ADV Fuel Oil Combined Cycle Model (ver. 4)

UPDATED May 19, 2023

Click the link below to know more about combined cycle power generation technology (pdf)


Here are the minimal starting inputs to develop your initial model, for further refinements as your study gets more up to date data:

Blue inputs at the Inputs & Assumptions worksheet or tab:

  1. Time period inputs

Hours per year = 24 * 365 = 8760 hours/year

construction period (cell C8) = 3 years x 12 = 36 months

operating period (cell C9) = 30 years (economic life)

Years from base year CPI for FIT / Tariff (cell C10) = ROUND(C8 / 12,0) = 3

Years from base year CPI for CAPEX (cell C11) = 0

Years from base year CPI for OPEX (cell C12) = 0

Base year CPI & Forex for FiT (cell C45) = 2022

Base year CPI for CAPEX (cell C46) = 2023

Base year CPI for OPEX (cell C47) = 2023

Commercial Operating Date COD (cell C48) = C10 + C11 + C46 = 3 + 0 + 2023 = 2026

  1. Installed (Gross) capacity

unit plant capacity (cell F5) = 300.000 MW

no of units (cell F6) = 2 units

gross capacity (cell F7) = 300.000 x 2 unit = 600.000 MW

  1. Target net capacity factor (NCF)

Target net capacity factor (cell F11) = % availability x % load factor x (1 – % own use)

= F8 * F9 * (1 – F10) = 93.57% x 95% x (1 – 10%) = 80.00%

  1. First year annual generation

Fist year annual generation (net) (cell F12) = 600.000 x 8760 x 50%

= 4,204,800 MWh/year

  1. Capacity degradation rate

Plant capacity degradation rate (cell F13) = 0.5% per year

Capital cost buildup inputs and % Local Cost (LC):

Plant Degradation, % p.a. (1-20 yrs)0.5%% LC
Land cost, $000$141.51100.0%
Equipment Cost ex BOP, Transport ($000/MW)$963.339.7%
Insurance, Ocean Freight, Local Transport, % of Equipment Cost4.5%100.0%
Balance of Plant (BOP), % of Equipment Cost21.0%100.0%
Transmission Line Distance (km)10.00
T/L Cost per km, 69 kV ($000/km)$40.00100.0%
Switchyard & Transformers ($000)$786.21100.0%
Access Roads ($000/km)$181.82100.0%
Distance of Access Road (km)10.00
Dev’t & Other Costs (land, permits, etc) (% of EPC)15.0%100.0%
VAT on importation (70% recoverable)12%100.0%
Customs Duty3%100.0%
Initial Working Capital (% of EPC)11.0%100.0%
Contingency (% of Total Cost)4.0%48.0%
  1. Target all-in capital cost, fixed O&M, variable O&M and fixed admin expenses

Target all-in capital cost (cell T34) = 1,932 $/kW (determined from goal seek with fuel cost zero

Total capital cost (cell W34) = 1,932 x 600.000 x 1,000 = 1,159,204 USD

fixed O&M (cell X39) = 3% p.a. of total capital cost = 3% x 1,159,204 USD / (600.000 x 1,000 Target kW) = 57.96 USD/kW/year

Target variable O&M (cell X40) = 1% p.a. of total capital cost = 1% x 1,159,204 USD / (4,204,800MWh) = 2.76 USD/MWh

Target fixed G&A (general and admin costs, cell X37) = (20,000 / 53 USD/months) x 1.30 fringe x 13 months/year x 10 engineers = 63.77 ‘000 USD/year

  1. Fuel Oil fuel cost, thermal efficiency and GHV

Fuel Oil fuel cost (cell F66) = 44.84 / 53.00 = 0.6574 USD/L

Combined cycle fuel energy to electricity efficiency (cell F57) = 3,412 / 8,531 = 48.00 % GHV

Plant heat rate (cell F61) = 8,531 Btu/kWh

GHV of simple cycle fuel (cell F53) = 19,500 Btu/lb Fuel Oil

Lube oil rate, density, consumption and cost

Lube consumption (cell F69) = 5.4 g/kWh

Density of lube oil (cell F68) = 0.98 kg/L

Lube oil rate (cell F70) = (5.4 /1000) / (0.98 kg/L) = 0.0055 L/kWh

Lube oil cost (cell F71) = 200 / 53.00 = 3.7736 USD/L

  1. Capital structure (equity, debt)

Capital structure:

Target IRR (cell J23) = 14.00% p.a.

