Overview

The initial stages of project development were reviewed in chapter 6. While no project can ever be considered risk free, the initial evaluative tasks are intended to identify and quantify risks as a basis for initial project planning and definition. As one proceeds through the development process, uncertainty and risk are either reduced or otherwise managed.

Cogeneration system developmental phases and activities or tasks are listed below. Not all of the listed tasks are required for all types of cogeneration projects. For example, it may not be necessary to negotiate a power purchase agreement for an internal-use project; in some cases the project may not export power, or power sales may be modest, with the rates for power sales specified in a published tariff. Similarly, it may not be necessary to negotiate host agreements or steam sale agreements if the project is owned and operated by the end-user. These tasks or activities are noted with an asterisk (*). There are no clear or distinct criteria that can be used to assign specific tasks to one phase or another. For example, it may be necessary to negotiate a letter of intent with a host or a third party before detailed design development can be authorized; similarly, it may be necessary to obtain a power purchase agreement before applying for critical permits or before detailed design can be authorized.

• Phase I Initial Evaluation.

  • Walkthrough and Conceptual Design

  • Screening Studies, Preliminary Design Development

  • Detailed Design Development

• Phase II Permitting/Design/Financing. For larger, wholesale power...