNG power plants according to the depreciation of operation life. Secondly, through the sensitivity analysis of power generation cost, it is found that fuel price and average efficiency are the first influencing factors. Next, to reflect the environmental protection characteristics of LNG power plants, the on-grid price included in the environmental value is put forward innovatively based on the calculation of the environmental cost and environmental value of natural gas power generation.