Debt (cell J18) = 70% with 14.00% p.a. target IRR

Equity (cell J24) = 100% – 70% = 30% equity with 14.00% p.a. target IRR

70% debt with:

Target local component or local debt (cell G27) = 48.0%

48% local debt = 10% p.a. interest (cell J12), 10 years term (cell J13),

52% foreign debt (cell J7) = 100% – 48% = 52% at 8% p.a. interest (cell J14), 10 years term (cell J15)

  1. Local and foreign debt financing (upfront fees, commitment fees, grace period, DSR)

Local and foreign upfront financing fees (cell J10) = 2.0% one time

Local and foreign commitment fees (cell J11) = 0.50% p.a. on undrawn loan

Local and foreign loan grace period (cell J16) = 6 months

Local and foreign loan debt service reserve (DSR) (cell J17) = 6 months

  1. Depreciation and balance sheet accounts (receivables, payables, inventory)

Depreciation rate = 1 / economic life = 1 / C9 = 1/30 per year

Days receivables (cell F48) = 30 days

Days payables (cell G48) = 30 days

Days fuel inventory (cell G50) = 60 days

  1. Refurbishment (overhaul cost) at half life and salvage value at end of life

Refurbishment (overhaul cost) = 5% of original cost (cell F39), on the 15th year (cell F40)

Salvage value (cell F35) = 10% of original cost

With Board of Investments (BOI) incentives tax regime (1 = none, 2 = BOI, 3 = PEZA):

= 1 (cell F51) no incentives

With and without Input VAT = 1 (cell F52) with input / output VAT

  1. Tax and incentives regime

Income tax holiday (ITH) (cell J33) = 0

Income tax rate after ITH (cell J34) = 30% of taxable income

Property tax rate from COD for fossil fuel = 2.0% (cell J35) of 80% (cell J36) valuation of net book value (NBV) of properties (equipment, building), land is not depreciated while equipment and building are depreciated (fossil)

VAT on imported equipment = 0% (cell F49) (0 th year) cell F50) of which is recoverable on the 5th year) (fossil)

Recovery rate of VAT =12% (cell F24) on 5th year after COD

Customs Duty on imported equipment (cell F25) = 3% (fossil)

LGU tax = 1% (cell J37) of last year’s revenues

Gov’t share (for RE projects) = 0% (cell J38) (0% for fossil and non-RE projects,1% for RE)

ER 1-94 contribution = 0.01 / 53.00 = 0.0002 USD/kWh sold (cell J39)

Withholding tax on interest (foreign currency) = 10% (cell J40)

Gross receipts tax on interest (local currency) = 1% (cell J41)

Documentary tax = 0.5% (cell J42) – not used

PEZA incentives = 0% (cell J43) – none since no incentives

Royalty = 0% (cell J44) – not used

Currency used = USD (cell J45)

Based Foreign Exchange Rate = 1.00 USD/USD (cell J46)

Forward Fixed Exchange Rate = 1.00 USD/USD (cell J47)

Inflation Rate:

Base Local CPI (2022) = 160.00 (cell J48) – not used

Local CPI = 0.0% p.a. (OPEX) (cell J49) = 4.00 % p.a. (CAPEX) (cell L49)

Foreign CPI = 0.0% p.a. (OPEX) (cell J50) = 2.0% p.a. (CAPEX) (cell L50)

Annual depreciation rate (cell J51) = (1 + J49) / (1 +J50) – 1 = 0.0% p.a. (no inflation local OPEX)

With the above information and using the Discounted Cash Flow Internal Rate of Return (DCFIRR) method, you can determine the equity and project returns (IRR, NPV, PAYBACK, DSCR) and all financial ratios, show income and expense statement, balance sheet and cash flow.

