Cogeneration in rural development

The excellent thermodynamic performance offered by cogeneration plants indicates that cogeneration is an attractive means of meeting the energy needs of industry and that it can contribute significantly to the efficient use of energy. In developing countries, particularly those with scarce energy resources and with limited national financial resources for providing the much needed energy for socio-economic growth, industrial cogeneration offers the opportunity of supplementing national energy sources, thus helping to maintain development programs aimed at increasing the quality of life of the population. However, it is not always economical to choose cogeneration over a mix of conventional plants. The factors which affect the choice amongst alternatives are many, but the efficiency, the mode of operation, and the availability of the topping plant and the manner of financing the project strongly impact cash flows which ultimately determine the economic viability of a cogeneration proposal. This paper investigates the potential economic benefits that can be accrued by installing gas turbine cogeneration sets along an oil pipeline in a sub-Saharan country.