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130 incineration is used for volume reduction without energy recovery, the additional investments needed to give WTE indicate the cost of heat and/or power generated. In a situation in which electricity is already generated, additional investments for heat generation are relatively small but must also account for the losses from the resulting reduced electricity generated41. The economics of a WTE process (Table A7) are primarily based on the income from waste treatment, with a tariff that should cover the operational costs of the plant. In other words, the cost of the heat and electricity generated strongly depends on other revenue generated from waste disposal as well as the additional cost for disposal of residue streams such as ash. In some situations the cost of producing the heat leaving the plant could be practically zero. The often high capital costs for the heat distribution system were not included in the methodology (Figure A1). The price for heat at the end-user level is generally similar to that supplied from other technologies. So in practice the economics of heat utilisation are basically determined by selling the heat to pay back the initial investment of the heat distribution system (Koppejan 2007). In this current analysis, the reference situation chosen was construction of a new, technically advanced WTE plant, with an electrical efficiency of 15% to 30% and a thermal efficiency of 20% to 40%. Note, that a heat-only MSW incinerator (as used in Denmark and Sweden) could have a thermal efficiency of 70% to 80% but was not considered here. The investment costs of a MSW installation are mainly determined by the flue gas cleaning costs that can be allocated to the core process of waste treatment rather than to the heat production process. Data used were based on Tilburg (2006) and Gerlagh (2007). In the resulting cost analysis, fuel costs have been set at zero so that the dominant cost factors are for capital investment and O&M. The overall average cost of heat could reduce from €5.0 /GJ in 2005 to €4.6 /GJ in 2030 (with ranges remaining similar at €2 to 12 /GJ). It should be noted that a WTE plant continuously offers heat supply so that where the heat demand fluctuates, this can influence the cost of delivered heat, but since it is very site-specific, was not considered here. A7. Conventional deep geothermal Different applications for which geothermal direct heat is used include ground heat pumps, bathing/ swimming, space heating (mostly provided by district heating), greenhouse and open-ground heating, industrial process heating, aquaculture pond heating and agricultural drying. There is also a very wide range of capacity factors (18 to >70%) for these uses. Consequently, the range in investment and calculated energy costs for deep geothermal direct use as presented below are large. They reflect some uncertainty as well as a real range of costs due to significant variations also arising from differences in the type of use. In order to correct for the share in investment costs that is related to electricity production, only part of the investment costs is allocated to heat production. All data are based on estimates by GIA (Mongillo, 2007). The costs of available heat from conventional deep geothermal projects (Table A8) is very low at €1.7 /GJ with a range of €0.4 to 11 /GJ. In future, due to the fact that some remaining geothermal sources will be more difficult to unlock than those already developed, costs are likely to increase to an average of €1.9 /GJ (range €0.4 to 12 /GJ). 41. Where steam is withdrawn from the electricity generating cycle, a reduction of electricity yield results. Depending on the process conditions around 7 GJ of heat can be withdrawn from the process to the detriment of 1 GJ of electricity generated. At a cost of €50 to 100 /MWh, this results in an ‘opportunity cost’ of heat of €2 to 4 /GJ without considering the additional investments for heat use (Koppejan 2007).PDF Image | RENEWABLES FOR HEATING AND COOLING
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