It is now available too in 3 versions: deterministic (fixed inputs), sensitivity (varying set of inputs or scenario) and stochastic or probabilistic inputs (randomly changing set of inputs) that will help you as project developer to identify project risks.

Following are the results for Deterministic model:

% Local Component (funded by local debt) = 47.88% (cell J5)

% Foreign Component (funded by foreign debt) = 52.12% (cell J6)

Capital cost buildup results:

Construction Sources and Uses of Funds, $000600 MW
Uses of Fund:
Land Cost$142
EPC (Equipment, Balance of Plant, Transport)$725,278
Transmission Line Interconnection Facility$400
Sub-Station Facility$786
Development & Other Costs (Civil Works, Customs Duty)$130,323
Construction Contingency$33,483
Value Added Tax$64,725
Financing Costs$124,286
Initial Working Capital$79,781
Total Uses of Fund – $000$1,159,204
– USD 0001,159,204
Sources of Fund:
Total Sources of Fund$1,159,204

First year tariff (LCOE, LRMC) to hit target equity IRR = 0.12691 USD/kWh (cell O26)

Levelized tariff (NPV of asset value / NPV of generation), discounted at pre-tax WACC

= 0.1732 USD/kWh (cell G34)

SRMC = 0.12691 USD/kWh (cell O26)

LRMC = 0.18736USD/kWh (cell O27)

Pre-tax WACC = J30/(1-J34) =11.96% p.a.

After-tax WACC =J12 * (1- J34) * (J18-J7) + J14 * (1-J34) * J7 + J26 * J24 = 8.37% p.a.

WACC = =(J6*J12+J7*J14) *J18+J23*J24 = 11.47% p.a.

Equity IRR = 14.00% p.a. (cell G30)

Equity NPV = 0.0 (cell G28)

Equity PAYBACK = 10.52 years (cell C50)

Project IRR = 11.63% p.a. (cell G32)

Project NPV = -168.093 ‘000 USD (cell G33)

Project PAYBACK = 7.47 years (cell C51)

Debt Service Cover Ratio (DSCR) min = 0.51 (cell L43)

Debt Service Cover Ratio (DSCR) ave = 1.30 (cell L44)

Debt Service Cover Ratio (DSCR) max = 1.73 (cell L45)

Benefits to Cost (B/C) Ratio, discounted at pre-tax WACC = 1.099 (cell Ll47)

Financial Ratios (liquidity ratios, solvency ratios, efficiency ratios, profitability ratios, market prospect ratios) = see bottom of the Financials worksheet)

How to run the deterministic models:

Update first the blue inputs

Calibrate the model to meet the targets (run macro 2, ctrl + f):

  1. NCF target = 50%
  2. Local component of project cost target = 48% (52% foreign component)
  3. All-in capital cost target = 1,932 $/kW (or given tariff, use model to estimate CAPITAL cost)
  4. Fixed O&M target = 57.96 $/kW/year
  5. Variable O&M target = 2.76 $/MWh
  6. Fixed G&A target = 63.77 ‘000 $/year
  7. Set the project NPV (100% equity, 0% debt) to zero (run macro 3, ctrl + d)
  8. Set the equity NPV (30% equity, 70% debt) to zero (run macro 1, ctrl + e)

View the results:

