One of NYC’s largest and most renowned Hospitals was considering a Combined Heat & Power (CHP) plant to increase reliability and safeguard against rising electric costs. Luthin Associates was hired to conduct a feasibility study to determine the economic viability of a co-generation system for its main facility.
Luthin Associates developed a baseline of energy usage costs based on existing load profiles and historical records. We built simulation models to estimate future energy costs based on our knowledge of energy markets, regulatory issues, and tariff-related distribution issues. Our analysis considered aspects as diverse as market deviations and maintenance downtime; output power, parasitic load, boiler efficiency, and degradation. We developed a life cycle cost analysis model to determine the Net Present Value and Internal Rate of Return for the project. Our sensitivity analysis models projected the impact on the economics of the project by varying electric and natural gas costs based on our familiarity with the markets.
All deliverables for this project were met on time and to the customer’s satisfaction. The results were presented in a clear, concise manner and the analysis was verified by an independent review. The customer’s decision to build this system will be based on our analysis and the customer’s confidence in our work.