Combined Cycle Gas Turbine

Blue cells with borders indicate input data. Other cells are plain text or the results of formulas.

Initial Data

Variable Value Name or Formula

Capacity, kW 100,000 cap
Capital cost, $/kW 800 costkw
Useful life, years 20 life
Capacity factor 75% capfac
Maintenance cost, $ 2,000,000 maint
Heat rate, BTU/kWh 6,800 heatrate
Interest rate 12% intrate
Electricty price, $/kWh 0.11 price

Key Intermediate Calculations

Construction cost, $ 80,000,000 capcost = cap*costkw

Effective capacity, kW 75,000 effcap = cap*capfac

Hours per year 8,760 hours = 365*24
Generation, kWh per year 657,000,000 kwh = effcap*hours
Annual revenue, $ 72,270,000 rev = kwh*price

Fuel required, million BTU 4,467,600 fuel = kwh*heatrate/1000000

Fuel Cost Scenarios

Low Middle High
Price per mcf, $ 10.00 12.00 14.00 gasprice
Annual cost of fuel, $ 44,676,000 53,611,200 62,546,400 fuelcost = fuel*gasprice

Annual Operating Profit

Revenue, $ 72,270,000 72,270,000 72,270,000 = rev

Maintenance cost, $ 2,000,000 2,000,000 2,000,000 = maint
Fuel cost, $ 44,676,000 53,611,200 62,546,400 = fuelcost

Profit, $ 25,594,000 16,658,800 7,723,600 = rev - maint - fuelcost

363537218.xls 08/18/2017
Cash Flows Under Each Scenario

Year Low Middle High

0 -80,000,000 -80,000,000 -80,000,000 = capcost
1 25,594,000 16,658,800 7,723,600 = annual profit
2 25,594,000 16,658,800 7,723,600
3 25,594,000 16,658,800 7,723,600
4 25,594,000 16,658,800 7,723,600
5 25,594,000 16,658,800 7,723,600
6 25,594,000 16,658,800 7,723,600
7 25,594,000 16,658,800 7,723,600
8 25,594,000 16,658,800 7,723,600
9 25,594,000 16,658,800 7,723,600
10 25,594,000 16,658,800 7,723,600
11 25,594,000 16,658,800 7,723,600
12 25,594,000 16,658,800 7,723,600
13 25,594,000 16,658,800 7,723,600
14 25,594,000 16,658,800 7,723,600
15 25,594,000 16,658,800 7,723,600
16 25,594,000 16,658,800 7,723,600
17 25,594,000 16,658,800 7,723,600
18 25,594,000 16,658,800 7,723,600
19 25,594,000 16,658,800 7,723,600
20 25,594,000 16,658,800 7,723,600

Present Values of Each Payment

Year Low Middle High

0 -80,000,000 -80,000,000 -80,000,000 = payment/(1+intrate)^year
1 22,851,786 14,873,929 6,896,071
2 20,403,380 13,280,293 6,157,207
3 18,217,304 11,857,405 5,497,506
4 16,265,450 10,586,969 4,908,487
5 14,522,723 9,452,651 4,382,578
6 12,966,717 8,439,867 3,913,016
7 11,577,426 7,535,595 3,493,764
8 10,336,987 6,728,210 3,119,432
9 9,229,453 6,007,330 2,785,208
10 8,240,583 5,363,688 2,486,792
11 7,357,663 4,789,007 2,220,350
12 6,569,342 4,275,899 1,982,456
13 5,865,484 3,817,767 1,770,050
14 5,237,039 3,408,721 1,580,402
15 4,675,928 3,043,500 1,411,073
16 4,174,936 2,717,411 1,259,886
17 3,727,621 2,426,260 1,124,899
18 3,328,233 2,166,304 1,004,374
19 2,971,637 1,934,200 896,762
20 2,653,247 1,726,964 800,681

NPV, $ 111,172,940 44,431,967 -22,309,005 = sum of above

Conclusion profitable profitable unprofitable

363537218.xls 08/18/2017