  1. Inputs & Assumptions: shows all the inputs and the outputs summary so you will see immediately the impact 0f changing any input. It also shows the current values of the LCOE (levelized cost of energy) or LRMC (long run marginal cost = annualized capital and fixed costs + SRMC) and SRMC (short run marginal cost consisting of variable costs and fuel and lube costs)
  2. Tariff Breakdown
  3. Sensitivity Analysis (copy paste value of each run into the case column)
  4. Construction Period (view the total investment cost breakdown, annual capital cost drawdown)
  5. Operating Period (view the annual operating data: capacity, generation, tariff, revenue, exchange rate, fuel cost, lube oil cost, fixed O&M cost, variable O&M cost, refurbishment or overhaul cost, G&A cost, land lease, land value, depreciation cost, net book value, property tax, LGU tax, gov’t share, ER 1-94 contribution, income tax, working capital or receivables, payables, inventory, input/output VAT, initial working capital and other assets, other assets like VAT recovery expense, foreign debt and local debt amortization tables)
  6. Financials: (income & expense statement, retained earnings and capital, cash flow statement, required debt service reserve (DSR) balance, balance sheet, equity IRR and PAYBACK, project IRR and PAYBACK, debt service cover ratio (DSCR), benefits and costs analysis ratio, and other financial ratios like liquidity ratios, solvency ratios, efficiency ratios, profitability ratios and market prospect ratios)
  7. Asset Base FiT (calculates the NPV of total assets, annual generation and levelized cost using the pre-tax WACC as discounting rate)


AVAIL OF THE 50% DISCOUNT THIS MAY 1-31, 2023 AND PURCHASE AND DOWNLOAD THIS EASY-TO-USE MODEL FOR ONLY 300 USD. CLICK ON THE LINK BELOW TO ORDER AND PAY THRU PAYPAL AND IMMEDIATELY DOWNLOAD YOUR DOCX USER GUIDE AND XLSM MODEL WITH 3 AUTOMATED EASTY MACROS 2 (ctrl + f) to calibrate model to meet targets for net capacity factor or generation, % local and % foreign composition, all-in capital cost $/KW, and fixed O&M ($/KW/YEAR) and variable O&M ($/MWH) and fixed admin costs ($/year). Determine equity (30% equity, 70% debt) and project (100% equity, 0% debt) IRR, NPV, PAYBACK PERIOD, or first year tariff, short run marginal cost (SRMC), long run marginal cost (LRM) and levelized cost of energy (LCOE).

Here is the link




What is the difference between OCGT and CCGT? ›

In an open cycle gas turbine, the gas after rotating the turbine is exhausted into the atmosphere. In a closed cycle gas turbine, the gas after passing through the turbine is not exhausted into the atmosphere, but instead passes into the cooling chamber.

Which cycle operation of gas turbine is used for designing a combined cycle power plant __________? ›

The Brayton cycle is the basis of the gas turbine engine, in which ambient air is compressed and introduced to the combustor along with fuel. The fuel and air are combusted at pressure. The hot exhaust gases flow through an expander (turbine).

How does a combined cycle gas turbine power plant work? ›

In a two-on-one combined cycle system, two combustion turbine generators work in conjunction with two heat-recovery steam generators and a steam turbine generator. In the first cycle, natural gas or diesel gas is burned to directly power two gas turbine generators that produce electricity.

What cycles make up the combine cycle gas turbine power plant? ›

The thermodynamic cycle of the basic combined cycle consists of two power plant cycles. One is the Joule or Brayton cycle which is a gas turbine cycle and the other is the Rankine cycle which is a steam turbine cycle.

Why is OCGT better than CCGT? ›

OCGTs produce about 50% higher emissions per megawatt-hour than CCGTs, but their economic model allows them to run fewer hours—and over fewer years.

What is the efficiency of OCGT vs CCGT? ›

When it comes to efficiency, OCGT systems have lower efficiency (around 40%) than CCGT, which can reach efficiencies of up to 56 – 60%. In this way, CCGT may be the best option in power plants where efficiency is a key point.

How a modern combined cycle gas turbine CCGT power station works? ›

A combined-cycle gas turbine (CCGT) power plant uses the exhaust heat from gas turbines to generate steam with a heat recovery steam generator (HRSG). The produced steam is then fed to a steam turbine to provide additional power, either running a generator or as a mechanical drive.

What is the configuration of a combined-cycle power plant? ›

The predominant configuration for combined-cycle systems involves two combustion turbines and one steam turbine (2x1). Natural gas-fired electric power plants utilize either simple-cycle or combined-cycle energy conversion.

