A technical and financial analysis of two recuperated, reciprocating engine driven power plants. Part 2: Financial analysis

This financial analysis estimates the so-called Levelized Cost of Electricity (LCOE) of both hybrids using reference data from several sources. Using consistent financial inputs, the LCOE of both hybrid plants is found to be comparable to the LCOE of natural gas combined cycle (NGCC) power generation. Further, the LCOE of the renewable portion of the hybrid plants' total power output is significantly cheaper than that of all the renewable plants examined in the EPRI report, and is competitive with the fossil plants. As a result, the proposed hybrids appear to be a cost-effective form of greenhouse gas mitigation.