Q. 13.2

Consider a 60-kW cogeneration system that produces electricity and hot water with the following efficiencies: (a) 26 percent for the electricity generation, and (b) 83 percent for the combined heat and electricity generation. Determine the annual savings of operating the cogeneration system compared to a conventional system that consists of purchasing electricity at a rate of $0.08/kWh and producing heat from a boiler with 70 percent efficiency. The cost of fuel is $5/MMBtu. The maintenance cost of the cogeneration system is estimated at $1.00 per hour of operation. Assume that all the generated thermal energy and electricity are utilized during 6,500 hrs/year.
Determine the payback period of the cogeneration system if the installation cost is $2,500/kW.


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