What are the main components in a combined-cycle power plant? ›

The main equipment for any combined cycle power plant includes a steam turbine, a gas turbine, and a heat recovery steam generator. Correctly selected, designed and installed, these components ensure reliable and uninterrupted operation of the power plant while achieving the required performance.

What is the most efficient combined cycle power plant? ›

Guinness World Records has named the Chubu Electric Nishi-Nagoya power plant Block-1 in Japan — powered by GE's 7HA gas turbine — the world's most efficient combined-cycle power plant, based on achieving 63.08 percent gross efficiency.

What is the most efficient power plant? ›

Hydro turbines, the oldest and the most commonly used renewable energy source, have the most efficient of all power conversion processes.

What is the most efficient natural gas power plant? ›

Duke Energy's Lincoln Combustion Turbine Station, powered by a Siemens Energy SGT6-9000HL (60Hz) turbine, has earned the Guinness World Records title for the “most powerful simple-cycle gas power plant” with an output of 410.9 megawatts. That's enough energy to power more than 300,000 homes.

What is the formula for combined cycle gas turbine? ›

Schematic of a combined-cycle gas turbine plant. Overall efficiency (ηcc) is a combination of the efficiency of the Brayton gas turbine cycle (ηB) and the Rankine steam turbine cycle (ηR). Total combined-cycle efficiency ηccBR−ηBηR.

What are the advantages of combined cycle gas turbine power plant? ›

What are the advantages of a combined cycle? Flexibility. Combined-cycle plants can adapt to electricity demand or production needs. This type of plants can operate at full capacity with high demand and can bring its operation capacity down to a 45% partial load.

How long does it take for a combined cycle gas turbine to start? ›

This is about half the time for conventional hot start that would require purge and gas turbine holds. In simple cycle, published start times for gas turbines are about 10 to 15 minutes.

What is the lifespan of OCGT? ›

The proposed OCGT gas turbine stations will add approximately 1000MW of new generation capacity. It is estimated that an open cycle gas turbine's life span is 25 years.

What is the lifespan of CCGT? ›

25 to 30 years is a typical expected operating life for a combined-cycle power plant.

What is the disadvantage of combined-cycle power plant? ›

Disadvantages of Combined Cycle Power Plant

Technologies are complex and expensive which increases the initial investment. The efficiency of part-load demand is poor. To operate at high temperatures and pressure, special metals are required. Limited fuel switching capability.

Is gas turbine more efficient than IC engine? ›

The temperature of the internal combustion engine is always greater than that of the gas turbine. Thus the efficiency of the internal combustion engine is always greater than that of the gas turbines.

Which is the most efficient power cycle in thermodynamics? ›

The Brayton (gas turbine) cycle, which makes one-half of the electricity in the IFCC, is inherently more efficient than a Rankine (steam) cycle, because there is no loss of the heat of vaporization of the water to make steam in the Brayton cycle.

Which is the highest efficiency hydro turbine? ›

Pelton wheel, which is an impulse type turbine invented by an American engineer L. Pelton in the 19th century and has proven to be among the most efficient hydroturbines.

What fuel is used in CCGT? ›

The technology is typically powered using natural gas, but it can also be fueled using coal, biomass and even solar power as part of solar combined cycle plants.

What is the future scope of combined cycle power plant? ›

Combined Cycle Power Plant Market size is expected to grow substantially between 2023 and 2032 due to its high cycle efficiency, large output, cost-effectiveness, low emission levels, and other attractive features.

What is the difference between cogen and combined cycle? ›

1) What is the difference between co-generation and combined-cycle power generation? Co-generations uses waste heat for many different processes, such as space heating or drying. Combined-cycle power generation is a two-cycle electricity generation process that uses the heat from the first cycle to run a second cycle.

What is the difference between combined-cycle power plant and CHP plant? ›

The Combined Cycle can be used to produce only electricity or can be employed within the Combined Heat and Power scheme to produce both electricity and steam.

