The goal of this study was to determine the economic feasibility of battery energy storage system (BESS). Three major economic benefits derived from BESS using were studied: 1. Energy Purchase Shifting, 2. Distribution Feeder Deferral, 3. Outage Avoidance. The economic analysis was based on theoretical modeling of the BESS and distribution system. Three simulation models were developed to quantify the effects of different parameters, such as: BESS round-trip efficiency, life span, rated power, rated discharge time, marginal cost of electric energy, 24 h feeder load profile, annual load variation, feeder load growth rate and feeder length. An optimal battery charging/discharging method was presented to determine the differential cost of energy (DCE). The annual maximum DCE was calculated using stochastic probability analysis on seasonal load variation. The net present value was evaluated as the present value difference between two investments: first, the distribution feeder upgrade without BESS deferral, and second, with BESS deferral. Furthermore, the BESS’s contributions under different outage strategies were compared. It was determined that feeder length is the most significant parameter. The economics of the studied system becomes favorable when the feeder length exceeds a critical value.

The problem of project selection is of significant importance in management of information systems. Almost $2 trillion is spent worldwide every year on IT projects, with over $600 billion spent in the US alone. Traditionally, managers have being using the classical net present value (NPV) method in conjunction with multicriteria scoring models for ROI analysis and selection of IT project investments The multicriteria models use ad-hoc evaluation criteria to assign priority weights and then rate the alternatives against each criterion. These models have two limitations. First, the criteria and weights are based on subjective judgments, allowing the introduction of politics in the information management decision process and the generation of arbitrary results. Second, the classical approach uses deterministic estimations of the cost, benefits and the returns of the projects, without considering the impact of uncertainty and risk in the business decisions. This research proposed a better alternative for ROI analysis and selection of IT projects using a real option strategic scorecard (ROSS) approach. In contrast with traditional methodologies and previous research work, the ROSS decision framework uses a more comprehensive, axiomatic approach for systematically measuring both the business value and the strategic implications of IT project investments. The ROSS approach integrates in a unified IT project management decision framework the best elements of real option theory, strategic balanced scorecards, Monte Carlo simulations and analytical network processes to fully analyzes the effect of uncertainty and risk in the IT investment decisions. In addition, the ROSS approach complies with the critical success factors that have being identified in the literature for validation of IT decision frameworks. The main benefit of the ROSS approach is to enable managers to better compare and rank projects in the IT portfolio, optimizing the ROI analysis and selection of information system projects.

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Manure-based biomass (MBB) has the potential to be a source of green energy at large coal-fired power plants and on smaller-scale combustion systems at or near confined animal feeding operations. Although MBB is a low quality fuel with an inferior heat value compared to coal and other fossil fuels, the concentration of it at large animal feeding operations can make it a viable source of fuel. Mathematical models were developed to portray the economics of co-firing and reburning coal with MBB. A base case run of the co-fire model in which a 95:5 blend of coal to low-ash MBB was burned at an existing 300-MWe coal-fired power plant was found to have an overall net present cost of $22.6 million. The most significant cost that hindered the profitability of the co-fire project was the cost of operating gas boilers for biomass dryers that were required to reduce the MBB's moisture content before transportation and combustion. However, a higher dollar value on avoided nonrenewable CO2 emissions could overrule exorbitant costs of drying and transporting the MBB to power plants. A CO2 value of $17/metric ton was found to be enough for the MBB co-fire project to reach an economic break-even point. Reburning coal with MBB to reduce NOx emissions can theoretically be more profitable than a co-fire project, due to the value of avoided NOx emissions. However, the issue of finding enough suitable low-ash biomass becomes problematic for reburn systems since the reburn fuel must supply 10 to 25% of the power plant?s heat rate in order to achieve the desired NOx level. A NOx emission value over $2500/metric ton would justify installing a MBB reburn system. A base case run of a mathematical model describing a small-scale, on-the-farm MBB combustion system that can completely incinerate high-moisture (over 90%) manure biomass was developed and completed. If all of the energy or steam produced by the MBB combustion system were to bring revenue to the animal feeding operation either by avoided fueling costs or by sales, the conceptualized MBB combustion system has the potential to be a profitable venture.

