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Economic potential of natural gas-fired cogeneration in Brazil: two case studies

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  • Salem Szklo, Alexandre
  • Borghetti Soares, Jeferson
  • Tiomno Tolmasquim, Maurício

Abstract

Recent restructuring of Brazil's power sector, allied to the expected larger share of natural gas in the nation's grid and the cost reductions of gas-fired power generation technologies, has introduced a set of situations apparently favorable to the expansion of natural gas-fired cogeneration. However, electricity self-generation applications are restricted to specific cases in Brazil. In order to deal with this issue, the COGEN model was developed to assess the economic potential of cogeneration ventures from the standpoint of the investor and guide incentive public policies. This model has been applied to two cases in Brazil -- a chemical plant and a shopping mall -- showing that the highest economic potential for gas-fired cogeneration in Brazil is found in industrial plants faced with high values of loss of load. In the commercial sector, measures reshaping the load curve of enterprises -- such as cold storage -- might be much more interesting than fired cogeneration.

Suggested Citation

  • Salem Szklo, Alexandre & Borghetti Soares, Jeferson & Tiomno Tolmasquim, Maurício, 2000. "Economic potential of natural gas-fired cogeneration in Brazil: two case studies," Applied Energy, Elsevier, vol. 67(3), pages 245-263, November.
    • Handle: RePEc:eee:appene:v:67:y:2000:i:3:p:245-263
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    References listed on IDEAS

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    1. Paul L. Joskow & Donald R. Jones, 1983. "The Simple Economics of Industrial Cogeneration," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 1-22.
    2. Woo, Chi-Keung & Pupp, Roger L., 1992. "Costs of service disruptions to electricity consumers," Energy, Elsevier, vol. 17(2), pages 109-126.
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    1. Soares, Jeferson Borghetti & Szklo, Alexandre Salem & Tolmasquim, Maurício Tiomno, 2006. "Alternative depreciation policies for promoting combined heat and power (CHP) development in Brazil," Energy, Elsevier, vol. 31(8), pages 1151-1166.
    2. Szklo, Alexandre Salem & Tolmasquim, Maurício Tiomno, 2001. "Strategic cogeneration -- fresh horizons for the development of cogeneration in Brazil," Applied Energy, Elsevier, vol. 69(4), pages 257-268, August.
    3. Mujeebu, M.A. & Jayaraj, S. & Ashok, S. & Abdullah, M.Z. & Khalil, M., 2009. "Feasibility study of cogeneration in a plywood industry with power export to grid," Applied Energy, Elsevier, vol. 86(5), pages 657-662, May.
    4. Cormio, C. & Dicorato, M. & Minoia, A. & Trovato, M., 2003. "A regional energy planning methodology including renewable energy sources and environmental constraints," Renewable and Sustainable Energy Reviews, Elsevier, vol. 7(2), pages 99-130, April.
    5. Soares, J. B. & Szklo, A. S. & Tolmasquim, M. T., 2001. "Incentive policies for natural gas-fired cogeneration in Brazil's industrial sector -- case studies: chemical plant and pulp mill," Energy Policy, Elsevier, vol. 29(3), pages 205-215, February.
    6. Szklo, Alexandre Salem & Soares, Jeferson Borghetti & Tolmasquim, Mauricio Tiomno, 2004. "Economic potential of natural gas-fired cogeneration--analysis of Brazil's chemical industry," Energy Policy, Elsevier, vol. 32(12), pages 1415-1428, August.

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