In this paper, an economic model is presented for the evaluation of gas turbine total productive life cost and profitability. The model utilizes input from gas turbine engine performance, emissions and lifing models to provide quantitative information on the economic implications of an investigated system or investment option.
In this study, the proposed model is used to conduct economic analysis on a turbojet engine, repurposed for alternative profitable use in electrical power generation. Results from the analysis are compared against competitor units to determine the models economic feasibility, benefits and limitations over competitors. Results obtained from the investigation reveal that the repurposed unit is economically feasible and favours profitability at minimal investment costs, with least burden on consumers. At a discount rate of 2.5%, investing in the repurposed engine model offers an investment base 13% lower, NPV 6% higher and an LCOE 24% higher in simple cycle than in combined cycle operation.