Thesis (Ph. D.)--Rutgers University, 2007. / Graduate Program in Industrial and Systems Engineering. Includes bibliographical references (p. 132-138).

Orientador: Gabriel Alves da Costa Lima / Dissertação (mestrado) - Universidade Estadual de Campinas, Faculdade de Engenharia Mecânica e Instituto de Geociências / Made available in DSpace on 2018-08-21T23:40:04Z (GMT). No. of bitstreams: 1 Cesca_IgorGimenes_M.pdf: 2631356 bytes, checksum: 457c322ac2cc3cffc8315b485825f863 (MD5) Previous issue date: 2012 / Resumo: No setor energético (mineração, energia elétrica e petróleo), o conhecimento do comportamento dos custos dos equipamentos em seus ciclos de vida se torna muito importante devido a: (1) alto custo de aquisição e (2) elevadas despesas de manutenção. Dessa maneira, a aquisição de um ativo físico não deve ser decidida somente com base no custo inicial, mas sim por meio do custo do ciclo de vida desse ativo. Para esta dissertação foi elaborado um modelo matemático para encontrar a vida econômica e realizar previsões de custos de manutenção de um grupo de ativos físicos empregados no setor energético. Sendo assim, isso ocorre por meio de: (1) programação dinâmica, utilizando o modelo clássico de Bellman para reposição de equipamentos; (2) engenharia econômica, de tal forma que a vida econômica dos equipamentos é modelada por meio da função W de Lambert e (3) técnicas econométricas de previsão, tal que a relação entre os custos de manutenção e a idade dos equipamentos é testada por formas funcionais de regressões lineares simples. Com isso, para modelagem de vida econômica, foi possível estabelecer teoremas e, para previsão de custos de manutenção, foi possível perceber que as variáveis possuem uma relação não linear entre elas. Portanto, foi possível concluir que os equipamentos podem ser utilizados de maneira mais eficiente e com menores custos de ciclo de vida incorporados, uma vez que seja aplicada uma gestão econômica com base no modelo proposto nesta dissertação e, consequentemente, também possibilitar obter melhores indicadores financeiros para as empresas do setor energético / Abstract: In the energy sector (mining, oil and electricity), the knowledge of the asset's behavior in their life-cycle costs becomes very important because of: (1) the high cost of acquisition and (2) the high maintenance expenses. Thus, the acquisition of a physical asset should not be decided only on the basis of its initial cost, but through the consideration of its entire life cycle cost. In this dissertation a mathematical model of economic life and maintenance costs forecasts of a group of physical assets is developed and employed in the analysis of problems in the energy sector. The model considers the following: (1) dynamic programming, using the classical Bellman model for equipment replacement; (2) engineering economics, using to model the economic life of the equipment the equivalent cost theory and Lambert W-function and (3) econometric forecasting techniques, such that the relationship between the maintenance costs and equipment age are tested for functional forms of linear regressions. Therefore, on economic life modeling, it was possible to establish theorems and on maintenance costs forecasting. It was revealed that the variables have a nonlinear relationship between them. To conclude, physical assets can be used more efficiently and at lower life-cycle costs incorporated with the application of models developed in this dissertation and, consequently, contribute to obtain better financial indicators for companies in the energy sector / Mestrado / Reservatórios e Gestão / Mestre em Ciências e Engenharia de Petróleo

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Master’s thesis focuses on renewable and alternative energy sources and their operation in the Czech Republic. First part of this work deals with legislative support of the renewable energy sources and with other related documents. Next chapters describe each kind of renewable energy sources and their contemporary energy market share. In this work there are also economic analyses of electricity and eventually heat productions which are produced on concrete plants by sources using renewable energy. There is a comparison between regular and renewable energy sources in the next chapter. Final evaluation of different energy sources and their possibilities of using are described in the final part of the thesis.

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