The aim of the module is to provide a connection between the two disciplines of energy engineering and engineering economics, and will be useful to those who find themselves involved in the energy field, particularly with respect to heat and/or power generation. To this end, the module devotes as much space to technoeconomic characteristics of generating systems as it does to engineering economic techniques, with particular emphasis on the uncertainty aspect. The module comprises a balanced blend of theoretical concepts and their practical applications. These principles and techniques can be used in decision making during design, optimisation, plant and equipment selection and asset management. An important aspect of the approach adopted in this module is to provide context to the techniques, methods and concepts of the economic assessment of engineering decisions. The cornerstones of engineering economics are risk and return, and it is essential to address the risk of a project in a discussion of its merits. The module requires a fundamental understanding of engineering thermodynamics and engineering economics including project evaluation.
- Review of the ever-expanding role of energy engineering economics, thermo-economics and the design & optimisation process.
- Review of engineering economic mathematics and techniques used in preparing energy project investment evaluations and decision analysis.
- Energy engineering project cost concepts, classification, estimation techniques and analysis.
- Techno-economic parameters and performance metrics of heat and/or power generating units and systems.
- Thermo-economic analysis and optimisation (based on 1st and 2nd law of thermodynamics) of energy conversion systems.
- Least cost of generation and capacity, economic dispatch, cost of unserved energy, PPA, tariffs and ancillary payments.
- Deterministic and stochastic pro-forma pre- and post-tax energy engineering economic analysis.
- Quantification of uncertainty, risk analysis and Monte Carlo simulation.
- Energy asset (plant & equipment) management analysis.
- Energy project appraisal and evaluation and the bankable feasibility study.