How much does a combined-cycle power plant cost per MWh? ›

NGCC-CLC using excess air with steam turbine integration has an investment cost of 132.9 $/net MWh, an operating cost of 56.7 $/net MWh year, and a levelized cost of electricity of 90.9 $/MWh.

How much CO2 does a combined-cycle power plant produce? ›

With this credit, CO2 emissions range from 640-817 lbs/MWh. For comparison, a typical natural gas combined cycle power plant will have emissions of 800-900 lbs/MWh, and a coal plant will have CO2 emissions near 2,000 lbs/MWh.

What are the five main components of a power plant? ›

Any nuclear reactor that produces power via the fission of uranium (U-235) or plutonium (Pu-239) by bombardment with neutrons must have at least five components: nuclear fuel consisting of fissionable material, a nuclear moderator, reactor coolant, control rods, and a shield/containment system.

What are the main components of a gas turbine based power plant? ›

Gas turbines are composed of three main components: compressor, combustor, and turbine.

What is the typical size of combined cycle power plant? ›

Most of the installed capacity of natural gas-fired combined-cycle units comes from power blocks that have capacities of 600 MW to 700 MW.

What is the most efficient gas turbine design? ›

Today we announced that the Chubu Electric Nishi-Nagoya power plant Block-1 – powered by GE's 7HA gas turbine – has been recognized by GUINNESS WORLD RECORDS™ as the world's Most efficient combined-cycle power plant, based on achieving 63.08 percent gross efficiency.

Which power cycle is the best model for a gas turbine engine? ›

Essentially all gas turbines are based on the Brayton cycle, which is sometimes referred to as a Joule cycle. In this cycle, fuel and air are pressurized, burned, pass through a gas turbine, and exhausted. The exhaust gases are generally used to preheat the fuel or air.

What is the most safest power plant? ›

Nuclear and renewables are far, far safer than fossil fuels.

What is the fastest growing power source? ›

Solar photovoltaics are the fastest growing electricity source. In 2020, around 139 GW of global capacity was added, bringing the total to about 760 GW and producing almost 3 percent of the world's electricity.

What is the most environmentally friendly power plant? ›

Wind energy is one of the most sustainable forms of energy currently available. It harnesses the power of naturally moving air to spin wind turbines, which in turn generate electricity.

What is the biggest fuel source for generating electricity? ›

Fossil fuels are the largest sources of energy for electricity generation.

What are the top 5 power generating states of natural gas? ›

In fact, the top five energy-producing states overall (Texas, Wyoming, Pennsylvania, Louisiana and West Virginia) are also the top five fossil energy-producing states.

What is the largest gas processing plant in the world? ›

Ras Laffan processing plant

The Ras Laffan gas processing and compression plant is located at 25°55′31″N 51°30′58″E . It was designed by JGC Middle East FZE, a subsidiary of JGC Corporation. Ras Laffan is the single largest gas processing plant in the world.

How much does a combined cycle gas turbine cost? ›

The capital cost of an NGCC plant larger than 200 MW ranges from $450 to $650 per kW. A smaller plant ranges from $650 to $1,200 per kW. Additionally, a large NGCC plant can be built in less than 24 months.

How do you calculate the efficiency of a combined cycle? ›

The combined cycle efficiency is the total work output divided by the heat input of the topping cycle.

What is an OCGT? ›

OCGTs (Open Cycle Gas Turbines) are power stations that use diesel as their primary resource. Since this is a limited fuel sources, and comes at a great expense, the utilization is tracked very closely.

What is OCGT power? ›

In a simple cycle gas-turbine, also known as open-cycle gas-turbine (OCGT), hot gas drives a gas turbine to generate electricity. This type of plant is relatively cheap to build and can start very quickly, but due to its lower efficiency is at most is only run for a few hours a day as a peaking power plant.

What are the two types of gas turbine power plant? ›

Land based gas turbines are of two types: (1) heavy frame engines and (2) aeroderivative engines. Heavy frame engines are characterized by lower pressure ratios (typically below 20) and tend to be physically large. Pressure ratio is the ratio of the compressor discharge pressure and the inlet air pressure.


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